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NEWS STREAM

North Korea Tensions; Texas Church Massacre; Ross Revelation Reveals a Russia Link; Saudi Crown Prince Leads Anti-Corruption Sweep; Ex-Catalan Leader Granted Conditional Release; Trump: U.S.-Japan Trade Is Uneven; A Foodie's Guide To Delhi's Street Cuisine. Aired at 8-9a ET

Aired November 6, 2017 - 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 NEWS STREAM SHOW HOST: I'm Kristie Lu Stout in Hong Kong and welcome to "News Stream."

President Trump defends his harsh words for North Korea and declares the era of strategic patience to Pyongyang is over. We have reaction from

Pyongyang on the eve of the U.S. president's visit to the Korean Peninsula. Officials tell CNN they are watching his trip closely.

And yet another deadly mass shooting in the United States. Twenty-six people killed at a church in Texas.

U.S. President Donald Trump is defending his aggressive approach towards North Korea. He is in Tokyo, the first stop of a five-nation tour of Asia.

And here you see Mr. Trump and Japanese Prime Minister Shinzo Abe toasting at a state banquet a short time ago.

Earlier, the leaders spoke side-by-side at a news conference, with Mr. Abe saying he 100 percent agrees with Mr. Trump's strategy when it comes to

Pyongyang. And here is what Mr. Trump had to say.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The era of strategic patience is over. Some people said that my rhetoric is very strong, but look what

has happened with very weak rhetoric over the last 25 years. Look where we are right now.

(END VIDEO CLIP)

LU STOUT: We are covering this critical diplomatic visit from all over the region. Ivan Watson is in Seoul, South Korea. Will Ripley is in Pyongyang,

North Korea. But first, let's go to Alexandra Field in Tokyo. Alex, it seems that Donald Trump and Shinzo Abe are in complete agreement when it

comes to North Korea. Tell us how.

ALEXANDRA FIELD, CNN INTERNATIONAL CORRESPONDENT: Kristie, in that press conference, they couldn't have told you enough times exactly how in

agreement they are. Look, we knew that this was going to be perhaps the easiest stop on this five-country tour for President Donald Trump because

he is here meeting with his closest ally in the region.

But you said over and over and over again that they are on the same page, a 100 percent when it comes to countering the mounting threats that have come

from North Korea. These are two men who speak in different tones. They have a different type of rhetoric.

But Prime Minister Shinzo Abe has certainly said that North Korea poses a grave threat to Japan and he says he agrees completely with the way the

Trump administration is handling its strategy when it comes toward trying to rein in this regime, trying to reach the denuclearization of the

peninsula.

He said similar words to what you've heard from President Trump before that this is not the time for dialogue, that it is important to exert maximum

pressure on Pyongyang at this critical time. And to that end, the Japanese prime minister announced that there will be new sanctions against

Pyongyang.

He talked about Japan keeping steps to freeze the assets of 35 different entities and individuals. He also talked about the need for Japan to

increase its military's capability to defend this country from that threat, purchasing additional military and defense equipment from the United

States.

This is one place where politically President Donald Trump and Prime Minister Shinzo Abe are very much also on the same page. Both have talked

about the need to increase Japan's capacity to protect and defend itself. So these two leaders showing there is absolutely no space between them when

it comes to sending a strong message to Pyongyang, saying that they will work together, that not only do they have a close friendship, but that the

alliance between these two countries has never been stronger. Kristie?

LU STOUT: All right. Alex, thank you. Let's go to Ivan Watson standing by in Seoul. Ivan, Trump and Abe may be standing side-by-side in very close

agreement when it comes to North Korea. That's not exactly the same case for Trump and the South Korean President Moon Jae-in. I mean, what will

happen when these two leaders meet tomorrow?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, it would be probably a very different dynamic because you don't have the same bromance

between President Trump and Moon Jae-in that you had with the Japanese leader who worked very hard, very early on in the Trump presidency that

cultivate that relationship.

Moon Jae-in was elected months after Trump was inaugurated. He comes from the traditional left in South Korean politics. He was elected on a platform

of promising to engage in diplomacy with North Korea. That is an approach that President Trump has made clear, that he does not want to pursue.

