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Donald Trump Gets Pushback From Lindsey Graham; Explosion From Underground At Rhode Island Beach Sends One Woman To Hospital; Notorious Mexican Drug Lord on the Loose Again; Inside Drug Lord "El Chapo's" Safe Houses; Pope Francis Holds Mass In Paraguay Slum To Meet The "Forgotten Poor"; Aired 5-6p ET

Aired July 12, 2015 - 17:00   ET

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


[17:00:25] POPPY HARLOW, CNN ANCHOR: Top of the hour. I'm Poppy Harlow in New York. And we begin with this.

An extraordinary story. This hour, the urgent search underway in Mexico for a man known as the Osama bin Laden of drug trafficking. Joaquin "El Chapo" Guzman, one of history's most powerful and prolific drug lord has again broken out of prison for the second time. He ran the Sinaloa drug cartel in Mexico, a group that is according to the "New Yorker" is thought to have brought as much as half of the illegal drugs that cross the border into this country every year to American streets.

After Osama bin Laden was killed, "El Chapo" became the most wanted man in the world. Mexican police say he escaped through a hole in his cell connected to an elaborate tunnel that was, guess this, lit and ventilated for nearly a mile. Authorities have acted fast to close the local airport remembering that the last time he escaped he did so by hiding in a laundry cart.

It was 13 years after that escape before police finally caught him back in 2014. Let's get straight to Juan Carlos Lopez, CNN anchor and correspondent in Washington. Let's talk about first of all, the kind of cell he was in because when you think of how this escape could have happened, someone who had previously escaped from prison, was he in isolation, was he being monitored 24 hours, or was he allowed to roam and meet with visitors?

JUAN CARLOS LOPEZ, CNN CORRESPONDENT: According, Poppy, to the Mexican authorities, this prison, a maximum security prison, had a special treatment area and there's where "El Chapo" Guzman was. According to authorities, he was isolated. These cells have no windows. He was only allowed to leave his cell for 20 minutes a day and not interact with any other prisoners. He had a shower, a bathroom, in his own cell and the tunnel led to the shower in his own cell.

It is interesting, he was in isolation, but he was able to organize, according to media reports, a hunger strike in the prison even though he can't speak to other prisoners. He gave the order, and the others followed.

HARLOW: Yes. And they said that the last video they saw of him late Saturday night was walking to a shower area. So clearly he had some ability to get out of his cell.

In terms of who police are talking to right now, I understand there are at least 18 prison officials that they are questioning at this hour?

LOPEZ: Yes, they have been transferred to Mexico City. They are being interrogated. And what's interesting on the shower, there are versions that say he was going to a shower area. Now, what the officials said at press conference this morning is that there was a shower in his cell and that's where they found the hole which he escaped through. He had no contact apparently and according to authorities with the prisoners. But it seems that he controlled many guards at the prison and that's what helped him escaped.

HARLOW: The United States responding right now, clearly upset because U.S. authorities had asked once he was caught again in 2014 for him to be extradited to come here to face charges in the United States. The Mexican government said no and now he's gotten away.

LOPEZ: Officially the U.S. offering support and expressing the will to send any help needed to capture him again. Unofficially, many offices, many officials upset that he was allowed to escape. They asked for his extradition. Mexico decided to keep him in their territory. Many have predicted this would happen and now it has. He has a vast fortune. He has a drug empire that, you know, drug empire that reaches at least ten countries. He has the resources and the people to back him up.

HARLOW: What was Mexico's reasoning for not extraditing him?

LOPEZ: This is a very tense situation with the United States. They consider they can handle their own security issues that they are capable of handling. And Enrique, the government of Enrique Pena Nieto had been very successful in the last months in detaining reputed drug lords. But in this case, it has a lot to do with sovereignty, with internal pressures and with the fact that they think can do it. But obviously, now, this might change the equation if Chapo Guzman is recaptured soon and if he is recaptured alive.

HARLOW: Certainly, they hope it will be soon because last time, again, it was 13 years that he was on the lamb.

Juan Carlos Lopez, thank you very much.

Also today, as we were just discussing U.S. attorney generally Loretta Lynch expressing concern over his escape pledging the support of the U.S. government to bring about his swift capture. Remember, it was a very joint mission by the U.S. and Mexico that was able to finally, finally track him down last year.

