>>> AT PRESIDENT TRUMP COUNTS DOWN, HE IS FACING A CRISIS IN
KOREA. HE MAY ALSO BE FACING ONE IN
IRAN. JOINING ME KNOW IS LEON PANETTA.
CHIEF OF STAFF FOR PRESIDENT BILL CLINTON, NOW CHAIRING THE
PANETTA INSTITUTE FOR PUBLIC POLICY IN MONTEREY, CALIFORNIA.
THANK YOU FOR BEING WITH US. THERE IS SO MANY CRISIS ON THE
PRESIDENT'S PLATE. LET'S START WITH NORTH KOREA.
JOHN McCAIN JUST SAID IT IS TIME TO REALLY GET CHINA TO DELIVER
AND HE WAS VERY CAUTIOUS ABOUT ALL OF THIS TALK ABOUT
PRE-EMPTIVE ACTION. WE DIDN'T ADDRESS IT, BUT IT IS
DIFFICULT WITH MOBILE MISSILE LAUNCHERS, THE NEW NUCLEAR
FACILITIES ARE UNDER GROUND. WHAT ABOUT PRE-EMPTIVE MILITARY
ACTION OR ANY MILITARY ACTION GIVING THE PROXIMITY OF SEOUL,
PLUS 25 MILLION PEOPLE AND OUR OWN FORCES BELOW THE DMZ.
>> THERE IS A REASON WHY OUR MOST RECENT PRESIDENTS HAVE NOT
PULLED A TRIGGER WHEN IT COMES TO NORTH KOREA.
IT IS BECAUSE OF THE OBVIOUS CONSEQUENCES WITH REGARDS TO
WHAT THEY COULD DO TO SEOUL. A CITY OF 20 TO 25 MILLION.
AND THE FACT THAT IT COULD ESCALATE INTO A NUCLEAR WAR.
THAT WOULD TAKE MILLIONS OF LIVES AS A RESULT OF THAT.
SO, IT IS CLEAR THAT WE HAVE TO CONTINUE TO PRESSURE CHINA, LOOK
OUR STRATEGY HAS TO BE ONE OF CONTAINMENT AND DETERRENCE.
AND WE HAVE TO UP THAT GAME INCLUDING OUR PRESENCE THERE.
WE HAVE TO SUPPORT OUR ALLIES. WE HAVE TO INCREASE SANCTIONS
AGAINST NORTH KOREA, AND WE HAVE TO KEEP PRESH ON CHINA.
IN THE PAST THEY PUT A LITTLE PRESSURE ON BEN THINK AND THIS
BACKED AWAY. WE HAVE TO MAKE SURE THEY
CONTINUE TO PUT PRESSURE ON NORTH KOREA SEW THEY BACK OFF OF
THE TESTING OF NUCLEAR WEAPONS. >> THE FACT IS THAT CHINA AND
NORTH KOREA COULD BE SANCTIONED MORE.
THERE IS OTHER SECONDARY SANCTIONS THAT COULD HURT CHINA
AND MAYBE GET THEIR ATTENTION. >> I THINK THAT OUGHT TO BE ON
THE TABLE FOR CONSIDERATION. BECAUSE WE HAVE TO MAKE VERY
CLEAR THAT NORTH KOREA, IF THEY DEVELOP AN ICBM WITH SOME KIND
OF MINIATURIZED NUCLEAR WEAPON, THAT REPRESENTS A DIRECT THREAT
TO THE SECURITY OF THE UNITED STATES.
AND IT IS UNACCEPTABLE. SO CHINA NEEDS TO ACT HERE
BECAUSE THIS IS A SERIOUS CONCERN AS JOHN McCAIN POINTED
OUT. THIS IS A VERY SERIOUS CONCERN
IN TERMS OF OUR NATIONAL SECURITY.
>> IRAN HAS BEEN PROVOCATIVE IN THE PERSIAN GULF, CHALLENGING
OUR SHIPS. JOHN McCAIN SAID WE SHOULD NOT
BACK DONE AND EVEN TAKE A SHOT AT THEM IF THEY DO IT AGAIN.