That said, these two leaders, their countries have been very close military strategic allies since the Korean war, since the 1950s. We still have some

30,000 U.S. troops deployed on the ground here and reportedly, the South Koreans proposed that President Trump make a visit to the new

[08:05:00] and still under construction Camp Humphreys in the south of the country that has largely been paid for and built by the South Koreans to

the tune of -- their estimates around $10 billion. That's supposed to be a sign of the cost sharing that South Korea has engaged in this after

particularly during the campaign.

President Trump suggested that countries like South Korea were free loading off of the U.S. defense umbrella here in this region. Also, the nuclear

tests carried out by North Korea, the frequent missile tests carried out by North Korea have kind of pushed Moon Jae-in closer towards the strategic

alliance with the U.S. and Japan.

So you've had just a constant, almost a weekly tick of joint military exercises between these three countries. In fact, today and tomorrow, there

are joint drills trilateral naval drills being conducted between the U.S., Australia, and South Korea with the goal of trying to interdict nuclear

and weapons of mass destruction for possible shipments coming in or out of North Korea.

So North Korea's bellicose approach has pushed two leaders who may not see eye to eye, forced them to work closer together. Kristie?

LU STOUT: Interesting to hear about those trilateral drills taking place. Thank you, Ivan. Let's hear from Will Ripley who is standing by for us live

in Pyongyang. Will, we've got these trilateral drills taking place and perhaps announcements of more pressure to be applied on North Korea. How is

Pyongyang going to respond to this?

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT Reporter: We just arrived a few hours ago, Kristie, and had a meeting with the local officials here.

They tell me that they are watching very closely all of the naval activities in the waters off the Korean Peninsula. They're well aware of

the naval drills, the three U.S. aircraft carriers that are now in the region, the bomber flyovers recently on the peninsula.

And they say they're listening very carefully to what President Trump is saying in Japan and will be even listening more closely when he arrives in

South Korea. He will be standing literally miles from where I am here in the North Korean capital. Obviously, anything inflammatory, anything off

script could really escalate the situation.

In fact, the North Korean officials that I met with said that they are warning President Trump not to do anything crazy, in their words, because

they say that North Korea will respond and respond powerfully. And they reiterated something that we've heard before. They feel that the situation

really is touch and go on the brink of an all-out conflict breaking out.

In fact, they have accused the U.S. president through his rhetoric and through all of this assembly of military resources in the region of

essentially almost trying to reignite another Korean war. Obviously, the United States has a very different viewpoint. They view the military

exercises as defensive in nature. The North Korea has said for a long time, Kristie, that they view this as a dress rehearsal for an invasion. And so

we will have to watch what the North Koreans say and do in response to President Trump in the region.

LU STOUT: Will Ripley's official line out of Pyongyang. Let's go back to Alexandra Field in Tokyo. Alex, question for you about U.S. missile

defense, because Trump said something interesting at the press conference. He said that Japan could shoot North Korean missiles out of the sky with

military equipment bought from the U.S. Was he signaling that there was some sort of military deal signed during this visit?

FIELD: He's talking about two different things here, Kristie. We know that in the past, President Trump has talked about expanding Japan's ability to

purchase military equipment from the United States. That was a deal that pertained to the purchase of F-35s and some other equipment.

But he is also now talking about potential future sales of more defense equipment, specifically how to ensure that Japan does have the greatest

capacity to counteract or intercept missiles that could be sent by North Korea. This is obviously an issue that hits very close to home right here

in Japan.

You had a rogue regime in North Korea that has tested unprecedented number of ballistic missiles since President Trump took office. Two of those

missiles actually did fly over the northern Japanese island of Hokkaido. That has helped to mobilize some of the support for Prime Minister Abe and

his position in this country that the military really does need to be better prepared and the defenses need to be up in this country to counter

that threat.

So these have been ongoing talks between the United States and Japan and these are talks that will continue. The information that we learned today

about the fact that talks about more sales will continue were the result of a question that was asked. There had been reports in media that President

Trump had questioned Japan's decision not to attempt to shoot down missiles that had flown over Hokkaido.

The prime minister addressed that question, saying that they tracked those missiles, that there was no reason to try to shoot down those missiles,

that they weren't threatening Japan itself, but that those missiles

[08:10:00] were closely monitored and that any decision in the future to try and take out a missile that flew over Japan would be made in

conjunction with the United States. But again, both of these leaders have tried to make it so clear that there is no daylight between them, solidly

seem to be on the same page, saying that they will work together to make sure that Japan has its utmost capacity in terms of missile defense and

missile interception.

