Return to Transcripts main page

NEWS STREAM

Trump Warns North Korea Could Threaten U.S.; Trump Salutes North Korean Defector; Trump: China, A Rival Of Our Economy And Values; Trump Talks Tough And Calls For Unity In 80-Minute Address; El Salvador Tries To Prepare For U.S. Deportations; Helping Former Child Soldiers In Yemen. Aired at 8-9a ET

Aired January 31, 2018 - 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: Reaction is pouring in to President Trump's first State of the Union. He directly addressed North Korea's pursuit of nuclear weapons and

the potential danger to the U.S.

He also referred to China and Russia as rivals and denounced unfair trade deals. And Donald Trump wants a deal on immigration. But meanwhile,

hundred of thousands of people are facing a deportation deadline.

(END VIDEO CLIP)

LU STOUT: And we begin with the U.S. president's stern and ominous warning to North Korea. In a wide-ranging State of the Union Address, Donald Trump

took time to single out the North's dangerous clear weapons program and the threat it poses to the United States.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: No regime has oppressed its own citizens, more totally or brutally than the cruel dictatorship in North

Korea.

North Korea's reckless pursuit of nuclear missiles could very soon threaten our homeland. We are waging a campaign of maximum pressure to prevent that

from ever happening.

(END VIDEO CLIP)

LU STOUT: Mr. Trump echoed what the CIA week director said last week that North Korea's pursuit of nuclear missiles could very soon threaten the

United States.

For more on the story, let's bring in CNN's Will Ripley. He joins us live from Seoul, South Korea. And, Will, right after Trump slammed Kim Jong-un

and his weapons program, you learned that North Korea is planning to deliver its own strong message with an upcoming military parade, how?

WILL RIPLEY, CNN CORRESPONDENT: Well, we've known for awhile now, Kristie, that this parade is schedule to happen next week on February 8th, which is

the eve of the Winter Olympic here in South Korea.

But what I've learned from two diplomatic source with deep knowledge of North Korea's intention is that this parade could be unlike anything we've

seen before and that North Korea is preparing to unveil tremendously large amount of missiles, specifically intercontinental ballistic missiles.

We are talking many dozens in the words of my sources, dozens of the kind of ICBMs that could strike pretty much anywhere in the world including

mainly, the United States.

Remember, Kim Jong-un in his New Year's address said that his country was going to mass produce nuclear weapons, and they've never really displayed

more than a handful when talking about a couple of dozen of these kinds of missiles at once.

So if you're talking about numbers up -- you know, close to a hundred possibly of ICBMs, not to mention hundred of missiles and rockets

altogether, that would be an extremely strong and menacing message to the United States on the eve of the Winter Olympics, which North Korea is

schedule to participate in.

Although, even that is now in question, at least some aspects of it. North Korea has already canceled -- canceled an inter-Korean cultural performance

that was scheduled here in South Korea because frankly, they're angry.

They're angry about the tone of the news coverage here in South Korea and they're angry with the United States for joint military drills that are due

to kick off after the Olympics.

They're angry about the naval build up off the Korean Peninsula, and U.S. forces strategically place on the Korean Peninsula. In the words of one of

my sources, this showcase of missiles would be essentially an attempt to, quote, scare the hell out of the Americans.

And my sources also not ruling out the possibility of a North Korean missile test in the very near future which could possibly include during

the Olympics if North Korea feels that they ha been provoked.

And certainly, Kristie, the rhetoric from President Trump and the fact that he featured so prominently a North Korean defector, Ji Seong-ho, who has

called repeatedly, for regime change that could push the North Korean government to the point where they feel they need to send a strong message,

even though there have been these newly revived inter-Korean talks and a recent thawing of relations, that now suddenly appears to be in jeopardy.

LU STOUT: Now all of this is a key, Trump administration seat that remains unfilled in talking out the U.S. ambassador to South Korea.

There was a lot of buzz about Victor Cha, the world known academic, former Bush administration official. It was widely rumored that he was going to

be the next U.S. ambassador to South Korea under Trump. That's not happening now. Why?