Let's talk more about it with CNN law enforcement analyst and former FBI assistant director Tom Fuentes. He's with us. Also by phone with us from Chicago, attorney Joseph Lopez who has represented drug cartel members. Both of you, thank you for being here.

Tom, let me begin with you. Look, it happened again. And it's almost like he has this mystique around him. Someone that can escape and evade for so long. Talk to me about help from inside and help from outside when you're talking about someone so wealthy, so connected, and so frightening to so many.

[17:05:24] TOM FUENTES, CNN LAW ENFORCEMENT ANALYST: Well, Poppy, his net worth is placed at over $1 billion. He's probably the leading organized crime figure in the world right now, it has been whether he's in jail or not in jail. It is irrelevant. He's still that powerful.

But we are talking about a different scale of corruption here or misconduct than what we see in the U.S. When we had Matt and Sweat escaped in New York, they seduced an employee, they had a couple of correction officers helped them, they had, you know, cut through a couple of pipes.

This guy, you know, he threatens the guards, he threatens police officers, politicians, journalists every day with if you cross him, he will behead your children. He will put them in acid. He will peel their skin off alive. And he does it. He has it ordered and it happens all the time. It's estimated he may have murdered or ordered the murders of more than 10,000 people, in the U.S. as well as in Mexico.

So this is not somebody playing around with prison officials. He pretty much controls what he wants to do. And they go along with it, they look the other way to keep their families alive.

HARLOW: And Joseph, to you, I mean, look. You've worked with some of these folks before in terms of being an attorney. Why is it that when he is in prison, when "El Chapo" is in prison, that he still has so much loyalty on the outside that as Tom says, they can carry out these horrific acts against other people's families in order to coheres those inside the prison to help him?

JOSEPH LOPEZ, ATTORNEY (via phone): It's all about the corruption. Wherever there's drugs there's corruption. And wherever there's corruption there's money. And wherever there's money there's greed. So, people are going to things they don't normally do because he has my daughter, ordered them to do it. He paid them to do it or as the other individual just said, threaten their families.

So, he can wield a lot of power. The organization is big. It's strong. And everybody knew this was going to happen. It's been called before. I'm sure Jack Riley, head of DEA, is going out of his mind right now. The U.S. warned Mexico about this. And I just see "El Chapo" going down in a shootout probably at the end. That is going to be a massive manhunt.

HARLOW: That's interesting. That's sort of not what we've been seeing from the administration of President Pena Nieto. He has not had them go down as we saw previously under Phillip Calderon. We've seen a number of these big drug cartel leaders arrested and taken into prison.

But let me ask you this, Joseph. Do you think on the outside now he goes back to running the cartel or is he just on a mission to get away and not get back into at least an official leadership position?

J. LOPEZ: Well, the thing about the cartel is that it drives itself. Every time someone steps out, someone steps in. The cartel's been active since he's been in. There's been a couple cases here in Chicago where there's been a lot of activity by blackberry (ph) and a lot conversation, a lot of money laundering.

I mean, this cartel keeps on going. It's not going to stop. It's a big corporation. It's a big company. It's full of different people doing different things. I mean, this is the guy who have financial logistics. This is the guy that knows how to move tons of cocaine into the United States in all different ways. And that he was able to get out of jail because he knows this stuff. He knows how to do it. He showed us he could do it before. It went ignored and sure enough, he did it again.

HARLOW: Yes. It is really unfathomable. I was shocked waking up to this news this morning.

Tom, to you. If they are able to catch him, what kind of legal authority does the United States have to get him here? I mean, do they again have to rely on the cooperation of the Mexican government to extradite him?

FUENTES: Yes, absolutely. The U.S. wants him in and I think seven judicial districts right now. So there are a number of indictments that want him brought to the U.S. to stand trial for racketeering, including drug trafficking and murder charges. So he would undoubtedly be sends to life without parole and put in a most stringent condition in the U.S. super max prison.

But Mexico's too proud. They don't want to admit they can't handle him. They don't want to admit that there's corruption or difficulty maintaining their criminal justice system. So when the U.S. asked to extradite him, they were pretty much laughed off by the attorney general who said, well, we're going to have him in prison for the next three or 400 years, you can wait until then.

