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ISIS Demands Ransom for Hostages From Japan; Shots Fired at U.S. Embassy Vehicle in Yemen; Yemeni Chaos, No Government Control; Previewing the President's "State of the Union" Address

Aired January 20, 2015 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


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JOHN BERMAN, CNN ANCHOR: Shots fired at a U.S. embassy vehicle in Yemen, a country in chaos, are U.S. interests and personnel safe?

A new threat from ISIS, this chilling new video threat to murder two hostages, demanding $200 million or else.

The stunning statement that has people reeling from Hollywood to the Pentagon, a famous director calls snipers cowards, this controversy grows this morning.

Hello, everyone. I'm John Berman.

A new threat this morning from ISIS, a new barbaric video threatening to kill hostages, ISIS says that two Japanese men will die if that country does not pay $200 million within 72 hours.

You can see it right here. A jihadist dressed in black holds a knife. He speaks with a perfect British accent. One hostage is a journalist, the other apparently connected to some kind of military company from Japan.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: To the prime minister of Japan, although you are more than eight thousand and five hundred kilometers away from the Islamic state, you willingly have taken part in this crusade.

(END VIDEO CLIP)

BERMAN: Our Will Ripley is covering this angle for us. Will, what's the latest?

WILL RIPLEY, CNN CORRESPONDENT: John, to hear that video comes as a total shock for so many people in Japan, a passivist country that has not been directly involved in the fight against ISIS.

But two days ago, Prime Minister Shinzo Abe did pledge $200 million not to fight ISIS but to help the refugees, the people whose lives are in turmoil because of this brutal terrorist group.

And all it took was 48 hours before ISIS then took two Japanese citizens, two men that it took hostage several months ago pulled out, put in front of a camera and used to demand the same amount of money, $200 million, from their government in exchange for their lives.

The prime minister , Shinzo Abe, calling the actions unforgivable, demanding the release of these men. And when asked specifically if Japan would be willing to negotiate with these terrorists, he didn't answer the question, only saying that he's appointed a top official to do everything possible to get these men safely returned home.

But if this ISIS ultimatum is the truth and they will only accept $200 million in three days, then the fate right now of these men, Kenji Goto, a freelance journalist, and Haruna Yukawa, as you mentioned, involved with a private military company, both men very much in grave danger right now, and a country very, very concerned for their well- being and shocked that Japan has now been dragged into this, much like the United States and Britain who saw two of their citizens from each country executed brutally on camera at the hands of ISIS and the very same jihadist that appeared in this video, John.

BERMAN: Will, as you say, that sum $200 million seemingly deliberately chosen because it is the exact amount Japan is contributing to the effort against ISIS in that region.

You also said that the prime minister did not specifically rule in or out some possible solution here. But does Japan have a history? Look, some countries do negotiate with terrorists. Some countries do pay ransom. What is Japan's history?

RIPLEY: Officially, John, Japan has never paid a ransom for the release of hostages, but if you look back to 2004, there were three Japanese citizens who were released after they were held hostage in Iraq.

And while there was no official word that any ransom was paid, there was speculation that perhaps a deal was worked out under the table. Whether that's happening in this case, we really don't know.

All we know is the official word from the prime minister demanding that these hostages be returned and the promise to do whatever possible to make that happen. We'll have to see.

BERMAN: All right. Will Ripley, covering that for us, again, two hostages very much in trouble right now in Syria or Iraq. Will Ripley, thanks to you.

Want to move to Yemen right now, because U.S. personnel could be at risk this morning as that country spirals toward chaos. Just hours ago, gunmen fired shots at a U.S. embassy vehicle in the capital of Yemen, Sanaa. This comes a day after deadly battles between Yemeni troops and a Shiite militia.

This power struggle is already creating a vacuum that al Qaeda is exploiting. There are real fears that Yemen is a growing breeding ground for terror. Remember the men that attacked "Charlie Hebdo" in Paris claimed allegiance to al Qaeda in the Arabian Peninsula, which of course is based in Yemen. CNN's senior international correspondent Nick Paton Walsh is the only Western TV journalist in Yemen right now. Nick joins us by phone from the capital.

Nick, let me start with this. We just lost Nick on the phone I'm told. Nick Paton Walsh has been covering this for us from the Yemeni capital in Sanaa. He reported earlier a U.S. embassy vehicle did come under fire. No one was hurt in that.

And we are getting more reports about the chaos in the capital there, perhaps the presidential palace under siege, the prime minister's residence under siege again. The fear here is that chaos only allows for terrorist groups, specifically al Qaeda in the Arabian Peninsula, to increase their power in the region and grow as a threat to the West.

