TRYING TO BEAT STARBUCKS TO THE PUNCH. BREAKING NEWS OUT OF HONG KONG, ALL FLIGHTS ARE CANCELED FOR SECOND DAY IN A ROW AS DEMONSTRATORS DEMONSTRATE DAY’S LONG SIT-IN, MANY ALLEGING POLICE BRUTALITY OVER THE WEEKEND, JOINING ME FOX NEWS SENIOR STRATEGIC ANALYST CHAIRMAN FOR STUDY OF WAR AND RETIRED FOUR-STAR GENERAL JACK KEANE, GENERAL, ALWAYS A PLEASURE TO SEE YOU, WHAT DO YOU MAKE OF THESE ONGOING PROTESTS IN HONG KONG AND HOW THAT PLAYS OUT IN CHINA AND OUR RELATIONSHIP AND TRADE NEGOTIATIONS WITH CHINA BECAUSE IT’S ALL CONNECTED?>>WELL, FIRST OF ALL, I MEAN, THE PEOPLE OF HONG KONG REALLY HAVE DRAWN A LINE HERE, THEY BELIEVE THAT THEIR PERSONAL FREEDOMS AND LIBERTIES ARE WHAT THE ISSUE IS HERE, THERE’S BEEN A GRADUAL EROSION FOR 10 YEARS AND WHEN THEY — WHEN CHINA CAME UP WITH THE THE EXTRADITION LAW, THEY DREW THE LINE AND CHINA WAS BUSTING THEIR JUDICIAL SYSTEM WHICH WAS BASED ON DEMOCRACY AND SOMETHING WE ARE SIMILAR WITH, THAT’S WHAT’S THE ISSUE HERE AND WHAT THEY ARE TRYING TO DO IS GET THE WORLD’S ATTENTION CERTAINLY TO PUT PRESSURE ON CHINA, CHINA ISSUE IS SIMPLY THIS, WHILE THE PROTESTS ARE GOING ON IN HONG KONG AND MAY HAVE SOME IMPACT ECONOMICALLY IN HONG KONG, IS THAT SPREADING TO MAINLAND CHINA AND CHINA TO THIS DAY IS STILL CONTROLLING THE NARRATIVE QUITE A BIT, THE INITIAL PROTEST WHEN THERE WAS NO VIOLENCE INVOLVED WHATSOEVER WERE NOT EXPOSED TO THE MAINLAND CHINESE, SINCE THERE HAS BEEN SOME VIOLENCE, THAT’S WHAT THE FOCUS HAS BEEN ON IN TERMS OF NATIONAL TELEVISION IN CHINA AND WHAT THEY ARE TRYING TO MAKE CERTAIN OF IS THAT THERE’S NO EMPATHY DEVELOPED AMONG THE MAINLAND CHINESE FOR WHAT’S TAKING PLACE IN HONG KONG, A MILLION MAINLAND CHINESE TRAVEL TO HONG KONG EVERY MONTH, SO THE FACT THAT THEY’RE NOT ABLE TO GET IN THERE OR MAYBE SOME OF THEM CAN’T GET OUT OF THERE IS LIKELY AGGRAVATING THEM AS OPPOSED TO HAVING SYMPATHY FOR THE PROTESTORS, SO I DON’T SEE MAINLAND CHINA TAKING ANY ACTION UNTIL SUCH TIME AS THEY BELIEVE THIS IS JEOPARDIZING THEIR CONTROL AND HOLD OVER THE MAINLAND CHINESE PEOPLE WHICH IS REALLY THEIR MAJOR ISSUE. DAGEN: GENERAL, HOW DO YOU THINK IT IMPACTS OUR NEGOTIATIONS WITH CHINA, ANY PRESSURE THAT’S ON PRESIDENT XI JINPING?>>WELL, I THINK THERE IS SOME PRESSURE ON THEM BUT I THINK IT’S UNFORTUNATE THAT THE PRESIDENT AND HIS TEAM HASN’T SPOKEN VERY LOUDLY AND SIMILAR — SYMPATHY AND YOU LOOK AT THE DIFFERENCE CHINA AND UNITED STATES IS, FUNDAMENTALLY AT ITS CORE ARE CLASH OF VALUES BETWEEN THE COUNTRIES, VERY SIMILAR WITH WHAT WE HAD WITH SOVIET UNION DURING COLD WAR AND FRONT LINE FOR THEM RIGHT NOW IS RIGHT IN HONG KONG, I THINK WE SHOULD BE STANDING UP FOR — FOR THE PROTESTORS WHO ARE FIGHTING FOR THEIR LIBERTY AND FOR THEIR FREEDOM AND FOR DUE PROCESS IN THEIR JUDICIAL SYSTEM AND WE HAVEN’T TRULY DONE THAT, SO I THINK THAT WOULD ACTUALLY PUT MORE PRESSURE ON PRESIDENT XI AND ADD TO THE LEVERAGE THAT THE UNITED STATES WANTS TO HAVE OVER CHINA AS OPPOSED TO POSSIBLY BACK GET AWAY FROM THOSE AT THE SAME STATEMENTS BECAUSE WE THINK IT WOULD COMPLICATES NEGOTIATIONS.