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Interview with Attorney General Loretta Lynch; Syria Ceasefire Holding; Hillary Clinton Head into Super Tuesday with Big Lead in Polls;

SPECIAL-REPORT-WI-01

REPORT-WI-01

Holding; Hillary Clinton Head into Super Tuesday with Big Lead in Polls;

Interview with Loretta Lynch Assessed; Donald Trump's Refusal to Disavow

David Duke during Interview Examined - Part 1>

Internet; KKK; Discrimination; Minorities; Donald Trump; Hillary Clinton;

Polls; Syria; War; Middle East; Politics; Government; Elections; Race

Relations; Loretta Lynch>

BRET BAIER, FOX NEWS HOST: Welcome to Washington, I'm Bret Baier, this is a Fox News Alert. We're coming to you tonight from the U.S. Justice Department where in just a moment I will talk exclusively with Attorney General Loretta Lynch about a host of topics, but first the other stories making headlines today.

(BEGIN VIDEO CLIP)

BAIER: At this hour, the State Department is releasing the final batch of Hillary Clinton e-mails from her time as Secretary of State during which she used the private unsecured server.

We're also learning Senior Clinton aide, Cheryl Mills has maintained her top secret security clearance despite sending information now being classified to both Clinton's private server and the Clinton Foundation.

We are in the final hours before Super Tuesday as voters in more than a dozen states help decide who will be on the November ticket. Donald Trump is ahead in several states for the GOP. Hillary Clinton is expected to win big for the Democrats.

The Secretary General of NATO and the United Nations say the cease-fire in Syria is shaky but holding in its third day. NATO's leader says the alliance remains concerned about a significant Russian military buildup in Syria, but he says there are no plans to put NATO troops on the ground in that country.

(END VIDEO CLIP)

BAIER: Now, to the interview.

Madam Attorney General, thank you for the time today.

LORETTA LYNCH, U.S. JUSTICE DEPARTMENT, ATTORNEY GENERAL: Thank you for having me.

BAIER: Apple's CEO Tim Cook told shareholders and investors Friday, he is convinced that standing up to the FBI is the right thing to do for privacy and personal safety. Why is he wrong?

LYNCH: Well, Tim has very strongly held views and I respect them. But the reality is, this case is really about the need, the government's need to access evidence as we do in every single case that may be found on an electronic device.

And as we do in every case, we look at how to best obtain that evidence and determined that for us, the major problem would be, if evidence were to be wiped or erased. So we did as we do in all these cases and we reached out to the company and said, "Can you help us preserve this evidence so that we can try on our own to gain access to it."

And in order to do that, what we did at first was go to court and get an order that said there's maybe evidence on this phone, you've got the right to go into it, use all legal means.

And as we did, we did in this case as we do in other cases we went to the company and said, "Can you help us?" When they said they weren't able to help us or they chose not to do so, we went back to court and said, "You know the law says that third parties can be required to help us gain access to evidence." And the courts said, "Yes." That's where we are now.

This really is an issue about how the government is going to go about obtaining evidence that maybe on an electronic device in the case involving national security. So it's our hope -- it is still our hope that they will see their way clear to complying with that order as thousands of other companies do every day.

BAIER: What -- the FBI wants though does not currently exist. How can you really justify forcing Apple against its will to work for you in essence by creating software it says would damage its own product?

LYNCH: Well, you know, Apple is one of the most secure companies that we have and they have done great work at protecting their own code and their own intellectual property and that's a great thing for American industry.

What we're asking them to do is to help us, is to simply disable one feature, a feature that doesn't involve encryption at all or the feature that would erase that phone and prevent us from accessing the evidence on it that we have obtained the lawful right to gather.

BAIER: But, it's not just that case, it's 12 other federal cases involving 14 other phones, right?

LYNCH: Well, in every single one of those cases, we have gone to court with a narrowly crafted request and said to the court, is this something that we can obtain under the law? And the courts have said, yes. And we've then gone to Apple and said, "We need your assistance here."

And where they've chosen not to, we would then go back to court and say, "Could you please direct them as you do companies every single day, to work with us?" We prefer to work with them directly and we still would.

BAIER: There are some who say that forcing Apple to do that work for you would constitute involuntary servitude prohibited under the 13th amendment. How do you respond to that?

LYNCH: Well, you know, I think that the 13th amendments are very important part of the constitution, but it's not implicated. When you go to a company, an American company, one of our great American companies with a lawful court order and you simply say, "Please comply with the law." That is not servitude of any kind. That is simply asking a company to live up to its civic obligations and cooperate with law enforcement, as directed by a court.