RIPLEY: It's not. And he wrote an op-ed for the Washington Post, Kristie, where he talked about the message that he sent to the Trump administration.

He talked about the fact that a preventative -- preemptive strike -- in other words, the United States deciding to attach North Korean nuclear

facilities preemptively. He told the Trump administration that's a terrible idea.

He said that it could potentially kill tens if not hundreds of thousands of Americans and hinted in his op-ed that after he expressed those views to

members of the Trump administration who seemed to think that a preventative -- preemptive strike might be something that they are seriously

considering, he was dropped for consideration from the post to ambassador to South Korea.

[08:05:02] So here we are, more than one year into the Trump administration. There's no ambassador to South Korea. And some Korea

watchers, after listening to the president's speech, where he didn't talk much about diplomacy.

But did make a very emotional case, talking about the U.S. student, who died just six days after being released at North Korean custody, Otto

Warmbier profiling that defector, talking about the United States, boosting its nuclear arsenal, condemning what he called the depraved regime.

There are many people who feel that President Trump may be trying to make an emotional case for some sort of military action against North Korea,

much like President Bush did in the lead-up to the Iraq war -- Bush 43.

And that has many people very nervous about the direction that things may be headed in this region. In the words of one analyst, Kristie, things

might be going downhill and very quickly.

LU STOUT: Will Ripley reporting live for us from Seoul. Thank you, Will. As you heard, Will, report just then, U.S. President Donald Trump made that

emotional case, in order to do so, he saluted Ji Seong-ho, a North Korean defector who was in the audience.

(BEGIN VIDEO CLIP)

TRUMP: Seong-ho traveled thousands of miles on crutches all across China and Southeast Asia to freedom. Most of his family followed. His father

was caught, trying to escape and was tortured to death.

Today, he lives in Seoul where rescues other defectors and broadcasts into North Korea what the regime fears most, the truth.

Today, he has a new leg but Seong-ho, I understand, you still keep those old crutches as a reminder of how far you've come. Your great sacrifice is

an inspiration to us all, please. Thank you.

(APPLAUSE)

(END VIDEO CLIP)

LU STOUT: Wonderful to see a moment, such awaited there in the Capitol building -- an emotional moment there for North Korean Ji Seong-ho.

While Mr. Trump focused on North Korea, in contrast, he barely mentioned China. But when he did, he said, it is indeed, a competitor. Mr. Trump

has praised the Chinese president on several occasions, but on Tuesday, he decided to refer to China as a rival to the U.S.

(BEGIN VIDEO CLIP)

TRUMP: As we rebuild America's strength and confidence at home, we are also restoring our strength and standing abroad. Around the world, we face

rogue regimes, terrorist groups and rivals like China and Russia that challenge our interests, our economy and our values.

(END VIDEO CLIP)

LU STOUT: All right. Let's get the word from Beijing. Matt Rivers, joins us now live from the Chinese capital. Matt, Trump not only called China a

rival, he, in his speech, effectively lumped China together as a threat along with Russia, rogue regimes, and even terrorists. So how is Beijing

reacting to that?

MATT RIVERS, CNN CORRESPONDENT: The same way that they react to most negative things said about them that come from the Trump administration,

which is, they step to the same terminology that they always use.

And they didn't really take the bait at a regularly scheduled press briefing a bit earlier today here in Beijing, a spokeswoman basically said

that the China -- the Chinese and the Americans have more to gain than to lose in their relationship.

And she urged the U.S. to back ay from its cold war mentality in a strategy that focuses on a zero sum game. Those are the exact kind of phrases that

we have heard from the Chinese time and time again, when it comes to the Trump administration.

Perhaps the reason you didn't really see a stronger response in maybe tomorrow's state-run newspapers will have more scathing editorials when

they come out tomorrow morning, but perhaps you didn't see that strong of a response.

Because as you mentioned there, Kristie, China didn't really come up that much in the president's speech. And that surprised a lot of people, given

what we've seen recently from the Trump administration on issues like trade, people tough perhaps the president would talk a little bit more

about China.

