Mueller responds to Trump attorneys' request for parameters of potential interview

Special Counsel Robert Mueller has finally responded to a letter from President Trump's outside attorneys about what the scope and format of a potential interview with the president would be, sources familiar with the investigation told Fox News on Wednesday.
The sources said Mueller has agreed to cut the number of questions for Trump from an initial list of 49 and is willing to have some questions answered in writing – though he wants other questions answered orally.
However, the sources added that Mueller has not agreed to the president's demands to limit his questioning to matters related to allegations of collusion between the Trump campaign and Russia. The special prosecutor still wants to ask the president about obstruction of justice and other topics.
The sources also said talks with the special counsel about a possible interview are continuing, but as one source said: "There is still a long way to go."
While the Trump legal team's current posture is still not to have the president sit for an interview with Mueller, a source familiar with the investigation told Fox News, “never say never.”
Trump attorney Rudy Giuliani, speaking to reporters following an appearance at a Republican congressional campaign event in New Hampshire, said the president's legal team had received "a letter back" from the special counsel's team on Tuesday and "now we're in the process of responding to their proposal."
"I'm not going to give you a lot of hope it's going to happen," Giuliani said of a potential Trump-Mueller sitdown, "but we're still negotiating."
On Wednesday morning, Trump tweeted that Attorney General Jeff Sessions should stop Mueller's "Rigged Witch Hunt right now, before it continues to stain our country any further."
Sessions recused himself from overseeing the Russia investigation last year, handing off that responsibility to Deputy Attorney General Rod Rosenstein.
Trump has asserted previously that Mueller has too many conflicts of interest for him to fairly lead the investigation, citing his ties to fired former FBI Director James Comey as well as what the president called a "very nasty & contentious business relationship" in a tweet earlier this week.
Democratic lawmakers said Wednesday that Trump's Sessions tweet amounted to obstruction of justice. But White House Press Secretary Sarah Sanders said the message represented "the president's opinion" and not an order to the Justice Department.
"If he wanted to obstruct [the investigation], he'd obstruct it, just end it," Giuliani said of Trump in New Hampshire. "Then you'd all battle whether he has the legal right to do that, which I think he does. But he's not going to do that. He's made it clear he wants it to run its course."

Feinstein was 'mortified' by FBI allegation that staffer was spy for China: report

U.S. Sen. Dianne Feinstein fired a staffer a few years back who was allegedly part of an effort to spy and pass on political intelligence to the Chinese government.
The staffer, based in the Democrat's San Francisco office, was suspected of delivering political intelligence, though nothing top secret, to officials based at the local Chinese Consulate, Politico reported.
The FBI informed Feinstein, the then-chairwoman of the Senate Intelligence Committee, about five years ago about the staffer and allegations that the staffer was a spy. The source who confirmed the incident to the San Francisco Chronicle said “Dianne was mortified” upon learning about it.
The suspected spy served as the lawmaker’s driver in California, but took on other roles as well, including helping out in her San Francisco office and being Feinstein’s liaison to the Asian-American community in the state. He attended Chinese Consulate events on behalf of the senator.
A former official said that the spy’s handler “probably got an award back in China” for his efforts to penetrate Feinstein’s office and pass on intelligence.
The driver was reportedly recruited years ago after he being befriended on one of the trips to Asia by someone from China’s Ministry of State Security, the country’s intelligence and security agency, the Chronicle reported.
“He didn’t even know what was happening — that he was being recruited,” a source told the publication. “He just thought it was some friend.”
The FBI wasn’t able to charge the individual, possibly because he was passing on political intelligence rather than classified materials – making the prosecution nearly impossible.
“They interviewed him, and Dianne forced him to retire, and that was the end of it,” the Chronicle’s source said. “None of her staff ever knew what was going on. They just kept it quiet.”