BAIER: Tomorrow at the RSA Cyber Security Conference in San Francisco, you will announce that the U.S. and U.K. have begun negotiations that would allow the British government to essentially subpoena American companies for data relevant to investigations there even if the individuals involved are not American or that the crime happened on U.S. soil.

So, how will the U.S. benefit from that?

LYNCH: American companies do business all over the world as they should. But there is a situation where there are vulnerabilities there. You mentioned that we're talking to the U.K. and we are.

This is a case where, this case would be a situation where the U.K. was investigating a crime in the U.K. involving its own citizens, but because electronic evidence is such a part of every case, whether it's here or overseas, the data if an American company was involved, would be stored here.

So what we're talking to the U.K. about is trying to find a way to come up with the solution to help U.S. companies comply with the British order because right now, American law says they cannot send that data overseas. But, because they operate in the U.K., they're subject to U.K. process and law there. So they're in a bind.

So we've work with industry and we're talking to the U.K. and we're looking to come up with a model that would let the U.K. for example, give an American company an order for data on non American citizens, it would not cover American citizens or actions here. And let them comply with that order in the U.K.

BAIER: But went back to Apple, I mean, one of the things in the Apple case is that Apple's compliance with the court order they say could open them up do other foreign governments and legal actions similar to what you're talking about.

So, how do you think this is all going to go over with the tech community that is already concerned about privacy?

LYNCH: This is something that the tech community has been supportive of because it helps them with the vulnerability that they currently have because they do, do business all over the world and they are subject to laws.

In the U.K. for example, if there's an examination or investigation into a case occurring in Great Britain. This would allow them to comply without being out of compliance with the U.S. law.

Security and privacy are tremendously important to the U.S. government. It's one of our highest priorities, but every day in every single case involving criminal activity, we go to courts and we say, here is a reason why we need to obtain something that is otherwise private.

BAIER: So, are you confidence that this Apple issue can be resolved? Or do you think it's going to make its way to the US Supreme Court?

LYNCH: Well, I can't predict which way the case will go. I certainly feel that we put forth strong arguments and this is a matter of following this investigation where it leads.

We have an obligation as law enforcement officers to follow every fact and every piece of evidence in an investigation like this one and frankly in all of our cases and that's what we're trying to do here.

BAIER: Speaking of the Supreme Court, there are a growing number of Democrats who are calling on President Obama to nominate you to fill the vacancy left open by Justice Scalia's death. Have you been told you're under consideration?

LYNCH: Haven't had those conversations. I'm extremely happy with my job as attorney general.

BAIER: Not being vetted?

LYNCH: I haven't had those conversations and I'm extremely happy with my job as attorney general.

BAIER: Wow.

(CROSSTALK)

LYNCH: It's the best job ever.

BAIER: OK.

LYNCH: It really is.

BAIER: The seat obviously would shift dramatically the court. Does the administration truly believe that Republicans will allow a vote on something this dramatic of the U.S. Supreme Court in the U.S. senate?

LYNCH: You know, I certainly can't speak for the senate in this. I know the administration has stated its intent to name a nominee and I assume that they'll have discussions about whether or not that nomination will proceed. And certainly if someone who went through the nomination process quite recently, I think all of vacancies should be filled as soon as possible.

BAIER: And if I ask you again, it will be the same answer?

LYNCH: Yes.

BAIER: OK. I have seen your testimony on Capitol Hill about the Clinton investigation, the e-mail investigation. Has a grand jury been convened regarding Hillary Clinton's handling of e-mail?

LYNCH: Well, we don't comment on specifics. What I will say that said to the congressman is that this is a matter that's being handled like any other review that we do and how any agency has handled classified information.

It's being handled by the career independent lawyers here at the department and they will review the facts and evidence and make a determination in due cause.

BAIER: I know you can't tell us what happens in a grand jury, but there's no law that prevents you from telling us, whether the grand jury has been convened if we publicly know there's investigation of the person or subject, so has one been convened?

LYNCH: We don't comment on specifics of any of our investigations. And so, I'd be giving you the same answer again, which is, we're looking at whether or not classified information was handled in a particular way or in an appropriate way. It's the type of case that we look at all the time.

BAIER: Has it been concluded?

LYNCH: I don't have any news for you on that front either.

BAIER: Well, you stated a few days ago and you just stated there that it's being handled by Career Independent Law Enforcement Agents, FBI agents as well as Career Attorneys in the DOJ. Which section is working on the case?

