DAVID: A POTENTIAL SHOW OF
FORCE, THE CHINESE NAVY SET TO
CONDUCT ANOTHER ROUND OF
MILITARY DRILLS NEAR THE KOREAN
PENINSULA TOMORROW, THIS AHEAD
OF A PLANNED INTER-KOREAN SUMMIT
IN SEPTEMBER, ACCORDING TO
CHINA'S MARITIME AUTHORITIES.
ALL THIS HAPPENING AFTER
PRESIDENT TRUMP BLAMED CHINA FOR
STALLING U.S. NUCLEAR TALKS WITH
NORTH KOREA DUE TO ITS
ESCALATING TRADE WAR.
FIRST OF ALL, GENERAL, GOOD TO
SEE YOU.
THANK YOU FOR COMING IN.
>> WELL, THEY ARE PART OF A MUCH
LARGER PATTERN.
WE ARE INVOLVED IN A COMPETITION
ONCE AGAIN WITH CHINA AND
RUSSIA, PARTICULARLY IN THE CASE
OF CHINA, WHAT THEY ARE REALLY
ABOUT IS THEY WANT TO DOMINATE
THEY WANT THE UNITED STATES TO
AND THEY ARE CONDUCTING THE MOST
ADVANCED MILITARY BUILDUP OF ANY
COUNTRY IN THE WORLD TODAY TO
INCLUDE THE DEFENSE BUILDUP THAT
THE TRUMP ADMINISTRATION IS
CONDUCTING INSIDE THE UNITED
STATES.
WHAT CHINA IS DOING IS REALLY
STAGGERING.
THEY ARE ALMOST AT PARITY RIGHT
GO PAST US IN TERMS OF THEIR
MARITIME AND AIR DEVELOPMENT.
DAVID: THERE'S A QUESTION ABOUT
HOW MUCH THEY ARE USING THEIR
AUTHORITY OVER NORTH KOREA TO
STALL THESE TALKS.
THE PRESIDENT SAYS IT'S
CONSIDERABLE.
IS THERE ANYTHING WE CAN DO
ABOUT IT, BECAUSE WE ARE GOING
TO WAR WITH THEM ON THE TRADE
FRONT.
THAT MUST NOT BE HELPING.
>> YEAH, I THINK FIRST OF ALL,
AS WE HAVE SAID MANY TIMES,
NORTH KOREA ANIES
NORTH KOREA ANIE
NORTH KOREA ISIE
NORTH KOREA IS I
NORTH KOREA IS IN
NORTH KOREA IS IN T
NORTH KOREA IS IN THE
NORTH KOREA IS IN THE OR
NORTH KOREA IS IN THE ORBI
CHINA.
EVER SINCE THE SUMMIT TOOK PLACE
IN SINGAPORE, WHAT WE HAVE SEEN
IS CHINA HAS OPENED THE APERTURE
WIDER IN TERMS OF PROVIDING
SANCTION RELIEF TO THE NORTH
KOREANS.
THE UNITED STATES HAS REPORTED
ON THAT PUBLICLY FOR A NUMBER OF
WEEKS NOW.
TO GET CHINA TO SHUT THAT DOOR
IS WHAT I THINK PRESIDENT TRUMP
IS TRYING TO DO THROUGH SOME
PUBLIC COERCION HERE.
BUT I KNOW HIS TEAM IS LIKELY
PREPARING SOME TOUGH SANCTIONS
ON CHINA IF THEY DON'T DO THAT,
BECAUSE WE ARE ON A COLLISION
COURSE WITH THEM.
IF CHINA IS NOT HELPING US
DENUCLEARIZE NORTH KOREA, THEN
IT'S NOT GOING TO HAPPEN.
THE TRUMP ADMINISTRATION
CERTAINLY KNOWS THAT.
THEY ARE CLEAR-EYED ABOUT IT.
THEY ARE GOING TO HAVE TO MOVE
IN THAT DIRECTION.
I THINK RIGHT NOW, IT'S PUBLIC
DIPLOMACY, CHINA IS STILL OUR
FRIEND, I'VE GOT A GOOD
RELATIONSHIP WITH PRESIDENT XI.
THAT'S KIND OF WHERE THE
PRESIDENT IS.
BEHIND THE SCENES, BELIEVE ME,
THEY ARE PREPARING FOR ONE HECK
OF A FIGHT HERE WITH CHINA.
DAVID: YOU KNOW, I DO LIKE THE
FACT THAT THE ENTIRE
ADMINISTRATION FROM THE PEOPLE
AT THE STATE DEPARTMENT TO THE
PEOPLE IN THE MILITARY TO THE
PEOPLE ON THE TRADE FRONT, THEY
ARE ALL WORKING TOGETHER, THEY
ALL KIND OF HAVE A COMMON
KNOWLEDGE OF THESE RELATIONSHIPS
BETWEEN TRADE AND NORTH KOREA
AND CHINA.
THAT MUST BE A SENSE OF COMFORT
FOR YOU IN THIS WHOLE THING.
>> YEAH.
I MEAN, THE ADMINISTRATION WAS
LOOKING AT THE WORLD AND I THINK
THEY REALLY HAVE IT RIGHT.
SOMEHOW IF WE GOT CLOSER TO
CHINA IN TERMS OF INTERNATIONAL
MARKETS AND PUT BUSINESS
DEVELOPMENT IN THERE FROM THE
UNITED STATES, THAT SOMEHOW
CHINA WOULD NOT ONLY MOVE
DAVID: IT DIDN'T WORK OUT.
WE HAVE HEARD THAT FOR DECADES.
UNFORTUNATELY IT DIDN'T WORK
SENATOR McCAIN AS WE HONOR HIS
MEMORY.
HE HAD A LOT OF DIFFERENCES,
OBVIOUSLY, WITH PRESIDENT TRUMP
BUT THE ONE THING THAT THEY HAD
NO DIFFERENCE ABOUT WAS THE NEED
TO REORGANIZE AND STRENGTHEN OUR
MILITARY WHICH HAS FALLEN BEHIND
TREMENDOUSLY OVER THE PAST
DECADE.
THEY WERE REALLY UNITED ON THAT
FRONT, WEREN'T THEY?
>> OH, YEAH, ABSOLUTELY.
I THINK THEY WERE UNITED ON MOST
TRUMP INITIATED HIS FIRST BUDGET
REQUEST WHICH WAS ACTUALLY
OBAMA'S BUDGET, FY '17, WHAT
JOHN McCAIN AND THE SENATE ARMED
SERVICES COMMITTEE DID, THEY
BUMPED THAT REQUEST UP BY $40
BILLION TO $50 BILLION AND SAID
WE HAVE GOT A LONG WAY TO GO TO
MAKE UP FOR THE DEFICIT WE'VE
HAD HERE THESE LAST EIGHT YEARS
AND THEY WERE ABSOLUTELY RIGHT
ABOUT THAT.
IN A SENSE, SENATOR McCAIN WAS
EDUCATING THE NEW TEAM ABOUT HOW
FAR WE REALLY HAD TO GO TO GET
LONG.
DAVID: I THINK ON THAT FRONT,
EVEN DONALD TRUMP FOR ALL OF HIS
MISGIVINGS ABOUT SENATOR McCAIN,