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NEWS STREAM

Three Prisoners Freed From North Korea Arrive U.S.; Veteran Politician Mahathir Defeats Ruling Party; Escalating Tensions Between Israel And Iran; Trump Decision Causes Tension With Europe; World Headlines; Korean Diplomacy; New Images Show Chinese Planes In Spratly Islands; ZTE Main Operations Cease After U.S. Ban; Overturned Truck Spills Tons Of Chocolate. Aired 8-9a ET

Aired May 10, 2018 - 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)

(BEGIN VIDEO CLIP)

KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong, and welcome to News Stream. A day of welcome home, Donald Trump touts the

return of three Americans held in North Korea, and we have the moments before they stepped off the plane.

A shocking victory, Mahathir Mohamad is poised unseat, scandal plague Najib Razak is Malaysia's Prime Minister. And seizing major operations, top

smartphone maker ZTE appears to partially thrown the towel after getting by that U.S. ban.

(END VIDEO CLIP)

LU STOUT: Three American who were imprisoned in North Korea, they are back on U.S. soil at this hour. It is a major victory for President Donald

Trump who offered a heroes welcome to the detainees when they arrived overnight at Joint Base Andrews in Maryland.

Mr. Trump is marking the men's arrival as a major milestone ahead of the summit with North Korean leader Kim Jong-un. CNN's Jeff Zeleny has more.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN CORRESPONDENT: An emotional homecoming for three Americans freed after being imprisoned in North Korea. The men walking off

the plane, and onto American soil, flashing a victory sign with President Trump and First Lady Melania Trump at their side.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I just want to say, this is a special night for these three really great people, and congratulations on

being in this country.

ZELENY: North Korean leader Kim Jong-un releasing the Americans as a show of good faith ahead of a landmark summit with President Trump.

TRUMP: Well, we're starting off on a new footing. This is a wonderful thing that he released the folks early. That was a big thing, very

important to me, and I really think we have a very good chance of doing something very meaningful.

ZELENY: It's the biggest milestone yet toward the President's quest for diplomacy with North Korea. President Trump telling reporters that

releasing the prisoners shows that Kim is serious about nuclear talks.

TRUMP: I really think he wants to do something and bring that country into the real world. There has never been a relationship like this. And we're

starting from here. But I really think a lot of progress has been made.

ZELENY: It was a made-for-TV moment with the President and First Lady leaving the White House in the middle of the night, and arriving at Joint

Base Andrews before boarding the plane for a private moment with the three Americans.

Newly minted Secretary of State Mike Pompeo ushered the detainees home, following his second secret whirlwind trip to Pyongyang. North Korean

state media releasing these photographs of Pompeo with Kim Jong-un during a 90-minute meeting about the upcoming summit, toasting with red wine, and

smiling.

The three detainees were all Americans of Korean dissent. The longest held prisoner, Kim Dong-chul, was arrested in October 2015, and accused of

spying for South Korea. He was convicted, and sentenced to 10 years hard labor in April 2016.

Tony Kim was an accounting teacher at Pyongyang University of Science and Technology. He was arrested in April 2017 while boarding a plane to leave

the country and charged with hostile acts against North Korea.

Less than a month later, Kim Hak-song was detained, as well. He was also a Pyongyang University employee, and was also charged with committing hostile

acts against North Korea.

President Trump paying tribute to Otto Warmbier, who was detained in North Korea in 2016, and was returned to the United States in a coma last June.

He died days later.

TRUMP: A great young man who really suffered. And his parents have become friends of ours. They are spectacular people. And I just want to pay my

respects.

(END VIDEOTAPE)

ZELENY: Those words about Otto Warmbier certainly indicated how high the stakes are for this diplomacy. Now, we do believe that President Trump and

Kim Jong-un will meet next month in Singapore. That's where two U.S. officials are preparing for.

That could always change in terms of location. It has not been formally announced yet. But certainly, this dramatic overnight moment here in

Washington setting the stage for what the President hopes will be a historic meeting with Kim Jong-un. Kristie.

LU STOUT: CNN's Jeff Zeleny there. Now let's bring in our Paula Hancocks. She is standing by for us live in Seoul. And, Paula, an emotional moment,

the U.S. President welcoming home these three Americans who previously held by North Korea.

