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German Town Holds Service for Germanwings Victims; Signs of Progress in Iran Nuclear Deal; Interview with Rep. Adam Schiff Of California; Arkansas Governor Refused to Sign Religious Freedom Bill As Is; Religious Freedom Law Backlash Catches Republicans Off Guard. Aired 1:30-2p ET

Aired April 01, 2015 - 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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[13:30:30] BRIANNA KEILAR, CNN ANCHOR: Welcome back to our viewers in the United States and around the world. I'm Brianna Keilar, in for Wolf Blitzer.

We go back to Germany where a memorial service was held in a tiny town reeling from the loss of 16 students and two teachers who were aboard the Germanwings flight that crashed last week. This was the scene in Haltern, Germany, a short time ago. Today's service attracting an overflow crowd. Some standing in the rain and wind to send up a silent prayer to the victims.

CNN's Will Ripley is there outside of the church.

Will, give us a sense of this memorial service. And this is a town that's just beside itself.

WILL RIPLEY, CNN CORRESPONDENT: Brianna, when you think about the fact that just 38,000 people live here and a week ago they lost 16 bright young students, two teachers who were coming back from a school trip to Barcelona which was supposed to be one of the happiest times of the school year, this is a time in Europe when a lot of students travel, parents were waiting for them at the airport and then the awful tragedy in the French Alps. People here are really having a hard time coming to grips with it. The memorial service was very emotional. At times as people were crying, the skies here opened up and it started raining as well. It was chilling, it was very somber and people here say they're also outraged, frankly, that this pilot who the airline we now know were aware that he had a history of mental problems, he was still allowed to be alone at that cockpit at the controls with these students and so many others in the back helpless -- Brianna?

KEILAR: It is so hard when you're talking about young people who had so much ahead of them in their lives and so many people from one small town. Are there other tributes that are planned, Will?

RIPLEY: We know on April 16th, about two weeks from now, there's going to be a very large service organized by Lufthansa. They will honor these students, most of them just 15 years old. These are tenth-graders. And also the other 149 passengers and crew who are the victims of all of this. People here, they want to honor the victims but they also want answers from the airline. They want to know that there's going to be safeguards put in place to make sure this never happens again. People are asking why there wasn't a policy all along that there should be two pilots in the cockpit. And so they're grieving and they're also hoping some good and some change can come from this.

KEILAR: And some understandable anger for sure there.

Will Ripley, thank you so much.

Up next, we will take you live to Switzerland. We'll get an update on the nuclear talks with Iran. Plus, reaction to the back and forth from Congress. And California Democrat Adam Schiff will be talking with us. Stay with us.

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[13:36:30] KEILAR: It's really been a roller coaster few days in Switzerland as negotiations over Iran's nuclear program blew past the original deadline yesterday. But all signs pointing to progress are a reason to keep going.

CNN global affairs correspondent, Elise Labott, is following all of this in Lausanne, Switzerland, where the negotiations are going on.

Elise, because this is changing almost moment to moment certainly between the wee hours of the morning and even now, tell us where we stand right now.

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Well, Brianna, we're about 20 hours past that deadline of last night. And the negotiators are still going. U.S. officials saying there's been some progress but still those sticking points remain unresolved and it's unclear if there's going to be anything to announce at all or when it might come together. But the German foreign minister has already gone a bit further saying the talks will go into tomorrow. And I've also heard similar from other diplomats. Clearly they feel there's enough progress, they're not completely deadlocked to say it's all for naught and go home. But clearly, there are unresolved issues. If there is an announcement, and we don't know there will be, it seems like it will be something very vague and general with a lot of issues unresolved, which is going to make it even harder for the president to sell to Congress to prevent them from imposing sanctions on Iran.

KEILAR: Are the sticking points still the same, where you're talking about how quickly sanctions would snap back into effect if Iran were to violate the agreement, and also the later years of this 15-year agreement, the nuclear activities that Iran would be able to participate in? Is it all the same at this point what they're hammering out?

