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The Next Battle for Trump, GOP & Democrats; Bannon Says Trump Has Lost a Step; Haley Invites Some Countries to Reception, Snubs Others on U.N. Jerusalem Vote; Trump Arrives in Florida for Holidays. Aired 1:30-2p ET

Aired December 22, 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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[13:32:04] WOLF BLITZER, CNN HOST: President Trump is expected to arrive very soon in West Palm Beach, Florida, to spend the holidays at his Mar-a-Lago resort in Palm Beach. The House and Senate are also out of session for the rest of the year, but they left plenty of unfinished business behind.

Let's discuss this and more with CNN senior political commentator, Rick Santorum, Chris Lu, a former assistant to former President Obama.

Thank you for coming in.

You see all the concerns Republicans have. They could lose the House and the Senate. How worried should your fellow Republicans be, Senator?

RICK SANTORUM, CNN SENIOR POLITICAL COMMENTATOR: Less worried now that they got the bill passed. This will be their signature accomplishment heading into 2018. I hope they get more done. If you listened to Mitch McConnell yesterday, they don't sound like they want to do any more. I was disappointed to hear the majority leader say, yes, we are pretty much done unless we get something bipartisan done. The opportunity to get bipartisan things done in an election year, particularly in this environment, are pretty small. This is what Mitch McConnell thinks they will run on. It will help them. But my recommendation is, keep working. You have a lot more work to do and people will hope you take a crack at health care again and try to do something on infrastructure. There a lot of other things that need to be done.

BLITZER: For seven or eight years, middle class families will see a little bit bigger paychecks starting in February and March and maybe that will have a positive impact for the Republicans.

CHRIS LU, FORMER ASSITANT TO PRESIDENT OBAMA: Wolf, I was in the Obama administration in 2009 when we gave a bigger tax cut to many lower and middle-class Americans. What they're going to get out of this bill -- we saw what happened in the 2010 mid-term elections. It's not only what they feel, but what happens after. This bill is used as a pretext to start going after entitlement programs like Medicare and Social Security. I think Americans will see this for what it is, a giveaway to corporations and the super wealthy, with a tiny bit that goes back to them. This bill could have been done in a bipartisan way that would have been revenue-neutral and helped more middle class, but it wasn't.

SANTORUM: I would disagree. First off, the economy is much, much stronger and going to get stronger as a result of this bill going into 2018 and 2010 the economy was not in great shape.

(CROSSTALK)

SANTORUM: That's right. Things were not looking good and unemployment was very, very high. Unemployment will be at record-low levels. A lot of good things are happening in the economy. You saw how the corporations are responding. And I find it funny saying this is a big break for corporations. When President Obama pushed for a reduction in the corporate taxes, I don't think anybody, Democrat or Republican, can say we should have the highest corporate tax in the world as our companies are leaving this country because of our tax situation. We did the right thing here. I wish it would have been and should have been bipartisan, but it wasn't. They reduced taxes. Corporations are now going to stay. Many will come back and bring jobs back. There will be a good news story to tell.

[13:35:04] BLITZER: Remind me, because I do remember, and Senator Santorum makes a point that the reduction in the corporate rates go down from 35 percent to 21 percent. President Obama -- and you worked in his cabinet -- he wanted to reduce it to 28 percent or even 25 percent from 35 percent, but what happened? The Republicans didn't top the support him.

LU: It's fairly clear that after 2010 Republicans were not going to support much of anything that President Obama wanted to do. What's difficult about this bill is it becomes a messaging challenge for President Trump. Outside his base, people don't believe his claims. When he says this is a massive, beautiful tax cut for the middle class, some of these people will see $65. That won't make a meaningful difference in their lives. Every time he said this bill doesn't help him and his family, that further under cuts his credibility to sell this legislation.

BLITZER: What are do you make of this interview that Steve Bannon gave in "Vanity Fair?" Very blunt comments about the president. May not serve out his first term or run for reelection. He was joking, maybe behaves like an 11-year-old.

By the way, Air Force One has now landed in West Palm Beach. The president has flown from Washington.

What do you think about this battle going on between Steve Bannon and Mitch McConnell as far as reelecting incumbent Republican Senators? Seven of the eight who are up for reelection, Bannon wants to depose.

SANTORUM: Steve Bannon definitely has it in for Mitch McConnell. No question about that.

BLITZER: And vice-versa. SANTORUM: And vice-versa. He believes McConnell has not delivered

and he has been ineffective and has not fought for conservative things. He is trying to rally the troops against him.

As far as his comments on Trump, they were more scratch your head, and I don't understand what the objective was there going after the president that he served.