[08:05:06] We heard from Donald Trump, but tell us about these three individuals. What are they saying? How did they react?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Kristie, you could see everything on their faces. There was absolute relief on their faces. They were

smiling. They came off the airplane, and instantly two out of three made the victory sign.

They were clearly very pleased to be out of North Korea, and really the one -- only one who spoke was Kim Dong-chul. He was the man who was arrested

back in October 2015. He has already served a couple of years in a hard labor. So clearly he has felt the pain of being a detainee in North Korea

far more than the other two, and this is what he has to say.

(BEGIN VIDEO CLIP)

KIM DONG-CHUL, AMERICAN DETAINEE: (Speaking Foreign Language).

(END VIDEO CLIP)

HANCOCKS: This is certainly a very positive moment. The fact that they are free, but there you just had a slight indication of what they may have

gone through during that incarceration. Kristie.

LU STOUT: And their release is certainly a gesture of goodwill, but does it necessarily proved that North Korea is serious about making a peace

deal?

HANCOCKS: Well, I think what it proves is that North Korea is serious about having the right atmosphere for this U.S.-North Korea summit.

Certainly even the U.S. President Donald Trump himself said they weren't expecting saying they weren't expecting it this soon.

They were expecting the potential release of these detainees either during the summit or after the summit, once it is finished. So even Mr. Trump

appeared to be fairly surprised, he said, at just how quickly it happened from the South Korean point of view.

It's been welcomed by the Blue House. They as well have said that it shows Kim Jong-un's attitude towards this U.S.-North Korean summit, suggesting

that he does want this to work, and he does want it to be successful, in respect that he is willing to do this even before the two leaders sit down.

LU STOUT: OK. Paula Hancocks reporting live for us from Seoul. Many thanks indeed, and some clarity on the sound bite that was provided on the

detainees. The freed Americans, they said that they were treated well by the North Koreans. Paula Hancocks reporting there, thank you.

Now, Mr. Trump's handling in North Korea is waiting him praise back home. A poll conducted for CNN found that most Americans approve of the job that

he's doing.

That number is up almost 20 points from last November when he and Kim Jong- un were trading insults on Twitter. And even larger majorities, some 77 percent approve of his plans to meet with the North Korean leader.

North Korea ranked second among perceived threats to the United States behind ISIS, and ahead of Iran, Russia, and China. And we'll have later on

News Stream, we're going to break down what all this means for U.S.-North Korea relations with the special interview with Joseph Yun, former top U.S.

diplomat from North Korea Policy, that will take place in about 20 minutes from now.

Opposition supporters in Malaysia are in a rush of emotions right now, aftershock election unseeded the ruling party that's been in power for 60

years. A veteran politician Mahathir Mohamad is poised to be sworn in as new Prime Minister in the coming hours. Here's a look at how this up set

happened.

(BEGIN VIDEOTAPE)

LU STOUT: Celebrations across Malaysia as a new political era dawns after a shock result in the national elections. Mahathir Mohamad claimed victory

after beating all the odds, oust Najib Razak, and coalition party which Malaysia for over six decades. After the result was announce, Mahathir

accused Najib for trying to cling to power.

MAHATHIR MOHAMAD, MALAYSIAN PRIME MINISTER: It is likely that there will be some hanky-panky being done in order to frustrate the wishes of the

people.

LU STOUT: But it wasn't enough to deny the will of the people, and of historic electoral triumph. At 92-years-old, this makes Mahathir the

world's oldest leader. It's a dramatic political comeback for Mahathir who previously ruled Malaysia with an iron fist for 22 years, and was credited

with turning the country into a major trading and economic force.

BRIDGET WELSH, ASSOCIATE PROFESSOR, JOHN CABOT UNIVERSITY: I expect that Mahathir will be a man in a hurry, trying to bring about economic and

political reforms that put Malaysia on the map in a positive way.

LU STOUT: Mahathir came out of retirement to fight his former protege, Najib, telling CNN in 2016 that the leader was turning Malaysia into a

police state.

[08:10:04] NAJIB RAZAK, FORMER PRIME MINISTER OF MALAYSIA: And a threat all the time, you cannot talk. If you say something bad about the

government, they will call you up.

LU STOUT: Najib's authoritarian styles have his popularity plunging. And he became the center of a massive corruption scandal after he was accused

of stealing hundreds of millions of dollars mistake fund 1MDB.