>> WE HAVE HAD THESE KINDS OF PROVOCATIONS OVER A NUMBER OF
YEARS IN THE REGION BECAUSE OF THE TRANSPORT OF OUR NAVY SHIPS
AND A NUMBER OF OIL TANKERS THAT PASS THROUGH THE STREETS.
SO WE HAVE A PRESENCE THERE. WE OPERATE IN INTERNATIONAL
WATERS, SO INTERNATIONAL AIR. BUT IF IRAN COMES IN AND DOES A
PROVOCATIVE ACT, YOU TO MAKE
VERY CLEAR TO THEM THAT THAT IS UNACCEPTABLE.
THAT WE WILL NOT ACCEPT THAT KIND OF PROVOCATIVE ACT.
FOR THAT REASON, I THINK WHAT THE NAVY SHIP DID RECENTLY
INDICATES THAT THEY ARE ENTERING A DANGER ZONE, AND THEY ARE NOT
TO DO THAT. WE TOOK THE SAME STEPS WITH
REGARDS TO MAKING CLEAR TO THEM THEY OUGHT NOT TO GO AFTER OUR
DRONES, LARGELY IN INTERNATIONAL AIRSPACE.
THE ONLY WAY YOU DEAL WITH IRAN IS DRAWING THOSE KINDS OF LINES
AND I'M GLAD THEY DID THAT. >> AN IRANIAN DIPLOMAT MET FOR
THE FIRST TIME WITH A TRUMP STATE DEPARTMENT OFFICIAL, AND
YESTERDAY WAS VERY TOUGH ABOUT THE PRESIDENT'S COMMENTS AND
SECRETARY TILLERSON'S COMMENTS ABOUT LINKING TERRORISM AND
OTHER PARTS OF THE DEAL. THE PRESIDENT ETERNALLY
INTERVENED TO TOUGHEN UP THAT STATEMENT LAST WEEK.
ARE WE PROVOKES A CRISIS WITH IRAN WHICH, ARGUABLY, WE DON'T
NEED AT THE SAME TIME AS A CRISIS IN NORTH KOREA?
>> WE'RE DEALING WITH A LOT OF FLASH POINTS IN THE WORLD, AND
IT IS IMPORTANT THAT THE ADMINISTRATION HAVE A OVERALL
STRATEGY FOR HOW THEY WILL DEAL WITH THE FLASH POINTS.
YOU CAN'T JUST REACT TO THE CRISIS OF THE MOMENT AND CALL
THAT A STRATEGY. WITH REGARDS TO IRAN, I THINK
THAT IT IS IMPORTANT TO DIVIDE THESE ISSUES UP.
WE HAVE A NUCLEAR AGREEMENT, THEY HAVE ABIDED BY IT SO FAR.
I THINK IT IS IMPORTANT TO SEPARATE THAT OUT, AND DON'T TRY
TO INDICATE THAT THAT AGREEMENT OUGHT TO EXPAND TO OTHER AREAS
THAT WERE NOT INCLUDED IN THE AGREEMENT.
HAVING SAID THAT, WE HAVE CONCERNED ABOUT HEZBOLLAH, IRAN,
AND TERRORISM IN THAT REGION, AND WE OUGHT TO CONTINUE TO PUT
PRESSURE ON THEM WITH REGARDS TO THAT SUPPORT.
THAT OUGHT TO BE HANDLED SEPARATELY FROM THE WORK ON
ENFORCING THE NUCLEAR AGREEMENT. >> THERE HAS BEEN AN
ANNOUNCEMENT ABOUT THE WITHDRAWING FROM NAFTA FROM THE
PRESIDENT NOW, IS THAT A GOOD IDEA?
>> I THINK THE ADMINISTRATION IS REALLY STRUGGLING TO FIGURE OUT
WHAT THEIR TRADE POLICY IS. I KNOW WHAT THE PRESIDENT SAID
DURING THE CAMPAIGN ABOUT WITHDRAWING FROM THE TRADE
AGREEMENTS. WE RECOGNIZE THAT IS DANGEROUS,
PARTICULARLY FOR OUR ECONOMY, THAT WE WOULD DO THAT.