There is certainly ample reason for conservatives to be upset with going on in the Senate. McConnell made a mistake by saying the only thing we are going do forward is bipartisan. A lot of things need to be done, particularly health care next year. He tried once and gave up. There was an attempt to redo it in September. He didn't necessarily support that much. Now he is saying it's over. I think the base and working men and women will be very upset if we don't fix the problems of Obamacare.

BLITZER: The president says with the repeal of the individual mandate, he said, for all practical purposes, there is no more Obamacare. He is wrong on that.

LU: He is absolutely wrong on that.

BLITZER: All right, guys, thanks very much.

You see Air Force One having landed in West Palm Beach. The president will be spending the next several days of his holiday vacation at Mar- a-Lago in Palm Beach.

More news we are following. Save the date. The U.S. Ambassador to the U.N. Nikki Haley said she is hosting a party but only a few select friends of the United Nations will be invited. We will explain.

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[13:42:29] BLITZER: For some, it's an invitation. For others, it's a snub. The countries that did not vote to condemn the U.S. for removing its embassy in Tel Aviv to Jerusalem will be invited to a reception hosted by the ambassador to the United Nations, Nikki Haley. The invitation says, in part, "for friendship to the United States." Those countries who voted to condemn, no invitation for them.

I'm joined by CNN's military and diplomatic analyst, Retired Admiral John Kirby. He was the State Department spokesman during the Obama administration, also the Pentagon press secretary as well.

We want to show live pictures while we are talking. Air Force One landed in West Palm Beach. The president getting ready to spend the holidays at his resort.

The U.S. ambassador to the U.N., Nikki Haley, said this yesterday at the U.N.

(BEGIN VIDEO CLIP)

NIKKI HALEY, U.S. AMBASSADOR TO THE U.N.: America will put our embassy in Jerusalem. That is what the American people want us to do. And it is the right thing to do.

(END VIDEO CLIP)

BLITZER: If you look at the brand-new CNN poll out this hour, 44 percent of those asked approve of the decision to recognize Jerusalem, to move the embassy, Jerusalem being Israel's capital, 44 percent support that, 45 disapprove, 11 percent were unsure. When she said the American people, the American people seem to be divided on this decision by the president.

REAR ADM. JOHN KIRBY, CNN MILITARY & DIPLOMATIC ANALYST: What she means and should have said was our voters or the Trump base wanted to see the embassy moved to Jerusalem. Clearly, the people of the United States are divided on this. That's understandable. As you well know, Wolf, you have been covering that part of the world for a long time, it's a confusing and complex issue. There is a lot of emotion and not a lot of certainty about the best way forward. To say that the American people wanted that, by our poll, is not true.

BLITZER: The invitation for the reception, friends who didn't vote against the United States, very interesting, 128 nations in the U.N. General Assembly voted yes in favor of this resolution condemning the U.S. decision. Nine nos, including the United States and Israel, 35 states abstained, 35 nations abstained, 21 nations were absent. So 64 invitations will go out. Those who voted no, those who abstained, and those who were absent. Some of America's closest allies, whether the U.K. or France or --

KIRBY: Germany.

BLITZER: Yes, Germany or Italy, other countries, they voted against the United States, they will not be invited.

[13:45:08] KIRBY: I don't think they are all that worried about that. I don't think they are taking it as a snub at all. They voted not just on conscious, but in terms of policy that they have been supporting for 50 years. And it was important for them to restate their own governments and own people where they were on the U.N. resolutions. The fact that the status of Jerusalem has to be settled as an outcome and not predetermined before that.

BLITZER: The president is now on the tarmac at the Palm Beach International Airport which happens to be in West Palm Beach. They call it Palm Beach International Airport. Let's see if we hear what he says.

It's hard because of the engines of the plane. Still pretty loud. And a crowd is receiving the president. He is just wearing a little suit. When he left Washington, he was wearing an overcoat, much colder here in Washington than in Palm Beach.

KIRBY: It is.

BLITZER: He will spend the Christmas holiday and New Year's down there and then get back to Washington. It's interesting. When he was in the Oval Office signing the

legislation and the bills into law earlier, including the tax cuts, he made a point of saying he has a lot of work to do and pointed out North Korea and he pointed out the Middle East. There is a lot of issues on his plate.

KIRBY: Absolutely. No president, even when they are on vacation, really goes on vacation. They are president, 24-7. He will bring a team with him and stay in touch with secure communications as need. Clearly, the crisis in North Korea is not going to take a holiday for us. Neither are the tensions in the Mideast. I was encouraged to hear him say that and not surprised at all. It's in keeping with the past presidents from other commanders-in-chief.

BLITZER: When the president is on vacation, there are advisers there who brief the president and they stay on top of the crisis.

Let's talk about North Korea for a moment. This is a tense situation, about as tense as I have ever seen it on the Korean peninsula since the Korean War.