LABOTT: That remains the big -- those are the big sticking points. How Iran could resume its nuclear advanced technology. But also the snapback of those sanctions. It's not only Iran that doesn't want the snapback of the sanctions. The Russians don't also. Once those sanctions are completely lifted, they're gone. It's really hard to re-impose them without getting around the Russian veto at the U.N. Security council. The Russians aren't so eager to let them go. So it's not just those issues about Iran's nuclear program but also there are the geopolitical issues of all the other countries, the U.S. with Congress, the Russians with their insecurities in the U.N. Security Council that fit into it, that's what makes this so complicated. But they are still going and we do understand the talks will continue into tomorrow -- Brianna?

KEILAR: And so it goes on.

Elise Labott for us in Lausanne, Switzerland, thank you so much.

Let's talk more about those negotiations and Iran's increasing role in the volatile Middle East. Here with me to discuss all of this is California Democratic Congressman Adam Schiff, the ranking member of the House Intelligence Committee.

You really have the message from the White House here that getting no deal might actually be better than getting a bad deal. Just moments ago, White House spokesman, Josh Earnest, said the U.S. is prepared to walk away if necessary. Can the U.S. really walk away? We're hearing this from the U.S. side of things. But Iran and Russia are much more optimistic about a deal.

[11:39:45] REP. ADAM SCHIFF, (D), CALIFORNIA: We can walk away and we would have to walk away if we don't get a good deal. It's very important for the president to come back to Congress to sell this to point to concrete things that have been delivered in terms of being able to snap back the sanctions you were just talking about. That's important because otherwise it could take months or year to try to re- establish the same kind of economic stranglehold on Iran if necessary. And it's important that inspectors have unfettered access not just to the sites we know about but other sites that Iran may begin clandestine efforts.

KEILAR: It's been years in the making of getting Iran economically to a point where, the U.S. would argue, it doesn't have a choice but to come to the table and try to get relief from some of these sanctions. Elise spoke about the possibility that the sanctions could go away, Iran gets what it wants. If it violates this agreement, Russia stands in the way of putting those sanctions back in place at the U.N. level. And then the U.S. could have been played for a fool, right?

SCHIFF: Well, it could happen. And Russia certainly wants to have that kind of leverage over the United States, over the other European powers that it would get by having a veto again in the Security Council to new Iranian sanctions. You can imagine how that would factor in, for example, if we had the same fight over Ukraine three years from now when Iran is cheating and we're dependent on Russia to reinstate sanctions. That's a problem obviously we need to avoid. So it's tough. But you can see a scenario very well playing out in the future where the United States and our European partners very much suspect that Iran is cheating. We have evidence that Iran is cheating but then going back into the United Nations to get those sanctions again would be very tough. KEILAR: Let's talk about Iran in terms of some of the leverage that

it has. In Iraq, big news today. You see that Iraqi forces were able to retake Tikrit. But only with the help and they wouldn't have been able to do it without the help of these Shiite militias that are Iran- backed. Is Iran feeling emboldened here that since the lesson that we've learned from this situation with Tikrit is that Iraqi forces aren't strong enough without these Iranian-backed militias? Is Iran thinking we can throw our weight around, we're needed here?

SCHIFF: I think Iran is feeling very emboldened by several things, by the fact that you have this Shia rebel take over of Yemen, that you have a very close relationship with their arch former enemy, Iraq, where they can control a lot of the Iraqi defense services. In Tikrit, it's more of a mixed bag. The al Quds leader had to leave the area. That was a loss of respect and face for Iran. So I think a mixed picture in Tikrit. But I think it will be very important for the United States to continue to insist that these militias not play an outsized role in the taking back of Sunni towns because they could win the battle but lose the war if other Sunnis feel that they're endangered by these militias.

KEILAR: There could some reprisals. Talk to us about Congress' role and what you want to see in terms of Congress' involvement when it comes to sanctions and these Iran nuclear talks.

