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Draft of GOP Senate Health Care Bill Expected Tomorrow; Russia Cancels Key Meeting with U.S. Counterparts; Awaiting FBI News Conference on Officer Stabbing in Michigan; U.S. Spy Satellites Detect Activity at North Korean Nuke Site; Kenneth Bay Speaks out on Otto Warmbier; Trump Sends Kushner to Mideast to Revive Peace Process. Aired 1:30-2p ET

Aired June 21, 2017 - 13:30   ET

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


[13:30:00] SEN. JOHN BARRASSO, (R), WYOMING: The loss of coverage is dramatic. We want to give people freedom, flexibility and choice. And there are ways to deal with the funding of so many of these issues without giving money to Planned Parenthood.

(CROSSTALK)

WOLF BLITZER, CNN ANCHOR: Assuming there's a vote before July 4, there will be no congressional, no Senate hearings on this, right?

BARRASSO: We have had over 30 hearings on the Finance Committee and the Health Committee. And there's going to be plenty of opportunity for amendments on the Senate floor. It's a completely open amendment process. The American people are going to be able to watch it all on CSPAN, and that opportunity is coming. So people will know --

(CROSSTALK)

BLITZER: There are hearings in important legislations like this.

BARRASSO: There have been -- there have been hearings.

(CROSSTALK)

BLITZER: But there haven't been any new hearings since this new legislation -- is only going to emerge tomorrow. We're only going to see the draft for the first time tomorrow. Normally, you have a draft, then there are hearings, then there are revisions, there are amendments, and then there's a time vote on the floor.

BARRASSO: We have been having -- first, we know the Democrats are not willing to help us at all. They have made that very clear. Their goal is a single-payer health care system, like has been passed by the California Senate. The cost in California, they say, is over twice what the entire general fund of the state of California is. So that is not what the American people want, the lines and the rationing that come from a single-payer system.

We're trying to rescue the health care system so people can get health care. There's lots of people with Medicaid cards now under Obamacare. But it you have a card and you can't get the care because a third of doctors are not taking new Medicaid patients, that hasn't really helped.

BLITZER: I know your position. It's a subject is very close to your heart. We are looking forward to reading the legislation tomorrow.

BARRASSO: Thanks, Wolf.

BLITZER: Senator Barrasso, thanks so much for coming in.

BARRASSO: Thanks so much for having me.

BLITZER: Up next, Russia pulls the plug on a key meeting where U.S. counterparts. We're going to tell you what they're saying, why they're saying no on an effort to try to improve relations. Stay with us.

(COMMERCIAL BREAK)

[13:36:02] BLITZER: The State Department here in Washington says the Russian government is canceling a meeting with a U.S. diplomatic official a day after the U.S. Treasury Department announced it was tightening sanctions against Russia. In a statement, the spokesman for the State Department said, quote, "We regret that Russia has decided to turn away from an opportunity to discuss bilateral obstacles that hinder U.S.-Russian relations."

Let's bring in our CNN contributor, former Moscow bureau chief for, Jill Dougherty, in Moscow for us. She teaches at the Evans School of Public Policy at the University of Washington.

Jill, what are you hearing over there from the Russian government? Do we know why this meeting was, all of a sudden, cancelled and what this says about the state of U.S.-Russian relations?

JILL DOUGHERTY, CNN CONTRIBUTOR: Wolf, we definitely do. In fact, the Russians are very angry about those sanctions. And they made it very clear today. This meeting was supposed to be taking place up in St. Petersburg on Friday between two senior officials, Tom Shannon, from the State Department, the undersecretary of state, and Sergei Ryabkov, who's a Russian deputy foreign minister. They were supposed to be discussing a lot of the irritants in the relationship. And the Russians are saying precisely because of those sanctions, there is no reason to go forward with that, and they said that they are canceling.

I'll read you, Wolf, one part of the statement from Ryabkov. He said, "We regret that the new American leadership takes the lead of inveterate Russophobes" -- those who fear Russia -- "in the U.S. Congress where they don't even know what else to come up with in order to annoy us. And most importantly, to nullify any prospects for stabilizing U.S.-Russian relations."