Trump tweets thanks to Kim Jong Un for returning remains of US war dead

In a pair of overnight tweets, President Trump sent his thanks early Thursday to North Korean leader Kim Jong Un for returning 55 boxes presumed to contain the remains of Americans who served in the Korean War.
"Thank you to Chairman Kim Jong Un for keeping your word & starting the process of sending home the remains of our great and beloved missing fallen!" Trump wrote in one tweet. "I am not at all surprised that you took this kind action. Also, thank you for your nice letter - l look forward to seeing you soon!"
The return of the remains was part of an agreement reached by Trump and Kim during a June summit in Singapore.
North Korea handed over the remains last week. A U.S. military plane made a rare trip into North Korea to retrieve the 55 cases.
Hundreds of U.S. and South Korean troops gathered for a repatriation ceremony at the Osan base in South Korea before the cases were put on military planes bound for Hawaii.
On Wednesday, Vice President Mike Pence and the top commander of U.S. forces in Asia, Navy Adm. Phil Davidson, formally received the remains during the emotional and solemn ceremony in Hawaii.
Pence spoke during a ceremony at Hawaii's Hickam Air Force Base to mark the arrival of the remains on U.S. soil and the beginning of the long process of identifying them.

"They were husbands and fathers, brothers and neighbors — long gone, but never lost to the memory of their loved ones."
- Mike Pence, U.S. Vice President

"They were husbands and fathers, brothers and neighbors — long gone, but never lost to the memory of their loved ones," Pence said.
Some of the invited guests wiped tears from their eyes during the procession.

Robert Sanfilkippo, second right, sits next to his wife, Diana Brown Sanfilippo who has spent a lifetime searching for her father, 1st Lt. Frank Salazar who died 66 years ago in North Korea, who wipes her eyes as she sits in the audience with Karen Pence, wife of Vice President Mike Pence, at a ceremony marking the arrival of the remains believed to be of American service members who fell in the Korean War at Joint Base Pearl Harbor-Hickam, Hawaii, Wednesday, Aug. 1, 2018. Second from left is Rick Downes, who was three when his father Hal went off to the Korean War, and he has been missing ever since.  (Associated Press)

Trump lauded Pence and the ceremony in an earlier tweet.
"Incredibly beautiful ceremony as U.S. Korean War remains are returned to American soil. Thank you to Honolulu and all of our great Military participants on a job well done," Trump tweeted late Wednesday night. "A special thanks to Vice President Mike Pence on delivering a truly magnificent tribute!"
Pence also said Trump was grateful Kim kept his word.
"We see today as tangible progress in our efforts to achieve peace on the Korean Peninsula," the vice president said.

Military members carry transfer cases from a C-17 at a ceremony marking the arrival of the remains believed to be of American service members who fell in the Korean War at Joint Base Pearl Harbor-Hickam in Hawaii, Aug. 1, 2018.  (Associated Press)

Defense Secretary Jim Mattis said last week that the return of the 55 cases was a positive step but not a guarantee that the bones are American soldiers.
At the repatriation ceremony in South Korea, the cases were draped in United Nations flags in a possible sign of that uncertainty. On Wednesday, however, the cases were draped in U.S. flags.
NORTH KOREA RETURNED 1 DOG TAG WITH 55 SETS OF SOLDIER REMAINS, US OFFICIAL SAYS
Nearly 7,700 U.S. service members were listed as missing and unaccounted for from the 1950-53 Korean War. The Pentagon estimates that of the approximately 7,700 U.S. MIAs from the Korean War, about 5,300 are unaccounted for on North Korean soil.
The Defense POW/MIA Accounting Agency will take the remains to a lab on the base where forensic anthropologists will study bones and teeth to identify their race, gender and age. Scientists will extract DNA and compare it to DNA samples collected from families of troops still missing from the war.
It could take months or years to determine their identities.

"(T)his is an international effort to bring closure for those families."
- Jim Mattis, U.S. Defense Secretary

"(T)his is an international effort to bring closure for those families," Mattis had said.

China Tariff Cartoons

Trump to propose 25-percent tariff on $200 billion of Chinese imports

The tariff battle between the U.S. and China could be about to heat up again.

The Trump administration plans to propose slapping a 25-percent tariff on $200 billion of imported Chinese goods.

