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World Headlines; Puigdemont Seeks Unconditional Talks With Spanish Pm; Russia's Lavrov Relations With U.K. At A Very Low Point; U.S. Tax Reform; Russia Investigation; Trump White House; Raul Castro Retirement Postpone Until April; Developing Story; One-On-One with Benjamin Netanyahu. Aired 8-9a ET

Aired December 22, 2017 - 08:00   ET

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

[08:00:00] (COMMERCIAL BREAK)

KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

(BEGIN VIDEO CLIP)

LU STOUT: Now is the time for dialogue. Catalan separatist leader Carles Puigdemont calls for unconditional talks with Madrid after pro-independence

parties win a majority in Catalonia's snap election. And we're waiting for a response from the Spanish prime minister.

And more anger on the streets at the West Bank even after a U.N. vote condemning President Trump's decision to recognize Jerusalem as Israel's

capital.

(END VIDEO CLIP)

LU STOUT: This hour, the Spanish government is trying to tackle something and it had hoped was a thing of the past. A new surge of support for

Catalan independence, in Thursday's election Catalan voters gave their back into three separatist parties.

And the self exiled former president for Catalonia's regional government now says he is willing to meet for unconditional talks but outside of

Spain.

(BEGIN VIDEO CLIP)

CARLES PUIGDEMONT, FORMER CATALAN PRESIDENT (through a translation): I do not know, Mr. Rajoy's position yet, but I have no problem meeting with him.

What I want is a solution. There could be no solution. We cannot move forward if we do not respect the results and terms. This is a negotiation

in democracy.

(END VIDEO CLIP)

LU STOUT: Let's bring in, Isa Soares, who had been following developments from London. Isa, not long ago -- in fact that was a highlight there. We

heard from Carles Puigdemont. He is asking for these unconditional talks of the Spanish prime minister. Has his faith and also, the political faith

of Catalonia, changed after this vote?

ISA SOARES, CNN CORRESPONDENT: It does seem, doesn't it, Kristie, that we are back to square one with the country we divided, despite the fact that

we are elite with the Catalan independence.

Just for our viewers get a sense of what we seen in the last hours or so. Three of the main pro-independence Catalan parties, they have enough from

majority. But neither one of them won the popular vote. That went to a citizens' party which is a pro-unity party.

And that gives you a sense of just how fractured Catalonia is. Of course Puigdemont is declaring victory because he has enough over majority with

the other two parties. But he still has to form a coalition.

And then the question then becomes, Kristie, how is he going to be? How is he going to do this as in-charge? Because he is a bit of a pickle, isn't

he? He is in self imposed really exile in Belgium.

And the second leader who is -- from the second party who also did very well, his former vice president, Oriol Junqueras is in prison on charges of

sedition and rebellion. Let's listen to Prime Minister Mariano Rajoy.

(BEGIN VIDEOTAPE)

MARIANO RAJOY, PRIME MINISTER OF SPAIN (through a translator): And with all the guarantees so that all political parties could participate. I

would like to underline that yesterday happened without incident with peacefully and that all citizens could vote normally.

Polling stations have no incident. The intervention of the observers from different parties could have the functions under the law, so that they

could supervise the voting and the counting.

The high turnout that you know and that happened during this election reflects the civil response of Catalan citizens versus the political

situation and the future challenges. The results are none. I'm not going to repeat them.

But I would like to congratulate, Ines Arrimadas and her party. I talked with her, the president of the party. They won in votes and then in peace.

What's relative from these results, from my perspective is that those that wanted the change, did not get the necessary MPs to move forward with the

change. But it must be remembered that the pro-independence movement have lost support, not as much as want it to, but they have.

[08:05:00] In 2010, in the regional election, they had 76 MPs, in 2012, 74, in 2015, 72, and yesterday 2017, 70. And same happens regarding the

percentage of vote. At first they had 84.6 and now 47.5. What is clear after yesterday is that no one can speak on behalf of Catalonia, if they do

not regard the whole of the region.