The U.S. Justice Department even claimed that $30 million of that cash was spent buying jewelry for his wife Rosmah. Najib denies the accusations,

and has been cleared by the authorities, but now may face a new investigation.

WELSH: Corruption tended to affect the urban voters, educated voters, but it wasn't just about the corruption. It was a sense that Najib had shame

the country. So it affected national pride, and the same time, the economy while it has grown, it hasn't trickled down to ordinary Malaysians the same

degree.

The economy will be a key focus for Mahathir as he takes the reins of power, as Malaysia faces rising national debt, and a higher cost of living.

Also on to do list will be reviewing a new law outlawing fake news, what critics say will harm free speech, Mahathir is expected to free his former

deputy and political foe Anwar Ibrahim, a charismatic opposition leader who is serving a jail term for sodomy. Mahathir has promise to hand over power

to Anwar in a few years, meaning more big changes are ahead for Malaysia.

(END VIDEOTAPE)

LU STOUT: Those three figures, Mahathir, Najib, and Anwar have had a long tangled relationship. Now Mahathir in the light suit, right over here, he

became a Prime Minister in 1981. For a while Anwar was his Deputy Prime Minister, and Najib was critically to the ranks of Mahathir's government

and party.

But Anwar's relationship soured with Mahathir. The two clashed on several policies. Anwar was fired in 1998, and charged with sodomy. Now later in

2008, Najib was appointed Prime Minister on Malaysia. At that time, he had the backing Mahathir.

And in 2014, the court sentences Anwar, but then let the opposition to five years in prison over sodomy charges. This week, Najib is the one who is

fallen from grace, but Mahathir coming out of retirement lead opposition to victory in the polls.

But Najib is pointing out the King has final say on who gets to be prime minister. This election marks a historic moment in Malaysia's political

scene. And for more analysis, let's hear from Ibrahim Suffian, the Director of Programs at the Merdeka Center.

He joins me live from Kuala Lumpur. Thank you so much for joining us here on CNN, and first let's talk about Najib. Did the 1MDB scandal did all

those accusations of stealing hundreds of millions of dollars? Did that ultimately tip the balance against him?

IBRAHIM SUFFIAN, DIRECTOR OF PROGRAMS, MERDEKA CENTER: Well, there were many factors that tip the balance against Najib. I mean, the 1MDB scandal

is one of the largest scandals that the public here has memory of in recent times.

And thy certainly call it their perceptions of the Prime Minister. Beyond that, there are other issues, Najib had presided over a number of unpopular

policies since the last several years.

He remove subsidies for energy and food items, he introduced an unpopular value added tax, and then news of the 1MDB scandal broke, all of which

baited him as despised eager within Malaysian politics. And a lot of time whatever that he tried to do seemed to be inadequate trying to win over the

Malaysian public.

LU STOUT: And I want to ask you about the sense of shock in Malaysia. Even at this hour, are people still not quite accepting the fact that this

election result is real?

SUFFIAN: Well, if you look results -- the results that sure sweeping for change in Malaysia, all the support has swept through the country, there

are some differences. But I think by and large, Malaysia has generally welcomed the change, and I think the questions that linger was how did it

take place.

And in our analysis, we find that he was only able to manifest itself when Dr. Mahathir cross the aisle, join from the ruling party to the opposition,

and led them to victory. He met the exodus of former government supporters to vote for opposition candidates in the recent elections.

LU STOUT: Mahathir according to Malaysian state media is set to be sworn in today 9:30 p.m. Let's talk about the challenges ahead for him. In a

press conference earlier today, he said the country is in a mess, and we need to attend to it. What is the number one priority for Malaysia under

Mahathir?

[08:15:02] SUFFIAN: Well, there are a number of things. And I think first and foremost is that, he has to make good on his promises to review some of

the unpopular policies done by Mr. Najib.

He has promised to remove the services tax. He has promised to review some contracts of business deals involving investment from China, and beyond

that, he has also promised to review certain laws that restrict freedoms.

These are all very big tests ahead. And I think that immediate challenge will be to work with the bureaucracy that has never seen a transition of

power to another party for six years. So that getting the business into order is I think business is number one.