This comes after initially setting them at 10 percent, in a bid to pressure Beijing into making trade concessions, a source familiar with the plan told Reuters.

President Trump's administration said on July 10 it would seek to impose the 10-percent tariffs on thousands of Chinese imports.

While the tariffs would not be imposed until after a period of public comment, raising the proposed level to 25 percent could escalate the trade dispute between the world's two biggest economies.

The source said the Trump administration could announce the tougher proposal as early as Wednesday.

There was no immediate reaction from the Chinese government.

In July it accused the United States of bullying and warned it would hit back.

Concerns have been that a trade war between Washington and Beijing could hit global growth.

Stock markets edged up globally on Tuesday on a report that the United States and China were seeking to resume talks to defuse the situation.

A spokeswoman for the U.S. Trade Representative's Office declined to comment to Reuters on the proposed tariff rate increase or on whether changing them would alter the deadlines laid out for comment period before implementation.

In early July, the U.S. government imposed 25-percent tariffs on an initial $34 billion of Chinese imports.

Beijing retaliated with matching tariffs on the same amount of U.S. exports to China.

Trump inherited 'cyber-crisis' from Obama, VP Pence says at cybersecurity summit

Vice President Mike Pence speaks at the Department of Homeland Security National Cybersecurity Summit in New York City, July 31, 2018.  (Associated Press)

Vice President Mike Pence contended Tuesday that President Trump's administration inherited a "cyber-crisis" when he took office, laying the blame for Russian meddling on the Obama administration.
“[S]adly, previous administrations have let the American people down when it came to cyber defense,” Pence said in a speech at the Department of Homeland Security's Cybersecurity Summit in New York City. “At the outset of this administration, it became clear from early on: In a very real sense, we inherited a cyber-crisis.”

“Sadly, previous administrations have let the American people down when it came to cyber defense. At the outset of this administration, it became clear from early on: In a very real sense, we inherited a cyber-crisis.”
- Vice President Mike Pence

Pence suggested the Obama administration was to blame for major security breaches in recent years, such as the Equifax hack -- which affected the data of half the U.S. population -- and the hack at the federal Office of Personnel Management, which affected about 18 million people, CNet.com reported.
Pence vowed the White House would take proactive measures to overhaul the country’s cyber-security systems, to prevent another attack.
The vice president also derided Russia for interfering in the 2016 presidential election and vowed the Trump administration would do more to prevent future cyber-attacks.
Pence’s denouncement of Russia was unprecedented, given President Trump’s ambiguous stance on election meddling, the Wall Street Journal reported.
“While other nations certainly possess the capability, the fact is Russia meddled in our 2016 elections,” Pence said, “That is the unambiguous judgment of our intelligence community, and, as the president said, we accept the intelligence community’s conclusion.”

Secretary of Homeland Security Kirstjen Nielsen addresses the Department of Homeland Security (DHS) National Cybersecurity Summit, July 31, 2018.  (Associated Press)

Trump was widely criticized for appearing to accept Russian President Vladimir Putin's assurance that Russia had not interfered in the 2016 election – just days after Special Counsel Robert Mueller’s indictment of 12 Russian intelligence officials. But following widespread backlash, Trump reversed his position.
At the same New York event, Homeland Security Secretary Kirstjen Nielsen announced several initiatives to combat future threats, Politico reported, including an election security task force, a supply chain task force and a National Risk Management center.
The risk management center will reportedly work to safeguard the nation’s banks, energy companies, and other major industries, the Journal reported.
“[O]ur digital lives are now in danger every single day,” Nielsen said, adding that the next 9/11 attack would likely “reach us online” rather “than on an airplane.”

“Our digital lives are now in danger every single day.”
- Kirstjen Nielsen, U.S. secretary of homeland security

Meanwhile, a group of demonstrators wearing red “Handmaid’s Tale” robes marched outside the summit to protest the Trump administration’s now-rescinded “zero tolerance” policy, and Attorney General Jeff Sessions’ religious liberty task force.
A group called Refuse Fascism, which organized the protest, maintains that the Trump administration’s “religious liberty” policies are discriminatory towards LGBT people and women, AM New York reported.

