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CNN's Exclusive Access to U.S. Spy Plane; Tensions Between U.S. and China; Letterman Says Good Night; Oregon DOT Wants Drivers to Pay for Miles, Not Gas. Aired 9:30-10a ET

Aired May 21, 2015 - 09:30   ET

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


(COMMERCIAL BREAK)

CAROL COSTELLO, CNN ANCHOR: Good morning. I'm Carol Costello. Thank you so much for joining me.

A tense military showdown in the sky between the United States and China. CNN gets exclusive access to a top secret U.S. spy plane.

Our chief national security correspondent Jim Sciutto was on board one of the Pentagon's most advanced surveillance aircrafts when Chinese military issued this warning.

(BEGIN VIDEO CLIP)

[09:30:07] UNIDENTIFIED MALE: Foreign military aircraft, this is Chinese navy. You are approaching our military alert zone. Leave immediately.

(END VIDEO CLIP)

COSTELLO: China's foreign minister says it's unclear whether that call was made to the same aircraft Jim Sciutto was aboard, but that warning and seven other were in response to a surveillance flight ordered out by the Pentagon. The goal, to send a stern message to Beijing that the United States does not recognize China's military buildup on a group of disputed islands in the South China Sea. Here's more from Jim Sciutto.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This is the Chinese navy. This is the Chinese navy. Please go away quickly.

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT (voice-over): It's a standoff in the skies between China and the U.S.

UNIDENTIFIED MALE: You go!

SCIUTTO: As Beijing makes a massive and unprecedented land grab 600 miles from its coast.

UNIDENTIFIED MALE: So when's the last time you went up? SCIUTTO: CNN got exclusive access to classified U.S. surveillance flights over the islands. The first time journalists have been allowed on an operational mission by the state of the art T8A Poseidon.

SCIUTTO (on camera): We just arrived on station now above the three islands that are the targets of today's mission. It's these three islands that have been the focus of China's building in the South China Sea over recent years.

SCIUTTO (voice-over): In just two years, China has expanded these islands by 2,000 acres, the equivalent of 1,500 football fields and counting.

SCIUTTO (on camera): You're a military man. You look at this. Is there any doubt that that is a future military installation?

UNIDENTIFIED MALE: It appears to me, a buildup of military infrastructure.

SCIUTTO (voice-over): For China, this new territory is unnegotiable. China's foreign minister calls his country's commitment "unshakable." And China defends the new islands closely, patrolling with coast guard and navy warships and ordering the PA out of the airspace eight times on this one mission alone.

UNIDENTIFIED MALE: Please go away quickly.

UNIDENTIFIED MALE: I am a United States military aircraft. I am operating with due regard, as requires, under international law.

SCIUTTO: The Chinese military sometimes shows its frustration.

UNIDENTIFIED MALE: Foreign military aircraft, this is Chinese navy. You are approaching our military alert zone. Leave immediately.

SCIUTTO: The standoff is military to military, but civilian aircraft can be caught in the middle.

SCIUTTO (on camera): You heard over the intercom, Chinese navy, this is the Chinese navy. And what was interesting is that there were also civilian aircraft. There was a Delta flight on that same frequency that when it heard that challenge, it piped into the frequency to say, what's going on? The Chinese navy then reassuring them. But as the flight crew tells me, that can be a very nerve-racking experience for civilian aircraft in the area.

SCIUTTO (voice-over): Five southeast Asian nations claim parts of this area as their own. China says this territory is part of their history, claiming ownership back 2,000 years.

UNIDENTIFIED MALE: Recognize that as anything to do with -- in accordance with international law.

SCIUTTO: But many see economic and military motives as well. The islands are rich in oil and gas deposits, and they extend China's naval and air presence, challenging the U.S. naval supremacy in the region.

Jim Sciutto, CNN, above the South China Sea.

(END VIDEOTAPE)

COSTELLO: Well, some believe China's military buildup is intended to challenge the United States. A former CIA Deputy Director Michael Morell warns China's aggression could have major global consequences, including an all-out war between the United States and China.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: You think war is a real risk?

MICHAEL MORELL, FORMER CIA DEPUTY DIRECTOR: Yes.

UNIDENTIFIED FEMALE: It is?

MORELL: Yes, absolutely.

UNIDENTIFIED FEMALE: War between the United States and China?

MORELL: Yes. And that's not a -- that's not in our interest, right?

UNIDENTIFIED FEMALE: Uh-huh.

MORELL: It is not in their interest, it's not in our interest. it's in our interest to work this out, all right. But absolutely it's a risk.

