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Priebus And Bannon To Speak At Conservative Conference; Tillerson Meets With Mexican CounterpartPriebus and Bannon at CPAC; Trump's Travel Ban; Turmoil in the Trump Administration. Aired 1-1:30p ET

Aired February 23, 2017 - 13:00   ET

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


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WOLF BLITZER, CNN ANCHOR: Hello, I'm Wolf Blitzer. It's noon in Mexico City, 1:00 p.m. here in Washington. Wherever you're we're watching from around the world, thanks very much for joining us.

Take a look at this. Got some live pictures coming in from the Conservative Conference here in Washington. CPAC, as it's called, where we're expecting to hear, momentarily, from President Trump's chief strategist, Steve Bannon, and his -- and the White House chief of staff, Reince Priebus.

We're also expecting remarks from Trump's secretary of state Rex Tillerson who's in Mexico City meeting with leaders there. For the Republican leaders, it's all about CPAC, at least for the next few days. With thousands attending, it's the largest annual conference of conservative political activists from across the United States.

Team Trump has a massive show of force. The White House counselor, Kellyanne Conway, predicting it will be called TPAC by tomorrow.

At any moment, by the way, the heavy hitters, the president's chief strategist, Steve Bannon, the White House chief of staff, Reince Priebus, they will take the stage. They will sit together, answer questions there.

We're going to bring that to you live as soon as it begins. Haven't heard much from Steve Bannon since he became the chief strategist at the White House. Reince Priebus, the White House chief of staff, will be appearing together with him. We'll have live coverage of that.

But first, take a listen to some of the other speakers from earlier in the day.

(BEGIN VIDEOTAPE)

GOV. DOUG DUCEY (R) ARIZONA: The victory is not on November 8th. That is an assignment for change and real reform.

GOV. SCOTT WALKER (R) WISCONSIN: My plea to you here today is to not get caught up in Washington, to not forget the voters, to not ignore the people who live in reality all across this country every single day. GOV. MATT BEVIN (R), KENTUCKY: I wear this lapel pin. It's a pair of

scissors cutting red tape. We need to cut red tape in America.

JIM DEMINT, PRESIDENT, THE HERITAGE FOUNDATION: Obamacare has become a cancer on our health care system. We don't need to replace a health care system. We need to remove the cancer.

GOV. SAM BROWNBACK (R), KANSAS: The welfare program that the left has put in place, since the great society of LBJ, have failed.

SEN. TED CRUZ (R), TEXAS: From the left, their base -- there's a technical term for their base, Moscow. I was going a different direction which was bat crap crazy.

(END VIDEOTAPE)

BLITZER: Our Congressional Correspondent Phil Mattingly is over at the CPAC conference for us. Phil, there have been reports that Steve Bannon and Reince Priebus, they've been at odds on certain issues. Is there a joint appearance momentarily, a show of unity within the Trump White House?

PHIL MATTINGLY, CNN CONGRESSIONAL CORRESPONDENT: Yes, no question about it. And talking to people here at CPAC, they acknowledge that's the goal here to show a united front. Look, there's been no shortage of reports of aides coming out of the White House, talking about disputes over hiring decisions, policy direction, even proximity to the president.

And I think if you look to the context here, Wolf, that, in some sense, makes sense. If you -- Reince Priebus, kind of an establishment figure, Chairman of the Republican National Committee. Steve Bannon, the chief of Breitbart News and, more or less, went after the establishment for years.

Now, they're in the same, kind of, boat working together, working side by side. I think what we've seen, over the last couple of weeks, is as these stories of dissension or splits have come out, these two individuals have tried to confront that, try and knock it down. And never will be that -- that be more apparent than this appearance here at CPAC, Wolf.

And what we've seen, really, is the entire Trump administration come out in full force and try and do something similar.

Look back over the last couple of years. In 2015, Donald Trump came here, talking about the potential that he'd run for president. And was mocked a little bit by some conservatives who weren't comfortable with his candidacy.

Last year, he skipped it all together. His concern about protest. Now, as you noted, Kellyanne Conway, this morning, saying CPAC is turning into TPAC. And that's the -- by design for the Trump administration, they want these activists not only to be on their side but, really, to be deployed in full force, Wolf. They recognize, they look across the country right now, see some of the backlash to some of their policy proposals, that they need the help of individuals like this. The active grassroots conservative base.