LYNCH: You know, we don't go into that either what I can tell you is that the matter is being reviewed like any other like it, when we look at how classified information has been handled and they look at all the facts, they look at all the evidence, and they'll come to a determination in due time.

BAIER: National security, public integrity, both?

LYNCH: We don't comment on who's handling it.

BAIER: Does it concern you though that there is this perception that your justice department may in the end cut Secretary Clinton a break or do her a favor or just because of her last name or because the Democrats want her on top of the ticket in the fall? Is that something that you are concerned about?

LYNCH: No. I think that with every case, we handle it in the same way and that's what I like to convey to the American people, is that whether or someone has an interest in the case because it's interesting in the headlines or because they're personally involved in it.

For example, if they're the victim of a crime, we take it seriously and we handle it independently, thoroughly, fairly, and efficiently. And we have to handle every case in that way. We owe it to everyone. We owe it to the citizens and we owe it to anybody who maybe involved in a matter.

BAIER: Why hasn't Secretary Clinton been interviewed yet?

LYNCH: We don't comment on the particulars of anything.

BAIER: OK. How about this, White House Press Secretary Josh Earnest recently said this about Hillary Clinton's investigation from the White House briefing room.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: What I know that some officials over there have said is that she is not a target of the investigation.

(END VIDEO CLIP)

BAIER: So, are officials briefing Josh Ernest?

LYNCH: I can tell you unequivocally that no one outside of DOJ has been briefed on this or any other case. That's not our policy and it has not happened in this matter.

BAIER: Where do you think he got that information?

LYNCH: I can't speak for Josh, so I can't tell you.

BAIER: Anybody else in the White House being briefed?

LYNCH: No one in the White House or anyone outside the department would be briefed on this case or any other case. That's how we do our business.

BAIER: I doubt this will get an answer, but critics of the administration's handling in this say General David Petraeus was indicted for behavior that amounted to a tiny fraction of what we know happened with Secretary Clinton. Are they wrong?

LYNCH: You know, I think every case is different. We look at the facts and evidence and make the independent decisions based on what's appropriate in every matter.

BAIER: It is important though for people to know what's right. What, you know, what violates the law? Is it legal or illegal for federal employees, especially cabinet members to set up a private server to handle all government e-mail correspondents?

LYNCH: You know, I'm not going to give you a legal opinion on that since it is a matter under that maybe under review. Certainly the state department inspector general is looking at the procedures and practices and policies of that department. So, I'm not going to comment on that, except to say that our investigation is going to continue as any other case.

BAIER: Will it be wrapped up soon?

LYNCH: You know, we don't give you timing estimates either, again, we don't .

BAIER: But, I guess there is a timetable that is hanging over this, you know. Or shouldn't American voters know Hillary Clinton's legal status as they get prepared to head to the polls?

LYNCH: Well, what they should know and what I hope that they do know, is that any case that the department of justice looks at is going to be handled efficiently, fairly, thoroughly without any kind of artificial deadline on it, because what's most important is to follow the facts, follow the law, and come to an independent conclusion as to what may or may not have happened.

BAIER: Would you ever have a private server?

LYNCH: With regard to?

BAIER: E-mails.

LYNCH: Well, we use our DOJ servers here for e-mails.

BAIER: So, you wouldn't have a private server at home?

LYNCH: I don't comment on that.

BAIER: Well, you wouldn't. You use DOJ servers?

LYNCH: I use the Department of Justice e-mail system.

BAIER: Just today, we're getting word that Secretary Clinton's former Chief of Staff, Cheryl Mills has maintained her top secret security clearance despite sending information that's now deemed classified to the Clinton Foundation end up this unsecured server.

Isn't it standard practice to suspend the clearance pending the outcome of an investigation?

LYNCH: You know, I'm not going to comment on any of the individuals who may or may not be involved in this because it would depend very much on the facts of those particular circumstances.

BAIER: The bottom line, is there any double standard here?

LYNCH: There's no double standard in this or any other matter being handled by the Department of Justice.

BAIER: Last thing on the Clinton e-mail. You understand why people are concerned that even Democrats who say is there this shoe that's going to drop by the time you get a nominee. Isn't it fair to know a status at some point in this election cycle if that is the person who looks like it's going to be the nominee of the Democratic Party?

LYNCH: Well, this is the matter is going to be handled like any other and it will be resolved in due time.

BAIER: And who's the ultimate decider at the DOJ?

LYNCH: It depends on how the matter comes together. You know, essentially, it's going to be reviewed by those career independent agents and lawyers that I mentioned, and they'll make a recommendation as to what they discovered and what they recommend.

BAIER: But the up or down, yes or no, we're going-forward or not, is that you?