SCHIFF: Well, I've been keeping an open mind about a deal. Whether it's good or bad, it makes sense to wait to see if we, in fact, have one because sanctions will pass in a heartbeat if we don't. If Iran either reneges, walks away, I will support them. There will be overwhelming bipartisan support for a new round of sanctions. The question is, where will that leave us? I think this is what makes these negotiations so vexing. It's not like we're choosing between having a great deal or a poor deal. We're choosing between having what I hope will be a good deal or Iran going back to spinning up its centrifuges, back to enriching uranium, coming close to a red line, and having a discussion with our Israeli allies, are they getting close to your red line and how far are they from our own red line? We have to choose between these alternate futures and no one has a crystal ball.

KEILAR: And we're talking about U.S. sanctions, a slice of the pie when you talking about all of the sanctions on Iran at that time.

Congressman Schiff, thank you for being with us.

SCHIFF: Thank you.

KEILAR: Coming up, there is a call for a fix. The governor of Arkansas refuses to sign a religious freedom bill viewed by many as a license to discriminate. The changes that he wants made before he signs it into law. We'll talk about that.

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[11:47:50] KEILAR: It is back to the drawing board for lawmakers in Arkansas. The governor announcing a short time ago he will not sign, at least not yet, a religious freedom bill that some say opens the door to legalized discrimination against gays and lesbians.

CNN's Victor Blackwell is live in Little Rock with all of this drama.

And it seems, Victor, that Governor Hutchinson there in Arkansas may have learned a lesson from what Governor Pence in Indiana has gone through.

VICTOR BLACKWELL, CNN CORRESPONDENT: There's the distinction that what we saw from Governor Pence was the call for the fix after he signed the bill. Governor Hutchinson calling for some changes before signing it, if he signs it at all. And it's important to highlight here that this landscape has changed. Up to yesterday when this was passed by the legislature, the fight was between the two parties. Now there's this intraparty fight where the governor is asking the majority Republican House and Senate here to make these changes.

I just had a conversation with the Senate sponsor, Bart Hester, of this bill, who said it's going to be a difficult climb for the governor to get this and he put the onus on the governor to make sure these changes he's calling for are enacted. He's specifically calling for allowing the First Amendment to be asserted in private litigation or relying upon state law, one of the changes the governor mentioned in this news conference today. We'll see if that gets done.

The session is supposed to be adjourned tomorrow. But there is some opening for this to go on for another day if they can get it done -- Brianna?

KEILAR: And tell us a little bit about -- it was pretty obvious that the governor was up against some major pressure here, right? Some big business pressure there in the state.

BLACKWELL: Business pressure, pressure from local mayors from city councils across the state, also from the major employers. The mayor of this city, the capital city, Little Rock, says that this should not be passed because it's too divisive. We heard from Tim Cook, of Apple, who talked about the Indiana law and what's being considered here. Also Wal-Mart. But what really stood out here is when the governor talked about the divide in his own family. Listen.

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GOV. ASA HUTCHINSON (R), ARKANSAS: It has divided families and there is clearly a generational gap on this issue. My son, Seth, signed the petition asking me, dad, the governor, to veto this bill. And he gave me permission to make that reference, and it shows that families -- and there's a generational difference of opinions on these issues.

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[11:50:29] BLACKWELL: Brianna, we actually heard from, through a statement, two members of the Little Rock Nine, nine African-American students who integrated all-white Central High School in 1957. They called this bill, now waiting to become a law if the governor signs it, dangerous and derogatory in its current form. We'll see if the form changes. KEILAR: Fascinating division in Arkansas.

Victor Blackwell, thanks for the report.

From Arkansas to Indiana, this backlash over the religious freedom law has caught some Republicans off guard. The question is, how are they going to fix it or, more importantly, can they fix it? We'll discuss that coming up.

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[11:54:50] KEILAR: The backlash over religious freedom laws is intensifying. We saw a short time ago the Arkansas governor will not sign the version of religious freedom bill on his desk. He wants the state legislator to make changes before sending it back to him. He wants changes before he would sign it.

