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The Lead with Jake Tapper

Controversial Swap of Prisoners between U.S. and Cuba; Movie Theaters Dropping "The Interview"; Theaters Pull Movie After Sony Hacking Threat; Terror Crackdown After Pakistan School Attack

Aired December 17, 2014 - 16:30   ET

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

JAKE TAPPER, CNN HOST: Welcome back to "THE LEAD." More now on our world "LEAD." The release of American aid worker Alan Gross is part of the U.S. and Cuba's historic shift in diplomatic relations. It was nothing short of splashy.

We saw photos of Gross meeting with Secretary of State John Kerry and getting off a plane and being greeted by loved ones who had missed him so much for five years, even held his own news conference and yet very little is known about the details surrounding the other prisoner released from Cuba as part of this deal. A U.S. intelligence agent who up until now very few people even knew existed. I am joined now by CNN chief national security correspondent Jim Sciutto. Jim, what do we know about this agent?

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: You know, this is a big diplomatic move, but the quarter of it is an old-school Cold War spy swap, the U.S. releasing three Cubans of the clandestine Cuban spies build (ph) known in the U.S. as the Wasp Network. In exchange, Cuba releasing, we are told, a Cuban man who provided "critical assistance to the U.S." A statement from the office of the director of National Intelligence reading, information provided by this person was instrumental in the identification and disruption of several Cuban intelligence operatives in the United States and ultimately led to a series of successful federal espionage prosecutions. His release from prison after 20 years is a fitting closure to this Cold War chapter of U.S.-Cuban relations.

So who did this Cuban spy turn up here in the U.S.? One, a former Defense Intelligence Agency or DIA senior analyst. She was Ana Belen Montes who played guilty to spying for Cuba, including giving up the names of four U.S. spies and a secret U.S. Army camp in El Salvador.

She was sentenced to 25 years. Second, a former Department of State official Walter Kendall Myers and his wife Gwendolyn Myers. They were accused of spying for Cuba for three decades before they were caught and finally members of that so-called Wasp Network, Cuban intelligence agents known as the Cuban five convicted in Miami of spying in the U.S. including penetrating a group known as the Brothers of the Rescue that ran flights to pick up people escaping Cuba by boat. One of those flights shot down by Cuban warplanes and Jake, as you know it, it's that information allegedly provided by this group that then led to them being accused of conspiracy to murder.

TAPPER: Yeah, fascinating case. Jim Sciutto, thank you so much. The spy swap comes with significant, some would even say detestable strings attached as Jim just mentioned. The members of the so-called Cuban five were not just secret agents for the Cuban government. One of them was convicted of conspiracy to commit murder, linked to the 1996 parts of shoot down two planes carrying Cuban-American activists who work for the group Brother to the Rescue.

I'm joined now by the mother and daughter of two men who were killed in that attack. Miriam de la Pena is the mother of Mario de la Pena who was killed in that attack and Marlene Alejandro Triana is the daughter of Armando Alejandro.

First of all, both of you, thanks so much for joining me. Marlene, let me start with you. Did anyone from the Obama administration reach out to you ahead of time warning you that the prisoner convicted of conspiracy to commit murder of your husband would be released?

MARLENE ALEJANDRO TRIANA: No, no one notified us beforehand. And it wasn't my husband. It was my father.

TAPPER: I'm sorry. Of your father, yes. I meant for Miriam, what about you?

MIRIAM DE LA PENA: For me, it was my son Mario who was 24 years of age and no, no one notified us. Absolutely no one.

TAPPER: What would you want to say to them if they had or if they're watching right now?

MIRIAM DE LA PENA: I would like to say that this is a slap in our faces. It is very sad that an innocent man like Alan Gross is going to be exchanged for a criminal, somebody that wanted to do so much harm to the United States of America like Gerardo Hernandez because he is not only tied to the shootdown and the murder of my son, Marlene's dad and two other Americans. He's tied to espionage, and wanting to do harm to the United States of America.

TAPPER: Marlene, what was your reaction? What would you say if President Obama was watching right now?

MARLENE ALEJANDRO TRIANA: I just would like him to know that I feel that he has completely disrespected and dishonored my father who was a Vietnam veteran, a voluntary Vietnam veteran of this country and when he was 18 years old he went to fight for this country against communism and the only thing that we had in the form of justice for her son, my father and the two other men was this one man that he just gave up.