One thing, though, that the Chinese could be worried about, perhaps and you heard, Will, talk a little bit about it before is what the president didn't

say, when he talked about North Korea, he didn't go into sanctions and how the Chinese are implementing those sanctions against North Korea.

This is not a president that shies away from touting his accomplishments as he sees them. And he didn't say the sanctions are working. He didn't say

diplomacy is going ahead.

And that's something that the Chinese government could be slightly concerned about. They would certainly, I think, look for the president to

focus more on diplomatic efforts in his speech than he perhaps did.

LU STOUT: So, China, perhaps, worried on Trump's next move when it comes to North Korea, and also, on trade with China. And we heard in that speech

that the president vowed to fix bad trade deals, protect American intellectual property.

[08:10:04] Even if he didn't name check China here, should Beijing take that as a warning of trade troubles to come?

RIVERS: Well, they're certainly looking at trade troubles for 2018. I think it surprised a lot of people in 2017, perhaps because of North Korea

really taking center stage in the U.S.-China relationship that the Trump administration didn't seek more punitive efforts against China in the realm

of trade.

And we have seen things start to shift over the last couple of months. You saw the Trump administration levy tariffs on solar panels, largely coming

from China.

You could also see tariffs levied on Chinese imports of aluminum foil and steel among other issues -- other industries in the coming months.

Does that signal a wholesale change in the Trump, administration's view towards China? Does that signal the Trump administration is really going

to take a harder line stance on policy in 2018?

We're not really sure yet but you can bet that the Chinese government is looking at those signs and that kind of rhetoric in the State of the Union

speech, Kristie, and wondering what might be going on for 2018 and planning their own contingencies if the Trump administration decides to take that

harder line path.

LU STOUT: Yes, with every action comes reaction, right? Matt Rivers reporting live. Thank you. Now, we're going to have a closer look at the

every evolving trade relationship between the U.S. and China later this hour.

So do stay tuned as I speak with James McGregor, a China-based author and businessman. He is the China chairman of APCO Worldwide. That's happening

in just a few minutes from now.

Now just ahead, right here on News Stream, basking in the applause, Donald Trump touts the booming U.S. economy in his State of the Union speech.

We'll take you live to Washington.

Also ahead, CNN's exclusive report on Yemen's child soldiers. What it takes to give them a childhood back. That story, straight ahead.

(COMMERCIAL BREAK)

LU STOUT: Coming to you liver from Hong Kong, welcome back. This is News Stream. Now back to our top story, Donald Trump's State of the Union

Address. On the economic front, the U.S. president is painting a very optimistic picture.

He highlighted the soaring stock market, the creation of millions of new jobs, and recently passed tax cuts. Mr. Trump then went all in on one of

the most divisive issues, immigration.

He called on Congress to agree to a bipartisan reform deal. Now, let's bring in CNN White House correspondent, Abby Phillip, for more. And, Abby,

as expected, the America First president in his first State of the Union Address emphasized domestic policy for much of his speech.

ABBY PHILLIP, CNN WHITE HOUSE CORRESPONDENT: That's right. That optimistic tone of the president was trying to strike last night is really

in stark contrast to what we normally hear from him on social media, where he's far more combative, at least on some issues.

[08:15:00] But on others, he seemed to revert back to some of his old talking points, the nearly 80-minute speech is one of the longest ever for

a State of the Union Address. And the president used it to tout this as the dawn of a new American moment.

(BEGIN VIDEO CLIP)

TRUMP: I call upon all of us to set aside our differences, to seek out common ground and to summon the unity we need to deliver for the people.

This is really the key. These are the people we were elected to serve.

PHILLIP: President Trump striking a conciliatory tone, urging lawmakers to move past the deep divisions that have defined his first year in office.

TRUMP: This in fact, is our new American moment.

PHILLIP: Mr. Trump also utilizing the same polarizing language that has fomented the divide.

TRUMP: Americans are dreamers, too.