LU STOUT: Got it from Tokyo and Alexandra Field. Let's go to CNN's Ivan Watson in Seoul again. Ivan, what's the latest thinking there in South

Korea about enhancing its defense capability given the ongoing threat posed by North Korea?

WATSON: Well, you have some lawmakers here from the conservative side of the spectrum who actually called for possibly South Korea embarking on its

own nuclear program. That's a pretty serious suggestion there. Many have observed that that could lead to a nuclear arms race on the Korean

Peninsula.

So, that gives an indicator how some people are thinking here. There is also a substantial part of South Korean society here that while there's

concern about North Korea, of course there is a fair amount of concern about President Trump himself. He is not terribly popular here right now.

There is some poll results, one that came out in October from a polling agency called (INAUDIBLE) that asked can President Trump help with peace

and stability on the Korean Peninsula, 56.8 percent said no, while only 38.3 percent said yes.

An indicator that some people think that he's adding to the tension on the Korean Peninsula here. Also, when you look at poll numbers for confidence

in the U.S. president, South Koreans were surveyed, only 17 percent had confidence in President Trump. Compare that to 2015 when 88 percent had

support for President Obama. That is an issue here.

One of the other sticking points, the relationship between the U.S. and South Korea is trade. President Trump makes no secret about the fact that

he does not like trade deficits in the recent South Korean-U.S. free trade agreement brokered by the Obama administration. He has made it very clear,

he wants it renegotiated. That is a point of tension between these two governments. Kristie?

LU STOUT: Yes. There was a point of tension in Japan as well. We will hear how that plays out tomorrow. Finally, let's return to CNN's Will Ripley who

is inside North Korea, reporting there in Pyongyang. Will, we know as you reported, North Korean officials telling you that they are watching Trump's

visit to the region closely.

So, independent of any sort of provocative act or tweet or words from Donald Trump, could North Korea decide to send a message this week and what

form form could that take?

RIPLEY: It's certainly possible, Kristie. It has been more than seven weeks since North Korea has conducted any kind of live military demonstration be

it a missile launch or nuclear test. During the seven weeks, we've heard repeatedly messaging from North Korean government, warning the Trump

administration that their rhetoric has led them to believe that they cannot talk with the United States, that they have to send a message to President

Trump through action, action being, well, North Korea has threatened to conduct an above-ground nuclear test.

There have been reports that they are preparing to launch a new kind of long-range intercontinental ballistic missile that could easily hit

anywhere in the mainland United States including the east coast. During this period of quiet, these seven weeks, you heard North Korea's supreme

leader, Kim Jong-un, give a speech telling his fellow citizens to essentially prepare for more sanctions as a result of his country rounding

off in their words, their nuclear program.

They think they're very close to finalizing this nuclear capable ICBM. And so you have the leader of this country warning citizens to expect

sanctions, that they blame on pressure from the United States, not on the leadership of this country's own actions. And then you see newspaper

headlines like this one over the weekend. Kim Jong-un visiting a cosmetics factory.

This might seems strange to an outside audience. Why would this be the lead story? But in many ways, an image like this is reassuring for North Korean

citizens because it lets them know that their leader has not forgotten about his promise to also develop this country's economy as well as the

developing this country's military.

Perhaps this long pause with images of the leader and inspecting various factories and now showing that he is trying to bolster the local economy

despite sanctions, perhaps this is an effort to ease people's concerns as this country prepares, and South Korea intelligence does believe this

country is preparing for a major military test which could happen very soon, possibly during the president's trip here in Asia. Kristie?

LU STOUT: Very frightening prospect. Will Ripley reporting live for us from Pyongyang, Alexandra Field live for us from Tokyo, Ivan Watson joining us

from Seoul as well, we thank all of you for your reporting. Take care.

And now, to Texas, and what the governor calls the deadliest mass shooting in that state's history. Sutherland Springs is a small town in mourning

after a gunman opened fire at a church on Sunday.

[08:15:00] Twenty-six worshipers attending Sunday morning services were killed. The youngest victim was only five years old, the oldest 72.

According to a local sheriff, the suspect's in-laws attended that same church at some time, but they were not there at the time of the shooting.

