president obama is in japan right now, he'll join his counterparts in a few hours for a summit of the group of seven industrialized nations, there has been a lot of talk about apologies ahead of the president's visit to hiroshima friday. but today it was a different kind of apology that emphasized the sometimes tense relationship between the world war ii foes turned allies. correspondent kevin corke is traveling with the president and reports tonight from japan. >> it was all president obama could do. >> i extended my sincerest condolences and deepest regrets. >> the president's apology coming in the wake in the murder of a 20-year-old japanese woman allegedly perpetrate paid former u.s. marine who worked on the u.s. base at okinawa, home to more than 50,000 u.s. service personnel. >> i think the japanese people should know how deeply moved we are by what has happened and our intentions are to make sure that we're working with the japanese

government to not only prosecute this crime, but to prevent crimes like this from happening again. >> the young woman's death brought about renewed demands by locals, that the u.s. military leave the island. where previous assaults including the 1995 rape of a 12-year-old girl has stoked a bitter resentment. that lingers to this very day. >> translator: in proceeding with the realignment of the u.s. forces without truly staying together with the feelings of the people in okinawa, we will not be able to make progress. >> abe's impassioned rebuke comes ahead of the g7 summit where president obama finds himself trying to strengthen more than just economic ties with this long-time ally. the japanese expressing concern about the recent decision to open u.s. arms sales to vietnam. a move that the chinese said would stoke a tinder box. >> the fact that the chinese would see that as some sort of

provocation to them, i think says more about chinese attitudes than it says anything about our attitudes. >> one person who appears to welcome more weapons equity fwht region is gop presidential front-runner, donald trump. who has repeatedly called for nato allies and other nation who is benefit from u.s. force protection like japan to do more to pay their own way and to protect themselves. >> it's possible that if they don't pay up, they're going to have to arm folks, okay? they're going to have to arm them. >> bret, it is clear that both governments want to keep the latest incident that happened over okinawa from further fanning the flames of opposition to a proposed relocation of the marine you're base from futenma to a less populated part of the island. that's been pushed back a great deal since 1995. locals don't want it there and that includes the governor of the island. a tough job for the president as he begins work at the g7.

>> kevin corke in japan, thank you. a preliminary report from the congressional budget office says taxpayers can save almost $2.5 billion over ten years by ending the practice of making cuban immigrants eligible for welfare benefits as soon as they set foot in the u.s. critics of the current wet foot/dry foot law say it's more about ripping off american taxpayers than escaping political persecution now. correspondent phil keating has that story from miami. >> the question now before a federal judge in miami is whether this lighthouse, six miles offshore in the florida keys, counts as american soil or not. these 21 cuban migrants found clinging to it on friday, are in legal limbo. if the lighthouse is determined to be u.s. mainland, then these cuban refugees will get to stay in the u.s. under the wet foot/dry foot policy. if not, they'll be shipped back to cuba.

sanchez filed the federal lawsuit on the refugees' behalf. >> to get to freedom and when you're about to get to freedom somebody picks you up from the water and says your feet are wet, you go back, that's very sad. >> but the 20-year-old wet foot/dry foot policy may not last much longer as its support is eroding among an influential group. >> america is getting fleeced by people who are claiming to be refugees and then are just taking adv welfare system. >> even south florida's cuban american congressional delegati delegation. >> we have growing evidence of people who come to the united states, claim to be cuban refugees and are traveling back and living in cuba while receiving federal benefits and the their familiar will is wiring them the money. >> cuban migrant flow has been

surging since president obama and raul castro began normalizing relations. these days, immigration authorities say 70% of all illegal cuban migrants are coming through mexico. just walking across the border. with no questions on their dry foot status. bret? >> fooel keating in miami, thanks. a bipartisan deal to help puerto rico deal with its $70 billion public debt will go before the full house. committee approved the legislation today. the bill creates a financial control board and restructures some of puerto rico's debt. some bond-holders, unions and island officials oppose it as well as some lawmaker who is have a story on that tomorrow. up next, hillary clinton's campaign press secretary joins me live to respond to the government report just out that says clinton's email set-up broke the rules. that and more next.