PHILLIP: Appearing to draw a line from DREAMers to the dangerous MS-13 gang members that killed two teenage girls, their grieving parents, guests

in the audience.

TRUMP: For decades open borders have allowed drugs and gangs to pour into our most vulnerable communities. They've allowed millions of low-wage

workers to compete for jobs and wages against the poorest Americans. Most tragically, they have caused the loss of many innocent lives.

PHILLIP: Mr. Trump pledging to work with both parties to strike a deal on immigration. But his plan to restrict a program that allows immigrants to

bring their family members to the U.S. provoking boos from Democrats.

TRUMP: Under our plan...

PHILLIP: President Trump devoting much of his speech to touting his economic successes and signature legislative achievement.

TRUMP: Just as I promised the American people from this podium 11 months ago, we enacted the biggest tax cuts and reforms in American history.

(APPLAUSE)

PHILLIP: A claim a CNN reality check deems to be false. Mr. Trump calling on Democrats to work with him on an ambitious list of agenda items,

including infrastructure, trade, opioid addiction, prison reform and lowering the cost of prescription drugs.

While boasting about rolling back a number of Obama-era policies, including the individual mandate and announcing plans to keep the controversial

military prison in Guantanamo Bay open.

The president also revisiting another divisive issue he's been focused on this year, taking an apparent swipe at NFL players while honoring 12-year-

old Preston Sharp for his compassion toward veterans.

TRUMP: Preston's reverence for those who have served our nation reminds us of why we salute our flag, why we put our hands on our hearts for the

Pledge of Allegiance, and why we proudly stand for the national anthem.

PHILLIP: Sharp was one of a number of emotional stories the president highlighted during his speech, honoring guests like Otto Warmbier's

parents, the American student who was held in prison in North Korea and died shortly after his release, along with a North Korean defector who lost

his leg, President Trump issuing a stark warning about the North Korean threat and calling on Congress to bolster U.S. defense.

TRUMP: North Korea's reckless pursuit of nuclear missiles could very soon threaten our homeland. As part of our defense, we must modernize and

rebuild our nuclear arsenal, hopefully never having to use it, but making it so strong and so powerful that it will deter any acts of aggression.

PHILLIP: Mr. Trump made no mention of Russia's interference in the 2016 election but was overhead on camera with conservative Congressman Jeff

Duncan, talking about releasing a classified GOP memo that alleges surveillance abuses by the FBI, a move Democrats say is meant to undermine

the Russia probe.

REP. JEFF DUNCAN (R), SOUTH CAROLINA: Let's release the memo.

TRUMP: Don't worry. A hundred percent.

(END VIDEOTAPE)

PHILLIP: Well, with the State of the Union behind him, Kristie, the president now faces a decision about what to do about that controversial

GOP memo.

He is likely to make a decision about whether it should be released in the coming days. One thing that the president is not going to be doing,

however, is traveling the country to sell the ideas that he put forward in that State of the Union Address.

That's something that past presidents have done to really reinforce that message. President Trump has no plans to do that so far.

LU STOUT: Got it. Abby Phillip, live from the White House, thank you. Now you heard what President Trump had to say on immigration reform in the

weeks ahead, but right now, hundreds of thousands of people from El Salvador face a deadline from one change he has already made.

He is ending protections that allowed them to live and work in the United States. Patrick Oppmann reports on what they could face when they have

return to El Salvador.

(BEGIN VIDEOTAPE)

PATRICK OPPMANN, CNN CORRESPONDENT: This is how Salvadorans deported from United States arrived back home saying their prayers.

[08:20:00] For many, it's been years even decades since they left this impoverished and crime-stricken country for a better life in the north.

Antonia Argueta waits to catch a glimpse of her son Noel. She hasn't seen him in 17 years.

ANTONIA ARGUETA, SON WAS DEPORTED FROM U.S. (through a translator): I'm sad to see my son return because I was so happy to know he was over there,

she says -- even though he got paid little at least to send him money for food and now what?