They have this false pride down there and I worked with them and tried to work with them. The FBI has about a half a dozen offices with agents in Mexico. And I know from my friends at DEA and the marshals and others that at one point, the Mexican administration felt that their biggest problem was too many U.S. law enforcement agents running around with guns in their country. Not the Guzmans, not the other cartel leaders.

So this is a country that's got a defendant false sense of, you know, priorities when it comes to trying to deal with these guys and eradicate the problem. And for most of us are in belief that the northern 20 percent of Mexico is virtually a failed state. These guys run it, not the government of Mexico.

[17:10:00] HARLOW: But let's remember it was that really remarkable cooperation between the marines down there in Mexico and DEA agents up here in the U.S. that were able to track him down finally. A lot of cooperation. FUENTES: You have a high profile situations, but every day, it's

difficult.

HARLOW: All right. Tom Fuentes, Joseph Lopez, thank you both very much.

We are going to continue to talk about this. Coming up next with me, the author of this book, "El Narco, inside Mexico's criminal insurgency." He says "El Chapo's" brazen escape no surprise. We will take you live to Mexico City.

(COMMERCIAL BREAK)

[17:13:59] HARLOW: Once again, the frantic search for a very bad man who has broken out of a maximum security prison. This time it happened south of the border, one of the most dangerous and powerful drug traffickers in the world, Joaquin El Chapo Guzman, breaking out of that maximum security facility overnight in Mexico City. Right now, somewhere, somewhere on the loose.

Ioan Grillo covers Mexico Latin America for "Global Post." He joins me now. He is also author of this book, "El Narco, inside Mexico's criminal insurgency."

Thank you for being here. Just off the bat, your reaction to how this could happen again.

IOAN GRILLO, EL NARCO, INSIDE MEXICO'S CRIMINAL INSURGENCY: I was surprised and I've been in this country for 15 years and I have been covering drug trafficking and interviewed drug traffickers and police and so forth. And it's still hard to figure this stuff out. There's a saying here that you know what's going on in Mexico, you're misinformed. And that is something (INAUDIBLE).

I mean, I thought with the political pressure on holding Chapo Guzman in prison, with this so much resting on the government and him being in a top security prison where there hasn't been escape before, they couldn't possibly let him go. But not only did they let him go, to see a tunnel with lights and air and railcars --

[17:15:19] HARLOW: So that begs the question, right, this mile-long tunnel that has oxygen tanks through it, it's lit. The Mexico national security commissioner also saying today there were motorbikes on rails to help him get out. What does this tell us about how much help he has from the outside?

GRILLO: Well, look. There is obviously there was corruption involved. You cannot build a mile-long tunnel and get into this without some level of corruption, without knowing some plans of the prison and some coordination. The question is, at what level was the corruption. Was it just a couple of guards who helped him, or was it higher level, there was directors or federal security officials involved. And that's the questions the people are going to be asking right now. And as well as the corruption, he still has many people working for him, working with him in the cartel. HARLOW: Even -- here's the thing, right? Why this matters so much is

that this is someone who is responsible for destroying so many lives and families by bringing so many drugs across the border to this country and elsewhere in the world. When you look at the drug trade, what is the impact of having him locked up and how does it impact how the Sinaloa cartel operates?

GRILLO: Look, I've spent a lot of time trying to work out the Sinaloa cartel and interviewing members at various levels off the cartel. And you are talking about enormous industry and when we call it a cartel like it's a company, it's more like a network, a federation of different traffickers. You have people growing drugs, people processing drugs, people smuggling into the United States, people sending them all around the place.

So whether he's there or not, that network is still working. And him being out or in won't have a direct impact on the amount of drugs flowing through, but it will have an impact in the politics of Mexico, in the drug politics of Mexico and the fighting and the violence going on throughout the streets and lives being destroyed. You know, on one side, you have people taking drugs in the United States in some damn overdose. But in Mexico, we're talking about a human rights disaster because of the (INAUDIBLE). I mean, more than 83,000 people killed since 2007 while cartels over the security forces were meant to be (INAUDIBLE).

HARLOW: Such an important point, really wreaking havoc on both sides of the border.

Ioan Grillo, in Mexico City for us this evening, thank you.