It's a very strong, very, I would say, almost personal statement. Essentially, what the foreign ministry is saying is that the Trump administration is just as bad as the Obama administration. And that's really saying something, because of the Russians really hated, and you can say that directly, the Obama administration. What they're saying is Trump is now a prisoner of people in Congress who want to make sure that relations don't improve and is going ahead with these sanctions.

So it's quite a dramatic statement. It could be some very tough bargaining because, after all, we're expecting that President Trump and President Putin may meet in July, early part of July, at the G-20 meeting. But this is really tough bargaining and very, very strong statements coming from the Russians -- Wolf?

BLITZER: All right, Jill, thank you. Jill Dougherty in Moscow for us.

Up next, on the brink with North Korea. The North Korean leader, Kim Jong-Un, may be planning another nuclear test. We'll look at the latest intelligence and the response coming in from the White House right now. Stay with us.

(COMMERCIAL BREAK)

[13:43:19] BLITZER: Take a look at this, live pictures coming in from Flint, Michigan. We're told the FBI will be holding a news conference on the investigation of a possible terror attack over at Flint's Bishop Airport.

Here's what we know. Investigators say an airport police officer was attacked and stabbed in the neck and back, early this morning. They say the assailant, who's now in police custody, was targeting the law enforcement officials. The officer is in stable condition, we're told. The airport remains closed at this time.

Our crime and justice report, Shimon Prokupecz, is joining us now.

Shimon, why is the FBI in charge of this investigation now, and why are they concerned that this is a possible terrorist incident?

SHIMON PROKUPECZ, CNN CRIME & JUSTICE PRODUCER: They're working with the local police department. No one has really has taken the lead. I don't think it's fair to say that. But clearly, this is now probably heading in the direction of where they're going to need to be involved and have a sort of a big part of the investigation.

BLITZER: The FBI?

PROKUPECZ: The FBI. Because of the nature of the attack, this targeting of a police officer, several U.S. officials that I have spoken to and law enforcement officials all have indicated that this was a targeted attack, that the assailant here went into this airport and targeted this police officer.

And also, the weapon. It was a knife. And as we have reported on so many of these incidents, this is a style of an attack of someone who may be radicalized. We're not there yet, but certainly, there is some concern that this may head in that direction.

There's also some words that some witnesses have given investigators that they heard the suspect shout during the attack. That is under investigation. Law enforcement officials that I have spoken to have not confirmed those yet. But they are certainly investigating that. And that also will help them in their investigation in determining whether or not this is terrorism. FBI officials and other law enforcement officials are stressing that they have not made that determination yet. They are still sort of in the beginning stages of the investigation.

And they were supposed to come out and speak and have this press conference, but they have now delayed it because they want to talk to more witnesses. They just want to gather more facts. They want to know about what went on here exactly. And we believe the police officer was -- who was injured here is now stable and is also talking to investigators.

[13:45:43] BLITZER: As we're speaking, just getting this information in from our producers and reporters, a Department of Homeland Security official here in Washington say the preliminary indications are the stabber, the assailant, the attacker said something in Arabic before attacking the airport police officer. The official act is still unclear, if this was an act of terrorism, at least right now. Additionally, a law enforcement official, a second official tells CNN investigators were told by at least one witness that the suspect shouted "Allahu Akbar" before stabbing the officer. That presumably is why the preliminary investigation is possibly terrorism.

PROKUPECZ: Right. Exactly. That is a key component of this investigation. That is a key factor. But again, sometimes witnesses mishear things or think someone said something, so that is still something that the FBI wants to investigate. But, obviously, important, those words. We know what that means. And obviously, an important part of this investigation now.

BLITZER: We're continuing to monitor this and watch it. And we're standing by for that news conference that's supposed to take place very soon in Flint, Michigan.

Shimon, good reporting. Thanks very much.

PROKUPECZ: Thanks.

BLITZER: Meanwhile, an American citizen returns from detention in North Korea detention and dies. And U.S. spy satellites detect new activity at North Korea's underground nuclear test site. Tensions clearly escalating right now between North Korea, the United States and its allies.