Now, many more immigrants face deportation after the Trump administration provoked temporary protected status or TPS for over 200,000 Salvadorans

living in the U.S.

Government officials say they encouraged deportees remain in El Salvador by issuing them identity documents, finding them jobs, even offering

psychological counseling. But many of the TPS deportees may turn around and head back to U.S. Officials here say.

HECTOR RODRIGUEZ, SALVADOR IMMIGRATION OFFICIAL (through a translator): There are Salvadorans that are already established in the U.S. with their

families, he says, with properties and businesses, they are very adapted to that society and it will be difficult for them to return to our country.

And there are maybe too many people for El Salvador to absorb. U.S. government officials say they are Salvadorans with TPS, 18 months before

they need to return here in order to make sure the country is ready to receive them.

We're talking about 200,000 people, that's more than two-thirds the population of the capital San Salvador. Hard for many people end up

returning it's going to strain in already struggling country.

Deportees say they face the stigma that they were sent back for committing a crime in the U.S. or that they are returning with piles of money.

JUAN TOLEDO, DEPORTED FROM UNITED STATES: And I had nothing, not a penny. Only I came here with my clothes. The only -- my pants and my shirt.

OPPMANN: Juan Toledo was deported back to El Salvador in 2014 after living in the U.S. for nearly 30 years. Now he works with a group that assists

Salvadoran deportees to re-assimilate.

TOLEDO: Nobody was waiting for me at the airport. Nobody. Just myself. I didn't have, nowhere, to go. And as you believe, nowhere. I didn't have

a house, I didn't have a family, I didn't have, nobody. So it was hard.

OPPMANN: Salvadoran officials say they will continue to help the deportees return with their ability to welcome the countrymen home, may soon be put

to the test. Patrick Oppmann, CNN San Salvador.

(END VIDEOTAPE)

LU STOUT: Now, FEMA, or the Federal Emergency Management Agency, is ending shipments of food and water to Puerto Rico more than four months after

hurricane Maria pounded the U.S. territory.

It says there are 46 million liters of water and 4 million meals and snack packs on the ground there now. A FEMA official says the shipments could

resume if needed, nearly half a million customers that are still without power.

And now to Yemen, where a generation of children is suffering the impact of an unending war. CNN's Nic Robertson, traveled there for a series of these

exclusive reports and visited a rehabilitation center for former child soldiers. And these children, hunted by the atrocities on the front lines

of war, shared their stories as they learned to heal.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN CORRESPONDENT: Neatly uniformed, Yemenis schoolboys listen to their teacher. But this is no ordinary classroom. And these are

no ordinary children.

They are former child soldiers, forced into battle by Houthi rebels. Check this out. He is showing me -- this is the gun truck. You used to drive

this gun truck? This is you, the driver?

UNIDENTIFIED MALE: Yes.

ROBERTSON: Saleh (ph) shows me a picture of him driving a rocket launcher. He was 13 at the time. He was joking because he thought I was speaking

Arabic. I asked if he feels better for help here.

UNIDENTIFIED MALE: Yes.

ROBERTSON: Yes. He's cheerful now but what ails all the boys here, are the deep unseen scars of PTSD, Posttraumatic Stress Disorder. Psychologist

of the Saudi funded child soldier rehab center help the boy focus on the future, even so, the past still halts them.

Naji (ph) is 12 years old. He tells me Houthis put him on the front line, forced him to drag bodies from the battle field. His friend, 13-year-old

Unas (ph), tells me the Houthis kidnapped him, took him to the front line.

UNIDENTIFIED MALE (through a translator): I cried during the fighting, he says, after a month and a half, I was injured in my right leg and taken to

hospital.

[08:25:00] But as I got better, I escaped.

ROBERTSON: In this bare two-room cinder block home, Unas' (ph) mother knows he is one of the lucky ones to get out alive, but worries about

everything he has seen.

UNIDENTIFIED FEMALE (through a translator): He would wake in the night with nightmares, she says, screaming, the Houthis, the Houthis, they're

coming to take me. I would go to him and say a prayer with him.