What is obvious that Catalonia is not monolithic, it is plural. And we all must value that plurality as something rich from those elections, we will

have plural Catalonia and we must respect and cherish that. It is obvious that the fracture. The social fracture in Catalan society is very deep.

It is a social fracture. It's going to take time to heal. And so, that will be the first obligation of all political access. The reconciliation

must come from the law and respecting the rights of all majorities and minorities. It is the duty of the Catalan parties to offer the solutions,

demanded by Catalan society.

And whatever party gains the support of the chamber, we will like all governments abide by the law because without respecting the law, and

without our respectful government, it will not be possible to generate certainty and security.

And, therefore, the companies that left will not go back. Investment will not be made. And big, small, or medium companies will not recover.

Tourism will not come back and economy recovery will not continue. And to conclude, an election is always a new beginning in Democracy.

The opportunity to open a new era and I trust that in Catalonia, we will start an era based on dialogue, and not on confrontation -- in dialogue and

not imposition, in plurality and not unilateralism.

The government of Spain would like to offer their will to dialogue, open, constructive and realist dialogue always within the frame work of the law.

And I would like to talk with the Catalan government to discuss Catalan problems and to build certainty and security framework that is

unpronounceable to ensure and guarantee the well being of the people, which must be the objective of any government. I will now answer your questions.

UNIDENTIFIED FEMALE (through a translator): Would you make any critic to your application of Article 155 as a result of the election? Do you have

any specific offer to make two Catalan citizens?

RAJOY (through a translator): Well Article 155 was applied, and it had to be done. It was in the applied when the Catalan government made the first

decision against the law. I think that we were careful. I think that was very positive.

It was applied with the agreement of a great majority in the Senate and the support of the second and the third, and the first political forces in

Spain. We had ample support.

[08:10:00] It was tied in an intelligent way, in my opinion, because we did not appoint a new government. But the government of Spain took over the

responsibilities. Everything has worked well. Every Friday made decisions affecting Catalan people.

The decisions made previously by the Catalan government. Everything was applied with the support of Europe. No one in Europe supported the pro-

independence government.

So we had the support of the international community and we covered an election quickly and the main objective of which was to restore legality

and I hope that this situation will keep -- will continue in the future.

To all the people in Catalonia, I would like to offer the acting of the government of Spain, I am the president of the government of Spain and,

therefore, I am the president of the citizens of Catalonia.

I will make an effort to establish a dialogue with the government -- the Catalan government. But I will also make the effort so that the law is

abided by.

So I hope that there will be a government that abandons unilateral decisions and that respects the law that I hope so in Catalonia as well as

if any other region of Spain and in any other region in Spain and in Europe.

So there are many objectives, one -- a very important one is to overcome the social fracture which was very harsh and was one of the worst

consequences of the decision made in the last month to overcome that fracture -- that has fractured friends, families, that is our main

objective.

So we are opened to the normalization of the situation, because, right now we are in an economic growth period. But we still need to create jobs and,

for that, we need certainty and security.

So with will, if we are to be (Inaudible), if we respect the law, if we don't make unilateral decisions and we understand that we live in Europe

and in the 21st century and the rule of law are some basic European principle that we are all building together, then things can work in a

different way. I will do all in my hands so that it starts that way. But I will not accept that the constitution is not respected.

UNIDENTIFIED FEMALE (through a translator): Mr. Puigdemont, if you are offered sitting down and talking in another European country. Mr.

Puigdemont, a party that you would be willing to sit down and talk with.

RAJOY (through a translator): I should talk with who won the election, which is Mrs. Arrimadas.

UNIDENTIFIED FEMALE (through a translator): I'd like to first insert Article 155, because it was passed with great support, but could -- we

calling for election so soon could have resulted in the people's party result in this election, And if this election prompt our changing of the

constitution.