>>II WANT TO TURN TO RUSSIA, GENERAL, PRESIDENT TRUMP TRUMP CONFIRMING NUCLEAR CRUISE MISSILE EXPLODED DURING TESTING IN RUSSIA LAST WEEK RIDING ON TWITTER THIS, THE UNITED STATES IS LEARNING MUCH FROM THE FAILED MISSILE EXPLOSION IN RUSSIA, WE HAVE SIMILAR, THOUGH, MORE ADVANCED TECHNOLOGY, THE RUSSIAN SKY-FALL EXPLOSION HAS PEOPLE WORRIED ABOUT THE AIR AROUND THE FACILITY AND FAR BEYOND, NOT GOOD. THE EXPLOSION BELIEVED TO HAVE KILLED AT LEAST 7 PEOPLE, THE WALL STREET JOURNAL HAS AN EDITORIAL ABOUT IT TODAY WRITING THE REALITY IS THAT RUSSIA UNDER VLADIMIR PUTIN IS BREAKING OUT OF ARM’S CONTROL RESTRAINTS TO DEVELOP NEW WEAPONS AND THE MEANS TO DELIVER THEM, HE CAN’T BE TRUST TODAY FOLLOW NEW TREATIES AS HIS VIOLATION SHOW, THE SALIENT QUESTION IS WHETHER THE U.S. WILL ALSO DEVELOP WEAPONS AND DEFENSES TO PREVENT MR. PUTIN FROM GAINING A MILITARY ADVANTAGE, WHAT IS YOUR REACTION TO THIS, WHAT DO YOU MAKE OF IT?>>WELL, FIRST OF ALL, THE RUSSIANS DO HAVE CAPABILITY OF DEVELOPING ADVANCED TECHNOLOGY, THEY ALWAYS HAVE, PARTICULARLY ANYTHING THAT CONCERNS ROCKETS AND MISSILES, I BELIEVE WHAT’S HAPPENED HERE, THE RUSSIAN SAFETY STANDARDS ARE FAR BELOW THE INTERNATIONAL BEST IN CLASS STANDARDS OF PARTICULARLY THE UNITED STATES AND THEY’VE HAD REPEATED INCIDENTS DEALING WITH ISSUES LIKE THIS, WHAT THEY ARE DEVELOPING IS A CRUISE MISSILE WHICH I THINK I’VE USED OR SEEN MANY TIMES FIRED FROM SUBMARINES AND SURFACE SHIPS AND ALSO FROM AIRPLANES AND YOU CAN FIRE THEM OBVIOUSLY FROM GROUND STATIONS AS WELL, BUT THIS MISSILE AS OPPOSED TO HAVING A NORMAL FIELD PROPELENT WOULD HAVE NUCLEAR REACTOR AND UNLIMITED RANGE AND LARGE SWATHS OF THE GLOBE AND DELIVER MISSILE AT UNEXPECTED LOCATION AND MAKE IT VERY DIFFICULT TO EVER TRACK IT AND THEREFORE INTERCEPT IT, SO THAT’S THE GOAL, THE PROBLEM IS THEY HAD PROBLEMS LAST YEAR WITH A MISSILE TEST FAILURE, NOW WE’VE HAD PROBLEMS WITH THE FUEL SYSTEM, THE UNITED STATES, SCIENTISTS AND ENGINEERS LOOKED AT THIS A NUMBER OF YEARS, DAGEN, AND ABANDONED IT AFTER TRIAL AND EXPERIMENTATION THEMSELVES THINKING THAT THE TECHNOLOGY IS NOT ACHIEVABLE, REMAINS TO BE SEEN WHETHER THEY WILL DO IT THE LARGER ISSUE IS WHAT THEY ARE TALK ABOUT, RUSSIA SEEMS TO BE PULLING AWAY FROM ANY SORT OF ARM’S CONTROL AND WANTS TO BUILD ADVANCED TECHNOLOGY TO TAKE ADVANTAGE OF THE UNITED STATES’ CAPABILITIES AND CLEARLY THE UNITED STATES HAS GOT TO MATCH THEM BECAUSE WHAT WE ARE AFTER IS WE WANT TO AVOID CONFLICT AND AFTER 40 PLUS YEARS OF THE COLD WAR, THE THING THAT HAS INSTRUCTED US, THE BEST WAY TO AVOID THE CONFLICT IS TO HAVE CAPABLE DETERRENCE, IN OTHER WORDS, IMPOSE COSTS ON RUSSIA IF THEY EVER INTEND TODAY PULL A TRIGGER AGAINST THE UNITED STATES AND MAKE THAT COST UNACCEPTABLE TO THEM. DAGEN: WELL, THEN ARE YOU IN TERMS OF INCREASING DEFENSE SPENDING THAT THAT’S PART OF IT, IS IT NOT, GENERAL?>>YEAH, I THINK THE PUTIN PAYS ATTENTION TO MORE THAN ANYTHING ELSE, OUR RHETORIC, OTHER ACTIONS THAT WERE TAKEN IS THE DEFENSE BUDGET, IN REAR-VIEW MIRROR, REAGAN DEFENSE BILL IN 1980’s, SERVING IN THE SOVIET UNION IN KGB AND HE SAW HOW THE DEFENSE BUDGET INFLUENCED THE SOVIET UNION, THE U.S. DEFENSE BUDGET, CERTAIN ENABLER AND THE FACT THAT TRUMP TEAM HAS GOT DEFENSE BUDGET BUILD-UP IS THE RIGHT THING TO TAKE BECAUSE AFTER 19 YEARS OF 9/11 WARS AND BUDGET DECLINE WE HAVE GOT TO CATCH UP BECAUSE THERE’S EROSION OF MILITARY CAPABILITIES, WE ARE DOING ABSOLUTELY THE RIGHT THING BY POURING MONEY INTO DEFENSE. DAGEN: GENERAL, GREAT TO SEE YOU, THANK YOU SO MUCH FOR THE