KIRBY: It is. The sense of urgency is more sharp than it has been before. No question that President Trump inherited a much more perilous situation than any president has. His security team has done a good job trying to manage this, working in unison, working with the international community. They have got more and tougher sanctions on North Korea than ever before. They pressured China to do more. And China can do more, but they pressured China to quite some degree. They get credit for that. They have been undermined, quite frankly, by the president himself and his tweets and impulsive nature and the comments he makes, pulling the rug out from under Rex Tillerson as he pushes negotiations forward, some sort of diplomatic effort forward. In general, they have been working this as a team, and well, and they will need to continue to do that through the holiday.

BLITZER: You do give the president credit for squeezing the Chinese to put pressure on North Korea?

KIRBY: I do. I absolutely do. Him and his scheme -- look, if you told me a year ago that the Chinese would cut off all natural gas and importing seafood from North Korea, they would put pressure on the oil exports to North Korea to the degree they have, I would have laughed at you. I wouldn't think that was possible. They wouldn't have been able to do that. More work needs to be done. I am encouraged when I heard them talk about diplomatic efforts being in the lead. If there is maneuver space. That makes me feel better.

BLITZER: You see the president there on the tarmac. Deplaned Air Force One and he is in West Palm Beach. A short drive over to Palm Beach. He is spending the next several days there during the Christmas holiday as well as New Year's before coming back to Washington.

Whenever a president -- whenever they land they have supporters there. It gives them a boost, doesn't it? KIRBY: Sure. This is a nice way for him to head off to the holiday

season. He is going back home where he is comfortable and to be greeted by people who are supporting him and want to let him know that they are happy for the job he has done. That's a terrific thing for the president to start his holiday season.

As you pointed out, it's not just going to be rest for him and it shouldn't be. There is a lot on his plate and a lot of things for him to worry about. We need to hope he stays just as connected as possible in Mar-a-Lago to the events going on around the world.

[13:49:55] BLITZER: You're a retired admiral.

KIRBY: I am.

BLITZER: You spent how many years in the U.S. Navy?

KIRBY: Twenty-nine.

BLITZER: You were the press secretary at the Department of Defense.

KIRBY: I was.

BLITZER: I assume you know several of his national security advisers?

KIRBY: I know certain people on the team. I know General Kelly, worked with him.

BLITZER: White House chief of staff.

KIRBY: When he was senior military assistant. I still know people at the Pentagon. Still know people at the State Department. I can tell you, ones I've talked to in the last few days, they plan on working hard, too, over the holidays. They know an awful lot going on. And expectations are they will stay connected and plugged in and continue to explore options for the president.

BLITZER: What about the whole Middle East situation when the president says there is it a lot going on over there? And when he basically says that, and in his tweet this morning, that the U.S. wasted $7 trillion in the Middle East, he's referring to the wars in Iraq and Afghanistan.

KIRBY: Yes.

BLITZER: How does that play to the families of the men and women who couldn't came home or came home badly injured?

KIRBY: I wouldn't speak for all the families, but there will be people bothered by that. Loved ones made the ultimate sacrifice or returned changed many ways. Many don't believe it was a waste of money or effort. And frankly, Wolf, like the vice president was in Afghanistan just yesterday, when you go there and make the progress we are making, though it isn't as whole somas e as we want it to be, it's hard to say it's all for naught. Iraq and Afghanistan are better places than they were before. We can all agree an Iraq not led by Saddam Hussein is better for the region.

BLITZER: Bob Baer is with us, our CNN intelligence and security analyst, former CIA operative.

We are seeing the president on the tarmac, West Palm Beach, at the Palm Beach International Airport just landed, getting ready to drive over to Mar-a-Lago, his resort.

I want both of you to weigh in on this.

The president says 16 years, after foolishly spent $7 trillion in the Middle East, referring to wars in the Middle East, but after 16 years, Bob, the vice president can't go to Afghanistan unless it's very secret, no advance word, under the highest security. The same for Iraq, by the way. If a president or vice president went there or a secretary of state, they make no announcement. It's been 16 years, the longest war in U.S. history, so when the president, Bob, says after foolishly spent $7 trillion in the Middle East, does he have a point, if after all these years, a vice president like Mike Pence, who showed up yesterday can't show up with advance word that he's coming to Afghanistan?

BOB BAER, CNN INTELLIGENCE & SECURITY ANALYST: Yes, President Trump often has a point, that war has gone on way too long. It was won in October and November 2001 in Afghanistan. The problem is pacifying the country. It is virtually impossible to occupy Afghanistan. It's not because we've lost any battles or made any great mistakes, it's just the country is impossible to occupy. And he doesn't have an exit strategy. He can only do the same things we've been doing for the last 16 years, which isn't going to work. So this president has to come up with a new strategy in Afghanistan. And right now, he's not.