RAJOY (through a translator): There are many opinion, all opinions are valid and arguable. I have to make decisions and I have to go beyond

opinion.

I think that calling for an election was sending a message because the decision we had made was a very exceptional decision. It was the decision

to removing a government that was always for. The situation was exceptional that forced us to remove the government from office.

[08:15:00] And we have to tell the people, we want you to talk, to be heard, and we will not be here indefinitely. Some people thought we would

but, exceptionality in democracy must be very short in time.

This is a problem of democratic values. One must understand what one can or must do in each moment in time. Every person might have a different

position, but what we did was reasonable and if you go back to what we said at that moment in time, you will see that there was an ample support to the

decision of the government.

So you're free to believe whatever you might. The result of this election doesn't make me in favor or against changing the constitution. If the

constitution is amended...

(END VIDEOTAPE)

SOARES: You have been listening to Spanish Prime Minister Mariano Rajoy there, addressing the crowd following from that general -- regional

election I should say in Catalonia. And he addressed many -- several points, I should say.

One of those points I will bring out is the recognition or the lack of recognition there is, in what relates to who actually won the vote. We

know that the majority votes were won by three of the independence parties.

But the party with the most votes -- the popular vote went to Ines Arrimadas, that is the pro-unity party, when asked by one of the journalist

there, whether he would call Mr. Puigdemont who is in self imposed exile Belgium.

Following on from Mr. Puigdemont today saying that he is prepared to speak to Mr. Rajoy, he actually said, he will speak and his words were, I will

speak to whoever won the election, Mrs. Arrimadas. So it seems that he is recognizing, Mrs. Arrimadas, as the main winner of this election.

When you look at the numbers, she is in many way, but she doesn't have enough support for the other pro-unity governments to form a coalition.

Clearly, he did not mention Mr. Puigdemont. But importantly, Kristie, I just want to tell our viewers what he said, that the pro independence

parties have lost the support over the years.

And then he went on to say he's prepared for dialogue. He's prepared to have an open and realistic dialogue, but it has to be within the law and

whoever is in charge of Catalonia has to drop, has to stop making unilateral decision when it comes to that declaration of independence. So

no more referendums, if that is the case, if you act within the law, then I am prepared to sit down and talk to you. Kristie.

LU STOUT: Isa, thank you so much for wrapping up the key points. Madrid's response to that vote in Catalonia, very interesting to watch the prime

minister of Spain attempt to assert his strength given the denying political crisis in his country. Isa Soares, reporting, thank you.

Now for more on the government's reaction to the vote and the significance of it, let's bring up Stephen Jacobson. He is a historian and expert on

Catalonia who joins us from Madrid.

And, Stephen, the Spanish Prime Minister, Mariano Rajoy, has just spoken out. We got his reaction after this vote. Among many other things, he

said that those that want change did not get enough to make that change. How do you interpret those comments?

STEPHEN JACOBSON, CATALONIA HISTORIAN: Well, first of all, I'm with you from Barcelona, just to correct you, Kristie, and good morning. One, I

interpret those as given that only 52.5 percent or 52.5 percent of all voters in Catalonia voted with non-independence parties, 47.5 for

independence parties.

So even though the pro-independence parties, (Inaudible) parties won a majority of seats. They didn't win a majority of actual votes. So I think

that's the context in which Mariano Rajoy was referring to.

LU STOUT: Got it. Now Rajoy also said just now that the -- he said the obvious fracture of Catalonia society is very deep. How polarized is

Catalonia? How many people do want independence there?

JACOBSON: I think 47.5 percent want independence. But as (Inaudible) just said recently, the vice president was in prison that we won't know until

there is a referendum.

So, obviously, what lays in back of all of this is whether in the future there will be a referendum of independence in Catalonia and whether that

will be in a few months or in a few years. It certainly won't be in a few months. But that's the pro succession of parties would obviously applaud a

packed referendum.