And we are switching gears now to another top story. It did not take long. Donald Trump's opponents are once again calling him out about some of the comments he made in Las Vegas yesterday. Next, the party rival who calls Trump quote, "a wrecking ball for his entire party."

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

[17:21:57] UNIDENTIFIED FEMALE (voice-over): Our journey starts in the heart of Italy's food valley in (INAUDIBLE), Romania. Amid the red tiled rooftops and cobbled streets of (INAUDIBLE). In this quiet side street, an unremarkable doorway provides the entrance to one of the world's most acclaimed restaurants, Osteria Francescana. And this is its creative force, the triple mission and star chef, Massimo Bothura.

MASSIMO BOTHURA, CHEF/OWNER, OSTERIA FRANCESCANA: Every single things that comes out have to touch it, taste it, approve, develop. Mine is the last word on everything.

UNIDENTIFIED FEMALE: Bothura feels his very DNA is rooted in the ingredients of this region.

BOTHURA: My muscle made by (INAUDIBLE). In my vein, there's (INAUDIBLE) vinegar. Italian food is all based on amazing ingredients. And the simplicity is so difficult to make.

(END VIDEOTAPE)

HARLOW: Well Donald Trump has been gaining supporters and he's also been getting a lot of backlash for comments on immigrants who come to this country illegally. Today on CNN's "STATE OF THE UNION," fellow Republican presidential candidate Lindsey Graham said this.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), PRESIDENTIAL CANDIDATE: I think he's hijacked the debate. I think he's a wrecking ball for the future of the Republican Party with the Hispanic community and we need to push back. This is defining moment for the Republican Party. We need to reject this to all the candidates who think that Donald Trump is telling the truth, I think you've lost your way.

As to the Republican Party, if we do not reject this way of thinking clearly without any ambiguity, we'll have lost our way, we'll have lost the moral authority in my view to govern this great nation. And I hope we'll reject this kind of thinking.

(END VIDEO CLIP)

HARLOW: Also protests like this one during one of Trump's speeches yesterday in the recent corporations cutting their ties with Trump all tie into a historic shift. So says my next guest, CNN political commentator Peter Beinart, also contributing editor to "Atlantic Media." Peter wrote a fascinating article about this in the "Atlantic." We will get to that in a moment.

But I do want to bring you this and get your reaction. Donald Trump just tweeting this, let's put up for you. Mexico's biggest drug lord escapes from jail, unbelievable corruption and USA is paying the price. I told you so.

PETER BEINART, CNN POLITICAL COMMENTATOR: This is great for Donald Trump, right? Because he's running on demonizing Mexico. The problem for the Republican Party, as Lindsey Graham rightly points out, is that Republican Party cannot win another presidential election unless they do better with Latinos who are primarily Mexican Americans. So demonizing them and the country from which they come is political suicide. I think the Republican presidential candidates have actually been very, very late to recognize. They can't ignore Donald Trump. They have to take him on.

[17:25:04] HARLOW: And actually, it is George Pataki, former governor of New York who called him out first and really led the way, interestingly, and others have been following.

So you write this fascinating article and you talk about how corporations have really led the change here. Saying that quote "political views that were once controversial are now unacceptable." And we have seen that play out, you are saying in the case of Donald Trump, you know, name it, NBC, Macy's, et cetera severing ties with him. It is interesting, corporations leasing the way here. BEINART: Right. And especially important in a Republican Party. I

think what you're seeing here is that as Latinos and other minorities have risen as consumers, it's become unacceptable for corporations to be associated publicly with the kind of bigotry that Donald Trump has been associated with. And so, that's why I think the Republican Party is really at a crucial moment here. Often in the Republican Party, and sometimes in the Democratic Party, there has been an appeal to racial hostility in the past that has worked. Today, it's no longer working. And Republicans are going to pay a really high price if they don't come to terms with the fact that Donald Trump is now saying things that are simply not acceptable in mainstream distress.

HARLOW: Yet, he is polling incredibly well. Yes, it is early, I will give you that. But in your piece, you also say, those who have quote "suddenly found their views deemed beyond the pale by America's political economic and cultural elite, what happens to them?