CNN's Ed Lavandera is in Sutherland Springs with more on the suspect and how this terrible tragedy unfolded.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN NATIONAL CORRESPONDENT (voice-over): CNN is learning more about the man believed to have opened fire at this small Baptist church in

Sutherland Springs, Texas. Law enforcement sources tell CNN the suspected killer is 26-year-old Devin Patrick Kelley, who once served in the U.S. Air

Force. Kelley was court-martialed in 2012 for assaulting his spouse and child. He served a year in prison. In 2014, Kelley was discharged from the

Air Force for bad conduct.

GOV. GREG ABBOTT (R), TEXAS: We are dealing with the largest mass shooting in our state's history.

LAVANDERA (voice-over): Police say the suspect began his rampage around 11:30 a.m. Sunday morning. Dressed in all black tactical gear and a

ballistic vest, he began firing from outside the church during Sunday's service. He then entered the church and continued his assault, killing

dozens.

This video taken last Sunday shows just how small the congregation is. The pastor's own 14-year-old daughter Annabelle Pomeroy is among the dead.

Eight members of one family were also killed including a pregnant mother. At a nearby store, employees recalled hearing shots ring out.

UNIDENTIFIED FEMALE (voice-over): This was semiautomatic fire. This was rapid fire. We were flabbergasted.

LAVANDERA (voice-over): A law enforcement official tells CNN that Kelley legally purchased the Ruger AR-style rifle used in the 2016 back in April

of 2016. But when filling out the paperwork for his background check, Kelley indicated he didn't have any disqualifying criminal history. Police

say a local resident confronted the gunman at the church.

FREEMAN MARTIN, REGIONAL DIRECTOR, TEXAS DEPARTMENT OF PUBLIC SAFETY: As he exited the church, a local resident grabbed his rifle and engaged that

suspect. The suspect dropped his rifle and fled from the church.

LAVANDERA (voice-over): The suspect fled the scene but that resident and another man pursued him for 11 miles at high speeds.

JOHNNIE LANGENDORFF, SUTHERLAND SPRINGS RESIDENT: Gentleman with the rifle came to my truck as the shooter took off and he briefed me quickly on what

had just happened and said that we had to get him and so that's what I did.

LAVANDERA (voice-over): Johnnie Langendorff says the suspect lost control of his vehicle, crashed on the side of the road, and that's where police

found him dead, inside his car with a gunshot wound.

President Trump reacted to the massacre half a world away, during a press conference with the Japanese prime minister.

TRUMP: This isn't a guns situation. Unfortunately somebody else had a gun that were shooting in the opposite direction. This is a mental health

problem at the highest level.

LAVANDERA (voice-over): Now, the small, tight-knit community comes together to remember those killed and hurt in Sunday's carnage.

UNIDENTIFIED FEMALE: There's so much love for one another. There's no room for hate.

(END VIDEOTAPE)

LU STOUT: That was CNN's Ed Lavandera reporting. You're watching "News Stream." Coming up, a member of the Trump cabinet comes under scrutiny

after new leaked documents appear to show that he has financial links with Russia.

Also ahead, Saudi Arabia's crackdown on corruption sends shock waves across the region. What's really behind the high-profile suite (ph), coming up.

[08:20:00] (COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong. Welcome back. This is "News Stream."

Millions of leaked documents named the "Paradise Papers" have been released by the International Consortium of Investigative Journalists. They detailed

decades of offshore accounts used by global corporations, politicians, and prominent people to avoid taxes or hide assets. Among them, The New York

Times found what seems to be financial links between the U.S. commerce secretary, Wilbur Ross, and Russia. Boris Sanchez has more.

(BEGIN VIDEOTAPE)

BORIS SANCHEZ, CNN CORRESPONDENT: According to leaked documents shared with The New York Times, Commerce Secretary Wilbur Ross maintains a stake in a

company that has contracts with a Russian business that's run by several figures with connections to the Kremlin including a member of Vladimir

Putin's immediate family. The New York Times notes that Wilbur Ross did not disclose the links between these interests and Russia to congress while he

was going through his confirmation process.

These documents are known as the "Paradise Papers." They were leaked to a German newspaper and then shared with the International Consortium of

Investigative Journalists as well The New York Times. They appear to come from a Caribbean-based law firm known as Appleby and they reveal that Ross

currently retains an interest in a shipping company known as Navigator Holdings.