[08:20:00] LU STOUT: We heard from Rajoy saying that he would be open to talks. Earlier we heard from Puigdemont said that he was open to

unconditional talks outside the Spain with the prime minister.

He also added that he would return from exile from Brussels. Back to Spain -- if Spain offers guaranties, your thought on Puigdemont and what should

be his next move.

JACOBSON: I'm not sure what should be his next move. And he's a bit unpredictable. I don't think that Mariano Rajoy can give him guarantees

because it's a judicial process in the judiciary independence.

So it's very hard, he's asking for guarantees. But that's a -- that's a propaganda move. The government can't control these guarantees, because it

can't control the courts and it can't control the, what's going on in the Supreme Court.

And so, I don't think Mariano Rajoy will vote Puigdemont in Brussels. In fact he said that he will talk with the Catalan government -- (Inaudible)

to the Catalan government, it means a majority has to be formed that majority will have a president. That president probably will not be

Puigdemont because he cross the border. He will be arrested as things stand right now.

LU STOUT: All right. We will leave it at that. Stephen Jacobson, historian at Catalonia, joining us live from Barcelona, thank you. You are

watching News Stream.

A lot more to come, right here on the program, including Boris Johnson, as U.K. first foreign secretary to visit Moscow in five years. He's getting

an earful of grievances from his Russian counterpart. We'll go live in Moscow for more next.

(COMMERCIAL BREAK)

LU STOUT: All right, coming to you live from Hong Kong in a Friday night, welcome back. This is News Stream. Now Russia's foreign minister says

relations between his country in the U.K. are now satisfactory.

Sergey lavrov met his British counterpart, Boris Johnson in Moscow earlier. He blamed the U.K. for the declining relationship saying that U.K. and its

allies voiced their concerns publicly instead of a private setting.

Now, Fred Pleitgen has been following this meeting, he joins me live from Moscow. And, Fred, from both the British side and the Russian side, what

was point of this meeting?

FREDERIK PLEITGEN, CNN CORRESPONDENT: I think the main point was that, there had been no British foreign minister who had actually been to Russia

in the past five years.

And as both men described, they said look, the relations at this point simply aren't very good and at least Boris Johnson said he believes that

now is the time to try and improve those relations.

As we know, also, Kristie, this meeting was a long way coming. Boris Johnson at several points of this year was supposed to come to Russia, but

then various world events prevented him from doing those -- doing so.

So now this finally happened. And it really was a very, very testy press conference, that the two men then had afterwards, Sergey Lavrov really

giving Boris Johnson an earful about what he called aggressive.

[08:25:00] And insulting comments coming out of London over the past couple months, regarding Russia's cyber activities, regarding some of Russia's

policies -- foreign policies, specially if you look towards Europe, Ukraine and Crimea, but also Syria as well.

So you could really see in this press conference that the entire air was one of Boris Johnson saying look, relations are bad, we should try to

improve them. And Sergey Lavrov really counting down the ways that he thought that Britain had been unfair to Russia.

Now the whole complex, Kristie, of Russia's cyber activities was one of the main things and the Russians said, look, so far, we have seen no one point

out any sort of evidence that Russia was behind all of these. Boris Johnson disagreed. I want to listen in to one testy exchange. That was

really symptomatic of this entire press conference. Let's listen in.

(BEGIN VIDEO CLIP)

SERGEY LAVROV, RUSSIAN FOREIGN MINISTER (through a translation): For example, my neighbor here Boris Johnson recently admitted that he had no

evidence that Russia had interfered on the referendum on the U.K. leaving the E.U. He's frightened that unless he objects, his reputation back home

with the media will be ruined.

(END VIDEO CLIP)

PLEITGEN: So there you have the two men there and quite a testy exchange there during that press conference. There were other factors like that as

well, especially when they were talking about Crimea, for instance.