LYNCH: And it's just really is going to depend upon what they find.

BAIER: Have you ever not prosecuted when the FBI has said, we recommend charges?

LYNCH: You know, in my early days as a lawyer, one of my best jobs frankly was doing intake for the U.S. attorney's office and I sat and worked with the FBI a lot on matters and cases and we would sit together and talk about the best ways to craft search warrants or to draft complaints or the best types of charges to bring in credit card cases or in bank robbery cases.

And so, I've always thought that's -- it's one of my best jobs. And one of the best things that we do is work together with our law enforcement partners in reviewing evidence and coming to a conclusion as to what's there and what's not there.

BAIER: I listened to your answer before, and on Capitol Hill. If you are the ultimate decider, you obviously are a political appointee. So, that's where the question comes, I guess. You said that the independent investigators and agents will make the recommendation but the decider of whether to go forward is you, right?

LYNCH: Well, we'll see what evidence develops and what facts develop, and we'll follow those to their natural conclusion.

BAIER: Have you ever told the president no on anything?

LYNCH: You know I don't go into specifics with my conversations with him. I can't think of an occasion where we've had contentious discussions about things.

BAIER: You know, like no Mr. President, you can't do that.

LYNCH: Yeah. I've made recommendations to him. He has accepted them and taken them. I've given him my advice. He has accepted and taken that along with the advice of other advisors and other cabinet members. So, I've certainly provided information and thought to him.

BAIER: Your predecessor, Attorney General Eric Holder signed off on a search warrant implication of that labeled our Fox News colleague James Rosen a criminal co-conspirator for doing his job.

As you know, President Obama's result to the Rosen case, ordered the Justice Department to revise its codes of conduct for the treatment of reporters and Attorney General Holder later said his own handling of the affair was his biggest regret.

At that time, the designation of a reporter as a criminal co-conspirator by the DOJ carried pretty significant precedent for all U.S. attorneys. What view of the matter did you take at the time?

LYNCH: You know, I didn't have a view of the matter at the time because I wasn't involved in the matter. So I didn't know in about the facts or the issues to come to a conclusion. I did agree with the review that was set up within the department and the new policies that have been promulgated.

And as attorney general now, I've actually had the good fortune to sit down with the working group that looks at those issues which is composed not just of DOJ officials, but also people in the media who consult with us. And who share their views with us, and who were very, very helpful in setting up the policies and procedures.

And so, a number of safeguards were put in place, but I do think we're appropriate. And I've been -- I think very effective, and I think also have helped our relationship with the press, I hope.

I think that the feedback and input that we got from members of the press was helpful not just in drafting the new policies, but in making sure that we understood their needs and their concerns.

BAIER: Are we safer or more at risk than we were five years ago?

LYNCH: Well, I think that it's hard to put an absolute on that. Obviously, the U.S. is always a target. One of our greatest concerns and one of my highest priorities is national security matters.

And as we've seen this threat more and change over time, we have adapted as well and we remained our focused on identifying that threat, thwarting that threat where we can and prosecuting it where we find the evidence of criminal activity here in the U.S. where U.S. interests are threatened here or overseas, we will and we do take action.

BAIER: What keeps you up at night?

LYNCH: I think that the greatest concerns that a number of us in law enforcement face these days really are cyber issues. Cyber security is a huge concern of ours as well. Not just in terms of the individual attacks, people who have had their identities stolen, those are devastating and I think the average American can relate to that in a very, very real way.

But, possible threats to our corporate I.T., to our corporate intellectual property, the goodwill and the brain trust so to speak of American industry. Those challenges are big and they are growing.

BAIER: Just last week, Director of National Intelligence Clapper expressed skepticism over the effectiveness of that September cyber agreement between President Obama and the Chinese President Xi. He said this.

(BEGIN VIDEO CLIP)

XI JINPING, PRESIDENT OF CHINA: Trying to continue cyber espionage against the United States and whether their commitment of last September moderates its economic espionage remains to be seen.

(END VIDEO CLIP)

BAIER: You back in December, along with Homeland Security Secretary Johnson sat across the table from your Chinese counter parts and discussed this very issue. So, do you agree and share the DNI assessment?

LYNCH: It was an agreement that they would not engage in economic espionage. So we will be constantly looking at and monitoring the U.S. companies as we always do for their vulnerabilities to alert them if we see any problems, whether it's from China or any other state actor, something that we do by working with industry very, very well.

BAIER: How can the government stop it, though? In 2014, your predecessor charged five Chinese military officers with federal crimes alleged to their hacking, and it just continued. So, what do you tell people in America that says, "Hey you tried, and it's not really happening."