let's get to the clinton team reaction to this email report from the state department inspector general. and what's being said about it. brian fallon is press secretary for the clinton campaign. he joins us from new york. brian, thanks for being here. >> hi, bret. >> i want to get right into it. secretary clinton numerous times has talked about why she had the private email, the private server and that it was approved. here's what she said and she said it more times than just this. >> my personal email use was fully above board. it was allowed by the state department. as they have confirmed. >> the truth is and the truth is, everythingdy was permitted and i went above and beyond what anybody could have expected in making sure that if the state department didn't capture something, i made a real effort to get it to them. and i had no obligation to do any of that. >> as you know, the inspector

general's report says something completely different. the inspector general found no evidence that the secretary says requested or obtained guidance or approval to conduct official business via personal account on her private server according to the current secretary clinton had an obligation to discuss using her personal email account to conduct official business with their offices who in turn would have attempted to provide her where approved or secured means that met their business needs. according to officials, ds and irm did not and would not approve her exclusive reliance on a personal email account to conduct department business because of the restrictions in the f.a.m. and the security risk in doing so. what about that, brian? >> i think if you look at the statements that secretary has made that you played, the point that she's make something that if you look at the regulations that were in place at the time, did not bar folks from the state department from using personal email for work purposes. the report today by the ig found

that some 90-plus different top-level officials in the state department dating back to the bush administration used personal email for work purposes, including secretary powell, including secretary kerry who followed secretary clinton. so there was a clear prens dent set that it was acceptable to use personal email for work purposes. >> there's an email. >> i think that's what the secretary has been referring to. >> there's the email and the personal server in her house. >> right. >> neither of which were approved according to the state department ig and they wouldn't have been approved, according to this statement based on security concerns. >> so this report is looking at two different implications of her use of personal email. first is, did it violate any federal records rules in terms of preserving government records? there it's sort of immaterial that she had a personal server. because a requirement from the a federal records standpoint is are you preserving the records

and are you turning them over to the state department? she did that. with respect to the second consideration that was assessed in the state department ig report which was the matter of security. was there a security risk posed by her use of a server. personal server to host her personal email accounts. and what the section of that report said today was that there was no evidence that this personal server of hers was ever breached successfully. >> about that -- >> tle there were attempted intrusions, none of them were successful. >> how do you know that? >> well there's been reporting out of the ongoing justice department review that they've looked at the logs, the security logs for that server and found no evidence of that. >> so this hacker, guccifer, you don't buy that he got into the server? >> actually we don't. and there's no evidence to corroborate that. >> why do you think the justice department has cut him a deal? >> well he's been extradited to the united states to face charges related to his confirmed hacking of other individuals.

>> sure including sidney blumenthal. >> including former president bush. the sister of former president bush and sidney blumenthal and others. but he's not facing charges related with secretary clinton. >> she said there were no security breaches. in audit three of this report, january 9, 2011, nonfastment adviser to president obama provided technical support to the clinton email system, notified the secretary's chief of staff for operations he had to shut down the server because he believed quote someone was trying to hack us and while they did not get in, i don't think, i don't want, i didn't want to let them have the chance to. later that day, the adviser wrote to the deputy chief of staff for operations, we were attacked again, i shut the server down for a few minutes. january 10th, the deputy chaff of orangeses emailed the citi chief of staff and said don't email the secretary anything sensitive and explained she

could explain more in person. >> it seemed like there were security concerns and a couple of i.t. people told, were told to not talk about the email practices of the secretary ever again. never speak of the secretary's personal email server or system ever again. >> there's a couple of issue there is. let me quickly unpack them. with respect to those incidents that were reported, what i think it shows is that appropriate precautions and security standards was maintained in regard to the private server. two instances there were reports of attempted intrusions, that's not new. >> we've seen reports over the last few months, it's been documented there were various phishing attempts and attempted intrusions, none were successful, as compared to the actual state department email system which we know was breached. >> i.t. guy in this is brian pagliano who has been given a