That's why you're seeing them here today. It's, kind of, a joint effort to make sure they activate the activists, but also make sure they make clear, at least publicly, that their administration is all on the same page -- Wolf.

BLITZER: You know, Phil, it's going to be interesting, the format. Matt Schlapp, he's going to be questioning Reince Priebus and Steve Bannon and going through, presumably, a whole bunch of issues. What are you hearing about what we might learn?

MATTINGLY: Well, nothing is off the table. Look, this is a friendly stage and friendly territory for conservatives, no question about it. You can watch everybody that's come up, up to this point. The question and answer session with Kellyanne Conway earlier. These aren't exactly questions designed to pin them into bad positions.

But, as you voted earlier, Wolf, anything Steve Bannon says is interesting. We just haven't seen a lot from him. There's a lot of talk, a lot of rumor about where he fits in the White House, his role, his power. We're going to see that live and in living color over the next couple of minutes.

[13:05:07] And I think that's going to be interesting for everybody who's been trying to read the tea leaves. You don't need to look behind the scenes anymore. It's going to be out in front.

And what Steve Bannon says, how he, kind of, lays out what his role in the White House is, is it's interesting to everybody. Not just reporters, not just people watching from the outside.

But I talk to Republicans on Capitol Hill, some of whom were attacked by Breitbart over the last couple of years. They, themselves, are not sure what the role of Steve Bannon is, how he interacts with Reince Priebus.

So, this is going to be a very illuminating conversation no matter what topics they get into -- Wolf.

BLITZER: And we'll, of course, have live coverage. We'll be anxious to hear what Steve Bannon and Reince Priebus have to say. Stand by for that.

Thanks very much, Phil.

I want to continue to watch live pictures also coming in from Mexico City, where the secretary of state, Rex Tillerson, has been meeting with Mexican leaders.

Right now, he's meeting with the Mexican foreign minister, Luis Videgaray. Both will be speaking any moment now. They'll be speaking and making statements in Mexico City. I don't know if they're going to be answering reporters' questions, but we'll have live coverage of that.

Just moments ago, President Trump addressed the Mexican visit by the secretary of state and the secretary of Homeland Security, John Kelly. He told business leaders that Tillerson's visit to Mexico, and I'm quoting the president now, "is going to be a tough trip." His words, a tough trip.

We'll, of course, have live coverage of that news conference. The statements that will be made by the secretary of state and the Mexican foreign minister. That's expected very soon as well.

As we await for all of these developments, especially the White House chief of staff, Reince Priebus, and the White House chief strategist, Steve Bannon, to address that CPAC conference, a huge conference underway here in Washington, D.C.

I want to bring in our panel. Joining us, our Senior Political Reporter Nia-Malika Henderson; Susan Page, Washington Bureau Chief for "USA Today;" A.B. Stoddard, Associate Editor and Columnist for "Real Clear Politics." And joining us from New York, our Senior Media Correspondent, the host of CNN's "RELIABLE SOURCES," Brian Stelter; and our Chief Political Analyst Gloria Borger.

Gloria, this will be the first on-camera public comments from Steve Bannon since the inauguration. I think it's a pretty significant moment.

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: It is. I mean, look, they have been going out of their way after initial reports that they weren't getting along so well, because after all they do come from two different political worlds. Reince Priebus, of the Republican establishment, and Steve Bannon, of Breitbart and the alt-right. That they've gone out of their way to say, they are actually working hand in glove.

And behind the scenes, people are saying, well, they're not so sure. Is Bannon more aligned with Jared Kushner, the president's son-in-law, or is he more aligned with Reince Priebus?

I think it is no coincidence that they are out there together at CPAC. And I think one of the reasons is that Bannon wants to introduce Reince Priebus as somebody who should have credibility with these people.

And I think that he's giving him, sort of, the good housekeeping seal of approval by sitting there on stage with him. And trying to let the folks at CPAC know that this administration is going to speak with one voice.

BLITZER: And, Brian, Steve Bannon's got a long history in the media, before becoming this top strategist for the president in the White House. For our viewers in the United States and around the world, tell us a little bit about that background.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: Yes, he was a -- he was in Hollywood working on films and T.V. shows. He had made documentaries, conservative-oriented documentaries. He had a credit on "Seinfeld" that made him a lot of money through that old sitcom.