Let's go to our Pentagon correspondent, Barbara Starr; and our CNN international correspondent, Paula Hancocks, who's in Seoul, South Korea.

Barbara, tell us what you know about the recent activity at North Korea's underground nuclear test site.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: This is northeastern North Korea, Wolf. U.S. spy satellites recently picked up signs of activity at one of the tunnel entrances at the site. And those tunnels would hold the nuclear device that will be tested if there was going to be another underground test. The problem is the spy satellites only see so much. They really don't know what may happen next. They really don't know whether Kim is on the verge of ordering a sixth nuclear test.

But there's some concern about all of this because the U.S. has been relying on China, under the Trump administration, to really pressure the North Koreans to ratchet back on their weapons development program. If there is a new nuclear test in the coming days, the feeling is that's a signal that Chinese pressure is not working. U.S. commanders have long updated military options for President Trump. Nobody is saying he's going to use them. Nobody's suggesting there will be U.S. military action. But those military options have recently been updated so they will be ready for President Trump if he decides he wants to have a look at them -- Wolf?

BLITZER: Paula, factoring into all of this, the death clearly of Otto Warmbier, the 22-year-old college student that passed away just days after being send home from North Korea in a coma. It has prompted another former detainee to speak out, and you're speaking to that former detainee. Tell us what that he is telling you.

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: That's right, Wolf. This is Kenneth Bay, the very first American detainee to be sent to a labor camp. He was released back in 2014. He said he felt he had to speak out because he was so devastated by what had happened to Otto Warmbier. Kenneth Bay saying he never imagined this could happen to an American in custody. We know that the Warmbier family blames the North Korean government. They say it is the tortuous mistreatment of that regime that has led to their son's death. And I asked Kenneth Bay about that. I said, "Is it possible that Otto Warmbier may have been tortured in detention." He said, "Given the threats that were against him, it is possible."

(BEGIN VIDEO CLIP)

KENNETH BAY, FORMER PRISONER IN NORTH KOREA: I do believe it's possible. It didn't happen to me, but they did threaten me a few times. So for, you know, for a 21-year-old, not really knowing what to expect, I think it was probably he was very terrified. There could be possible that he was threatened or he was actually physically tortured or attacked. They told me before, when I was being questioned at the time, that if you don't follow along with our program, you will get something worse. They did have that line, that if you don't follow, and there will be something worse that can happen to you.

(END VIDEO CLIP)

[13:50:20] HANCOCKS: Now he was very clear that there was psychological torture in his case, but nothing physical. And he said he doesn't specifically know what happened to Otto Warmbier, but he is very concerned about those three Americans still being detained, a Canadian, six South Koreans, and says that every effort must be made now to try and get them out as quickly as possible.

He also agreed with U.S. Senator John McCain that, under no circumstances should any U.S. citizen, as far as he's concerned, be going to North Korea, at least not until North Korea is clear about what happened to Otto Warmbier -- Wolf?

BLITZER: Paula, thank you very much.

Paula Hancocks and Barbara Starr, good reporting.

Still ahead, from real estate developer to Middle East peace negotiator, Jared Kushner is now on the ground in Jerusalem. A closer look at President Trump's controversial decision to send his son-in- law to the region to try to restart peace talks.

(COMMERCIAL BREAK)

[13:55:07] BLITZER: We're standing by for a news conference. The FBI getting ready to brief reporters in Flint, Michigan, at the airport there. Looking at pictures coming in from Flint, Michigan. We're told that President Trump has been briefed on the attack on a police officer at the Flint, Michigan, airport. This, according to an administration official. The police officer was stabbed in the neck and back by an assailant who, we're told by a law enforcement official, was uttering the words "Allahu Akbar" before stabbing the police officer. That's why this is now being investigated as a possible act of terror. The assailant is under police custody. The police officer is alive, fortunately. The president -- President Trump has been briefed on this attack. We'll get more information and have live coverage of the news conference once it starts.

Other news we're following, with every new administration comes a renewed effort to try to revive the Middle East peace process. The Trump White House is certainly no exception, right now. But instead of sending a seasoned politician or a diplomat, a veteran diplomat, President Trump is trying a different approach, sending his son-in-law and senior adviser, Jared Kushner, to meet with leaders there.