That shipping company transports gas and according to these documents, Navigator's second largest client is Sibur, a Russian petrol chemical

company owned, in part, by several well-known Russian businessmen. One of them is Kirill Shamalov, he is married to Vladimir Putin's daughter,

Katerina.

Another is Gennady Timchenko. He is a Russian billionaire currently sanctioned by the Treasury Department, even barred from entering the United

States. He's considered to be part of the Russian leadership's inner circle.

Now, in response to these revelations, the Commerce Department shared this statement with CNN, writing, "Secretary Ross was not involved with

Navigator's decision to engage in business with Sibur, a publicly traded company, which was not under sanction at the time and is not currently.

Moreover, Secretary Ross has never met the Sibur shareholders referenced in this story and until now, did not know of their relationship.

The secretary recuses himself from matters focused on transoceanic shipping vessels, but has been supportive of the administration's sanctions against

Russia and other entities. Secretary Ross works closely with Commerce Department ethics officials to ensure the highest ethical standards, and is

committed to restoring our economy and creating American jobs."

Now, while the Commerce Department denies any wrongdoing, these revelations come at a bad time for the White House. Wilbur Ross becomes yet another

figure close to the president whose connections to Russia are raising concerns. First, former National Security Adviser Michael Flynn was forced

to resign after he failed to disclose meetings with Russian officials.

Then after months of initial denials about any contact with Russians, we learned that Donald Trump's son, Donald Trump Jr., his son-in-law Jared

Kushner, and then campaign chair Paul Manafort met with Russians in private at Trump Tower during the campaign after they were promised dirt on Hillary

Clinton.

Attorney General Jeff Sessions at one point denied ever meeting any Russian officials during the campaign, but then was forced to clarify those

comments after it was found that he did meet with Russian Ambassador Sergey Kislyak at least twice.

And just this week, Sessions, who was a foreign policy advisor to Trump during the election, has been asked to clarify his testimony before

congress yet again after it was revealed that George Papadopoulos, a foreign policy adviser for the Trump campaign, told Sessions about

communications that he had had with Russian officials regarding a potential meeting between Donald Trump and Vladimir Putin during the campaign. As you

know, Papadopoulos admitted having lied to the FBI about his contacts with Russians during the election.

[08:25:00] Boris Sanchez, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: Wilbur Ross has responded to the report. In an interview with BBC, Ross says that there was nothing improper about his stake in Navigator

Holdings. Ross said that there was disclosure and he accuses the media of twisting the story.

A corruption crackdown in Saudi Arabia. Crown Prince Mohammed bin Salman is leading the campaign. At least 38 people have been arrested, princes and

top officials among them. A royal decree says funds have been stolen and some have put their personal interests above the public interests. But the

Saudi corruption shakeup is just one of several major developments rocking Riyadh. Nic Robertson has the latest on that.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR (voice-over): Riyadh has been rocked this weekend. First, by an intercepted missile fired at the

capital by Iranian-backed Houthi rebels in Yemen. Then by the scale and scoop of a counter-corruption initiative announced by King Salman, almost

simultaneously.

At least 17 princes and top officials arrested. There are among 38 current and former ministers and deputy ministers arrested. The king's son, the

all-powerful Crown Prince Mohammed bin Salman, warned six months ago this was coming.

MOHAMMED BIN SALMAN, SAUDI CROWN PRINCE (through translator): I assure you that no one involved in a corruption case will be spared, no matter if he

is a prince or a minister. With enough evidence, anyone will be held accountable.

ROBERTSON (voice-over): But it's the status of some arrested that is sending shock waves. Multi-billionaire businessman Al-Waleed bin Talal, a

protagonist for change in the conservative kingdom. His kingdom holdings group with stakes in Citigroup, Twitter, Apple, and News Corp saw $750

million wiped off its balance sheet.

Another big powerful businessman targeted, Bakr bin Laden, chairman of a massive Bin Laden Construction Group, also worth billions, a former ally of

the last king. Many of the arrested rumored to be held in the swanky Riyadh Ritz-Carlton Hotel where President Trump stayed earlier this year.

Among the arrested, two of the previous King Abdullah's sons, Miteb bin Abdullah, minister of the important tribal national guard, and Turki bin

Abdullah, the former governor of Riyadh, raising concerns that corruption crackdown is also a consolidation of power for the crown prince.