On the subject of the West, happening right now, a manhunt across Europe for a man who could be an ISIS ring leader in Europe. Officials now draw a direct link between the terror group and the cell that was raided in Belgium last week. Authorities are hunting the leader of that cell as we speak.

Our Phil Black joins us now live from Brussels. Phil, this ISIS terrorist is already believed to have slipped out of Belgium. What do we know?

PHIL BLACK, CNN CORRESPONDENT: Yeah. His name is Abdelhamid Abaaoud, John, a 27-year-old Belgian national of Moroccan descent who grew up here in Brussels.

The investigators here believe he's the man who was directing the terror plot aiming to attack police. This is the plot they broke up with raids across the country on Thursday night. They believe he was directing this from Athens, and so they sent Greek police to try and find him.

They've not been able to do so. He's evaded capture so far. Those Greek authorities have arrested a 33-year-old Algerian man. They believe, the investigators here, that he could be connected to this spot, so he's going to be extradited to Belgium as part of the ongoing prosecution of those that have been picked up in the net as police have moved to break up the terror plot here in Belgium, John.

BERMAN: All right, Phil Black for us in Brussels. Again, a manhunt under way directed by Belgium, though, in Greece for a man who could be a ringleader of a cell there.

I want to try to get back to Yemen right now. I believe we have Nick Paton Walsh on the phone. Connections are very hard to come by. Nick is the only Western television journalist in the capital of Yemen right now.

And, Nick, if you're with me, a U.S. embassy vehicle earlier this morning came under fire. What can you tell us?

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT (via telephone): Well, the vehicle was near the U.S. embassy, near a checkpoint there, we're told in an embassy statement. That vehicle was one of the usual armored SUVs they drive in the capital, armored, easily distinguished, said to be not just driving by itself in a convoy but containing U.S. diplomats, U.S. citizens.

Now as it approached the checkpoint, it seems, some gunmen fired in the air and then trained their fire on the vehicle itself. I should quote from the U.S. embassy statement that says these were not warning shots. There was intent. So the U.S. officials clearly believing this was designed to injure or kill U.S. diplomats.

The nature and identity of the gunmen, not clear at this stage, and of course, the U.S. embassy saying that it remains on heightened alert. It always has been. This is Yemen. There's a controversial al Qaeda- targeting drone program here, but of course, they say they are keeping consulate services open if they can, but obviously this will spark concerns in Washington. John?

BERMAN: These were not warning shot, chilling words, Nick.

And, of course, our Barbara Starr has reported the military is on standby to evacuate personnel from the embassy if the need arises in the coming hours or days.

Nick, we care about this country because it's the base for al Qaeda in the Arabian peninsula. It's a country very much teetering on the brink right now, and if it does dissolve, this power vacuum could lead to more opportunities for terror.

What's the latest? Is there an actual working government right now?

PATON WALSH (via telephone): No. In short, I've just spoken to the minister of information, and she said the president does not have any control at this stage.

Now it is a fluid situation, which can improve as well as deteriorate for the government, but as we currently stand, most officials accept from the government that Houthi militia have moved into the presidential administration -- the presidential palace and taken it over.

Now, we were driving around that building earlier on this morning, and we saw a number of Houthi gunmen around there, their checkpoints. We also saw some Republican Guard in positions on the other side of that vast compound. But quite clearly something has changed, and it's now, it seems, in the control of the Houthi opposition.

At this stage, too, we heard from the information minister and from witness reports that there was shooting from outside of the presidential residence. That's where President Hadi is currently, at the moment.

He's said to be safe, but the information minister went on to say that she believes its a continuation of the coup that began yesterday that effectively there was a bid to try and seize power here by the Houthies. I should point out that we have not heard the Houthies side of this. They did say yesterday that the presidential administration, the violence began there when they were attacked, and they have complained the constitution is soon to be ushered in is not approved by them and was certainly not in their favor or in the favor of the people they say they represent.

But a very volatile situation here in Yemen, the clashes may have subsided, but it may also have heralded in a significant change in the balance of power here, John.

BERMAN: All right, Nick Paton Walsh, please stay safe there, Nick. Nick Paton Walsh, reporting from Sanaa, the capital of Yemen.

And Nick just said the president there does not have control of that country. That's a key development for U.S. interests overseas, fear of terror groups building support there as we speak.

All right, President Obama delivers the State of the Union address tonight. What surprises can we expect inside the speech?

And a presidential hopeful pushes the claim that Muslims have created no-go zones in major cities. Is this true? Our reporter investigates.

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BERMAN: All right, happening now, a manhunt for a terror ringleader in Europe, new arrests in France there possibly connected to terror, and word just moments ago from our Nick Paton Walsh in Yemen that the president of that country no longer has control of the government.

That country, the home of al Qaeda in Arabian Peninsula, AQAP, teeters on the brink. It may be past the brink as we sit here now.