Meantime, we are hearing the fix for the Indiana religious freedom law, Governor Mike Pence asked for may come tomorrow. This is drawing social issues they hoped to avoid. This is not just cultural battle. Financial repercussions are growing at a rapid rate.

I want to bring in chief political analyst, Gloria Borger; and national political reporter, Peter Hamby.

Gloria, we saw after the 2012 election the RNC put out the autopsy. I wonder if it regrets doing so because Democrats love quoting from it so much. Are we going to right now?

(LAUGHTER)

One of the recommendations, this is one. When it comes to social issues the Republican Party must, in fact, and, indeed, be inclusive in welcoming. If we are not, we limit ability to attract young people and others, including many women who agree with us on some but not all issues.

OK, so there it is.

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GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: There are a few things going on here. One of them is that Republicans have had so much success at the state level during the Obama years. The Democratic Party has virtually been hollowed out at the state level. What you're seeking is a lot of legislative activity done by Republicans at the state level who aren't really caring about very much what the presidential candidates have to do or think. That's what this is about. These are conservatives.

PETER HAMBY, CNN NATIONAL POLITICAL REPORTER: They care about the grassroots and not --

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BORGER: They care about the grassroots.

KEILAR: The reliable voting block, right?

BORGER: The problem Republicans have is, in addition to Republican presidential candidates having to talk about it, the demographics of the Republican Party is changing like the rest of the country. There's a poll I want to show you, Republicans that a favor same-sex marriage. If you're 18 to 29, 61 percent of young Republicans favor same-sex marriage. Older Republicans, only 22 percent. This is the problem the party is getting into right now.

KEILAR: Let's talk about this. You heard Asa Hutchinson saying my son signed the petition that says I should veto this law.

HAMBY: Yes, that was striking. We saw that last year, Senator Portman came out before Hillary Clinton in favor of same-sex marriage, to Dana Bash in that interview, citing his son's sexuality. It's not just Republican Party and primary that could be an issue. Generally speaking, if you look at millennial, what is the number? 70 percent under the age of 30 support same-sex marriage. It's not an issue. It's a settled issue. This is what Republicans in Washington worry about. If you're in your 20s, you look at what's happening in Indiana and Arkansas and think, what is this?

KEILAR: You talk to -- not just young people, but people have their pulse on what young people want. Let's talk about the economics of this. You're trying to attract young college grads. They tend to look at these kinds of issues for a litmus test, do I want to work for a company in Indiana, do I want to work for a company in Arkansas.

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KEILAR: You have Wal-Mart coming out and saying no, no, no.

BORGER: But it's business. This is another issue the Republican Party has to deal with. It's the Chamber of Commerce business Republicans who say Wal-Mart saying, wait a minute, I don't think we want this in the state of Arkansas, and other big businesses. Even NASCAR in Indiana saying no way. Evangelicals in the party who believe that they are worried about religious rights being infringed upon. The party has to balance the two sides.

HAMBY: If this was a political site, subtracting business -- that's silly -- but if strictly political, Mike may not have backtracked because he cares about his base. He danced with the people -- he's been social conservative for a long time. Governor, Democrats and Republicans, care about job, jobs, jobs, economic development. That's the name of the game across the board all the time. The minute this turned over and Apple started talking about it, it became an international story. Then the Chamber of Commerce wing coming down very hard.

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HAMBY: They testified against this in Indiana in which he, Mike Pence, knew this was an issue, and they still signed the bill.

BORGER: Right. The difference between Mike Pence and Asa Hutchinson is Mike Pence believes that he can be a presidential candidate at some point and would have to run in Iowa. And Asa Hutchinson --

HAMBY: President Asa?

(LAUGHTER)

(CROSSTALK)

BORGER: For Hutchinson, it's not as much an issue.

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KEILAR: Yeah, not as much an issue.

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[13:59:46] KEILAR: Gloria, Peter, thanks so much to both of you.

That's it for me.

For our international viewers, "AMANPOUR" is next.

And for our viewers in North America, "NEWSROOM" with Brooke Baldwin starts right now.