TAPPER: And just to be clear on what he was doing along with the three others, your son and your father were going to rescue people who had escaped Cuba and were in rafts, is that right? They were in the ocean.

DE LA PENA: That's correct. My son was a volunteer pilot. His whole life dream was to become a commercial pilot and he joined Brothers to the Rescue as a volunteer pilot, spending his weekends and any spare time that he had from the university and work rescuing rafters who were fleeing Cuba in search of freedom and they would be eaten by sharks if there was no one out there to try to rescue them. So Brothers to the Rescue worked in conjunction with the U.S. Coast Guards. They would spot the rafters in the middle of the ocean, get their coordinates and advise the United States Coast Guard so that they would go rescue them.

TAPPER: And Marlene, what do you say to the family of Alan Gross who say they are obviously overjoyed that he is out of that Cuban prison?

MARLENE ALEJANDRO TRIANA: I am so happy for them because I know he has two daughters, and I am so happy that he can spend the holidays with his girls. So that's all I have to say. I'm so happy for them, and I feel so horrible for him that he had to go through what he went through, and I -- I -- we are nothing, but overjoyed that he can be with his family now.

TAPPER: Do you think that the regime is going to change because of this new policy shift, Marlene?

MARLENE ALEJANDRO TRIANA: I - politically, I don't really have an opinion on that because I don't know enough about what's happening with the embargo and how far everything is going to go, and I'm aware that Obama can't necessarily lift the embargo completely. There are minor changes that he's doing right now. I just, in my opinion what hurts the most is the fact that he gave up someone who is in jail for murdering American citizens.

TAPPER: Right.

MARLENE ALEJANDRO TRIANA: And that's the situation right now that I think that all Americans should be extremely, extremely upset about and especially in my case. For me it hurts the most because my father is a veteran and any person who gives up their time and sacrifices possibly their life for this country should have some sort of level of respect given to them by their government, and I think it just doesn't show well for the way that the government feels about its soldiers and veterans in general.

TAPPER: Marlene, Alejandra Triana, Miriam de la Pena. Thank you so much and our deepest condolences for your loss back in 1996.

MARLENE ALEJANDRO TRIANA: Thank you.

MIRIAM DE LA PENA: Thank you.

TAPPER: Breaking news in our national "LEAD." Dropping like flies. One major movie theater after another after another refusing to show the movie "The Interview" after hackers threaten to attack anyone airing the new comedy which lampoons North Korea. With their premiere cancelled and their stars in all, but hiding, what will Sony do now? That's next.

(COMMERCIAL BREAK)

TAPPER: Welcome back. We're going to continue with that breaking news in our national lead. All major movie chains are now giving into fears and say they will not show Sony's new movie "The Interview." Regal Theaters just released a statement saying, in part, "Due to the wavering support of the film "The Interview" by Sony Pictures, as well as the ambiguous nature of any real or perceived security threat, Regal Entertainment Group has decided to delay the opening of the film in our theaters."

And more from Cineplex Theater saying, "Cineplex tales seriously its commitment to the freedom of artistic expression, but we want to reassure our guests and staff that their safety and security is our number one priority." The movie "The Interview" details a plot to kill North Korean leader Kim Jong-un. It's a comedy. Decisions to pull the movie come after an obscure message referencing the 9/11 attacks, threatening anyone planning to see the movie. The messenger appears to be the same person or persons who hacked Sony computers and dumped private emails and movie clips online. Meanwhile, the FBI says it's getting closer to identifying who might be behind that Sony hack.

CNN justice correspondent Pamela Brown joins me now.

Pamela, a lot is happening pretty quickly in these movie theaters, man!

PAMELA BROWN, CNN CORRESPONDENT: Yeah, it's really quite amazing and extraordinary, what we're seeing here, Jake. The situation continues to crumble for Sony. In fact, most now - most of the largest U.S. theater chains announced today that it will not show Sony's controversial comedy, "The Interview." And right now, though, Sony is digging in its heels and leaving that decision up to the theaters.

(BEGIN VIDEOTAPE)

BROWN (voice-over): As Sony stands by its controversial comedy "The Interview," a growing number of theaters are now pulling the plug on the movie. At least five major theater chains are backing out, and the New York premiere of the movie canceled.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: I can't think of another moment like this in modern movie history. The deals that are struck between studios and theater operators are iron clad. Once the operators agree to put their move on all their screens, they have to stick by their deal, but this is an unprecedented situation.