Democrat who resigned after masturbation allegation may be planning political comeback: report

Matt Dababneh, 37, who resigned after being accused of sexual misconduct by multiple women, has transferred more than $1 million to his lieutenant governor campaign account, according to a campaign finance report filed Tuesday.  (California State Assembly)

A California Democrat who resigned last year amid sexual misconduct allegations -- including that he allegedly masturbated in front of a female lobbyist -- has transferred more than $1 million into a lieutenant governor committee account, according to a campaign finance report filed Tuesday.
The filing suggests that former state Assemblyman Matt Dababneh, 37, a Democrat who represented Woodland Hills, could be plotting a political comeback, the Sacramento Bee reported.
Dababneh stepped down last December after being accused of sexual misconduct by multiple women. He denied the allegation and said at the time that he wanted to focus on clearing his name, the paper reported.
Lobbyist Pamela Lopez has accused Dababneh of pushing her into a hotel restroom in Las Vegas and masturbating in front of her, the report said.
Another woman, Jessica Yas Barker, said in December that she quit her job at a congressman's office because of Dababneh's frequent comments about her appearance, including advice that she not dress like "such a lesbian," the Bee reported.
Dababneh resigned with nearly $1.2 million in the bank for his reelection effort, and put $1.06 million into his lieutenant governor campaign account by the end of March, the Bee reported.
A “Matt Dababneh for Lieutenant Governor 2022” committee was filed in March with the California secretary of state, helping to keep his campaign cash available, the Los Angeles Times reported in April.
Lopez has said Dababneh should instead donate the money to trauma and rape crisis centers to “atone for his actions,” according to the paper.
Dababneh reported spending more than $31,000 for lawyers; $11,828 for credit card payments; $8,430 for candidate travel; and $10,000 for a donation to the Hope of the Valley Rescue Mission, among other expenses, the Bee reported.
Dababneh did not immediately respond for comment. 

Dem governor flees to $7M Italian vacation home as political, personal problems mount

His constituents are complaining about the state's crumbling transit system. His own party wants to strip him of gubernatorial powers. The soccer team he owns is living in dire conditions, and one of his sons has been in trouble with the law.
What's a newly elected governor with no experience in elected office to do? He takes a vacation far, far away.
New Jersey Gov. Phil Murphy raised eyebrows last week as he embarked on a swanky 11-day trip to Italy, where he owns a $7 million home he bought during his 23-year stint at Goldman Sachs.
The trip comes just six months after Murphy -- a Democrat and former diplomat under President Barack Obama -- was elected to the top job in the state.
The governor’s office initially declined the reveal where Murphy was going for his holiday, but NJ.com solved the mystery and reported that Italy was the destination. The state’s taxpayers will pick up the tab for protecting the governor while he’s on vacation, with the tab reaching as much as $100,000.
Trouble is, when Murphy returns, New Jersey's problems will still be there waiting for him. Here's a look at some of them.
Broken promises
Despite the governor’s promises in February to ease overcrowding and service issues on New Jersey’s transit system by adding extra rail cars, commuters are complaining that not much progress has been made to actually alleviate the problem.
The plan to add new cars was short-lived. New Jersey leased 10 rail cars from the Maryland Transit Administration to alleviate the overcrowding, but returned them just eight weeks later when the lease ended.

"If my Uber bill this summer is any measure of success, improvement would not be the term I would use."
- New Jersey commuter Niklaus Gunter

