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Trump Demands Military Options at "Much Faster Pace"; Tillerson Days Seen as Numbered as Foreign Crises Roil; Tropical Storm Nate Barrels Towards Louisiana; Mueller Team Speaks with Man Behind Dossier in Russia Probe; Trump to Decertify Nuclear Iran Deal. Aired 1:30-2p ET

Aired October 06, 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] -- DAVID GREGORY, CNN SENIOR POLITICAL ANALYST: The fact that he cannot get along with people who he worked with and top leaders. And everyone in power is reluctant to take him on for fear of how he might criticize them. That's the state of affairs in a volatile time, at a time when our own government is divided in the future of this Iran deal, for example. Even though there seem to be smart negotiations, we hope, going on with North Korea, this is volatile. And most of the volatility comes from this transparent, volatile speech from our president.

WOLF BLITZER, CNN HOST: Let's not forget he publicly chastised the secretary of state for engaging in back channels with North Korea, saying don't waste your time with that kind of diplomacy.

Everybody stand by. There is much more we need to discuss.

New signs of tension between the president and the secretary of state after Rex Tillerson doesn't deny calling his boss a moron. Is their relationship beyond repair?

And New Orleans bracing for a hurricane as Tropical Storm Nate barrels towards the U.S. coast. I will speak live with the lieutenant governor of Louisiana about preparations under way.

(COMMERCIAL BREAK)

BLITZER: The tensions between President Trump and Secretary of State Rex Tillerson spilled into the open this week. Tillerson called a news conference to refute reports he threatened to resign, however, he didn't directly deny he privately called the president of the United States a moron. What does all this mean for the future? Administration officials, diplomats believe right now his days are numbered.

Let's get back to the panel.

John Kirby, you're a former spokesman at the State Department. The spokeswoman right now did later deny her boss called the president a moron, but he had an opportunity to say that and he didn't.

JOHN KIRBY, CNN MILITARY & DIPLOMATIC ANALYST: That was striking to me that he did it at all. He should be talking about foreign policy and he denied that he called the president a moron. That's extraordinary. He had to do that under a duress. He got told to do that. We are having that discuss instead of with meaningful discussions. This is what we are focused on. I don't know if he is in real trouble or not, but any effort he tried to make in a foreign policy front has been undermined and made more difficult by the president himself.

BLITZER: It's clear that Secretary Mattis, the secretary of defense, and other national security officials are very nervous about what would happen if the secretary of state walked away.

COL. STEVE WARREN, CNN MILITARY ANALYST: We are nervous. They made it a point to join himself at the hip with the secretary of state. Secretary Mattis said I am reporting secretary Tillerson and he makes it clear that military and the diplomatic go hand in hand.

BLITZER: What do you think, David?

[13:35:00] GREGORY: I think all you have to do is study history. We have been talking about the Vietnam War and this series that PBS has done. And his team, people who had a great deal of experience in the military and in politics and government work made hideous mistakes when it came to getting into wars. We have a president with no experience who is incredibly thin skinned and volatile. The security team appears to be divided. That should be a cause of concern on Capitol Hill and beyond. And it is to Republicans like Bob Corker who feels free to speak his mind. It could be chaos and people should worry about that when we have somebody the likes of Kim Jong-Un out there threatening a nuclear strike.

(CROSSTALK)

BLITZER: What are you hearing from your sources?

JULIE HIRSCHFELD DAVIS, WHITE HOUSE REPORTER, NEW YORK TIMES: What I'm hearing is there has been months toxicity in this happy. This dates back to before this moron comment was supposedly made. The feeling is that yes, there are many substantive differences between Rex Tillerson and President Trump, like North Korea and the Iran deal. There are differences between him and Secretary Mattis as well. But there is a more stylistic problem between the two of them where the president and frankly many of his senior staff feel that Rex Tillerson has been ineffective, has been a thorn in the side, has not been trying to be a team player, and they point out that he has other aides, like Gary Cohn, who disagree with him on many issues, who manage not to publicly air the differences and feel that Rex Tillerson should have done a better job. That being said, he is part of the national security team and has to speak his mind and talk about what he thinks is in the best interest of diplomacy. This notion that he could paper over the differences with the president and that would heal the divisions, I don't think it's really likely.

KIRBY: The energy being applied, think about the energy being applied to not upsetting him, Trump, and to try to manage the institution by not getting in trouble publicly. Secretary Mattis is not talking to the press because he doesn't want to set himself up to not agreeing with the president. I did agree that Tillerson has not done himself a favor by the way he has been managing this.

(CROSSTALK)

WARREN: It's about leadership, right? Leaders don't position themselves to where their immediate subordinates and secretaries of cabinets are speaking under their breath about their leader. Leaders don't put themselves in that position.

GREGORY: We should point out, to be fair, there is often this kind of tension within the administrations and within national security teams. That can be a bad thing. It doesn't mean that it still happens it. Still does happen.