ROBERTSON: Unas (ph) is still struggling. You will see it in his eyes, hear it in his words.

UNIDENTIFIED MALE (through a translator): I saw people beside me get killed. They got a bullet in the head or the chest. I was very scared.

One time, I was hit. I thought I was dying. I was overcome by fear and anxiety, and even now, I feel the same way.

ROBERTSON: This project is only just beginning to scratch the surface. Eighty-one children treated here so far, about 200 at other centers across

the country.

But Yemeni official believed there are more than 6,000 child soldiers across the country and suspect as many as 20,000 children may need some

sort of war rehabilitation help.

Teachers here say recruitment of children by Houthis is systemic. The U.N. has reported hundreds of cases. Saleh (ph) and his pictures epitomize the

long road to recovery.

It's quite amazing because you can see the picture here has got the rocket head on everything. It has all the detail -- detail that is hard for young

minds like his to let go.

The greatest salvation his friends say, sharing their stories with each other. Knowing they are not one, knowing they are not forgotten. Nic

Robertson, CNN, Ma'rib, Yemen.

(END VIDEOTAPE)

LU STOUT: A beautiful report there. You are watching News Stream. Still ahead, the U.S. president is referring to China as a quote, rival in his

State of the Union. We are going to take the pulse of the U.S.-China trade relationship, next.

(COMMERCIAL BREAK)

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

(BEGIN VIDEO CLIP)

LU STOUT: CNN is learning that Special Counsel Robert Mueller will interview a former spokesman for President Trump's legal team.

Mark Corallo is expected to be asked about the Air Force One episode where the president's aides craft to the statement in the name of Donald Trump

Jr. about his Trump Tower campaign meeting with Russians.

Donald Trump says he won't make the mistake of past administrations by offering concessions to North Korea and the U.S. is conducting a campaign

of pressure on Pyongyang to prevent any threat to America. He urged Democrats and Republicans to work together to bolster the military.

On domestic issues, President Trump focused on the economy. He pointed to the soaring stock market and low unemployment as proof of what he called

our new American moment. He predicted the recently passed tax cuts will U.S. economic growth.

But as Mr. Trump was boasting about good news for domestic economy, he also had a warning, referring to both Russia and China as rivals who challenge

U.S. interests, its economy and values.

Let's take a deeper look into that comment and also the state of U.S.-China trade relations.lg to both rusa and )vals. $ statef u.s./china trade

relations. China-based author and China chairman of APCO Worldwide James McGregor joins us now live from Beijing. James, good to see you. Thank you

so much for joining us.

You heard the state of the union. And in it, Donald Trump, he bowed to protect American workers as well as American intellectual property rights.

He called out China as a rival. Did you like what you heard or were you hoping to hear something stronger from the U.S president?

JAMES MCGREGOR, CHAIRMAN, APCO WORLDWIDE: Actually, I think the American business community here was expecting to hear more, you know, more details

about China in the speech, but it was, I think, quite wide-ranging. They had some stuff on the White House's website about it.

I think we are kind of waiting for the other shoe to drop, and we have been for quite a while, on what's really going to happen on 301, which is this

technology investigation, because that seems to be the biggest threat to American business right now, and I think it's where most of the focus is.

But calling China rival -- actually China is a rival in many ways, and I think he is -- he is, you know, just calling and saying like it is

actually.

LU STOUT: Yes, and the fact that Donald Trump did not declare a trade war with China in the speech, there was some expectation that he was going to

do that. What are your thoughts on that?

MCGREGOR: Well, there is -- you know, apparently people are talking to him and saying, you know, if you get too bad a trade action going on with

China, you're going to knock out that stock market that you are so proud of.

And you never know what the president is going to do on any given day, but even if Hillary got elected, the business community here was ready for some

stronger action with China even though it might hurt -- it will hurt their business in the short term.

You know, people -- companies are schizophrenic because often they have a good piece of the Chinese market and this is more important to them than

United States for some of the tech companies.