(END VIDEO CLIP)

COSTELLO: Just this morning, China issued this response to that spy flight. Quote, "China has undisputed territorial rights to the Spratly Islands and nearby waters. China is entitled to conduct monitoring on relevant situations at sea and air and prevent any accident that harms China's national security."

So let's bring in someone who knows the relationship between the United States and China well, former U.S. ambassador to China, Gary Locke.

Welcome, Mr. Ambassador.

GARY LOCKE, FORMER U.S. AMBASSADOR TO CHINA: Well, thank you very much, Carol.

COSTELLO: Do you agree that the dispute over these islands could come to a war between the United States and China?

LOCKE: Well, as the admiral indicated, nobody wants that type of confrontation. It's not in China's interest. It's not in America's interest. But what's more important is that these islands are disputed by several countries, not just China and the Philippines, but many other countries, and China has disputes with Japan up in the North China Sea as well. And the position of the United States is that we need to settle this diplomatically, peacefully, without any further confrontation or any type of actions that can inflame the situation, such as the creation of what appears to be military bases and air strips on these islands.

[09:35:13] COSTELLO: Is that China's goal?

LOCKE: Well, China, as you can see, is building a huge airfield there, and has many military-type ships there. They're essentially creating a military base in -- extending much farther south from their border, which would make it possible, for instance, for China to assert more control over the other islands that are in dispute and to challenge the fishing vessels or military ships or cargo ships from the other countries.

COSTELLO: What do you make of what happened aboard that U.S. spy plane that was flying over China with Jim Sciutto aboard? What do you make of that exchange?

LOCKE: Well, obviously, China's trying to assert its authority and it has declared this to be part of their air defense territory and basically warning all other military planes to give proper notice to stay away. But, of course, as we heard from the broadcasts, there was a commercial flight that was also involved, and you always have to be very, very careful and concerned that a commercial flights might be affected, that they might be confronted by military airplanes and so forth and you don't want any type of an accident up in the skies or on the seas.

COSTELLO: Yes, let's talk about that for just a bit because it was a Delta plane and they're on the same frequency. I don't know where exactly the Delta was. The Delta plane was in relation to those islands. But that's really scary if you're a Delta pilot and you're flying and you suddenly hear this warning from the Chinese navy to get out of the airspace.

LOCKE: Well, there are military air zones created around all the different countries, including the United States, and all the countries of the world. And typically commercial flights are exempt from having to receive permission to fly over these areas as long as they're recognized as a part of the military zone, but away from the shoreline or the territory of a country. But when you have islands that are claimed by China so far out in the middle of the Pacific, it could create a problem. As long as commercial flights are never affected, then we're OK. But how do you make sure that someone on the ground does not confuse a commercial flight for a military flight and lead to some sort of confrontation?

COSTELLO: Ambassador Gary Locke, thank you so much for being with me this morning. I appreciate it.

LOCKE: Thank you.

COSTELLO: Still to come in the NEWSROOM, saying good night and good- bye to a TV legend, next.

(COMMERCIAL BREAK)

[09:41:09] COSTELLO: A legend leaves the stage after three decades. David Letterman ending his late-night TV gig with one last good night.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, HOST, "THE LATE SHOW": The last six weeks, it's been crazy. People have been saying lovely things about us, and it's really been over the top. And I can't tell you how flattering, embarrassing and gratifying it has all been. Thank you for being my family. I love you both. And, really, nothing else matters, does it?

The only thing I have left to do for the last time on a television program, thank you and good night.

(END VIDEO CLIP)

COSTELLO: Dave's favorite band, the Foo Fighters, closing the show. Charismatic and self-deprecating to the end, including this final star-studded top ten list.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Of all the talk shows, yours is most geographically convenient to my home.

BARBARA WALTERS: Did you know that you wear the same cologne as Moammar Gadhafi?

LETTERMAN: Yes. Yes, Barbara.

STEVE MARTIN: Your extensive plastic surgery was a necessity, and a mistake.

JERRY SEINFELD: Dave, I have no idea what I'll do when you go off the air. You know, I just thought of something, I'll be fine.

UNIDENTIFIED MALE: Honestly, Dave, I've always found you to be a bit of an over actor.

UNIDENTIFIED MALE: I'm just glad your show is being given to another white guy.

JULIA LOUIS-DREYFUS: Thanks for letting me take part in another hugely disappointing series finale.

PEYTON MANNING: You are to comedy what I am to comedy.

TINA FEY: Thanks for finally proving men can be funny.