BEINART: Well, this is part of I think what's happening with Donald Trump. There are a lot of people who don't like the idea that it's no longer considered acceptable to say that Mexican immigrants are rapists and criminals. A lot of people who are upset that it is no longer acceptable to be oppose to same-sex marriage or to want to fly the confederate flag.

So there's a potent vote there. The problem is that if you win that vote and you alienate the majority of Americans on the other side and you also lose the support of the very corporate elites that in the Republican Party you need. So it's a tradeoff that might be work for Donald Trump right now, but it's disastrous tradeoff for the Republican Party.

HARLOW: I'm going to have you back here in six months and see where --

BEINART: My pleasure.

HARLOW: Peter, thank you very much. You can read his article in the "Atlantic."

Quick break, we'll be right back.

(COMMERCIAL BREAK)

[17:30:16] HARLOW: An urgent manhunt right now underway in Mexico after one of the world's most infamous drug cartel leaders shocked and embarrassed officials by breaking out of a maximum security prison last night.

Joaquin Guzman, known by the nickname El Chapo, created the cartel blame for triggering the drug war that has killed tens of thousands of people in Mexico and also supplied much of the cocaine, marijuana and heroin on the streets of this country. Today, El Chapo is out there somewhere.

Sara Ganim, with me. Also with us, legal analyst Danny Cevallos and Phillip Holloway. Guys, thank you for being here.

Sara, everyone knows this name not only in Mexico but around the world. This is such a dangerous and destructive man. How on earth did he get out again?

SARA GANIM, CNN CORRESPONDENT: Well, this is man not just dangerous and destructive, but also notorious with his cartel for building tunnels. We know he used them to traffic drugs across the U.S.- Mexican border, underneath the border. That's why they're believed to have supplied much of the elicit heroin and cocaine many this country. It's tunnels authorities say he used to break out of a Mexican prison for the second time.

(BEGIN VIDEOTAPE)

GANIM (voice-over): They call him El Chapo, or shorty for his small 5'6" frame, but his legend is enormous. And now the world's most powerful and deadly drug trafficking kingpin has broken out of prison in Mexico, again.

Joaquin Guzman is the notorious drug boss who runs the Sinaloa cartel, widely believed to be the biggest supplier of heroin and cocaine in the United States. Authority say this time he escaped through a hole in the shower area of the Altiplano prison.

MONTE ALEJANDRO RUBIDO, NATIONAL SECURITY COMMISSION (through translator): The tunnel is a vertical pass about 10 meters deep and had a ladder and stairs. This tunnel has PVC tubing, ventilation and lighting.

GANIM: His latest escape adding to El Chapo's legend, in Mexico he's a towering figure of intrigue, the subject of books, songs and folklore. And he's wanted on both sides of the border. In the U.S. on federal trafficking and organized crime charges. His cartel notorious for tunneling drug under the U.S./Mexican. In fact, U.S. officials wanted him extradited, fearing exactly what happened, that he'd pull off another escape.

REP. MICHAEL MCCAUL (R), TEXAS: When El Chapo Guzman escaped captivity, prison, in 2001. He has 12 years left to his sentence. But I'm concerned about that happening again in Mexico.

GANIM: Born into a poor family in the Sinaloa state when the drug trade was evolving, Guzman amassed a powerful empire, one that he continued running from behind bars after his first arrest in 1993. His reputation only grew as he spent 13 years on the run after escaping from prison in 2001. Sneaking out in a laundry cart, in a plot that allegedly cost him $2.5 million in bribes. He was caught and rearrested just last year at this resort in (INAUDIBLE), in his home state of Sinaloa. Now a massive manhunt for the cartel leader is under way, yet again.

(END VIDEOTAPE)

GANIM: Now, 18 different people who work inside that prison are being questioned by authorities. And officials in the United States are pledging their support to Mexican authorities to help bring him back into custody. But unofficially, they're pretty upset. They had said that they wanted to extradite him back here to the United States after he was caught last year after 13 years on the run out of fears that he would escape again and those fears, Poppy, came through this morning.

HARLOW: Happened just a year after they finally were able to put him in prison again after 13 years on the lamb.

Sara, thank you very much.

Danny Cevallos and Phillip Holloway with me again.

Danny, to you first. You know the Sinaloa region incredibly well. Tell us a little bit about it and also what sort of authority if any the United States has if they do catch him again.