LU STOUT: Ibrahim Suffian joining me live from Left KL, thank you so much, take care. Now, Israel has hit dozens of Iranian military targets inside

Syria in response to a rocket attack on its border. We're going to get a live update on that next. Also ahead, Iran is angry over President Trump's

rejection of that deal, but it's not the only one. We will look at how the decision is going down in Europe as well.

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, welcome back. This is News Stream. Tensions are skyrocketing in the Middle East right now as two

bitter regional enemies could be edging closer to war. In their first direct military confrontation, Israel and Iran exchange a barrage of fire

in the Golan Heights.

The Israeli military says it hit dozens of Iranian targets inside Syria. Israel said it was a response to a rocket attack on its troops which it's

blaming on Tehran. The U.K. and Russia are calling on all sides to show restraint to de-escalate.

Let's get reaction from both sides now. Oren Liebermann is in the Golan Heights, Fred Pleitgen is in Tehran. Oren, let's start with you.

According to Israeli officials, what happened in this direct confrontation and how did Israel strike back?

OREN LIEBERMANN, CNN CORRESPONDENT: So this all started shortly after midnight local time that Israeli military said some 20 rockets fired by

Iranian forces in Syria, here behind me were aimed at Israeli military director positions in the occupied Golan Heights, so not far from where

were sitting now.

Israel says it intercepted a number of those rockets with the Iron Dome Aerial Defense System, and then began Israel's response, a combination of

surface to surface missiles, as well as airstrikes. In fact, it was the Russians who says Israel has used some 28 fighter jets to fire some 60

rockets towards Iranian positions in Syria.

Israel says hit all of the targets. It was aiming for mostly Iranian positions. The Israeli military says those positions were command post,

intelligence post, rocket launchers, and other sites.

[08:20:04] All of that played out throughout the evening. We were in fact standing in this exact spot, and saw a lot of that exchange of fire here

behind us, including what we believe were some of those Israeli rockets intercepted by Syrian air differences.

So it was an incredibly volatile night here, exchanges of fire going on for hours here behind us. It's a far cry now, Kristie, from what we saw last

night when frankly we can see people picking apples here behind, a very different scene 12 hours ago when we were standing on this exact positions.

Kristie, upon that you mentioned, the Russians have said they are in touch with both Israel and Iran. It is the Russians that have the connections,

and the influence to deescalate this as both of these sides especially last night seem to be inching towards a war.

LU STOUT: OK. From Oren Liebermann on Golan Heights. Fred Pleitgen is standing by in Tehran, and further tension is certainly rising more between

Israel and Iran. Any response yet from officials there?

FREDERIK PLEITGEN, CNN CORRESPONDENT: Well, you know, it's interesting because so far there has not been any official response at all here from of

Iranian side. We have been waiting, and trying to see if there are any response, but so far there is nothing official.

It is interesting also if you look at Iranian state media, they have been reporting on this. They were reporting that there were Israeli strikes on

Syrian territory, they been reporting that Israel is saying that Iran was behind the initial attack that took place, and they are also saying that

they're looking for some sort of response from the Iranian government, so far it has nothing -- but nothing has been forthcoming.

An Iranian general from the Revolutionary Guard who's positions were apparently hit in Israel, that he was speaking publicly earlier today, and

he didn't say anything about any of that, but of course, Kristie, all of this comes at a pivotal time for Iran, especially after President Trump

uphold the U.S. out of that nuclear agreement.

We went out on the streets of Tehran, say about an hour ago, we asked people how they felt about this, how they felt it would affect them. Here

is what they had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don't know. Maybe I should be angry with presidents because if you ask if it affects our economy, our lives because

we get more miserable maybe, because a lot of things gets more expensive because many things that we buy is from foreign countries.

UNIDENTIFIED MALE (through a translator): America has never honor the agreements they have made, and this is not the first time they have not

kept their word.

(END VIDEO CLIP)

PLEITGEN: So you hear some reaction from ordinary Iranians who are feeling the economic pinch, not just from the U.S. pulling out of that agreement,

but also of the uncertainty that happened before that.

And at the same of course, you now have even more uncertainty here in this region with Iran and Israel now seemingly in an even bigger conflict that

they were before, Kristie.

LU STOUT: Fred Pleitgen reporting live from Tehran, thank you. Now, this dramatic escalation intentions come less than two days after the U.S.

walked away from the Iran nuclear deal. Tehran has hinted it could resume its nuclear program in response, but U.S. President Donald Trump says that

would be a bad idea.