But more recently, running Breitbart, overseeing Breitbart, the far right Web site, a favorite of Trump loyalists. He left that job, of course, to help run Trump's campaign last summer. Now, of course, find himself as chief strategist in the White House.

But as Gloria was saying, this is someone who has avoided the spotlight, who does not give interviews. While he may be a source for reporters behind the scenes, he doesn't speak on the record.

And I bet some of our viewers have never heard his voice. So, it'll make for an interesting moment to see him on stage with Reince Priebus.

BLITZER: It certainly will. And we'll, of course, as I've been pointing out, have live coverage of that.

Nia, the president hosted a group of CEOs over at the White House today. I want you to listen to what he said, at one point, that involves more than just talking business.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I'm delivering on everything that we've said. In fact, people are saying they've never seen so much happen in 30 days of a presidency.

With Mexico, we have $70 billion in deficits, trade deficits. And it's unsustainable. And we're not going to let it happen. Can't let it happen. We're going to have a good relationship with Mexico, I hope. And if we don't, we don't.

[13:10:05] You see what's happening at the border. All of a sudden, for the first time, we're getting gang members out. We're getting drug lords out. We're getting really bad dudes out of this country and at a rate that nobody has ever seen before. And they are the bad ones. And it's a military operation.

And I actually said I was the best golfer of all the rich people, to be -- to be exact. And then I got --

(END VIDEO CLIP)

BLITZER: That last comment, one of the guests there suggested -- reminded him he had a hole in -- a hole in one when they were playing golf.

All right, let's talk a little bit about what the president had to say. He was -- I guess he was being pretty direct, blunt in talking about the U.S.-Mexico relationship. It could be tough.

NIA-MALIKA HENDERSON, CNN SENIOR POLITICAL REPORTER: It could be tough. I mean, it already has been tough. The meeting, of course, that he was scheduled to have here with the president of Mexico was canceled because of the rhetoric that's gone back and forth. President Trump saying that Mexico was going to pay for the wall and president Pena Nieto, who had had low ratings. When he stood up to President Trump, his ratings are kind of creeping up.

So, I think President Trump is finding out that the president of Mexico also has some cards to play, right? I mean, this isn't -- this isn't a zero-sum game, in terms of this relationship.

Obviously, President Trump wants this wall. He wants some sort of cooperation from Mexico. They have said no. He's reviewing how much aid the U.S. sends to Mexico and whether that's part of the negotiation.

So, when Tillerson goes, I mean, and we've seen this already with the secretary of state, when he goes abroad, he's essentially on a cleanup mission for this president. And you imagine some of that will have to go on there. Some tough talk back and forth between these two leaders.

BLITZER: Rex Tillerson, we're going to be hearing from him, the Secretary of State. We heard from him during his confirmation hearings, Susan, and we got to know him a bit. But since he was sworn in as secretary of state, he really hasn't been all that visible, at least on television, speaking out.

Now, we're going to hear what he has to say. He'll be speaking together with the Mexican foreign minister. And one subject -- one -- a few words, I'm anxious if they even raise the words, would be that border wall and who's going to pay for that wall.

SUSAN PAGE, WASHINGTON BUREAU CHIEF, "USA TODAY": The border wall, who's going to pay for it because both sides say the other side is going to pay for it if it gets built.

Also, you know, the president's new initiative and policies' approach on immigration, on deportation, some of that involves the approval and cooperation of Mexico.

For instance, the president wants to be able to deport people from Central America back to Mexico, not back to their home countries. That's a change in policy. You can't do that unless Mexico is really to go along with it.

BLITZER: A lot of those home countries don't want to take these people back.

PAGE: That's right. And Mexico may or may not be willing to take them back as well.

BLITZER: Mexico says they'll take back the Mexican cities --

PAGE: Yes.

BLITZER: -- which they have no choice. They have to take back Mexican citizens. But they're saying they don't want to take back someone who came from Central America or South America, -- PAGE: That's right.

BLITZER: -- from other countries.

PAGE: And that's consistent with the policy of the Obama administration which was that they were going to be deported. They had to be deported back to their home countries.

The Trump administration wants to change that. But it does depend on the cooperation of some other foreign leaders. In this case, Mexico.

It will be interesting to see Rex Tillerson speak. You know, he has been -- we haven't seen briefings -- press briefings by the State Department since he became secretary of state.

We haven't seen him able to fill the jobs beneath him at the State Department, the appointed jobs. Lots of vacancies there that have been, I think, problematic for trying to institute the traditional role the secretary of state has played.