DANNY CEVALLOS, CNN LEGAL ANALYST: I do. My father and family lived in (INAUDIBLE) where he was first apprehended in 2014. Just a few blocks away from the condominium, the Miramar, right there on the water. Beautiful, beautiful location.

But for decades, it has been plagued by crime. And only until recently has Mexico even begun to institute judicial and law enforcement reform, first in 2008 and again in 2014. They are moving towards creating the tools to effectively prosecute organized crime. But as we can see, there is still problems with corruption.

Corruption is a pervasive part of Mexican government from the executive level all the way down to prisons. And prisons, unquestionably - certainly, if we have a case up here in New York where there's alleged prison employees involved in an escape, then multiply that by a thousand down in Mexico where this cartel has just massive influence and can put massive pressure on people to do stuff for money or upon threat of death.

[17:35:26] HARLOW: Right, exactly. And that's what we heard from Tom Fuentes that, you know, these workers in the prison, it is not only, you know, they're being threatened what he could do to their families from the connections he has in the outside.

Phillip, you are not only an attorney, a former police officer, when you're talking about this hunt, and again we're going to see the coordination between U.S. officials and Mexico trying to track him down, what challenges are they facing because he is so well connected and people are so scared of him on the outside?

PHILIP HOLLOWAY, CNN LEGAL ANALYST: This is a man that has an organization, Poppy, with tentacles that literally reach everywhere, around the entire planet. So when this guy is able to either pay somebody off or even to course them to do his bidding, he will find a way out of that jail.

His organization is expert at tunneling. That's how they get things into the country. That's how they get things out of the country. I'm talking about the U.S. and other countries. And it's how he was allowed to stay on the lamb for 13 years following his arrest the first time around.

So I don't think that he's going to be caught. If we don't catch him or somebody doesn't catch him in the very near future, I think he's gone forever. And that's what the U.S. was so afraid of. And that's why we tried to get him extradited to the United States.

HARLOW: So Danny, does the United States have any sort of legal ground to do anything on this front right now other than help try and track him down?

CEVALLOS: Well, the same thing you have with any fugitive which is try to track that person down. But do they have jurisdiction to prosecute or indict somebody abroad, absolutely they do. And they are exercising that jurisdiction, not only against El Chapo.

HARLOW: They can't carry it out if they can't get him back here.

CEVALLOS: Exactly. And that really creates not only in political issue, but a legal issue. Obviously, Mexico jurisdiction's within its borders, but what is the political effect of extraditing this man back to the United States for prosecution here? What is the effect -- what would that show to not only law enforcement in the United States, but also could it be a big political blow to law enforcement and the judicial system in Mexico if number one, they cannot prosecute him, and number two, if convicted they cannot hold this man.

HARLOW: Yes. I think, Phillip, from the perspective of a former police officer, and not to say that you are in the chasing these guys around all the time, but it's interesting to see that in his case for example, we didn't see a huge shootout. That he didn't go out like that. That he went out with his hands up. They arrested him and brought him down. Second time around, they find him. Is this someone you think that comes back alive in prison?

HOLLOWAY: Well, that's of course the $64,000 question. I go to what I said. I don't think he's going to be caught, at least not any time soon. Because if you look at the level of preparation that went into this tunneling, I mean, they had lighting, they had ventilation, it was a mile long and it even had a motorized cart to take dirt and presumably him out in a rapid fashion. So I think he got a jump on the authorities. And unless the U.S. or somebody can catch him on our own indictments and bring him here, and maybe put him in a super max, he may be on the run forever.

HARLOW: Before Sara, Is there any concern that he might try to come into the United States?

GANIM: Well, not that we've heard from U.S. officials. But on the tunneling issue, you know, you talk about will he be caught? That's a major thing that people are talking about today is his network is so big. He has so many people protecting him, surrounding him.

Just to give you an example. This is a man who was able to run his cartel from behind prison. Now that he's outside of prison and has more freedom, think about how much power this man has. And even in the small town where he's from and some other south central Mexican towns, he's actually quite well liked. So he has the support of the people where he lives and that gives him a tremendous amount of power and takes that power away from authorities trying to catch him.