(BEGIN VIDEO CLIP)

TRUMP: I would advise Iran not to start their nuclear program. I would advise them very strongly. If they do, there would be very severe

consequence, OK?

(END VIDEO CLIP)

LU STOUT: Now, the President walked away from the nuclear deal in defiance of European leaders who had been lobbying him to honor the agreement. It

is not the first time he's rejected Europe's advances. In June of last year, he withdrew from the U.S. -- or withdrew the U.S. from the Paris

Climate Accord.

It was a decision of some European allies said was regrettable, even arrogant. He caused further concern in Europe, when he formally recognized

Jerusalem as Israel's capital, and agreed to move the embassy there.

And this March, he announced tariffs on steel, and aluminum imports despite European opposition. So for more, let's bring in our Senior Diplomatic

Editor Nic Robertson.

And, Nic, there is a pattern here, European leaders, they tried to persuade Trump. He ultimately ignores them again, and again, and again. This is

humiliating for Europe, but what does it mean in terms of relations between Europe and the U.S.?

NIC ROBERTSON, CNN SENIOR DIPLOMATIC EDITOR: Well, clearly the frustrations are great, and we heard from Angela Merkel today saying that

the European countries need to take their destiny into their own hands, and they could no longer rely on the United States to protect them.

Whether she means -- she thinks that the United States may pull out of NATO, and we know what President Trump was saying about NATO last year, and

he's had a pretty fix interests on Germany, on seeing Germany increases defense spending, which of all the NATO nations, Germany on being such an

economic powerhouse has been resistant to do but have indicated that they will.

Whether she is sort of referring to that or she means just more broadly speaking, that national security interests come into play. You know,

President Trump pulling out of the JCPOA, the Iranian nuclear deal over the advice or against the advice if you will of her, and President Macron of

France, and Prime Minister Theresa May here.

[08:25:10] So, you know, whether she means a broader strategic interest, but clearly there was frustration. Look, I mean, what we have seen if you

go back to early last year when the European leaders Angela Merkel among them call for an emergency summit of the E.U. leaders in Malta on February

of last year, shortly after President Trump was elected.

It was back then, Merkel, and then that time French President Hollande was saying that it was important that Europe looked to itself that it could no

longer rely on the United States when they seem to have given the United States a lot of leeway -- President Trump, a lot of leeway to see which way

he will go. But clearly, the frustrations are coming out. Now the JCPOA, as you were just mentioning, is one in a series of issues.

So that concern is very, very real, and now European businesses, particularly Germany, France, and Britain find themselves sort of delving

deep into law to figure out how they can protect their business interests in Iran, and keep the JCPOA -- the ramp JCPOA alive with Iran, and keep the

moderates having more influence in Tehran than the hardliners would perhaps like to see more missiles fired at Israel.

LU STOUT: Europe is frustrated. Europe is saying we need to look to itself, to ourselves, how can Europe do that, and to move ahead on its own,

especially in regards to the Iranian nuclear deal. I mean, can it focus on its own interests while appeasing Donald and avoiding punishing potentially

U.S. sanctions?

ROBERTSON: Yes, 500 million people in the European Union, the 28 conference, and they don't all see eye-to-eye, as we know, Britain is

leaving the European Union, their disparate voices of course across a massive political spectrum is upheaval in change, and the ideas that came

together, that form the European Union are being questioned right now.

You have politicians in Europe suggesting an alternative European defense policy bringing in the United States, but that sounds awfully like NATO

that exists already. So the perhaps the short answer is, is how can Europe best look after its interest. That's going to need a period of adjustment.

It's not clear that everyone seems eye-to-eye at the moment over how they would do it, and it's well-known in Europe that President Trump is not a

fan of the European Union, so a knock on effect of what he's doing at the moment is going to put pressure on the European Union, and perhaps open up

some of the cracks that already exist.

But again, the very short answer is it's not quite clear how Europe can go ahead, and take its destiny in his hands as Angela Merkel says.

LU STOUT: A very complicated trip for Nic Roberson, reporting liv3e from London, thank you so much. And ahead right here on News Stream. What is

the world towards peace on the Korean Peninsula, following the return of three American detained by North Korea. We have a special interview with

the former U.S. diplomat on North Korean policy right after the break.

[08:30:00] (COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching "News Stream" and these are your world headlines.