I want to bring in CNN terror analyst Paul Cruickshank. And, Paul, when you hear that Yemen has simply, according to Nick, essentially spiraled out of control right now, that is a threat to the United States, why?

PAUL CRUICKSHANK, CNN TERRORISM ANALYST: It's a threat to the United States as no functioning government right now. There's a huge contest for power between the Houthies, who have essentially taken control of the capital, Sanaa. In fact, they've taken control all the way back in September, and then the president who seems now just to be at the very least a sort of figurehead, so it means that they're not focused on going after al Qaeda in Yemen.

Al Qaeda in Yemen is taking advantage of this chaos to expand their presence throughout the country. And yet, they are using the Shia/Sunni issue, the fact that the Houthis are basically Shia, to recruit Sunni tribals in the tribal areas of Yemen, saying we need to fight holy war against the Shia. They are expanding ranks. They are getting hold of more territory. This is a group that has said repeatedly in the last several months their No. 1 priority is to attack the United States. They are also the group that has claimed responsibility for the "Charlie Hebdo" attack in Paris. This is really, really worrying. The Houthis have actually been going after al Qaeda in some parts of central Yemen, but U.S. officials are worried that al Qaeda's going to be able to play the sectarian card in a big way, just like ISIS was able to do in Iraq, right?

BERMAN: Not only able to seize on the chaos, but also able to gain new recruits there, so growing amidst the chaos. Paul, I want to shift our attention now to Europe. There's this ringleader, you have been leading the reporting on this. This ISIS ringleader in Europe. Belgium wants him. He's on the run. Maybe in Greece or maybe not. Talk to me about the significance of this man.

CRUICKSHANK: He's identified as Abdulhamid Abaaoud. He's a Belgium- Moroccan. He's 27 years old. He traveled from Brussels to Syria to join ISIS a year ago. He got involved in fighting there. He appears to have come into contact with some of the senior leaders of ISIS. And more recently, he actually left Syria to move over to Greece for a little while and from Greece he was in touch with this cell back in Belgium which was plotting this major imminent attack. He's believed to have been the ring leader and key link person between this group in Belgium and the ISIS leadership back in Syria. The Belgians think this was an ISIS-directed plot, them specifically telling their European recruits, they have about 1,000 of them, go back, launch attacks against the country, launching airstrikes against us in Iraq. Belgium's involved over the skies in Iraq in airstrikes against ISIS. A real concern that this pivot from ISIS is going to transform the security picture in Europe in the weeks ahead.

BERMAN: And this ring leader still on the move. How long have they been tracking him and what are the concerns that he may be planning something new?

CRUICKSHANK: What they say is that they've been tracking this wider cell for a couple of months and that has included their knowledge of the fact that this cell were communicating with him back in Greece. They brought the Americans in to try to help locate him because they have all sorts of technical capabilities when it comes to eavesdropping. But the Americans weren't able to locate him. The trail went cold. The Greeks didn't locate him either. He's still thought to be at large. Maybe he slipped back into Syria. It's not known where he is. They don't have him. They did arrest an Algerian guy believed to be connected to him who they suspect had a role in this Brussels terror group. He's now going to be extradited. But the key guy that they are looking for is still at large, John.

BERMAN: On the run and clearly a threat. Paul Cruickshank, great to have you with us. Appreciate it.

Coming up for us, the president prepares to deliver his State of the Union address. Is there anything he can say tonight that you will remember tomorrow? How about one year from now? And on that subject, what about last year's speech? Remember how the president promised immigration reform? Did he keep that promise or break it? Our Tom Foreman is keeping score.

(BEGIN VIDEOTAPE) TOM FOREMAN, CNN CORRESPONDENT: In every State of the Union address, President Obama has pledged to tackle one issue of great importance to his voting base.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Finally, if we're serious about economic growth, it is time to heed the call of business leaders, labor leaders, faith leaders, law enforcement, and fix our broken immigration system.

(APPLAUSE)

FOREMAN: However, he's never been able to get that through Congress even with the Democrats holding the Senate. So when the Republicans captured both chambers, he took executive action to provide a path to legal status for millions of people who entered the country illegally. Republicans want to overturn it. They say it's unconstitutional, but for now we have to say this is a promise kept.

(END VIDEOTAPE)

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BERMAN: New information this morning about what President Obama will say tonight in his State of the Union address. CNN has learned that this time around he'll talk less about policies and more about people and helping the middle class. After the speech, the president plans to visit Idaho and Kansas, which you may notice are red states, to engage people who disagree with him.