HARLOW: We'll talk more about that reach that he has in getting people to like him a little bit later on the show.

Guys, thank you all very much. I appreciate it.

Coming up, the pressure is on in Brussels. Talks going late into the night as European leaders try to decide if Greece can be rescued and remain a part of the European Union. A live report from our Richard Quest next.

(COMMERCIAL BREAK)

[17:42:56] HARLOW: Greece has until Wednesday, we are told to pass new laws as part of these negotiations to try to get another bailout and stay part of the European Union. Officials in Europe though say they need proof the country will follow through on those promises that it has made for year. Greece's Prime Minister Alexis Tsipras, says he is ready to negotiate.

(BEGIN VIDEO CLIP)

ALEXIS TSIPRAS, GREEK PRIME MINISTER: I'm here ready for another compromise. We owe that to the peoples of Europe who wants Europe united and not divided. We can reach an agreement tonight if all parties want it.

(END VIDEO CLIP)

HARLOW: CNN's Richard Quest live with me in Brussels tonight where it is almost midnight. The leaders are still meeting.

Richard, what's really key now is that this proposal has been leaked. What does it say?

RICHARD QUEST, CNN BUSINESS CORRESPONDENT: It's a four-page proposal and it will form the basis of the agreement. As you just said, Poppy, it does go into some detail about a whole raft of complicated laws that the Greeks will have to pass in parliament within three days. It's an extraordinarily difficult task. But there's lots of other commitments that they have to do about privatization, about setting up payments of debts and all sorts of things.

It is honor. There is no doubt about it. But that's the mood of the other European countries. They are basically saying, this is it. Take it or leave it. And the leave it, well, right at the end of this document, there's a clause that says if they fail to agree on a new loan, then they will have a swift negotiation towards a time out of the Euro area. In other words, a temporary Greek (ph) exit. How that will work, nobody really knows. But that's what's on the table at the moment.

HARLOW: That would be extraordinary if that is what happens, just to the future of the entire Euro project. Look. The way, Richard, that the economist puts it this week, it is

says, quote "to stay in the Eurozone, Greece's prime minister will have to jet sent almost every promise he's made to his voters." Will Alexis Tsipras do that?

[17:45:08] QUEST: He's got no choice, if he wants to bail out. I mean, we are absence joys here. You want their money, you got to do what they say. In the proposal I just mentioned, there's a vague talk about future -- not so much debt relief, but debt restructuring maturity of interest rates, dates and the like.

But to your point, Poppy, yes, look, he's already turn a no vote into a yes from the referendum. He's already accepted just about everything he said he would never accept. And now, with this new proposal which is swinging in its austerity and its details, you are absolutely do right. He will have a lot of difficulty at home getting this through. But we are -- it's coming up to quarter to midnight now here. We are at the point where this is the only deal on the table. The others leaders have had it with Greece and they're basically saying take it, we'll tinker with it, or leave it.

HARLOW: Yes, absolutely. The third time and they don't know if they can trust Greece to do whatever it promises it will do.

Richard Quest live in Brussels working around the clock for us. Thank you, Richard. Appreciate it as always.

Next, to Iran we go. Those nuclear negotiations reportedly, reportedly potentially getting closer to a deal. The latest next.

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[17:50:10] HARLOW: Western diplomats trying to convince Iran to curve its nuclear program. And they say they are close to the finish line in those talks in Vienna. They are still saying though there are some very difficult issues still to be resolved.

Secretary of state John Kerry telling reporters today he's quote "hopeful that a deal is within reach." The talks have now been extended once again through Monday. We find our Nic Robertson in Vienna tonight.

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NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Iranian negotiators say going into the night, they're studying 100-page document, 20 pages of agreement they say, 80o pages of annex. But they say the reference documents, the things that aren't agreed yet, two or three things they say on the grid, they say it is going to require political will on the U.S. side to get those agreed.

Secretary of state John Kerry, however, on his way to church Sunday morning said that he was positive about the meetings he had with his counterpart. The Iranian foreign minister Mohammed Javad Zarif on Saturday. He believed progress had been made. But he also said that a couple of issues remain to be resolved. And

we've heard that from other Western diplomats close to the talks that there are couple of outstanding issues to be finalized once said to be closed. Another said, but the impression has been created on Sunday is that come Monday, something will be signed. The question is, is this a complete agreement or is it an agreement that locks in all the progress that we've been told has been made here. At least another couple of issues to be dealt with further down the road. How have they resolved the issue of the nuclear research and development, of Iran's demand and desire to have U.N. resolution with arms embargo lifted?