BILL MURRAY (ph): I will never have the money I owe you.

(END VIDEO CLIP)

COSTELLO: Joining me now is Rob Burnett, the executive producer of "The Late Show with David Letterman."

Welcome.

ROB BURNETT, EXECUTIVE PRODUCER, "LATE SHOW WITH DAVID LETTERMAN": Thank you.

COSTELLO: You must be exhausted.

BURNETT: I'm a little tired, but after this I can sleep until, I don't know, August?

COSTELLO: Tell me where you were that last show.

BURNETT: Well, I stand to the stage to Dave's left with Nancy Augustine (ph), one of our producers, and a bunch of other people. It was -- it was an emotional, emotion night for us. You know, I've been there for 29 years, and there's such loyalty there that I'm, I think, like 15th or 16th in tenure. Everywhere you turn, this person's been there 20 years, 25, 30. It's like a big family is the cliche, but it is indeed that.

COSTELLO: You started as an intern in 1985.

BURNETT: I did, amazingly, yes.

COSTELLO: It's just -- so were there tears? Was there laughter? Did you all sit around being depressed?

BURNETT: You know, what I noticed was that it was a -- things were divided in two. Some people were crying, some people were laughing and some people were just staring out like deer in headlights. And I was kind of alternating between all three. That's why I'm the boss.

COSTELLO: So, David Letterman, I mean, actually I'm kind of glad he dispensed with, you know, in an overly emotional, you know, good bye to his audience. He seemed kind of stoic, but, you know, he was on the edge of tears. At any point did you see him cry or --

BURNETT: No, I didn't see Dave cry. He was -- he was true to form. I think he -- I thought he did just a beautiful job last night. It was very much him. It was eloquent and straightforward. And I think the emotion of the situation, it was imbued in what was happening. I don't think he needed to add to it. I think it was naturally emotional.

[09:45:00] COSTELLO: So there were wrap parties afterward, right?

BURNETT: Yes, we just -- actually one's still going on now. When are we done?

(LAUGHTER)

COSTELLO: Exactly. I was just going to ask you.

BURNETT: When do you get of? Come on over.

COSTELLO: That would be awesome. So what were the wrap parties like? Was it a celebratory remembrance of things past?

BURNETT: Well, we had a very nice wrap party at the Museum of Modern Art, and then it spilled over into various bars and such. The truth is a week ago Saturday we had this impromptu party that was

a reunion party, and everyone that had ever worked on the show was invited to come. And it really -- it was chaos and crazy; it was kind of like the worst high school reunion you've been to, like five of them at once. But I found it very touching, because it was a room full of 300 or 400 people spanning 30 years, and everybody just wanted -- everyone had contributed and everyone wanted their little piece of this, this thing that I think something substantial happened there. I don't know what and I can't judge it, but it was something. And I'm very proud to have even the tiniest piece of it.

COSTELLO: Oh my gosh, it's cultural history now, right? It will live on forever. So before I let you go, your favorite moment in all of those -- those two decades?

BURNETT: Oh my. That's a tough one. I'll narrow it down and I'll tell you last night -- we've all seen show business standing ovations. They kind of become boring and a cliche, and Dave literally tells the audience that they're not allowed to stand for him. He -- that's -- explained to them. Last night, he came out and it just wouldn't stop. And there was something very moving about it , because you just saw these people, they didn't want him to go. It was a really -- it was a beautiful start to the show.

COSTELLO: And I know you're probably thinking about your next step, and I see my boss over there. Look at Jeff Zucker --

BURNETT: Oh Zucker. Bring "Ed" back.

(LAUGHTER)

COSTELLO: He's leaving now.

BURNETT: Bring "Ed" back. He canceled by show, "Ed".

We're going after this.

COSTELLO: Thanks so much for being with me. I appreciate it.

BURNETT: Thank you so much for being here. I'm getting you double salary right now; I'm talking to him later.

COSTELLO: That's what he told me. That's why I want you two to meet.

BURNETT: Your retainer is not enough.

(LAUGHTER)

COSTELLO: Thanks so much. I appreciate you being here.

BRUNETT: Appreciate you having me.

COSTELLO: Still to come in the NEWSROOM, Oregon wants residents to pay for the miles they drive, not for their gas. Will that take care of the state's infrastructure? We'll talk about that next.