Also talking of course about the Litvinenko case that happened several years back in Britain, and with the Brits still at this point said they are

not getting the kind of cooperation that they want from Russian authorities to try to find out who killed Alexander Litvinenko.

So I'm sure how much (Inaudible) was actually made but I think in the end, both ministers did agree that it was a good idea for Boris Johnson to come

here and for at least, start these talks or just start talking to once another on this level, once again, Kristie.

LU STOUT: There are many points of contention between these two nations but what about Brexit? Is that seen as an opportunity for Russian

business?

PLEITGEN: A very interesting question. And Brexit was also one of the things that came up, but it was also one of the things where the two did

say that it was one of the factors that they needed to talk about.

Also one of the reasons for that is, Kristie, that there are of course a lot of trade deals between Russia and the European Union, that then Britain

is a part of right now. And they have to see moving forward, how that's going to change, after Brexit.

But one interesting thing that both men said is that trade between the United Kingdom and Russia has actually increased over a large part of this

year, which is quite remarkable, considering the sanctions that have been levied on Russia by the European Union, by other entities as well.

So that's something they said was remarkable. So they did say that, yes, there is the potential for that. I think Boris Johnson said something to

the extent of Russians love -- great deal of British products from Bentleys to Kettle chips.

And he hoped that that was something that would expand and that he would be very much in favor of that. So, yes, I think that there is the sense that

there might be an opportunity there.

But first of all, the two need to find out what is going to happen between this -- or with this bilateral trade relationship after Brexit goes into

effect and saw some of the agreements that there are between Europe and Russia -- between the European Union and Russia would change, visa vis,

even the United Kingdom and Russia wants Brexit comes into effect. Kristie.

LU STOUT: Relations may be rough, but there is opportunity. Fred Pleitgen, reporting live from Moscow, thank you. You are watching News

Stream. One of the headlines, right after this.

(COMMERCIAL BREAK)

[08:30:00] (COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching "News Stream." These are your world headlines.

In the past few minutes, the Spanish prime minister was asked if he would meet with the self-exiled former president of Catalonia. He says that he is

open to talks with the regional government but it must be with the winner of the election. All three separatist parties together won the majority in

Catalonia's election, but a pro-unity party won the most votes. Not enough for a majority, though.

Palestinian authority President Mahmoud Abbas says the U.S. can no longer be an honest mediator in the peace process after Washington recognized

Jerusalem as the capital of Israel. Mr. Abbas is speaking in Paris after 128 countries voted in favor of a U.N. resolution denouncing Donald Trump's

decision.

South Korean President Moon Jae-in is promising a full investigation into a building fire that killed 29 people in the city of Jecheon on Thursday.

Most of the victims were found inside a sauna in that eight-story building. In the wake of this terrible tragedy, the city has canceled its stage of

the Olympic torch relay that was supposed to pass through on Friday.

U.S. President Donald Trump will leave Washington for the holidays on a high note. He is expected to sign the $1.5 trillion Republican tax bill

into law before he leaves, but looming over the president's head, the Russia investigation with FBI Deputy Director Andrew McCabe dropping a

potential bombshell during more than 16 hours of testimony.

Joe Johns reports.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT (voice over): FBI Deputy Director Andrew McCabe testifying behind closed doors that former FBI

Director James Comey discussed conversations he had with President Trump, conversations that could corroborate Comey's claim that the president asked

him for loyalty days before the president fired him.

JAMES COMEY, FORMER DIRECTOR OF FBI: He asked specifically of loyalty in the context of asking me to stay. My common sense told me, what's going on

here is, that he's looking to get something in exchange for granting my request to stay in the job.

JOHNS (voice over): But the president has vehemently denied that account.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: I don't know how that got there, because I didn't ask that question. I hardly know the man.

I'm not going to say, I want you to pledge allegiance, who would do that?

JOHNS (voice over): Attendees at McCabe's hearing described the mood as tense. Republicans reportedly grilling McCabe about Comey's handling of the

Clinton e-mail controversy. Democrats calling the question a diversion.

