>> Shepard: MORE ON WHAT IS NEXT
FOR THE NORTH KOREA SITUATION.
GORDON CHANG IS HERE, AUTHOR OF
"NUCLEAR SHOW DOWN, NORTH KOREA
TAKES ON THE WORLD."
THEY HAD A GOOD WEEK.
>> NORTH KOREA HAD A GOOD WEEK.
WE HAD THE SUMMIT.
KIM JONG-UN GOT
LEGITIMATIZATION.
THAT WAS IMPORTANT FOR HIM.
HE HAD PROBLEMS WITH THE
MILITARY.
WE NOW THE TOP THREE OFFICERS
BEING CHANGED AND HE'S HAD
PROBLEMS AT THE BOTTOM AS WELL.
HE CREATED EXPECTATIONS.
EVERYBODY WANTS A BETTER LIFE.
WE KNOW HE HAD AN EXCELLENT
WEEK.
NORTH KOREAN PROPAGANDA -- WE'LL
SEE THE PICTURES AS LONG AS KIM
IS IN CHARGE.
>> Shepard: IF YOU BACK IT UP
FARTHER, YOU'VE SAID THAT THIS
PRESIDENT HANDLED THAT SITUATION
VERY WELL.
WE WERE IN A BETTER POSITION.
>> YEAH.
TEN DAYS AGO, I THINK TRUMP
BEING TRUMP PUT US IN A GOOD
POSITION.
IT WAS THE NORTH KOREANS THAT
WERE MAKING CONCESSION.
>> Shepard: WHAT DID THEY
CONCEDE?
>> THEY GAVE UP THE THREE
AMERICANS.
THEY MADE PLEDGES.
THEY SAID THEY WOULD GIVE UP ALL
OF THEIR ARSENAL IN EXCHANGE NOR
ENDING THE KOREAN WAR AND A
PLEDGE NOT TO ATTACK THEM.
THAT'S NOT TOO BAD A DEAL.
ESPECIALLY IF THEY GET
EVERYTHING THAT -- GIVE UP
EVERYTHING.
THE POINT IS AT THAT SUMMIT WE
GOT A ENJOYMENT STATEMENT BUT
THE ENJOYMENT STATEMENT WAS
VAGUE.
I KNOW IT'S NOT THE END OF THE
DEAL.
IT'S LIKE A TERM SHEET AS
NEGOTIATORS WOULD SAY.
THE POINT IS WE SHOULD HAVE
GOTTEN SOMETHING MORE.
>> Shepard: WE GAVE UP THE
HANDSHAKE, RIGHT?
>> WE GAVE UP THE HANDSHAKE.
ONE OTHER THING.
>> Shepard: SECURITY.
A SECURITY PROMISE.
>> AND THE JOINT STATEMENT,
YEAH.
WE SAID WE WOULD GIVE A SECURITY
PROMISE.
THEY SAID THEY THEY WOULD GO FOR
COMPLETE DENUCLEARIZATION OF THE
PENINSULA.
THEY SAID THEY WOULD RETURN
REMAINS.
THAT'S A GOOD THING.
IT WAS GOOD FOR PRESIDENT TRUMP
TO PUT THAT ON THE AGENDA.
IT WAS NOT SOMETHING THAT PEOPLE
WERE TALKING ABOUT.
THE PRESIDENT GETS CREDIT FOR
THAT.
THE POINT IS THEN THE PRESIDENT
TURNS AROUND TO THE PRESS
CONFERENCE AFTER HIS MEETING
WITH KIM AND HE SAYS, LOOK,
WE'RE GOING TO STOP THE MILITARY
EXERCISE.
>> Shepard: HE CALLED THEM WAR
FOR 30 YEARS.
>> WAR GAMES IS A TERM FROM KIM
JONG-UN.
HE DIDN'T HEAR IT FROM THE
PENTAGON.
HE SAID THE "WAR GAMES" WERE
PROVOCATIVE.
THAT'S NORTH KOREAN AND CHINESE
TALKING POINTS.
THEY'RE NOT PROVOCATIVE.
THEY'RE DEFENSIVE.
THE POINT HERE IS THAT WE'RE NOT
ONLY DEFENDING SOUTH KOREA,
WE'RE DEFENDING THE UNITED
STATES.
>> Shepard: DID HE SAY THAT
BECAUSE HE KNEW THAT'S WHAT THE
NORTH KOREANS WANTED TO HEAR?
HE JUST HEARD IT FROM THEM.
THEY ALWAYS CALLED THEM
PROVOCATIVE.
WHY WOULDN'T THEY CALL THEM
PROVOCATIVE TO HIM?
IF HE AGREES WITH THAT, MAYBE HE
WILL GET SOMETHING ELSE.
I WAS WONDERING IF THAT WAS THE
THINKING BUT --
>> WE DON'T KNOW.
>> Shepard: WHY WOULD HE SAY
TODAY THE NORTH KOREA THREAT IS
OVER?
I MEAN, SAYING SOMETHING LIKE
THAT IS A -- JUST MAKE YOU
WONDER ABOUT EVERYTHING.
>> NORTH KOREA ON MONDAY HAD
ENOUGH FISSILE MATERIAL FOR 20
TO 60 WAR HEADS.
>> Shepard: WHO IS IN CHARGE OF
THAT STUFF?
>> THE MILITARY.
>> Shepard: DO MULTIPLE PEOPLE
HAVE CONTROL?
I MEAN, HOW -- ARE THEY GUARDED
IN A WAY THAT OTHER NATIONS
NUKES ARE GUARDED?
>> WE DON'T KNOW.
>> Shepard: WE DON'T HAVE A
CLUE.
>> WE'VE WORKED CLOSELY WITH
PAKISTAN TO PUT LINKS ON THEIR
NUKES.
EVEN THOUGH OUR RELATIONS WITH
ISLAMABAD SOMETIMES HAVEN'T BEEN
GOOD BUT WE HAVE NOT HAD THE
SAME RELATIONSHIP WITH NORTH
KOREA AND SECURING LOOSE NUKES.
>> Shepard: SO THERE'S A REAL
WORRY OF A MISSTEP OR A ROGUE
ACTOR DOING SOMETHING THAT COULD
START A CONFLICT THAT COULD
QUICKLY ESCALATE.
>> THAT WOULD BE THE CASE IF THE
MILITARY WAS SO UNHAPPY WITH KIM
THAT THEY GOT RID OF HIM.
THEN YOU'D SEE THE MILITARY
DIVIDE.
YOU'D HAVE CHINA IN THERE AS
WELL.
IT WOULD BE A SITUATION WHICH WE
WOULD NOT BE ABLE TO FIGURE OUT.
THAT IS OUR NIGHTMARE SCENARIO
AND PROBABLY CHINA'S AS WELL.
CHINA DOES HAVE LINKS INTO THE
NORTH KOREAN MILITARY.
THEY'VE HAD THEM FOR DECADES.
THE KIM FAMILY HAS HAD LINKS
WITH CHINA AND THEN CHINA BUYS
MORE GENERALS.
IT'S A VERY INTERESTING PROCESS.
THE POINT IS, WE'RE ON THE