BROWN: CNN has learned that U.S. State Department officials granted a request by Sony executives to view an advance version of their controversial film about the assassination of North Korea's Leader Kim Jong-Un.

UNIDENTIFIED FEMALE: Take him out.

UNIDENTIFIED MALE: For coffee? Dinner? Kimchi.

UNIDENTIFIED FEMALE: No, take him out.

BROWN: Widely reported leaked emails show Sony executive, Michael Linton sent an unfinished version of the film to the State Department officials over the summer. The consulting firm confirms to CNN Linton asked an expert to look at the DVD of the movie.

UNIDENTIFIED MALE: There are a lot of countries that would like to censor Americans and if we start giving into it there won't be an end to it.

BROWN: U.S. officials with firsthand knowledge tells CNN North Korea remains the prime suspect in the hack, but so far the U.S. government hasn't publicly pointed the finger at the reclusive country.

STEWART BAKER, FORMER NSA GENERAL COUNSEL: The only way that we will stop them is if they are persuaded that this was a bad idea and so we have got to react in a way that deters future attacks of this kind.

(END VIDEOTAPE)

BROWN: And as U.S. investigators narrowed down who the culprit is, we are told government officials at the highest levels are holding several meetings on this issue trying to reach an agreement of how to move forward here. It's one thing to be able to attribute and another thing to be able to decide how the plan of action will take place.

TAPPER: Although the Department of Homeland Security says they know no real credible evidence of any actual threat to U.S. movie theaters. Pamela Brown, thank you so much.

The cyber threats are crippling business at Sony Entertainment. Aside from theaters pulling the movie, in the last two weeks, the company's stock plunged more than 10 percent.

It's also facing some legal trouble and two former Sony employees have filed a lawsuit saying the company failed to keep their personal information safe.

The entire situation could have implications for not just the entire movie industry, but all industry not to mention national security.

Let's bring in Ted Johnson. He is the senior at "Variety" magazine. We also have Jaime Metzl, who served on President Clinton's National Security Council and he is author of "Genesis Code." Ted, what happens to the movie now? Is anyone going to show it?

TED JOHNSON, SENIOR EDITOR, "VARIETY": Well, right now, my colleague at "Variety," Brent Lang is reporting that Sony is exploring the idea of putting this movie out on premium video on demand. It's a special level of video on demand that you can see on your cable system where you pay a premium price. That will allow Sony to say, we still released the movie and to potentially recoup some of its investment.

TAPPER: That's stunning. Jamie, I don't want to be that guy that says if you do so and so you're giving into the terrorists, but having all of these movie chains drop the movie, that must be making the hackers feeling pretty empowered.

JAMIE METZL, FORMER STATE DEPARTMENT OFFICIAL: It is so unfortunate that movie chains are doing in a sense what they have to do because of their liability issues and their commitment to their customers, but it's just so tragic that -- and we don't even know who is doing this.

But maybe one person, one group can threaten and make this kind of open-ended threat and this film gets pulled and it's really just a sad, sad day and as we said earlier on the program, this could open the door to anybody who has any beef with anything that's coming out in any movie can make an anonymous threat and then it would have to be pulled. So it's a very dangerous situation.

TAPPER: Ted, I mean, this is hardly the first time the world leader was used in a situation like this. You had "Team America World Police" and there was a movie about the assassination of George W. Bush. How does this impact future production of movies?

JOHNSON: I think that this will have a big impact. I think you'll have producers and studios thinking twice about pursuing projects that have any kind of geopolitical controversy because international box office is a huge share of the business.

I think it's upwards of about 60 percent and I think studios are going to wonder is it really worth it. I think studios especially are going to wonder, you know, is it really worth the headache or the threat that we may face. I think that will create quite a bit of consternation around the business.

TAPPER: I think we'll see a lot of invented countries that are bad guys in the future. Jamie, we know that the U.S. State Department saw the movie before it was released. If Sony had shown it to you and you were still on the National Security Council, would you have anticipated in any way this kind of blowback?

METZL: Well, I would because I was in North Korea earlier this year and it's really a quasi-religious environment with the Kim family essentially positioned as gods.

So we knew well in advance that this was a big insult to the North Koreans, but there is a balance of principles. On one hand, there is people may want to play nice with the North Koreans.

On the other hand, this regime is the world's worst violators of human reports and there is a report going to the Security Council next week, very credible through the United Nations that calls the North Korean regime guilty of crimes against humanity.