“What relief plans? I haven't seen any relief,” one commuter told NJ.com.
“If my Uber bill this summer is any measure of success, improvement would not be the term I would use,” commuter Niklaus Gunter seconded. (Users of NJ Transit often wind up paying for cab or Uber/Lyft rides when their trains and buses fail to show up as scheduled.)
For what it's worth, the NJ Tranist system appears to continue to crumble, with nearly a dozen trains getting canceled on Tuesday morning alone, infuriating commuters. NJ Transit at first offered no explanation, but later vaguely said the installation and testing of a rail safety system called Positive Train Control (PTC) and lack of staff were the reasons for cancellations.
“NJ Transit has taken steps to address these issues by recruiting and training additional locomotive engineers. We anticipate a class graduating within the next couple of weeks that will add nine engineers to the roster,” the statement from NJ Transit reads.
“In addition, we have increased the number of current classes from two to four, running concurrently with staggered graduation dates, to continue the qualification of new engineers,” it added.
Power strip?
The New Jersey governor’s struggles to solve issues may also embolden already existing calls from within his own party to strip him of powers when it comes to deciding how much money various taxes and programs should raise each year, NorthJersey.com reported.
The power to set revenue estimates is crucial as it determines how much the state will need to hike taxes to fund spending priorities. Democrats suggest the role should be shifted to a three-member panel consisting of experts, a move that they say would take politics out of budget calculations and increase transparency.
But Murphy has fought back against the proposal, saying it would upset the balance of power between him and the legislative branch of the state government.
“New Jersey’s Constitution carefully divides the authority in the budgetary process between the Legislature, who has the power to appropriate funds, and the Executive, who has the authority to certify revenues,” Murphy spokesman Dan Bryan said in a statement to the outlet.
“Unlike his predecessor, Governor Murphy is committed to certifying revenues that are realistic, responsible, and sustainable, and feels that it is unwise to disrupt the separation of powers that has existed in this area for over 70 years.”
Soccer team under scrutiny
Closer to home, Murphy is also facing questions about a professional women’s soccer team he co-owns. The club, called Sky Blue FC, faces allegations that it’s mismanaged and provides poor living conditions and subpar facilities to its players.

"Some players were forced to live with an elderly man who repeatedly made inappropriate comments to the players and made them feel uncomfortable."
- The Equalizer report on Murphy's soccer team.

The team's players include U.S. women's World Cup star Carli Lloyd.

Carli Lloyd, a star on the U.S. women's national soccer team, is among the players on Phil Murphy's sad-sack Sky Blue FC club.

The governor bought the team a decade ago as a way to impress his daughter. According to NJTV, he “has invested hundreds of thousands of dollars in this losing proposition” just so “his daughter, who plays soccer, could see that women can play soccer at the professional level as well.”
But the club’s training facilities lacked locker rooms or even running water, the Equalizer reported. The players have had to use portable restrooms and have worn dirty gear during practices because there are barely any laundry services.
Another report, published by the soccer news site Once A Metro, detailed the mismanagement of the team and how little interest Murphy actually has taken in it, though it has cost him nearly half a million dollars in recent years.
The report alleges the club failed to provide decent housing for some players, forcing them to sleep on couches, and use sheets of cardboard to cover broken windows. The Equalizer reported as well that “some players were forced to live with an elderly man who repeatedly made inappropriate comments to the players and made them feel uncomfortable.”
Murphy admitted that the conditions weren't acceptable and said the team deserved better treatment. “I don't find the status quo tolerable — and these players deserve better,” he said in a statement, according to NorthJersey.com. “They deserve to operate in a professional and supportive environment so they can do what they do best — play the game, inspire fans, and build community through the power of the world's most popular sport.”
Troublemaker son
But Murphy's rough six-month reign as governor isn’t his only headache. His 20-year-old son, Joshua Murphy, who relentlessly campaigned for him during the 2017 election, had multiple run-ins with the law since Murphy’s rise to prominence.
In June, prosecutors dismissed a complaint concerning the governor’s son, NJ.com reported. He faced charges of underage drinking and disorderly conduct as he allegedly shouted obscenities at a campus police officer on Halloween as he was partying with two young women. According to police, Joshua Murphy ended the night on the ground in handcuffs.
In February, the son drove off a steep slope in Connecticut, the outlet reported, citing police records. His SUV was found by a motorist. According to police reports, Murphy said he crashed the car at early morning and he was unable to contact anyone for help because his phone didn’t work after the crash.
The governor and his wife lashed out against the media for reporting about his son’s endeavors, saying Joshua “has been living a nightmare” thanks to media inquiries.