BLITZER: It's hard, A.B., to be secretary of state if you don't have a deputy secretary of state or under secretaries of state or assistant secretaries of state. All of whom have yet to be named and then they have to go through Senate confirmation.

A.B. STODDARD, ASSOCIATE EDITOR AND COLUMNIST, "REAL CLEAR POLITICS": Right. Look, so far, it's no secret that Rex Tillerson has been, sort of, cut out of the usual role and influence of secretary of state.

He was not on the stage with Benjamin Netanyahu and President Trump. He was on an airplane somewhere when President Trump he could do -- said he could do a one-state, a two-state solution.

Big decisions are being made. An emergency meeting in Mar-a-Lago, FL over the weekend with the Japanese prime minister to respond to a missile test from the North Koreans.

The -- Rex Tillerson's counterpart was there for the weekend. The Japanese secretary of state, if you will. Rex Tillerson was nowhere to be found. He's not in the photos. He's not there in the moment. He doesn't have staff.

Now, he's been sent down to, basically, hear the Mexican government say what they said out loud yesterday which is that this new immigration policy is hostile. That they've been vilified (ph) by this president. That they don't have to do this as a sovereign nation.

So, it is going to be very interesting to see, as Susan says, what -- how Rex Tillerson describes it because he does not have the influence that secretaries of state and the command they usually have.

And this is a very tense relationship. I don't think he's going to describe it as phenomenal which I think is the word that Sean Spicer, the White House Press Secretary, used yesterday.

BLITZER: The phenomenal -- the U.S.-Mexican relationship.

STODDARD: Yes.

BLITZER: I was surprised to hear that as well, given some of the strains that have development on the Mexican president declining an invitation to come to Washington, as you point out.

[13:15:05] All right, everyone stand by. We're watching two big events. We're about to have live coverage from the CPAC conference here in Washington where President Trump's White House chief of staff, Reince Priebus, and his chief strategist, Steve Bannon, they will be speaking, answering questions there. We're going to have live coverage of that. Haven't heard much from Steve Bannon over these past few weeks.

We're also standing by to hear from the secretary of state, Rex Tillerson, and the Mexican foreign minister. They're about to speak. You see the lecterns there in Mexico City. They're trying to smooth the U.S./Mexican relationship, despite serious tensions over the president's proposed border wall and who is going to pay for it.

Our special live coverage continues right after this.

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[13:20:17] BLITZER: Welcome back.

We're standing by for two important events we're watching here in Washington. You're looking at live pictures. On the left part of your screen from CPAC, where the White House chief of staff, Reince Priebus, and the White House chief strategist, Steve Bannon, will be speaking. They'll be answering questions. The CPAC chairman, the American Conservative Union chairman, Matt Schlapp, will be asking those questions. An important discussion that is about to begin. We'll have live coverage of that.

On the right part of your screen, you're seeing live pictures from Mexico City. You see two lecterns there. The U.S. secretary of state, Rex Tillerson, and the Mexican foreign minister, Luis Videgaray, will be speaking, making statements following their meetings there. They are both trying, we understand, to smooth tensions between the United States and Mexico over President Trump's proposed border wall, his repeated assertions that the Mexicans will pay for that wall.

So there's a lot to discuss, a lot to access. I want to go back to our panel.

And, Gloria Borger, once again, and I want to underscore how significant it is that we're going to be hearing from Steve Bannon. He's caused a lot of controversy over these past few weeks because of his views. There's been a lot written about him. He was on the cover of "Time" magazine, suggesting he may be the real power behind the president. How sensitive are White House officials to all those kinds of reports?

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: Well, I think they're very sensitive to it and the person who might be the most sensitive to it is the president of the United States, who likes people to know that he is the boss. However, there is no denying that Steve Bannon and Jared Kushner, the president's son-in-law, have become a real powerhouse within the administration. And we're talking about the Secretary of State Tillerson being in Mexico. You know, I have spoken to people who believe that, in fact, foreign policy is being run out of the White House and not out of the State Department, as A.B. was referring to before. And I think that that creates quite a tension and quite a lot of difficulty for the secretary of state.

And whether it's about EU policy, whether it's about Israel, whether it's about Mexico, these are meetings and these are decisions that the secretary of state needs to be in on. And I think the problem you have with a lot of these cabinet level officials, and also don't forget Tillerson was denied Elliott Abrams, the number two person that he wanted to be his deputy. And so I think what you're seeing at all these agencies is that people like Tillerson are trying to get their people in so they can start having the impact that they really want to have on the president and on policy at the White House.