I think John's point is really important. There is so much energy being spent not setting off the volatile guy at the top. That is misspent and dysfunctional. I thought that Mr. Businessman Trump was supposed to have the best team and be functional and efficient, and America was going to win all the time. In the meantime, it's a revolving door at the White House.

BLITZER: There's Always tension, as there should be. People argue. But, publicly, it doesn't spill over where the president of the United States is criticizing and be rating and undermining.

You served how many years in the U.S. military?

KIRBY: Thirty years.

BLITZER: Thirty.

(CROSSTALK)

Did you see when it was Bill Clinton or George W. Bush or Barack Obama were they undermining their secretary of state?

(CROSSTALK)

KIRBY: No. I have never seen anything like this.

(CROSSTALK)

KIRBY: It was extraordinary that the president got asked what he thought of Tillerson's comments saying he is not a moron and this made news. They should be embarrassed. A, that you have to deny you called the president a moron. And, B, that the president has to say, yes, like that he didn't call me a moron.

HIRSCHFELD DAVIS: Beyond the energy being expended by members of the national security team on this, this is a full-time job for John Kelly, the chief of staff, who was brought on to make this a more functional White House, to make it a White House that can proactively get things done and not be in a crisis mode all the time. That is what he is spending all the time. How he spent most of this week. The day of the story. That's going continue.

[13:39:20] BLITZER: Guys, thanks very, very much. David Gregory, Julie Hirschfeld Davis, John Kirby and Steve Warren, appreciate it.

The Las Vegas gunman's hairdresser revealing what he told her about his girlfriend's trip to the Philippines.

And the special counsel, Robert Mueller, meeting with the author of the infamous Trump dossier. What it means in the Russia investigation.

We will get back in two minutes.

(COMMERCIAL BREAK)

BLITZER: We are following breaking news. A killer storm, Nate, is gaining strength as it heads towards the United States coast. New Orleans is in the crosshairs with landfall expected late tomorrow night.

Joining us now from New Orleans is Louisiana's lieutenant governor, Billy Nungesser.

Lieutenant Governor, thanks very much for joining us.

I hear the words another hurricane approaching Louisiana. Your state approaching New Orleans. Like all of us, we remember Katrina. We get worried. What is Louisiana doing right now for a possible hit by Nate?

BILLY NUNGESSER, (R), LIEUTENANT GOVERNOR OF LOUISIANA: We are preparing for this knowing it's only proposed to be a category 1, but when it gets into the gulf with the warm waters, it has the potential to strengthen. We won't have a chance when it gets in the gulf to make more preparations. We are preparing for the worst and hoping for the best. As it approaches, we sure are in the direct line of this storm and are preparing for the worst.

BLITZER: Have evacuation orders been issued yet?

NUNGESSER: For Grand Isle and the lower areas. You know the point of Louisiana that sticks out in the gulf that got hit first by Katrina, there is over a million dollars in levies being built as we speak. They have no dirt or grass on them. We are concerned about the new levees under construction because they will not take storm surge very long with that raw direct on the newly constructed levies. That is a big concern.

BLITZER: What are worries me, and you as well, Lieutenant Governor, the city of New Orleans as you know, and all of viewers know, they remember 2005, Katrina is below sea level. Are the pumps and the levies that you have there working efficiently to protect the city from several inches of rain even if it's a hurricane category 1. It's going to be bad.

NUNGESSER: After the last flooding, the mayors and the governor worked very hard to get the pumps back online. The National Guard is there to back up New Orleans pump operators. We are as prepared as we can be. All but one is online and, hopefully, we will be able to get through this one without major flooding.

BLITZER: In recent weeks, we've heard a lot about the hurricane categories 3, 4 and 5. Are you concerned that the folks in Louisiana may not be taking this storm as seriously as they should simply because they are saying it's a category 1?

NUNGESSER: Absolutely. We are still talking to groups that were holding festivals, about cancelling events, and they were waiting to see how bad it's going to be. When it gets in the gulf and strengthens, we won't have time to get people out of low-lying areas. We've asked the people to move north and get out of harm's way before it's too late.

[13:45:02] BLITZER: It looks like it will hit late, late saturday night. Not that long from now, 36 hours or so from now. Not a lot of time left.

Louisiana Lieutenant Governor Billy Nungesser, good luck to you and all of the folks in Louisiana. We will be watching this story very, very closely. Thanks for joining us.

NUNGESSER: Thank you, Wolf.

BLITZER: Up next, CNN learned that Robert Mueller met with the former British spy and the author of the infamous Russia dossier. We have details of this report and what it means for the investigation and a lot more.

The White House briefing just moments away. Live pictures coming in from the White House. Will they clarify what the president of the United States meant when he warned that this could be the calm before the storm right now?

(COMMERCIAL BREAK)

[13:50:02] BLITZER: We're learning new information about the Russia investigation right now. The dossier compiled by a former British spy. The Special Counsel Robert Mueller's investigators have met with Christopher Steele about his report. That, according to two people familiar with the matter. CNN has learned the FBI and the CIA took the dossier more significantly than acknowledged.

