CNN "The Situation Room" - Transcript:

Interview

Date: July 23, 2015
Location: Washington, DC

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BLITZER: We will have more of my interview coming up.

But I'm joined also by Congressman Adam Schiff. He's the top Democrat of the House Intelligence Committee.

We have lots to discuss, Congressman.

We will take a quick break. We will get your reaction to what we just heard from the director of the FBI and a whole lot more. Stay with us.

(COMMERCIAL BREAK)

BLITZER: We just heard the FBI director, James Comey, tell me that ISIS has now surpassed al Qaeda as the biggest terror threat to the U.S. homeland.

[18:20:05]

Let's get reaction to that exclusive interview.

Joining us, the top Democrat on the House Intelligence Committee. Congressman Adam Schiff of California is joining us.

You agree with the director of the FBI? REP. ADAM SCHIFF (D), CALIFORNIA: I think, on balance, I

probably do, the sheer volume of attacks now from ISIS, the extraordinary number of followers they have on social media, and the fact that these attacks are very difficult to prevent because it can be a single person acting in a single impulse.

But I will tell you on respect where al Qaeda still concerns me more than ISIS. And that is ISIS is all about the quantity of attacks. Al Qaeda, on the other hand, is focused on the quality of the attack. The kind of attacks al Qaeda wants to do, going after our aircraft, trying to blow them up over our skies, those are nation- altering terrorist acts that would have a far bigger impact if they're successful.

And for that reason, al Qaeda still in that respect very much concerns me and even more than the quantity of ISIS attacks.

BLITZER: And it concerns him as well. But he says, right now, those lone individuals being inspired by ISIS, they can kill -- those guys could kill a lot of Americans and they're really worried about that.

SCHIFF: Absolutely.

And one of the reasons he's probably reaching that conclusion too is that we have been very successful in going after the core of al Qaeda. And we have been successful on a number of the hits on the Khorasan group, that group in Syria that is focused on attacking us here in our homeland.

We have kept a lot of pressure on al Qaeda and that I think has helped marginalize al Qaeda. But even at the same time, we have seen ISIS grow.

BLITZER: How did ISIS grow so quickly? Because it wasn't that long ago, you remember the president of the United States called them the J.V. team.

SCHIFF: Well, it was this horrible combination of what used to be al Qaeda in Iraq teaming up with a lot of former Baathists.

You had people with military skills and capabilities that used to be part of Saddam Hussein's military. You had some of the most experienced al Qaeda people from al Qaeda in Iraq. And then you had al-Baghdadi and suddenly this organization holding territory, which I think inspired a lot of followers. And that's still what we're confronting.

BLITZER: I know you are being briefed. You met with the president of the United States together with some of your colleagues on the Iran nuclear deal.

I asked the FBI director about all the money that Iran was about to get, $100 billion or so, if the nuclear deal goes through, if they live up to the expectations that the United Nations and everyone has put up to them. I want you to listen to what James Comey, the FBI director, told me about that potential cash inflow to Iran.

(BEGIN VIDEO CLIP)

BLITZER: There's a huge debate underway about the $100 billion that Iran is about to get, if they follow this nuclear deal, and that that money will flow in over the next year or two. They could spend it to build hospitals and schools, or bridges in Iran, or they could spend it, give it to some of their terror partners, if you will. And I'm wondering if you fear that some of that money could be spent watching terror strikes here in the United States?

COMEY: I think all I can say about that is Iran sponsorship of terrorism remains a focus of the entire intelligence community, including the FBI.

We're responsible here in the United States. And I don't expect that threat to change, to diminish certainly, in the wake of the additional money being available.

(END VIDEO CLIP)

BLITZER: You agree with him that Iran's going to have potentially a lot more money to spend in these kinds of state sponsor of terrorism ways?

SCHIFF: Absolutely they will have greater resources.

Now, it may not be in excess of $100 billion. The real number may be closer to $56 billion, when you consider funds that are already obligated, but, nonetheless, a big infusion of money. Certainly, some of that, they're going to have to plow into their economy. That's what Rouhani's been making the case for in Iran.

But Iran has proven very -- proved very cost-effective in their support of Hezbollah. They have been able to stretch a few dollars a long way. Now they will have a lot more dollars. And this was certainly a topic of our discussion with the president and our discussion with Secretary Kerry today.

And that is how -- if this agreement were to go through, how do we counter an Iran that is that much more enriched and how can we work with our allies in the region, with Israel, with the Gulf states, to more effectively push back?

And one of the things that I really think comes through in this discussion is, when you look at the Gulf nations, they're spending a fortune on defense, many times more than Iran. If Iran is spending $16 billion, they're spending $130 billion. And yet Iran has been so much more cost-effective in the utilization of its defense and terrorism funding.

BLITZER: He did confirm, the FBI director, that the U.S. concluded Iran was directly responsible for the failed, fortunately, failed assassination attempt of the then-Saudi ambassador to the United States at a restaurant here in Washington, Adel Al-Jubeir, who is now the foreign minister of Saudi Arabia. He says the FBI concluded that Iran was responsible for that.

SCHIFF: Well, and that's such a shocking thing too, which just goes to show you that Iran, in addition to its various terrorist activities around the world, is willing and capable of an attack here on the homeland in the most brazen of fashions.

[18:25:15]

That whole chapter was just so shocking. Usually, frankly, Iran is much more rational, if that's even the right word, in its use of force around the world. It's a state sponsor of terror. It's responsible for horrible acts of murder, but they don't usually act in such an extraordinarily risky way and risk the blowback that would have accompanied that. So, it was a really startling case.

BLITZER: All right, Adam Schiff, thanks very much for joining us.

SCHIFF: Thanks, Wolf.

BLITZER: Thanks, Congressman.

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