BLITZER: You know, Nia, it's interesting that the president's second round of discussions on a travel ban have now been delayed at least until next week. The first travel ban executive order didn't get through the courts. Now he's coming up with a revised version and there's some -- I guess people are wondering, why is it taking this long because the president had asserted, the longer it takes, the of, quote, "bad dudes" will be flooding into the United States.

NIA-MALIKA HENDERSON, CNN SENIOR POLITICAL REPORTER: That's right. I mean he talked about it as if it was sort of a national emergency and necessary for the security and safety of Americans. You know, in some ways it's probably a good thing that this White House is waiting and sort of slowing this process down. I think most people close to the White House admit it didn't go well the first time partly because it was rushed out and all of the different agencies and agency heads didn't have a chance to weigh in on it. Now they have this blueprint essentially given to them by this court that blocked this travel ban that I think allowed them to try to craft a travel ban now that will stand up to legal scrutiny.

We'll see. I mean it is also possible that whatever they issue here in terms of an EO will still face legal scrutiny. They're obviously going to look at some of the things that the court said around religious minorities. That was something that was in the ban that made people think it might have stepped on the establishment clause and take out any language that might get visa holders and green card holders trapped in any sort of travel ban in the way that we saw before.

BLITZER: I'll be anxious, you know, Susan, to see if Matt Schlapp, who's going to be moderating this discussion between Steve Bannon and Reince Priebus, if they get into some of those sensitive issues, like the proposed travel ban.

SUSAN PAGE, WASHINGTON BUREAU CHIEF, "USA TODAY": And, you know, it's interesting, we're now seeing this administration in some ways act more like a typical administration. There are no shortage of ways in which the Trump White House is unique and unprecedented. But in terms of taking a little time to figure out an executive order that will meet a court's scrutiny, that's not unusual.

[13:25:10] In fact, even the pull and tug you see over who's going to hold some of these second tier, third tier cabinet positions undersecretary -- assistant secretary, that's something you often see with administrations with the battle between the White House and people who were with the president when he was a candidate and the people who are close to the secretary of the agency himself. We saw that -- some of that with Hillary Clinton when she became secretary of state for Barack Obama. So in some ways this is standard operating procedure, although it's taken the Trump administration a little while to get to this point.

BLITZER: Well, and it understandable, A.B., that the White House, the president, doesn't want undersecretaries or deputy secretaries in the various cabinet departments and agencies who were very critical of him, never Trump types, Republicans, during the course of the campaign. So they're vetting all of these individuals. I assume that's understandable.

STODDARD: Right. And Susan is right, this is a typical push and pull. We see it in the Congress, how much power is centralized into the speaker's office or does it flow down to the committee level, or the members in power, to be influential with legislation or does it just get written in the speaker's office and thrown on the floor? This is the same thing.

The problem with the Trump universe, which is unique, as Gloria said, is that you have people running around saying, well, the Middle East is Jared's portfolio. If that really is sustained and everything, all consequential decisions, domestic and foreign, lie with the purview only of Steve Bannon and Jared Kushner, some of those people like Rex Tillerson might leave. They might not get enough people approved working with them that they feel really make a cohesive team that they can work with.

And so if you see a General Mattis leave or a Rex Tillerson leave, that will terrify Republicans who have really placed their hope and trust in this so-called group of grown-ups, these generals, including McMaster, who have just taken these positions of consequence. If it turns out that they're not influential, that will be a huge problem.

BLITZER: Yes, General McMaster, the new national security adviser to the president of the United States. Got very high marks, not just from Republicans, but from Democrats as well.

All right, everybody stand by.

We're still waiting for these two big events to begin. President Trump's White House chief of staff, Reince Priebus, and the chief White House strategist, Steve Bannon, they'll be speaking at the CPAC conference in National Harbor, Maryland. That's right outside of Washington, D.C. They're both at the Gaylord National Resort and Convention Center in Oxen Hill, Maryland, right outside of Washington. Also, in Mexico City right now, that's pretty far away from

Washington, Secretary of State Rex Tillerson and the Mexican foreign minister, they will be speaking very soon as well, we're told. Part of a trip that even the president has now acknowledged will be very tough.

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