The world's oldest leader is set to be sworn into office in the next hour after a shocked victory in Malaysia's election. Ninety-two-year-old

Mahathir Mohamad joined forces with the opposition to beat current prime minister, Najib Razak, and his ruling party to the polls. Mahathir has

promised to pardon jailed opposition leader Anwar Ibrahim.

New details are emerging about the deaths of four U.S. soldiers who were killed and ambushed in Niger last year. Democratic Senator Tim Kaine who

sits on the Armed Services Committee says the troops had been involved in an operation they weren't authorized, trained, or equipped to conduct. A

report into the incident is expected to be released in a few hours.

Donald Trump is praising the return of three Americans who have been imprisoned in North Korea. The president personally welcomed the men home

at Joint Base Andrews and Mr. Trump is marking the men's arrival as a major victory ahead of the summit with North Korean Leader Kim Jong-un.

And I want to correct something that you saw on screen earlier. The transcription of one of the ex-detainees, Kim Dong-chul said, quote, I was

threatened in many different ways, unquote. That is wrong. In fact, the translator said this, quote, we were treated in many different ways. That's

the translation. Kim noted that he did do a lot of labor but he was treated when he was sick.

Kenneth Bae was released from North Korea in 2014 after nearly two years in a labor camp. He remains the longest-held American detainee since the

Korean War. And Bae spoke with CNN New Day's Chris Cuomo, who noted that we see them come home and for us it's over, but for former detainees, when

does it end?

(BEGIN VIDEO CLIP)

KENNETH BAE, LONGEST-HELD U.S. CITIZEN IN NORTH KOREA SINCE KOREAN WAR: Now I see them coming home -- came home and it is good day for everybody.

And the family, I'm sure they are delighted. But recovery will take some time.

I do believe that now is the time for them to be with their family, be just united and just spend time with their family for the next few months, just

to go through this ordeal not only they suffered but the family suffered as well. I do believe that they all need to heal together, try to recover and

move on from there.

(END VIDEO CLIP)

LU STOUT: Joining me now for more on the release of the three Americans and the path forward to peace on the Korean Peninsula is Joseph Yun, CNN's

global affairs analyst and former top U.S. diplomat for North Korea policy. He joins us now live.

Sir, thank you so much for joining us here in the program. It was an incredible moment to witness, the homecoming of these three American

citizens. But why did North Korea hand them over? What was the incentive for Pyongyang to free these men?

JOSEPH YUN, CNN GLOBAL AFFAIRS ANALYST, FORMER U.S. DIPLOMAT FOR NORTH KOREA POLICY: Well, thank you, Kristie. Of course, this is all related to

upcoming summit which will most likely take place over the next three to four weeks. And it looks like suddenly Singapore might be the venue.

Disaster with (ph) setting up. You really want to remove some of these issues that have been there for a long time. As you know, these three

Americans have been detained in North Korea for some time.

The one that has been detained the longest is of course Kim Dong-chul. He has been there I would say now starting from 2015. So, it has been a while.

He has been in a labor camp. It was great to see all three of them looking apparently quite healthy as they arrived in Andrews Airport.

LU STOUT: The North Koreans, they have already achieved a number of things. They got two meetings with U.S. secretary of state. They have the

upcoming meeting with the U.S. president. So what incentives are left for North Korea to agree to complete denuclearization?

YUN: Well, you know, complete denuclearization is a long-term goal. I would say it is a long-term goal. And in fact, I would be a little bit

concerned that expectation on denuclearization could be quite different in Pyongyang and in Washington. In Washington, we want to see immediate

denuclearization.

[08:35:01] I really doubt this is going to happen. Rather, what the North Koreans want is kind of action for action, which will take time. And in the

meantime, they do a little bit of action and U.S. gets some benefit as well as the international community.

So the meeting that will take place in four weeks is really about narrowing that gap. But I hope it's a good meeting. My hope is that as the meeting

proceeds, there are results, diplomatic process continues.

I mean, as you can see, compared to where we were in November or December last year, really tensions have been reduced. There is no longer talk of

bloody nose or anything like that.

So I think just the idea, just the proposal, and just the initial engagement alone has set the scene. So I think we can look forward to some

concrete results from the meeting.

LU STOUT: It has been incredible, the difference between a few months ago, last year and now. But ahead, it's going to be a tricky path towards peace.