Crown Prince Mohammed bin Salman has enjoyed a meteoric rise in the ranks of Saudi royal since his father became king almost three years ago. He has

reshuffled the government, promised women they will drive, while rolling out an ambitious employment and diversification agenda. Events this weekend

underlined the changes sweeping the country, causing some to wonder, when the crown prince will become king. Nic Robertson, CNN, Tokyo, Japan.

(END VIDEOTAPE)

LU STOUT: The ousted president of Catalonia is no longer in police custody. A Belgian judge released Carles Puigdemont and four members of his

dismissed cabinet. They are due back in court within 15 days. Spain issued an arrest warrant over their role in Catalonia's bid for independence.

European parliament in Brussels and they say they want them there to argue their case.

You're watching "News Stream." Coming up, President Trump will soon wrap up his trip to Tokyo and head to Seoul. Up next, an advisor to the Japanese

prime minister joins me with more on Mr. Trump's time there.

(COMMERCIAL BREAK)

[08:30:00] KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong. You are watching News Stream and these are your world headlines.

(BEGIN VIDEO CLIP)

LU STOUT: Two North Korean government officials tell CNN that they are watching U.S. President Donald Trump's visit to Asia closely. Mr. Trump

spoke alongside the Japanese prime minister earlier and he said, when it comes to North Korea, the era of strategic patience is over.

Prime Minister Abe says he agrees to President Trump's approach toward North Korea 100 percent. We are learning more about the victims of

Sunday's mass shooting at a Texas church.

We are told eight of those who died are from the same family and all 26 people were killed and 20 were wounded when a gunman opened fire during the

service. Sources tell CNN, the shooter was 26-year-old Devon Patrick Kelly.

Dozen of arrest in Saudi Arabia including high-profile princess and business men, they even swept off in an anticorruption drive headed by the

crown prince Mohammed bin Salman. A world decree says funds have been stolen and some have out their personal interest above the public interest.

(END VIDEO CLIP)

LU STOUT: Japan has done its best to welcome the U.S. president on his first official visit. Prime Minister Shinzo Abe sat down for burgers with

Mr. Trump on Sunday catering to the U.S. president's food preferences.

The two even signed golfing hats together over lunch and if you can't read it, the hat say, Donald and Shinzo, make alliance even greater.

After that display of friendship, they played golf. Mr. Trump's favorite past time. Despite all these happy pictures, President Trump did not hold

back from scolding Japan over trade with the U.S.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We want free and reciprocal trade but right now, our trade with Japan is not free and is not

reciprocal. And I know it will be.

(END VIDEO CLIP)

LU STOUT: OK. So let's take a closer look at Mr. Trump's relationship with Japan, Tomohiko Taniguchi is the Special Advisor to Prime Minister

Abe. He joins us now live from Tokyo. And sir, thank you very much indeed for joining us here on the program.

And let's first talk about trade. Prime Minister Abe and President Trump, we know they are on agreement when it comes to North Korea but not trade.

Trump says that trade with Japan is unfair. He wants a better deal. What is Japan make of that?

TOMOHIKO TANIGUCHI, SPECIAL ADVISOR TO PRIME MINISTER ABE: Well, the Japanese response is going to be that the trade deficit the United States

has with Japan while sizable is proportionately far less than ever before and it's just less than 10 percent as opposed to the total amount of trade

deficits the United States has with the rest of the world, that point number one.

And point number two is, the Japanese companies have been investing a lot in the automotive sector and other sectors in the United States, thereby

having generated a stunning number of 860,000 jobs that second only to the number of the -- of the United Kingdom that has invested in the United

States for much, much longer than the Japanese have.

LU STOUT: Got it. So that's how Japan sees a trade relationship but we know that Japan and the U.S. are currently not on the same page when it

comes to trade. Discussions are continuing, so do you think that Trump and Abe will soon reach a deal and see eye to eye on trade?

TANIGUCHI: Well, one of the wisest things that the two leaders have chosen to do is to delegate the trade negotiations down the road to their

deputies, in the United States, Vice President Pence and in Japan, Deputy Prime Minister Aso.

[08:35:00] These are the people that are in charge of discussing the trade agendas down the road.

LU STOUT: Now, Shinzo Abe and the issue of North Korea, the Japanese prime minister says that tomorrow there will be more action on freezing assets --

North Korean assets individuals. How concern is Japan of retaliation by North Korea -- of angering North Korea?