I THOUGHT THAT THEY RECOGNIZED THE IMPORTANCE OF NAFTA AND THE
NEED TO STRENGTHEN NAFTA, BUT YOU CAN'T JUST GET AWAY FROM IT.
YOU CAN'T JUST WALK AWAY. IT IS PART OF A GLOBAL WORLD.
WE HAVE TO TRADE IN A GLOBAL WORLD.
OUR ECONOMY WILL BE DAMAGED IF WE DON'T STAND BY THE
PROPOSITION THAT WE NEED TO BE PART OF THE TRADE EFFORT IN THE
WORLD. >> I WANT TO ASK YOU ABOUT
SOMETHING THAT ONE OF YOUR SUCCESSORS, AS CHIEF OF STAFF,
REINCE PRIEBUS SAID THE SENATE DEMOCRATS ARE HOLDING UP
CONFIRMATIONS, BUT THEY HAVE NOMINATED ONLY 57 PEOPLE FOR THE
530 VACANCIES. CONFIRMED 26 AND 37 MORE HAVE
BEEN NOMINATED. IS THE HANG UP IN THE WHITE
HOUSE OR THE OFFICE OF GOVERNMENT ETHICS IN THE
PIPELINE OR ON THE HILL. >> THERE IS NO QUESTION HERE
THAT ONE OF THE SERIOUS PROBLEMS FACING THE ADMINISTRATION IS THE
LACK OF APPOINTED PERSONNEL. WE'RE APPROACHING 100 DAYS,
THOSE NAMES SHOULD HAVE BEEN CONSIDERED.
THERE IS LIKE 500 POSITIONS THAT HAVE NOT BEEN CONFIRMED.
THEY ARE COMPLAINING NOW ABOUT NOT HAVING THE APPOINTEES.
THE WHITE HOUSE HAS TO PROPOSE SHOES NAMES TO THE SENATE.
GET THE NAMES UP THERE. IF THEY ARE TRYING TO HAVE THEM
FALL ON THE SENATE, BUT YOU CAN'T BLAME THEM FOR ACTING IF
THEY DON'T HAVE NOMINATED NAMES THAT HAVE BEEN PROPOSED TO THE
SENATE. IT JUST DOESN'T MAKE SENSE.
>> AND MY REPORTING IS THAT IT IS A TRUMP LOYALTY TEST THAT HE
IS IMPOSING ON THE STATE AGENCIES.
SECRETARY TILLERSON IS BASICALLY HOME ALONE.
LET ME ASK YOU ABOUT THE TAX PROPOSALS, WE HEAR ABOUT PICK
TAX CUTS FOR BUSINESS DOWN TO 15%.
WHAT ARE YOUR CONCERNS ABOUT THE DEFICIT, OR DO YOU THINK IT WILL
SPUR GROWTH. >> I THINK ONE OF THE REAL
DANGERS TO OUR ECONOMY RIGHT NOW IS THE SIZE OF THE DEBT THAT WE
CURRENTLY HAVE, WHICH IS $20 TRILLION.
ACCORDING TO CBO, ASSUMING WE DON'T DO ANYTHING ABOUT IT, THAT
DEBT WILL DOUBLE IN THE NEXT FEW DECADES TO 150% OF OUR GDP.
OUR ECONOMY CAN'T SUSTAIN THAT. I UNDERSTAND THE NEED TO TRY TO
PROVIDE SOME TAX CUTS, PARTICULARLY ON THE CORPORATE
SIDE. BUT WE ALWAYS HAD A PROPOSITION
WHEN I WAS CHAIR OF THE BUDGET COMMITTEE, AND HEAD OF OMB, THAT
IF YOU'RE GOING TO TAKE THOSE STEPS, PAY FOR IT.
DON'T ADD TO THE DEFICIT. AND THIS IDEA THAT GROWTH CAN
PAY FOR THESE KINDS OF HUGE TAX CUTS IS OPERATING IN FAIRYLAND.
THAT JUST DOESN'T WORK, SO IF YOU'RE GOING TO DO A TAX CUT,
THEN SHOW HOW YOU'RE PAYING FOR IT.
>> LEON PANETTA, THANK YOU SO MU