BLITZER: He's made significant progress over the last year, John, in defeating ISIS in Syria and Iraq. But what does it say to that you, a vice president still can't go there, Iraq, or Afghanistan, unless it's really, really quiet?

KIRBY: I think to Bob's point, it points to the fact that it's still a dangerous point and still a war going on. And it would be foolish of us to take any risks with people on the ground or vice president and his party. So obviously there is still work to be done. And if commander in Afghanistan was here he would tell you the same thing. While progress made, there is still a lot more work that needs to be done. Interestingly, though the president complains about this $7 trillion, but clearly, they are trying to get Afghanistan into a better place. While I agree with Bob, difficult thing to do, and a lot more work, I'm glad to hear he's still committed to the Afghan people.

BLITZER: I suspect, I haven't spoken to the president, but I suspect he's upset that both Afghanistan that have received hundreds of billions of dollars of aide over these past 16, 17 years, they both voted against the United States to condemn the U.S. decision about recognizing Jerusalem as Israel's capitol.

[13:54:54] BAER: Iraq is no surprise, under the thumb of Iran, and this is important issue for Jerusalem, Iran. I could see that coming right away. As far as Afghanistan that surprises me a bit, because that government exists because we prop it up. So that was a big decision on them to vote against us on Jerusalem. But Iraq is the same way, and same way with Syria. This president, let's be fair, inherited a mess, and fixing it is not going to be easy.

President still enjoying himself over at the Palm Beach international airport with a lot of his supporters showing up. He's taking pictures and signing auto graphs autographs, smoozing with them, this will put him in a much better mode than Washington. Although he left Washington very excited, pleased by the passage of the tax reform resolution, continuing resolution that will prevent the government shutdown at least through January 19th, and they'll have to do it all over again. Emergency defense funding, he signed that as well. So he had significant achievements over the last couple of days.

But something like this. I've covered presidents over the years. When they go out and there's a lot of supporters out there and they are saying nice things to him and smiling. He's clearly relishing these moments, John, as he obviously should.

KIRBY: No question about it. I mean, like you say, he isn't a politician, but certainly is one, and this is what they like, they like the support they get for people that vote for him and proud of the work they are doing, and clearly, he's relishing that. As he should, he's heading off on vacation, and he did get some wins here toward the end of the year. I'll criticize the wade they behaved in the U.N. I think that was abominable, but he has secured this big tax bill and is heading off to the holidays a little bit on the upswing.

BLITZER: Ending the year on an end note with the passage of this legislation, which he clearly wanted.

And, Bob Baer, you worked in the intelligence community for a long time. When the president is critical of the intelligence community, or the president doesn't accept the analysis of the intelligence community, for example, on Russia interference in the U.S. presidential election or the law enforcement community, for that matter, what's the reaction amongst your former colleagues?

BAER: Well, Wolf, it's demoralizing. They are categorical Russia interfered in our elections for Trump. It's very clear. No one doubts it. The FBI is doing a great job in investigating in spite of one or two agents expressing their pol political views on FBI phones which is always going to happen. And for them the president is refusing to give briefings on Russia hacking, which opens up the question what will they do in 2019 and 2020. This was an attack. He must say. It's a huge mistake on his part.

BLITZER: John Kirby, how do you see it?

KIRBY: Same exact way. I don't have the experience Bob does, but they feel demoralized when they hear the president talk about them in this way and refuse to give appropriate briefings. It's not only not good for them but not good for them, commander-in-chief, he needs their support, and seems self-defeating to me he would do that. BLITZER: Yes.

BAER: And don't forget the State Department.

KIRBY: The State Department as well.

BAER: You know better than I, it's completely demoralized.

KIRBY: Definitely morale problems at the State Department. He talks about competitive diplomacy, whatever that is, but not prioritizing it. And Secretary Tillerson is letting a 30 percent cut go unchallenged and that's having effect on the Foreign Service as well.

BLITZER: That 55-page national security document that was released was a pretty well thought out in many aspects. And, John Kirby, you read it.

KIRBY: Yes.

BLITZER: Was pretty well thought out, and many parts of it similar to the strategy during the Obama administration.

KIRBY: Absolutely. And I read it, that's what I thought. When I read Obama's from 2015, it's almost organized in the same way. The table of contents were almost the same. And the large, big chunks are the same, American engagement, leadership, prioritizing homeland defense, missile defense, those kinds of things. There's some key differences, particularly climate change is one of them, that I found particularly disturbing. But in general, and the big chunks, it's not all that different from previous national security strategies. And again, I think in that, there is some encouragement.

BLITZER: We have seen these live pictures coming in from the Palm Beach International Airport. The president is now there in Florida spend the next several days in Florida. Presumably enjoying a lot. He has the Mar-a-Lago resort. He' be no doubt playing some golf, but major work as well.

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

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