On the other hand, they know China has plans to replace them with Chinese companies and then beat them globally using ever tool China has got. So,

it's a very confusing situation, and we do need a push back but it got to be a smart push back. You can't be ham-handed.

LU STOUT: It's interesting how you talk about the mood among members of the American business community and the foreign business community there in

China. As we see this growing tension between the Trump White House and China, there is, indeed, tension in the overseas business community in

China right now.

MCGREGOR: Well, you know, things have shifted. You know, for many years, there have been problems with the companies here, but then the companies

had good business, and China would go to Washington and say, please don't do anything.

It's really flipped now. It's pretty strong in the business community that something has to be done. And this is the business community used to be

China's best friend on Capitol Hill, that went and lobbied for MFN and WTO and reasonable policies on China.

China has overreached and they have gotten too aggressive. People feel their businesses are threatened. Perhaps the future of their company could

be threatened. And so, they want something done. And they're waiting for this administration to come up with something smart.

So, far, we just, you know, seen a lot of back and forth and nothing consistent. And there was an expectation there would be more in the state

of the union, but we'll see what happens in the next days and weeks.

LU STOUT: The American business community there, one of the tougher response from Trump didn't quite get it with that address. Also, I just

want to get your thoughts on what, perhaps, the British business community in China might be thinking, only because British Prime Minister Theresa May

is there in China.

She is there to drum a business. She is there on a three-day trade tour, but also she has Brexit hanging over her. So, what are your thoughts on

this? How should prime minister may navigate talks while considering her nation's need to strike a deal?

MCGREGOR: Yes, she has come here with the largest business group that has ever come in with British prime minister. She has got 50 executives

including 20 of their top CEOs. The problem is, British is looking very weak right now

[08:35:00] because they did Brexit, because May called the special election and didn't do very well. They're very vulnerable to China right

now, so has to show progress. She has got to show deals to bring home and show that she's, you know, getting something done.

And that gives China huge advantage in what kind of deals they could do. China is -- one of the things they're pushing on her is they want her to

endorse the belt and road initiative. They want her to endorse it publicly. She hasn't done that yet as far as I know. And that -- because that would

lead to more and more investment and also just give it more credibility.

So we'll see what happens in the next couple of days. She's not in a good position to be bringing this delegation to China. So, she is weaving

through a very delicate minefield, let's say.

LU STOUT: Yes, yes, no doubt about that. And we'll be looking out for any announcements coming up in the days ahead. James McGregor, always a

pleasure talking with you. Thank you so much. Take care.

Now, we are monitoring a dangerous situation that's happening right here in Hong Kong. Two unexploded bombs have been discovered at a construction site

in downtown Wan Chai since Saturday. A bomb squad was able to defuse one of them on Sunday, but the other is said to be a, quote, in a dangerous

condition with a damaged fuse mechanism and situated in a position that makes it difficult to access. Ivan Watson reports.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): It's not often that you see the bomb squad in downtown Hong Kong, but that's what we

are seeing now for the second time in just five days, because construction workers digging her in this crowded financial hub have uncovered two

unexploded bombs from World War II.

Now, the bomb squad who have been at work here have identified them as 1,000-pound general purpose aircraft bomb, leftover from World War II, from

more than 70 years ago, when this was periodically hit by American war planes after Japanese forces have captured and occupied this former British

colony.

So what we're seeing now is these men hard at work in the mud. It has been raining here, trying to get a sense of the potential risk that this

unexploded device could have. Now, it's important to note that this is one of the most densely populated cities in the world. A number of businesses

in the area have closed.

There's been evacuation because there's a swimming pool over here as well. But here you have Hong Kong, the city, more than 70 years after World War

II, still dealing with the dangerous and unexploded legacy of that terrible conflict.

(on camera): Ivan Watson, CNN, Hong Kong.

(END VIDEOTAPE)

LU STOUT: And keeping it here in Hong Kong, just a few hours ago, Hong Kong lawmakers voted overwhelmingly in favor of a ban on domestic ivory

sales by the year 2021. This is a major win for conservationists and a huge blow to the ivory industry.