And you have spoken about the timing of achieving denuclearization and achieving a peace treaty. You said that it would be a mistake to have a

peace treaty come first. Why is that?

YUN: Well, having a peace treaty come first, of course, peace treaty will involve security guarantees, perhaps even placing U.S. troops or remaining

U.S. troops staying on the Korean Peninsula as well as diplomatic normalization that goes with it.

So if you do peace treaty first, it means you are accepting North Korea as a nuclear weapon state. And that is not acceptable to South Koreans, to

Japanese, and many countries in the region and beyond.

So I do believe we have to have denuclearization first and then a peace treaty.

LU STOUT: And a question about the sincerity of Kim Jong-un. I asked because on the tarmac at Andrews, President Trump said this about the North

Korean leader. He said, quote, I really think he wants to do something and bring that country into the real world. I really believe that, unquote. Do

you agree with that?

YUN: We don't know. Quite honestly, we don't know the real motives of North Korean leader. But it is a hypocrisy that is worth testing. To test

whether he wants to become part of international community. I certainly think we need to push it far along to see whether he means anything.

Again, I would caution it is going to take time. It took what, you know, starting from 1994, 25 years to get here in terms of denuclearization

negotiation itself. So it is going to take long. So, I mean, as a diplomat, we want to see a process. We want to see some movement on the process. But

let's not set too high a bar.

LU STOUT: It's incremental process, at the end of the day. Joseph Yun --

YUN: Absolutely.

LU STOUT: -- thank you so much for joining us. Take care.

YUN: Thank you very much.

LU STOUT: Now, we are now seeing newly released satellite imagery of the artificial islands in the South China Sea. These pictures show Chinese

military planes on the Spratly islands. They were taken in April. Both China and the Philippines say that the islands are their territory.

Just a few days ago, U.S. intelligence assessed there is a high probability the Chinese military recently deployed anti-ship and anti-aircraft missiles

to those islands. The White House warned there will be consequences for the militarization.

You're watching "News Stream." Still ahead, could a Chinese phone giant be on the line? ZTE is halting major operations.

[08:40:00] (COMMERCIAL BREAK)

LU STOUT: Welcome back. One of China's biggest phone sellers says it has been left on hold after ban was enforced over in the U.S. ZTE says it has

now halted its main operations that can have huge implications. Sherisse Pham has more.

(BEGIN VIDEOTAPE)

SHERISSE PHAM, CNN TECH AND BUSINESS REPORTER: If ZTE goes under, there will be global consequences. ZTE is one of China's biggest tech companies.

They sell smart phones and telecommunication equipment around the world.

Now, ZTE is saying it has seized major operating activities after the U.S. government banned American companies from selling to them. If ZTE

collapses, it would cause disruption to wireless carriers that rely on their equipment in Africa, the Middle East, and Europe. It would also hit

American companies that sell hundreds of millions of dollars worth of tech and equipment to ZTE.

Qualcomm says losing ZTE order would cost them $44 million in revenue next quarter. And a ZTE collapse could hold up the development of 5G. And that

is because ZTE and other Chinese tech companies have been leading the development of 5G products and technology.

Now U.S. regulators say they put this export ban on ZTE because the company lied about punishing employees who violated U.S. sanctions on Iran and

North Korea. ZTE says it did take corrective action and it is working on complying with export rules. The company also says it is carrying out an

independent investigation.

Few analysts I talked to say ZTE will sort things out with U.S. government and they will be fine. But for now, this major Chinese company is publicly

suggesting that United States has put its very survival in doubt. Kristie?

(END VIDEOTAPE)

LU STOUT: All right, Sherisse Pham reporting. Thank you, Sherisse.

Now parts of Europe are sometimes called the land of chocolate. But even a chocoholic will consider what happened in Poland to be a little bit out of

control. A truck carrying 12 tons of liquid chocolate overturned on a highway and caused a major traffic incident.

And now while literal rivers of chocolate may sound like a dream, as far as authorities, they are concerned the situation is more sticky than sweet.

The driver was treated for a broken arm. Thankfully, no one else was hurt. And as one firefighter ominously warned, quote, once it hardens, chocolate

is worse than snow.

That is "News Stream." I'm Kristie Lu Stout. Don't go anywhere. "World Sport" with Amanda Davies is next.

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