I'm joined now by Michael Waldman, he was the head speech writer for President Clinton for years. He wrote four State of the Union addressees or States of the Union, or State of the Unions, I'm not sure what the correct grammar is there. You are a defender of this speech, which is interesting. You know, the Constitution says that from time to time, the president has to give Congress information on the State of the Union. But there are a lot of people these days saying, go back to sending up a letter because the speech itself just is a thing of the past.

MICHAEL WALDMAN, CHIEF SPEECHWRITER FOR PRESIDENT CLINTON: Yeah, I can't say that I agree with that. I think that's actually wrong. Look, George Washington, John Adams, they used to deliver it in person and then from Thomas Jefferson and forward, he sent it up in writing until the 20th century when radio and television made the speech something everybody could hear. You are still going to have 30 million people listening to the person they elected as president talking about policy. In this multiplatform age, that's a very big audience. With turmoil overseas and the economy finally picking up steam, I think there is going to be interest in what this president says on this speech. It's the first time he's talking, not to a Congress that's divided and dysfunctional, but actually controlled by the other party. That actually makes it a little more relevant because they can pass things, he can sign them or veto them and there will be a big debate.

BERMAN: You noted in a column, you know, people say how unusual is it that a president in the sixth or seventh year of his term will speak to a Congress from the opposition party? It turns out it's pretty much always the case.

WALDMAN: The last time it was otherwise was 1939. It's sort of the rhythm of these things. Sometimes those last two years can be bad time for the president and sometimes it can be actually very productive. Let me give you an example. There's an issue where there's real bipartisan momentum, which you wouldn't expect, which is on criminal justice reform.

BERMAN: Rand Paul, Cory Booker.

WALDMAN: Right. And that's something where the president, in the wake of the new attention after Ferguson and everything else, can give an encouragement to that kind of thing. And then there are times when you draw a line, whether it's on something like taxes or even when he took on the Supreme Court five years ago right after they came down with Citizens United ruling. He predicted that it would lead to a flood of secret money --

BERMAN: Didn't go over well. He had the head nods and the grimaces there --

WALDMAN: Exactly. Now he can show the videotape because he was actually right about that.

BERMAN: Let me ask you something, our Jim Acosta is reporting that after the speech the president is traveling to Idaho, Kansas, red states, and the goal is to engage with people who disagree with him. Isn't that something you do before running for re-election? Why do that now? Because his policies don't seem to indicate that's where this White House is headed with immigration reform, with Cuba, net neutrality, a lot of other things they sort of have done at a go it alone, we want to appeal to our base, we're not so much about engaging all points of view right now. Why go to the red states?

WALDMAN: Well, I think it will make for an interesting trip. I think that from what we know, for example, about his tax proposal, if it's really a middle class tax cut coupled with an increase in the capital gains tax, that might go over surprisingly well in a place like Idaho or Kansas. I think, you know, it's true, the president isn't running for re-election, but the way he governs and puts forward his arguments over the next two years will help set the stage for the 2016 election and beyond. In a away, it's the beginning of the post-Obama era and he wants to get his two cents in about what the agenda should be for that.

BERMAN: So this is the first time he's speaking to a Congress completely controlled by Republicans. It's also the first time that he's speaking to Congress for the State of the Union where in some ways people think things are looking up. More people think things are looking up for the country. How does that shape how he delivers the speech and how careful does he have to be? Because there are still plenty of people who have real tough times in this country right now.

WALDMAN: You're exactly right. He's been very careful in the past. I think maybe too careful about not pointing to positive news, for seeming - He's been worried about looking out of touch with the challenges people face. Of course, we know that the economy is picking up steam. You're even seeing increases these days in wages and median income. The GDP is going strong and also the United States economy is in much better shape than Europe and some of our industrial competitors. I think that he will want to and should point with pride to that kind of thing. It's now the first time to give a talk like this after the financial crisis and also after the sort of deficit panic that occupied Washington for so many years because the deficit is going down, too. I think he -- I would be surprised if he didn't surprise us with an optimistic and positive tone.

BERMAN: Level with me. Having written four of these, do you get jitters the night of a State of the Union when a president goes up? Do you get worried that you forgot to write something?

WALDMAN: Post-traumatic Stress Disorder. You know, it's a very exciting time because so much goes into each word. It's not just applause, it's not just trying to write a good speech, but it's really the policy proposals for the whole government. And I'll say that, for me at least, about two-thirds of the way through the speech when it was clear the teleprompter had not broken, that's the moment of relaxation. I feel their pain.

BERMAN: They weren't going to change the locks on you when you went into work the next day. Michael Waldman, great to have you here with us. Really appreciate it. A lot of fun.

You don't want to miss CNN's special coverage of the State of the Union address. Join us starting tonight at 7:00 right here on CNN.

Some other news now, police in Germany raid 13 locations linked to suspected radical Islamists. What did they find? We'll have a live report next.

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