MARIA: WELCOME BACK, SATELLITE
IMAGES REPORTEDLY SHOWING
INCREASED ACTIVITY AT NORTH
KOREAN WEAPON SITES FOLLOWING
THE SECOND SUMMIT BETWEEN
PRESIDENT TRUMP AND KIM JONG-UN.
AND JOINING ME RIGHT NOW IS JOHN
BOLTON, NATIONAL SECURITY
ADVISOR.
GOOD TO HAVE YOU ON THE PROGRAM
THIS MORNING SIR THANKS VERY
MUCH FOR BEING HERE.
>> GLAD TO BE WITH YOU.
MARIA: LET ME KICK IT OFF WITH
NORTH KOREA AS WE KNOW THIS WEEK
, WE DID GET NEWS THAT
THERE'S BEEN AN INCREASE IN
ACTIVITY AROUND THE SITE
KNOWN AS SANEMDONG, WHERE NORTH
KOREA ASSEMBLED MOST OF ITS
BALLISTIC MISSILES AND ROCKETS.
ARE THEY RESUMING TESTING, SIR?
>> I DON'T THINK WE CAN REALLY
JUDGE FROM WHAT WE CAN SEE AND
YOU'RE DESCRIBING COMMERCIAL
SATELLITE IMAGERY, ITS BEEN IN
THE PRESS.
WE HAVE A LOT OF OTHER WAYS OF
LEARNING WHAT THEY'RE DOING AS
WELL.
I THINK IT'S IMPORTANT TO GET
ALL THE EVIDENCE BEFORE WE MAKE
A DECISION.
THE PRESIDENT HAS OBVIOUSLY SAID
HE WOULD BE VERY DISAPPOINTED IF
THAT'S THE DIRECTION NORTH KOREA
WERE GOING IN, BUT I DON'T WANT
TO GET OUT IN FRONT OF THE FACTS
WE ACTUALLY KNOW AT THIS POINT.
MARIA: WHY DID THE PRESIDENT
LEAVE EARLIER THAN EXPECTED?
WHY DID THE SUMMIT BREAK DOWN?
>> WELL I DON'T REALLY THINK IT
BROKE DOWN.
I THINK THE PRESIDENT DID
EXACTLY THE RIGHT THING.
HE AND KIM JONG-UN HAD HAD A
NUMBER OF CONVERSATIONS ABOUT
WHAT MIGHT BE DONE TO DENUCLEAR
IZE NORTH KOREA AND KIM
OFFERED A PARTIAL DEAL, YOU KNOW
THE PRESIDENT HAS BEEN VERY
CLEAR THAT HE DOESN'T WANT TO
MAKE THE SAME MISTAKES AS PAST
ADMINISTRATIONS, AND HE PROPOSED
TO KIM WHAT HE TALKED ABOUT
REALLY GOING BACK TO SINGAPORE
IS WHAT HE CALLED THE BIG DEAL.
THE NORTH KOREA COMPLETELY
DENUCLEARIZE AND IN EXCHANGE FOR
THAT THERE WAS A VERY BRIGHT
ECONOMIC FUTURE FOR THE NORTH
KOREAN PEOPLE AND THEY WENT
AROUND ON THIS SEVERAL TIMES.
THEY HAD A FULL EXCHANGE OF
VIEWS AS THE SAYING GOES AND IT
WAS CLEAR THEY WEREN'T GOING TO
REACH AGREEMENTS SO WHAT THE
PRESIDENT DID WAS HE PUT IT, TO
WALK AWAY IN A FRIENDLY WAY FROM
THE DISCUSSION, HE SAID HE'S
PREPARED TO BEAT KIM JONG-UN
AGAIN AND NO DATE IS SET OR
ANYTHING LIKE THAT, BUT IT'S
POSSIBLE THAT NORTH KOREA WILL
GO BACK AND RETHINK THE POSITION
THEY CAME IN WITH AND COME BACK
TO TALK TO THE PRESIDENT ABOUT
THE BIG DEAL.
MARIA: YEAH, SWITCHING GEARS TO
CHINA, THERE HAS NOT BEEN A DATE
SET YET FOR THE PRESIDENT TO
MEET WITH AT MAR-A-LAGO AS THE
PRESIDENT HAS BEEN EXPECTING,
WAS THE NORTH KOREAN NEWS A
TEACHABLE MOMENT FOR THE CHINESE
AND NOW, WORRIED ABOUT SETTING
UP THAT MEETING BEFORE A DEAL IS
ACTUALLY DONE?