LYNCH: You know, it's really a multifaceted effort. First, increasing our own resources so that we can detect intrusions from wherever they come into American industry. And the FBI is working very hard that along with our fellow agencies in this, but also investigating and prosecuting those that we do find responsible for breaches and for hacks.

BAIER: OK. Attorney General, thank you for the time, we really appreciate it.

LYNCH: Thank you Bret.

BAIER: When we come back, SPECIAL REPORT continues with stories from Washington and around the world.

(COMMERCIAL BREAK)

BAIER: The cease-fire in Syria is shaky, but holding. That is the word from UN Secretary General Ban Ki-moon, tonight. But there are reports of sporadic fighting and growing accusations of violations across the country. The Russian brokered truce went into effect Friday. It does not include ISIS or al-Qaeda forces.

Iraqi officials say an ISIS suicide bombing at a funeral North of Baghdad has killed at least 38 people and wounded dozens others. This comes a day after a bombing at a Baghdad market left 73 people dead.

Back here at home, a U.S. Navy SEAL who helped rescue an American civilian in Afghanistan is tonight, the latest recipient of the military's highest honor. Correspondent Kevin Corke has the story from the White House.

(BEGIN VIDEO CLIP)

BARACK OBAMA, U.S. PRESIDENT: Even if he had never performed the actions for which he's being recognized here today. The admirers would be long remembered for his compassion, his sacrifice and his endurance.

KEVIN CORKE, FOX NEWS CORRESPONDENT: In awarding Navy SEAL, Senior Chief Special Warfare Operator Edward Byers, the Medal of Honor today, President Obama gave the nation's highest military citation to a man whose commitment to service knows no bounds.

OBAMA: 11 overseas deployments, nine combat tours, recipient of the Purple Heart twice. Bronze star with valor five times.

CORKE: But, it was a daring rescue of an American doctor held by the Taliban in Afghanistan back in 2012 that brought a man used to working in the shadows into the spotlight.

EDWARD BYERS, SENIOR CHIEF SPECIAL WARFARE OPERATOR: Jumped off, a guy was on and unto the doctor and the reason I did that because I'm wearing body armor, so I want to protect him from any other potential threats in the room.

CORKE: And a Buyer's quick action saved the doctor, who said in a statement, "Byers and his team are examples of courage, bravery and heroism. I'm so grateful for their dedication for rescuing me as well as bringing security to the Afghan people.

Now, Byers is the sixth Navy SEAL to receive the Medal of Honor. He credited a seventh SEAL.

28-year-old, Petty Officer 1st Class, Nicolas Checque with the mission success. Checque was the first into that firefight and died that evening with valor and distinction.

BYERS: He will forever be remembered and, you know, the pages of history for the sacrifices that he made.

CORKE: A solemn reminder of the price of freedom and a moment of thanks on behalf of the grateful nation.

(END VIDEO CLIP)

CORKE: Grateful, indeed. By the way, Byers says he'd like to go back to doing what he's always done in the service and he remains one of 78 living Medal of Honor awardees. Still around, there are eight of them from the Navy just like Byers.

There have been 14 such citations, Bret by the way handed out for action in Afghanistan which remains the longest war in American history. Bret.

BAIER: Great story. Kevin Corke, live on the North Lawn. Kevin, thank you.

Stocks were down today. The DOW lost 123, the S&P 500 was off at 16. The NASDQAQ fell 33.

We are just hours away from Super Tuesday. We'll look at the furious final day of campaigning when we come back.

(COMMERCIAL BREAK)

BRET BAIER, FOX NEWS HOST: The Monday night before Super Tuesday features rallies for Ben Carson in Alabama, Donald Trump in Georgia, Marco Rubio in Oklahoma, and Ted Cruz in Texas. Chief political correspondent Carl Cameron is in San Antonio tonight with a look at the huge stakes in tomorrow's voting.

(BEGIN VIDEOTAPE)

CARL CAMERON, FOX NEWS CHIEF POLITICAL CORRESPONDENT: On the eve of Super Tuesday, the insults are flying and polls show Donald Trump sitting pretty.

DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: Vote tomorrow. We're going to win tremendously.

CAMERON: The latest polls show Trump leading in Georgia, Tennessee, Virginia, Massachusetts, Oklahoma, and Alabama. Trump's fending off attacks from Ted Cruz and Marco Rubio for failing to disavow former KKK grand wizard David Duke. Trump's rally in Virginia was interrupted by Black Lives Matter demonstrators.