Earlier today, he was greeted by the Israeli Prime Minister Benjamin Netanyahu.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: This is an opportunity to pursue common goals of security, prosperity and peace.

And, Jared, I welcome you here in that spirit. I know of your efforts, the president's efforts. And I look forward to working with you to achieve these common goals.

JARED KUSHNER, TRUMP SENIOR ADVISOR: Thank you. The president sends his best regards. And it's an honor to be here with you.

NETANYAHU: Well, we just had a historic trip. The president was greeted here with fantastic warmth. He made an indelible impression on the people of Israel. And it's good to see you again. Please send him our warmest regards.

KUSHNER: I definitely will.

(END VIDEO CLIP) BLITZER: All right, let's bring in our global affairs analyst, Aaron David Miller, of the Wilson Center here in Washington.

You spent about two decades as a State Department official working on the Israeli/Palestinian peace process. Jared Kushner meeting now with the prime minister of Israel. He'll meet with the Palestinian president in Ramallah, Mahmoud Abbas. What do you think?

AARON DAVID MILLER, CNN GLOBAL AFFAIRS ANALYST: I think it's a heavy lift. I met Mr. Kushner a couple of months ago. I told him, I wish my father-in-law had as much confidence in me as his father-in-law appears to have in him, because he's given him mission impossible, at least mission implausible. I mean, the ultimate deal, Wolf, which we've chased after for a long time, and that's part of the problem, we've cared about it more than the Israelis and the Palestinians. So whether Jared Kushner, his son-in-law, regardless, he doesn't have much experience, the reality is he's the guy in the middle. The question is whether the guys on either side of him, Mr. Abbas and Mr. Netanyahu, are willing and able to make core decisions.

BLITZER: What advice do you have for him?

MILLER: Stop using the term "ultimate deal." That's not advice for Mr. Kushner, it's respectfully for the president. It's the ultimate deal, a conflict-ending agreement, a border security, Jerusalem, refugees, recognition as Israel as the nation-state of the Jews and ending all conflicts and claims, that's a real heavy lift. That's going to be really tough.

BLITZER: One thing they do have, those who want a two-state solution, those who want a deal between the Israelis and the Palestinian, they have outside supporters now who want to get involved, help financially, and in other ways, whether the Egyptians and the Jordanians, who do have diplomatic relationships with Israel. But the Saudis, the Bahrainis, the Emirates, they want to get involved as well and help if they can. That's a relatively new development.

MILLER: It's new and it's real. And if the Saudis and the gulf states are prepared to take measured confidence steps as Israelis and Palestinians take steps toward one another, that could be an incredibly important point. The problem --

(CROSSTALK)

BLITZER: They have the money to back it up.

MILLER: The issue is they can supplement, but they cannot substitute for the core decisions Israelis and Palestinians have to make.

Look, you've got a new president, unpredictable. He's clearly established a very close relationship with Israel, gone to Israel earlier than any president has ever gone this early in his term. Palestinians are, more or less, dependent on him. The problem again is whether the Israelis and Palestinians are willing to make the decisions. If they are, then maybe we'll be raising our glasses, and maybe there will be some kind of an agreement. An ultimate deal? Not so sure.

BLITZER: In the past, when they were close -- and you were there, you were involved -- they didn't have these outside Arab supporters directly involved, and that could be a decisive factor. Maybe I'm being overly optimistic right now.

(CROSSTALK)

BLITZER: I've been covering this peace process for a long time.

MILLER: Right. No one ever, Wolf, lost money betting against it.

BLITZER: Hopefully, something can work out.

MILLER: Right.

BLITZER: Aaron, thanks very much.

That's it for me. Thanks very much for watching. I'll be back 5:00 p.m. eastern in "The Situation Room."

In the meantime, the news, of course, continues right now.

[14:00:04] ANNOUNCER: This is CNN breaking news.

BROOKE BALDWIN, CNN ANCHOR: Wolf, thank you so much.

I'm Brooke Baldwin. You're watching CNN.

We do have some breaking news here. The FBI --