So it's a joke in many ways, but the fundamental issues are very serious and we in this country believe in free expression and that includes free expression by artists who may say things that make ourselves or other people uncomfortable.

TAPPER: Ted, movie theaters must be really worried that they'll miss out on Christmas profits if they're actually pulling this film.

JOHNSON: Yes. It's not just Christmas profits. It's the whole idea that should something happen, should there be even a copycat incident, they would be legally liable because a lawyer can come around and say, listen, my client got hurt at your movie theater and you already had this threat. You could have taken these precautions that may not be the best on freedom of speech grounds, but I think theaters are probably taking a look at the legal liability in making this decision.

TAPPER: Strange days. Jamie Metzl and Ted Johnson, thank you so much.

In other world news, mourners openly weep in the streets as schoolchildren killed in a vicious attack in Pakistan are laid to rest. Many of the children buried while still wearing their school uniforms as the nation tries to come to grips with the tragedy help how does the government of Pakistan plan to respond to the terrorists behind it? That's next.

(COMMERCIAL BREAK)

TAPPER: Welcome back to THE LEAD. Some breaking news on the Sony hack we just talked about. Sony Pictures just now issuing a statement saying they are not going to move forward with the planned Christmas day release of the movie "The Interview."

All of those movie theaters pulling it amongst a possible threat to the theater showing it. CNN will bring you more on this in the next hour.

In other world news, an incredible sense of heartache has gripped a nation in the wake of a savage and brutal and cowardly attack on a Pakistani school.

The Pakistan's prime minister vowed today that the deaths of those 145 innocent people, most of them children, would not be in vain. The government lifted a moratorium on the deaths penalty within hours of the massacre.

The Pakistani Army has reached out to leaders of Afghanistan to team up with them against terrorist groups like the Pakistani Taliban, which eagerly claimed responsibility for the brutal attack.

Let's go live now to CNN senior international correspondent, Nic Robertson. He is in Islamabad, Pakistan. Nic, what have you learned about how the Pakistani government plans to respond to this brutal attack?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, they've got an offensive ongoing against the Taliban. They will continue with that offensive and this, of course, the background of a nation grieving right now, a nation in shock where the army gave journalists and TV crews access to the school today.

That sense of shock only grew. I should warn our viewers here that some of the pictures they'll see now in this report are very disturbing.

(BEGIN VIDEOTAPE)

ROBERTSON (voice-over): Tumbled chairs, concrete walls chewed apart by a fuselage of bullets. Few of the children in these classrooms could dodge. Evidence of the ferocity of the Taliban's craven attack is everywhere. Floors still soaked in the blood of the innocents.

This town is drenched in grief. Funeral after funeral. Most between 12 and 16 years old, many buried in their school uniforms, the smaller they are, the heavier they are to carry one official said. Education in this impoverished town of 3 million is everything. No one saw this coming. Survivors now wondering how they made it through.

UNIDENTIFIED MALE (through translator): We hid in the locker room and pretended to be dead. They kind of believed us. Two students and a teacher caught their attention and they shot them in the head to make sure they were dead.

UNIDENTIFIED MALE (through translator): Six men entered the hall. They opened fire on some students. Some died on the spot and others were injured.

ROBERTSON: Vigils are lighting up across the country. Sympathy is strong and so is condemnation of the Taliban. It is rarely this universal and rarely this visceral.

And these men, some of them seemingly as young as their victims are the attackers according to the Taliban who say they planned and coordinated every murderous step the gunmen took, classroom to classroom. Brutality now becoming clear.

Inside the school, a burned office, a 28-year-old woman, an office assistant, not just shot, but set alight here, too, too horrific for words.

(END VIDEOTAPE)

ROBERTSON: But now the recriminations are beginning. On the one hand you have the army chief of staff in Kabul talking about getting Afghanistan and Pakistan to work together against the Taliban.

But at the same time you have the prime minister here in Pakistan saying that this attack was planned on the soil of Afghanistan, the Taliban themselves who perpetrated this attack saying absolutely not. They planned it, coordinated it all from within side Pakistan -- Jake.

TAPPER: So horrific. Nic Robertson in Islamabad for us. Thank you so much.

That's it for THE LEAD. I'm Jake Tapper. I now turn you over to Wolf Blitzer, who is right next door in "THE SITUATION ROOM."