(COMMERCIAL BREAK)

[09:51:05] COSTELLO: Investigators are now reviewing the cell phone records of Brian Bostian, the engineer at the controls during that deadly Amtrak crash. The NTSB says text messages and phone calls were made the day the train derailed, but it's not clear whether any of those calls were made while the train was in motion. Officials are attempting to match time stamps to see if any phone activity is related to the accident. Bostian's lawyer said last week that his client was not using his cell phone while driving the train. Eight people were killed in that crash.

The Amtrak crash has renewed the debate over the nation's infrastructure. While deteriorating tracks have not been pointed to as a cause, some say the accident highlights the need to boost overall spending. In Washington, the battle rages over the best way to improve not just rails but also our roadways. A key highway funding bill getting a short term extension this week in the House, but the need for a long-term solution looms. And while Congress struggles to reach a deal, states are forging ahead on their own.

One of them, Oregon, is preparing to launch a plan that would have drivers pay for the miles they drive instead of, like, you know, hiking the gas tax to raise money to fix infrastructure.

Joining me now to explain from Portland, Jim Whitty, who's the manager of the Oregon Department of Transportation's Innovative Partnership. Good morning, sir.

UNIDENTIFIED FEMALE: We are not hearing the programming.

COSTELLO: Can you hear me? Can you hear me? All right. We can't hear Mr. Whitty; we're going to get our technical problems fixed and we'll get right back to him.

Oh, Mr. Whitty, can you hear me?

JIM WHITTY, OREGON DEPT. OF TRANSPORTATION: Yes, I can.

COSTELLO: Mr. Whitty is back and you can hear me and life is good right now.

OK, so we're talking about Oregon's new program to kind of tax drivers based on the miles they drive. So how do you figure out how many miles people drive?

WHITTY: Well, they all have a way to report those miles electronically from their car.

COSTELLO: So Oregon will provide a device?

WHITTY: No. The driver will get a device from the marketplace. ODOT, Oregon DOT, doesn't want to have anything to do with choosing devices. There's a lot of things out there that can do this. Some of these things were built into the car already. So let's let the motorists decide how they want to report their miles.

COSTELLO: So tell me how much it might cost me if I drive 100 miles per day.

WHITTY: Well, the program starts out 1.5 cents per mile. So do the math.

COSTELLO: So not very much, although I would suppose some people --

WHITTY: Not very much, no.

COSTELLO: -- some people might object because, let's say I drive a hybrid car or an electric car and I don't use any gas. So why should I be forced to pay for that when you could simply raise the gas tax and get money to fix the infrastructure?

WHITTY: Well, early on, raising the gas tax or fuel tax makes sense to do it. But over the -- not too much longer, most of the cars are going to be very highly fuel efficient. There will be hybrids, hybrid electric -- plug-in hybrids and electrics. And those cars don't use much fuel, if any, so they won't pay for the roads. So as we get more of those cars into the system, all of a sudden, the road funding starts to crumble and roads also start to crumble.

COSTELLO: So will your plan go into effect or is it just in the planning stages?

WHITTY: Well, on July 1st, we're going to have a program that's in effect for 5,000 volunteers. This is the big test to make sure it works perfectly before the legislature might consider adding a group of mandated taxpayers at a different time.

COSTELLO: Got you. Jim Whitty with the Oregon Department of Transportation, thanks so much for joining me this morning. I appreciate it.

[09:55:00] Still to come in the NEWSROOM, ISIS taking control on two key fronts. A look at why these latest advances are so concerning for the United States.

(COMMERCIAL BREAK)

COSTELLO: This just in to the CNN NEWSROOM, the U.S. military has now released the name of a second Marine killed during a training accident in Hawaii this week. Lance Corporal Matthew Determan was 21 years old. He was from Maricopa, Arizona. Officials say his Osprey aircraft experienced a hard landing mishap at Bellows Air Force Base on Sunday. A total of 22 Marines were on board. Investigators still trying to figure out what caused this crash.

And the gyrocopter pilot who landed an aircraft on the lawn of the U.S. Capitol is heading to court. Douglas Hughes is expected to be arraigned today on six charges. Last month, Hughes flew his aircraft onto the Capitol lawn to protest big money in politics. The landing created an uproar over security concerns. Hughes could spend more than 9 years in prison if he's convicted on all counts.

The next hour of CNN NEWSROOM starts now.

(MUSIC)

COSTELLO: Happening now in the NEWSROOM, ISIS making major advances on two fronts, seizing control of Ramadi and now an ancient city in Syria.

Plus more than 100,000 gallons of crude oil released from a ruptured pipeline off the California coast.

[10:00:06] And dozens of workers wearing protective gear, trying to clean the spill up and raking those tar balls of the beach.