REP. JERROLD NADLER (D), NEW YORK: This hearing is part of an ongoing Republican attempt to divert attention from the real investigation into the

collusion between the Trump campaign and the Russian government.

JOHNS (voice over): Now, House Minority Leader Nancy Pelosi warning House Speaker Paul Ryan against letting the House shut down the investigation,

saying in a letter Democrats are deeply concerned by what she calls the majority's efforts to curtail the House Intelligence Committee's Russia

probe and its overall failure to address Russia's meddling in the 2016 election.

(END VIDEOTAPE)

LU STOUT: And that was CNN's Joe Johns. We are also learning another member of the Trump White House is stepping down. Deputy Chief of Staff Rick

Dearborn will resign after the new year.

Cuban officials say Raul Castro's plans to retire in February have been postponed for a few months. Officials say it's because the island is still

dealing with the aftermath of Hurricane Irma. CNN's Patrick Oppmann tells us who who may lead the country when he does step down.

(BEGIN VIDEOTAPE)

PATRICK OPPMANN, CNN CORRESPONDENT (voice-over): As Cuba marks the first anniversary of the death of Fidel Castro, all eyes are on this man, Cuban's

first vice president, Miguel Diaz-Canel. With Raul Castro expected to step down as president of Cuba in April of 2018, Diaz-Canel is the leading

contender to succeed him.

Diaz-Canel hasn't said what he will do if Cuba's single party communist system awards him the job, but promises continuity of the island's

revolutionary past.

The possibility of Diaz-Canel taking over as president was first floated by Raul Castro five years ago when Castro said he would step down

[08:35:00] at the end of his second term at age 86. Comrade Diaz-Canel isn't an upstart or an improvisation, he says. His trajectory has lasted

nearly 30 years. Diaz-Canel served as the top party communist official in Holguin, the same province in Cuba, where Fidel and Raul Castro were born.

There, he showed himself to be an able administrator who exercised tight control.

(on camera): During his time as a top official in the provinces, Miguel Diaz-Canel earned the nickname dia y noche or night and day because

government workers say he can show up any time to make sure they were on the job.

(voice-over): In recent years, Diaz-Canel has embarked on something of a world tour to raise his profile with Cuba's allies like North Korean leader

Kim Jong-un. While Raul Castro was expected to remain as the first secretary of the Cuban Communist Party, some Cuban officials tell CNN

Castro may move to Santiago de Cuba to live in semi-retirement with Diaz- Canel running the day-to-day from Havana.

CARLOS ALZUGARAY, FORMER CUBAN DIPLOMAT: I think he will exercise some control in the background, but he will basically tell Diaz-Canel, this is

your ballgame, you decide.

OPPMANN (voice-over): Many Cubans hope that a younger president born after the revolution could usher in a more flexible style of governing. But a

video of Diaz-Canel talking to Communist Party members that mysteriously leaked this past summer revealed hard line views, particularly when it

comes to dealing with the U.S.

"It was the government of the U.S. that invaded Cuba that put the blockade," he says. "They have to revolve these things to have normalized

relations. We don't have to give anything in exchange."

While Cuba waits to see how the transition of power unfolds, the island's future may look a lot like its past.

Patrick Oppmann, CNN, Havana.

(END VIDEOTAPE)

LU STOUT: Changes afoot. You are watching "News Stream." We'll be back right after this.

(COMMERCIAL BREAK)

LU STOUT: All right. Coming to you live from Hong Kong. Welcome back. This is "News Stream."

Now, from the streets of the West Bank to the halls of power of the United Nations, there is new anger over Donald Trump's decision to recognize

Jerusalem as the capital of Israel. This was the scene in Bethlehem just a few hours ago. On Thursday, 128 countries voted in favor of a U.N.

resolution denouncing the U.S president's move.