TANIGUCHI: Rather the sign of weakness and hesitation could very well invite more provocations not less. So we must maintain a tougher position

towards Pyongyang.

LU STOUT: Does that mean strengthening its military arsenal? We heard from Donald Trump at a press conference today, he said that Japan could

shoot North Korean missiles out the sky with military equipment from the U.S. Do you think that there will be more military deals signed as a

result of this visit?

TANIGUCHI: That's common knowledge that Japan must do -- must invest into its missile shield more and the equipment that the Japanese have chosen to

have has been from the United States rather it's being developed jointly between the United States and Japan. So down the road, it's going to be

the same. The Japanese will have to buy more to beef up its defense shield.

LU STOUT: It was pretty patch schedule for the U.S. president while he was visiting Japan and in fact earlier today, the U.S. president met with

families of Japanese citizens believed to be adopted by North Korea. Why was that on the agenda? Why is that significant?

TANIGUCHI: It all started off from my Mr. Trump's initiative by which I mean that Mr. Trump put the case of the abduction in to his address that he

do it to the United Nations General Assembly earlier in the September. And then Donald Trump volunteered to include that schedule to his itinerary.

And so started was this process.

LU STOUT: And a final question for you, sir. Just about the overall trip and how Japan really, you know, roll out the red carpet for Donald Trump.

Prime Minister Abe, he had praise on the U.S. leader.

He took him out for a round of golf. This visit really seemed about making sure that Donald Trump is happy. Why was that a top priority for Shinzo

Abe?

TANIGUCHI: It is between the two leaders of the two biggest Democratic powers in the East Asia but what's important is that the both leaders have

chosen to share a vision that stretches from the Western Pacific to the Indian Ocean.

They called it the Indo-Pacific vision and I think that's the vision that the United States and Japan must continue to hold dear and in that region,

Shinzo Abe and Donald Trump mentioned that they are other going to work to preserve the rules-based international order. That's I think what was most

important.

LU STOUT: Tomohiko Taniguchi, Special Advisor to the Japanese prime minister, thank you very much for joining us.

TANIGUCHI: Thank you.

LU STOUT: You are watching News Stream. Up next, we're going to take you to India where a longtime local tour guide introduces us to the street food

scene in Old Delhi, from grills to try, to sweet. These are the treats of the (Inaudible) tribe. Just ahead.

[08:40:00] (COMMERCIAL BREAK)

LU STOUT: Welcome back. Now India is a country of remarkable diversity and ancient traditions and that includes its cuisine. Now in destination

India, we enjoy traditional street food with long-time resident and tour guide (Inaudible).

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: (Inaudible), street food capital of India. There are more than 400 street food joins us Old Delhi. Hello, my name is

(Inaudible). I do street food walls in Old Delhi. Let me take you on a street food tour in Old Delhi in India.

So there you have roasted sweet potatoes. (Inaudible), that's star fruit, and in India we call it Kamranga. And then you have lemon, and you have

American with spices over it. It is sliced into different pieces and than they serve it.

Here you have some exotic vegetables, like you have broccoli, corn, star fruit, fresh (Inaudible). From the eyes of owners, it's more like an

organize skills. So once you enter Old Delhi, you will see carts parked everywhere, food carts. Food also (Inaudible). Everything is like so

vibrant, and they have dance of the food, the culture, the people.

This is a very common street food (Inaudible). There are different variations in different cities. In some places they call it puchka (ph),

in Delhi we call it, Golgappa (ph). AS we going inside, now they call it the part of their different names of its particular streets.

These modern sea kababs, that's minced meat, although it was skewers and then they are grilled. These are very popular, the key delicacy in Old

Delhi. And you can simply have it on the skewers. You don't have to take it out from the skewer.

These are (Inaudible), and we are going to have nankhatai here. These are very similar to shortbread. These are made of flour, cauliflower,

(Inaudible). And they bake it right here in the street. (Inaudible)

The best kind of warm benefaction, you roamed it in any other parts of the city. When I give these tours, it's more about experiencing the food and

the people from in the region. When eye for local person, that's what Old Delhi is for me.

(END VIDEOTAPE)

LU STOUT: I really have the appetite. And that is News Stream. I'm Kristie Lu Stout. We've got World Sport with Alex Thomas, next.

END