Some of these have been key questions over the past few days. We're not inside the meetings. We don't know how they go. We do know at the end of Sunday evening, Secretary Kerry met with his P-5 plus 1 partners. The Russian foreign minister and French and German foreign ministers representatives from the foreign ministers (INAUDIBLE) and in China, this was a working dinner that concluded well before mid might.

But going in to the night, we understand at least with the Iranian side and probably on both sides of the table, they're checking through that document. Will they get an agreement Monday? That at the moment still an open question.

Nic Robertson, CNN, Vienna, Austria.

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HARLOW: Nick, thank you very much for that.

Coming up next, Pope Francis off script and uncensored, he is taking on rich and powerful. And will this frank, tough talk be a turnoff or breath of fresh air? We'll talk about it next.

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[17:56:24] HARLOW: Right now, Pope Francis making live remarks at the last big event on the South American trip. He's meeting with young people on a board walk along the river in Paraguay, 200,000 people are said to be there. The Pope said this trip was about focusing on poor, those on the margins, and making them feel seen and heard in the Catholic Church. He's certainly doing that. We have seen him go after wealth, some politicians, some business leaders. Let's talk about the significance and what stands out most.

Joining us now, CNN senior Vatican analyst John Allen.

John, thank you for being here. When we look ahead to this, we look ahead to this trip to the United States and fact that this Pope is going to address Congress in Washington D.C. in two months. Do we expect his language about capitalism, the income gap, about the environment to be as bold in front of Congress as it has been on this trip?

JOHN ALLEN, CNN SENIOR VATICAN ANALYST: Yes, Poppy. I think that's exactly what we expect. Now look, I think Pope Francis is going to United States full of praise from many aspects of America, both the general society and also the church here. I think he will praise the generosity of American people. He will praise the dynamism of the American Catholic Church particularly, of course, our capacity to welcome such an influx of Hispanic immigrants, because of the story he knows well as a Latin American pastor.

But at the same time, I do think you are going to get what you saw in Latin America this past week. It is in effect to kind of preview of coming attractions, the kinds of things he is going to talk about in the United States or giving that the global economic system in the early 21st century is profoundly unjust. It cosigns, he believes, seem difficult chunk of the human family to permanent poverty, but it has got to be rethought. You're going to hear him argue for much stronger action on climate change, global warming, deforestation and other environmental threats.

And at the same time, Poppy, let's not forget, as head of the Catholic Church, I think there are also going to hear him talk about the need to did defend a family as union of one man and one woman which is seen as indirect critics, of the recent Supreme Court decision.

So I think on both sides of the political aisle, Poppy, the truth is that there is a prescription for heart burn when the Pope comes to town.

HARLOW: You write in your column today talking about the populist Pope that he is. Perhaps the most intriguing elements of his barn storm of Ecuador, Bolivia and Paraguay with the suggestion that there's an honest to God political strategy underneath the rhetoric. What is that?

ALLEN: Well, basically, it comes in the Spanish phrase (INAUDIBLE) which means great homeland. This is something the Pope has been talking about since well before he became Pope. What he wants is a more integrated Latin America, both economically and politically. And of course, it's ironic he's having this conversation on the day when it looks like the EU maybe about to fall apart of where the potential (INAUDIBLE).

But in any of event, he's talking about Latin America coming together as a kind of political block being able to standup to the west, to the Russians, the Chinese and basically try to argue for a third position between socialism and free market capitalism. Now, is that going to happen? You know, remains to be seen. But the smart political money, generally, is not against this pope. Let's remember that he's going to begin his tour in the states by stopping off in Cuba, reminding the world that he is the man who pave the way for the restoration of diplomatic relations between thus two nations.

So when the pope can pull that kind of rabbit not out of the hat, who knows what else you can get.

HARLOW: Exactly. He is certainly fascinating. I look forward to covering him when he is here this fall.

John Allen, yes, we will see you then my friend. Thank you very much, John. We appreciate it.