James Woolsey is a former CIA director, former senior adviser for the Trump campaign. He and served as CIA director during the Clinton administration.

Director Woolsey, thanks very much for coming in.

JAMES WOOLSEY, FORMER SENIOR ADVISOR, TRUMP CAMPAIGN & FORMER CIA DIRECTOR: Good to be with you.

BLITZER: What's your reaction to this report that the Mueller team met with Christopher Steele, the former British spy who wrote that dossier?

WOOLSEY: There's a lot of bureaucratic back and forth about the dossier and who looks at it and who has responsibility. Mueller has taken responsibility for overseeing and looking at it.

I think the most interesting thing that's happened is Paul Gregory, a Russian specialist at the Hoover Institution at Stanford, has been through this thoroughly. And it looks to him, according to what's been quoted, as if it's a clumsy KGB assimilation, not a refined report from a crafty British spy.

BLITZER: Why would the KGB -- the KGB used to be in the Soviet Union, the successor to the KGB -- why would they go after Trump? All indications were Russians were trying to undermine Hillary Clinton and cause chaos in the United States in the political system and at the same time if they could help Trump.

WOOLSEY: We've been too much focused on the individual outcome. I don't know whether they were trying to help Trump or not. The main point I think is that they want to undermine our confidence in our institutions and undermine our confidence in our religious institutions. They've been doing this since the 1930s. We call it disinformation. They care a lot more about having people I think feeling as if things aren't working well than they do about the precise outcome. The thing that's really in trouble is that we're going to see them go after the voting machines. And we've got the first in a year and a bit.

BLITZER: Why does the president of the United States do this day continue to call this whole Russia investigation, their meddling in the U.S. Democracy a hoax?

WOOLSEY: I don't know. Maybe --

(CROSSTALK)

BLITZER: It's not a hoax. You say it's the right thing. They are meddling.

WOOLSEY: They are meddling in all sorts of different ways. They meddle in religion by photocopying pictures of the pope and making them look strange. And they intervene in elections all over the world.

(CROSSTALK)

BLITZER: But you don't believe it's a hoax. You believe the Russians were actively engaged in trying to undermine the U.S. election?

WOOLSEY: They are never not engaged in undermining the U.S. elections. It's what they do. What's new is that they can now do it with cyber. They don't have to smuggle agents into --

(CROSSTALK)

BLITZER: And social media, too.

Do you have confidence in Robert Mueller, special counsel, whom I assume you know him? WOOLSEY: I do not know him. From what I've read and heard about him,

I would have confidence. But what's important that people understand that whether it is balloting, no matter what it is, the Russians are working very hard to undermine our institutions. And I think that is much more important to them than exactly who --

(CROSSTALK)

BLITZER: That certainly worthy of congressional investigations.

WOOLSEY: Absolutely.

BLITZER: And worthy of Mueller's investigation, even though the president continues to say it's all simply a hoax.

Let me get your quick reaction. The president next week is expected to decertify the Iran nuclear deal, throw the whole issue to Congress. And Congress will then have 60 days to decide whether to reimpose nuclear related sanctions against Iran. Is this a smart move by the president?

WOOLSEY: I think that however he decides to do it, this is the worst international agreement I'm familiar with. And I think that there ought to be some way -- for example, this should have been a treaty, should have required two-thirds of the Senate. One thing they could go, go back to Congress and Senate and resubmit it and say, we're willing to look at it, but if you can get two-thirds to support it. They didn't get close to two-thirds of the Senate. They jiggered the rules around so they had to only get one-third of the Senate.

But I think this is a very bad agreement. I think it undermines our ability to undercut what the Iranians are doing all over the Middle East. They are the number-one terrorist power in the world by --

(CROSSTALK)

BLITZER: Are you afraid though if the U.S. walks away from this agreement, which was worked out with the other permanent members of the U.N. Security Council, Germany, European Union, the IAEA, International Atomic Energy Agency, this will weaken U.S. global leadership?

WOOLSEY: I think --

(CROSSTALK)

BLITZER: None of them want to do this.

[13:55:01] WOOLSEY: I know they don't. But trying to operate within the terms of this, and letting the Iranians move towards having nuclear weapons, which they will before long, I think is the worst world of the world. North Korea and Iran are the two countries you really want, least of all, to have nuclear weapons. One has them, the other is headed --

(CROSSTALK) BLITZER: Clearly, on this issue, you're with the president.

WOOLSEY: So far. And right now, the main thing I'm with him on, I want somebody to keep Mr. Putin from casting our ballots for us in a little over a year.

BLITZER: Right.

Director Woolsey, thanks very much for coming in.

WOOLSEY: Good to see you.

BLITZER: We're moments from the White House press briefing, the first since President Trump's so-called "calm before the storm" remarks. Will the press secretary, Sarah Sanders, clarify what the president meant? We'll go there live. Stay with us.

(COMMERCIAL BREAK)