Meanwhile, in Paris, Palestinian Authority President Mahmoud Abbas says the U.S. can no longer be an honest mediator in the peace process. This as

French President Emmanuel Macron said his country remains committed to a two-state solution.

CNN's Oren Liebermann just spoke exclusively with Israel Prime Minister Benjamin Netanyahu. Oren is in Jerusalem. He joins us now. Oren, what did

Mr. Netanyahu tell you about Trump, Jerusalem, and the U.N.vote?

OREN LIEBERMANN, CNN CORRESPONDENT: Obviously, Prime Minister Benjamin Netanyahu's focus was, first of all, thanking Trump for recognizing

Jerusalem as the capital of Israel, saying it is long overdue since this is where foreign leaders have met Israeli leaders for the past 70 years,

essentially, since the creation of the state of Israel.

But it was his next statement which was the focus where he said, other countries are considering doing exactly what Trump did, which is to say

recognizing Jerusalem

[08:40:00] as the capital of Israel and begin the process of moving their embassy to Jerusalem. Here is what the prime minister told me.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, PRIME MINISTER OF ISRAEL: I think what it does is finally recognize a historical truth. Jerusalem has been the capital of

Israel for 3,000 years from the time of King David. It's been the capital of the state of Israel for 70 years. It's about time that the United States

said and I am glad he said it, this is the capital we recognize.

I think that's going to be followed by other countries. We are now talking to several countries who are seriously considering now, saying exactly the

same thing as the United States and moving the embassy to Jerusalem.

(END VIDEO CLIP)

LIEBERMANN: The word exactly there from the prime minister is important, because if they follow suit and say exactly what Trump said, which is a

recognition of Jerusalem as the capital of Israel, then there is no distinction between east and west, and that is something Israel would very

much like to hear.

It's worth noting that the Russians a few months ago and the Czech Republic just recently made that distinction between east and west and said look, we

recognize West Jerusalem as the capital of Israel and East Jerusalem as the capital of future Palestinian state.

What Netanyahu is saying is that other countries will simply recognize Jerusalem as the capital of Israel, even if part of it is open for

negotiations. When I pressed him, Kristie, on which countries, there he wouldn't specific, saying they're working on making sure it succeeds,

giving an indication that isn't stepping stone yet, but it is a very important lobbying effort, specifically for Israel right now.

LU STOUT: What do you about the future for peace? We heard earlier from Mahmoud Abbas in Paris, he said that the U.S. has disqualified itself as a

mediator. So, how committed is Israel under Benjamin Netanyahu in the peace process?

LIEBERMANN: So one of the questions I asked him specifically was on Jerusalem and on Trump's announcement, where Trump said look, I'm not

recognizing a united Jerusalem or all of Jerusalem is under Israeli sovereignty. Israeli sovereignty and the holy city as well as borders are

open for negotiation.

Trump basically said Jerusalem is negotiable. I pressed Netanyahu on this and I said, are you willing to negotiate Jerusalem without the word

"united" there? And he gave a very carefully word answer here. He said, our position is that Jerusalem is united and we try to secure for the worship

of all three phases. Let the Palestinians bring their position in negotiations.

He doesn't want to present an affront to Trump. He doesn't want to insult Trump or offend Trump right after Trump said Jerusalem is the capital of

Israel. But he also can anger his own coalition members who want to see united Jerusalem and are not willing to negotiate Jerusalem. And he has his

own ideologies. He has been calling for united Jerusalem for more than a decade now. So, he hedged on that answer of, is he willing to negotiate

Jerusalem?

LU STOUT: Oren Liebermann reporting live for us from Jerusalem after that first sit-down interview with Benjamin Netanyahu. Oren, thank you for that.

And that is "News Stream." I'm Kristie Lu Stout. Don't go anywhere, we got "World Sport" coming up with Rhiannon Jones.

(COMMERCIAL BREAK)

[08:45:00] (WORLD SPORT)

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