HOW CLOSE IS A DEAL BETWEEN THE
U.S. AND CHINA?
>> WELL I THINK ON THE TEACH
ABLE MOMENT POINT YOU'VE
REALLY PUT YOUR FINGER ON
SOMETHING AND I THINK THIS IS
IMPORTANT, WHAT THE PRESIDENT
DID IN HANOI NOT JUST IN
NEGOTIATIONS WITH NORTH KOREA ON
THEIR NUCLEAR PROGRAM, BUT ALSO
WITH CHINA ON TRADE, AND ALSO
WITH RUSSIA ON ARMS CONTROL AND
OTHER COUNTRIES, DESPITE ALL THE
MEDIA SPECULATION AND GOODNESS
KNOWS THERE WAS AN AWFUL LOT OF
IT BEFORE HANOI, THE PRESIDENT
TURNED OUT NOT TO BE DESPERATE
FOR A DEAL.
HE DIDN'T HAVE TO COME AWAY WITH
THE SUCCESS IN THE PURSUIT OF
AMERICAN NATIONAL INTEREST, HE
WAS PREPARED TO RISK PEOPLE
CHARACTERIZING THE HANOI SUMMIT
AS A FAILURE, BECAUSE HE WASN'T
GOING TO ACCEPT TERMS THAT
WEREN'T IN OUR NATIONAL INTEREST
AND I DO THINK THAT'S A MESSAGE
FOR OTHERS THAT WERE INVOLVED IN
SIGNIFICANT NEGOTIATIONS WITH
NOW IN TERMS OF CHINA
SPECIFICALLY, YOU KNOW, WE JUST
CONCLUDED ANOTHER ROUND OF
NEGOTIATIONS HERE IN WASHINGTON,
BOB LIGHTHIZER, THE U.S. TRADE
REPRESENTATIVE, SANTA MONICA,
STEVE MNUCHIN, I BELIEVE THE
NEGOTIATORS THINK THEY MADE A
LOT OF PROGRESS BUT WOULD ALSO
SAY THERE'S WORK TO BE DONE SO
IT'S TRUE AS YOU SAY THERE'S NO
DATE SET FOR THE NEXT SUMMIT BUT
IT COULD BE JUST A SHORT TIME
THEREAFTER.
WE'RE GOING TO HAVE TO HAVE SOME
MORE CONVERSATIONS AND DO THE
ADDITIONAL WORK.
MARIA: WELL YOU KNOW THE WORK
THAT IS LEFT TO BE DONE IS
REALLY WHAT WE WANT TO FOCUS ON
BECAUSE WE'VE BEEN COVERING THIS
CHINA STORY NOW FOR MORE THAN A
YEAR AND A HALF, AND I THINK
IT'S THE BIGGEST STORY OF OUR
TIME AND OF COURSE NOW WE KNOW
THE CHINESE TELECOM GIANT HUAWEI
IS SUING THE UNITED STATES
GOVERNMENT.
THE CHINESE FOREIGN MINISTER HAS
SPOKEN IN SUPPORT OF HUAWEI'S
LAWSUIT AGAINST THE UNITED
STATES, PRAISING THE COMPANY FOR
REFUSING TO SUFFER U.S. ATTACKS
LIKE SILENT LAMBS.
WHAT'S YOUR REACTION TO THE
LAWSUIT AGAINST THE U.S.
GOVERNMENT?
>> WELL YOU KNOW, THERE ARE A
COUPLE OF ASPECTS TO THIS.
NUMBER ONE THE UNITED STATES
ALONG WITH A NUMBER OF OTHER
COUNTRIES, ALLIES AND FRIENDS OF
OURS, SOME TIME BACK DECIDED NOT
TO PROCURE HUAWEI EQUIPMENT FOR
OUR NATIONAL SECURITY-RELATED
TELECOMMUNICATION SYSTEMS AND I
THINK FOR VERY VERY GOOD REASONS
PEOPLE SOMETIMES CALL THE
CONCERN THE MANCHURIAN CHIP
PROBLEM THAT SOMETHING GETS INTO
THE TELECOMMUNICATION SYSTEM
THAT CAN BE ACTIVATED DOWN THE
ROAD.