For decades, the city's (INAUDIBLE) regulations meant it was a gateway to China for traders, but some accused the trade of covering up for illegal

goods. Now, both China and Hong Kong have passed bans on domestic ivory sales.

You're watching "News Stream." Still to come on the program, it's not just any chicken dish as we continue our tour of the South Korean province that

is hosting the Olympics.

[08:40:00] (COMMERCIAL BREAK)

LU STOUT: (INAUDIBLE) being hotly debated in Westminster. British lawmakers are discussing whether or not to move out of the Palace of

Westminster for up to six years, while massive repairs take place.

Cameras are rarely allowed inside the historic palace, but Max Foster was invited to see why multibillion dollars repairs are needed.

(BEGIN VIDEOTAPE)

MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT (voice over): It is one of the most iconic buildings in the world, but look closely, the Palace of

Westminster is falling apart.

A rare glimpse inside these walls shows that behind the imposing exterior, beneath the ornate arches and stained glass lobbies, cracks are beginning

to show. The patch and mend method adopted over the centuries, no longer able to keep up. Lawmakers were warned in a recent report that the building

faces a growing risk of catastrophe unless urgent work is carried out.

(on camera): Surrounding around the roof and you get a real sense here about the scale of the problem you are dealing with.

ANDREW PIPER, DESIGN DIRECTOR, PALACE OF WESTMINSTER RESTORATION AND RENEWAL PROGRAMME: Yes, I mean, what you can see here is the damages

caused 150 years' worthy use (INAUDIBLE) -- you know, cost on (INAUDIBLE) system. They kind of represents what the age and condition of the rest of

the building is.

FOSTER (voice over): The building has seen prime ministers come and go, some leaving more of an impact than others. The decades have taken their

toll. And the British (INAUDIBLE) too. Water seeps through the roof in many places.

(on camera): Well, rare access indeed. This is what the whole project really comes down to. The Commons Chamber where British laws are so

famously debated, you can almost hear the noise.

UNIDENTIFIED MALE (voice over): In the chamber, questions to the prime minister.

UNIDENTIFIED FEMALE (voice over): Thank you, Mr. Speaker.

UNIDENTIFIED MALE (voice over): Prime Minister is frankly in denial.

UNIDENTIFIED MALE (voice over): Mr. Speaker.

FOSTER (voice over): This chamber could fall silent for six whole years under a proposal to move MPs out to allow for a multibillion dollar

overhaul.

TINA STOWELL, COMMITTEE FOR RESTORATION AND RENEWAL: This kind of work is what you might think of as a surgery to the major arteries and veins, and

major organs of this building. What it's not in any way shape or form a facelift or a makeover.

FOSTER (voice over): It's not until you go underground that you really see why this proposed work is so critical and so complex.

(on camera): When we come down to the basement and we found the typical sort of problem really, some evidence of a leak here. We've discovered it's

coming from a pipe right up in there, but they can't get to it because of this massive cabling.

A lot of it, don't know where it goes. We don't know what it's for. You can't just rip it out because it could cause all sorts of other problems.

(voice over): The 19th century building is struggling to keep up with the modern world.

UNIDENTIFIED MALE (voice over): It's still current (INAUDIBLE) which is in desperate need for replacement.

FOSTER (voice over): The tangle of phone lines, not a reassuring sight for anyone trying to get in touch with their MP. Officials would like to make

Westminster ready for the future while it's restoring a key piece of Britain's past.

Max Foster, CNN, London.

(END VIDEOTAPE)

LU STOUT: And finally, this, a rare celestial event. Stargazers around the world are witnessing a super blue blood moon. That's a three phenomenon all

at once. The second full moon in a month is a blue moon and it's super because it's so close to our planet earth and we've seen a lunar eclipse.

According to NASA, the lunar trifecta only happens every 35 years.

And that is "News Stream." I'm Kristie Lu Stout, but don't go anywhere, "World Sport" with Rhiannon Jones is next.

(COMMERCIAL BREAK)

[08:45:00] (WORLD SPORT)

END