THIS IS A VERY SERIOUS THREAT,
SO LET HUAWEI DO WHATEVER LEGAL
MANEUVERS THEY WANT TO DO.
I'M CONFIDENT OF THE OUTCOME OF
THAT.
YOU KNOW THE JUSTICE DEPARTMENT
ALSO INDICTED THE CHIEF
FINANCIAL OFFICER OF HUAWEI.
THAT WAS NOT A POLITICAL ACT
EITHER SHE WAS ACCUSED OF
FINANCIAL FRAUD, THE EXTRADITION
PROCEEDINGS HAVE BEGUN IN CANADA
IF AN AMERICAN COMPANY WITH AN
AMERICAN CFO HAD DONE WHAT THE
JUSTICE DEPARTMENT ACCUSED
HUAWEI OF, WE'D THROW THE BOOK
AT THEM.
IT'S JUST AS SIMPLE AS THAT SO I
DON'T THINK ANYBODY IS GOING TO
ARGUE AT LEAST.
I'D BE SURPRISED IF THEY DID
THAT A FOREIGN COMPANY OR A
FOREIGN CFO OUGHT TO GET BETTER
TREATMENT THAN AN AMERICAN
COMPANY AND AN AMERICAN CFO
WOULD GET.
MARIA: IT'S BIGGER THAN THAT.
THIS COMPANY IS SAYING THAT THE
U.S. IS DESTROYING HUAWEI'S
REPUTATION.
WE HAD SECRETARY OF STATE MIKE
POMPEO IN THE STUDIO JUST TWO
WEEKS AGO WHEN HE CAME BACK FROM
HIS EUROPE TRIP AND HE BASICALLY
TOLD OUR EUROPEAN FRIENDS, IF
YOU'RE USING HUAWEI TELECOM
INFRASTRUCTURE, WE'RE PROBABLY
GOING TO HAVE TO SHARE LESS
INFORMATION WITH YOU BECAUSE
THESE ARE NATIONAL SECURITY
RISKS.
HOW MUCH OF A THREAT IN TERMS OF
NATIONAL SECURITY IS HUAWEI'S
TELECOM?
>> WELL IT'S SIGNIFICANT AND
THAT'S WHY WE SUSPENDED THE U.S.
GOVERNMENT PROCUREMENT OF
THEIR SYSTEM.
THIS IS PARTICULARLY APPLICABLE
IN FIFTH GENERATIONS,
TELECOMMUNICATIONS, WHERE THE
PRESENCE OF SUSPECT MATERIAL
REALLY ALMOST ANYWHERE IN THE
SYSTEM, NOT AT THE KEY
COMMUNICATIONS NODES BUT
THROUGHOUT THE SYSTEM CAN BE
USED FOR ESPIONAGE OR DISRUPTION
PURPOSES.
THIS IS THE MANCHURIAN CHIP
ISSUE SO THIS IS A VERY SERIOUS
PROBLEM WE'RE IN INTENSE
DISCUSSIONS ABSOLUTELY UNRELATED
TO TRADE ISSUES WITH FRIENDS AND
ALLIES & PARTNERS ALL OVER THE
WORLD ON HOW TO DEAL WITH THIS.
NOBODY SHOULD MINIMIZE HOW
SERIOUS THIS IS.
IT'S NOT JUST CHINA WE'RE
WORRIED ABOUT.
LET'S BE CLEAR.
WE'RE WORRIED ABOUT COMPROMISING
THE SECURITY OF SENSITIVE
AMERICAN COMMUNICATIONS REALLY
ON A GLOBAL BASIS.
MARIA: BUT THAT'S WHAT I'M
GETTING AT.
I MEAN, WHEN YOU TAKE A LOOK AT
THE CULTURE OF CHINA, I MEAN,
ESPIONAGE, FORCED TRANSFER OF
TECHNOLOGY, IP THEFT, ALL OF
THESE THINGS HAVE BEEN IN THE
CHINESE CULTURE, SO I WANT TO
GET YOUR TAKE ON THAT.
I MEAN, I RECOGNIZE THAT CHINA
CAN BUY MORE STUFF FROM THE U.S.
AND THEY CAN OPEN UP THEIR