deal by the justice department. >> he sought immunity and we encouraged him to participate without immunity. >> why didn't the secretary sit down for an interview when secretaries kerry, albright, powell and rice all sat down for interviews with the ig? >> there's a multitude of entities that are investigating this email issue right now. hillary clinton has answered a lot of questions about it. dating back to -- >> not to this ig. >> that's correct. >> but if you want to ask whether she is shirking questions or trying to avoid having to answer hard questions about why she made this decision, i don't think that that criticism is warranted. given that she sat before a republican-led oversight committee that was drilling down on this issue. she has volunteered to sit before the justice department if they ask her. >> why not sit down with the ig? >> i think that in terms of -- [ inaudible ] [ inaudible ]

[ inaudible ] [ inaudible ] [ inaudible ] >> yeah, we just lost the audio from new york, i think. brian, stand by, if you would. you think the connection with new york might be easy for us. but stand by, we're going to take a commercial break and fix this and get right back to you, brian fallon after the break.

well we apologize for the audio difficulty, brian fallon is still with us, press secretary for the clinton campaign. brian sorry about that, our tin cans and string are set up now, we can hear you. you were finishing your thought about why she hadn't sat down with this i goompb. this inspector general for the state department was appointed by president obama in 2013. i heard you on another channel earlier today suggest there's some kind of anti-clinton bias with this inspector general. an inspector general appointed

by president obama? >> well there were reports a few months back suggesting affirming the fact that one of the top individuals in that office, the number two official in that office, had a connection, had formally worked for senator grassley, who has been one of secretary clinton's chief an tag nists on this issue. there were calls from various members of congress for that official to at least recuse herself from this matter. that didn't happen. >> you're not suggesting this report is somehow flawed because of that tenuous connection on the number two person? >> i think one can raise questions about whether someone should have recused himself and still assessed the report on its merits, i think many of the findings in this report corroborate what secretary clinton has long said. in terms of the actual recommendations that this report makes in terms of how the state department could improve its record-keeping systems, we've said today if second clinton were still in charge of the state department 'sheed be accepting those recommendations.

>> she said numerous times, brian, she's turned everything over. every single thing. the state department said that's not the case. the report itself said there were things that were not turned over. >> one of the emails that did not come out publicly, in the tronches given to reporter, is one that said secretary clinton and discussed secretary clinton's emails to the the deputy chief of star emailed the secretary that we should put you on state email so you're not going to spam. in response the secretary wrote let's get separate address or device but i don't want any risk of personal being accessible. that was never released to reporters. >> right, from time to time there have been reports over the last few months of instances where the materials that she turned over, didn't match materials that other folks that worked in the state department

turned over. there were an incidental amount of emails that didn't appear in both batches, there have been known instass, for instance the first two months where she started off as secretary of state. where she was not yet on the server. and so when she went to retrieve the emails to provide them to the state department last year, they weren't on the server in the first place she couldn't turn them over, she has what she said is she's turned over egg she had. which constituted 55,000 pages, which is 55,000 pages more than anyone else. including other secretaries that use personal email. ever turned over to the state department. >> here's the question. >> from a record-keeping perspective, that question is beside the point. you can retain the records whether your email system is on a server or through gmail. >> you're dealing with classified emails that you all say were classified after the fact. they weren't marked.

really doesn't matter. the issue is the server. it was on the server, handle classified material is another investigation in which we'll see what happens with the fbi. >> well, but there, too, the same issue applies with secretary powell. where emails that he sent on his personal account have been judged after the fact, retroactively to contain information that they think was sensitive. secretary powell reacted quite forcefully to that and suggested it was absurd, in terms of the types of material they were considering classified. i'm not suggesting invoking secretary powell that he did anything wrong back at the time he was using personal email. the fact that it's so widely applicable. the criticism that's been made of secretary clinton shows it's a matter of different agencies, in this case intelligence agencies taking one standard when the state department is very customized to using another. >> obviously a lot of people on capitol hill look at that differently. brian, we appreciate your time tonight. we would love to have you back.

>> thank you, bret, i appreciate you having me on. let's bring in our panel, charles lane, "washington post," howard kurtz and syndicated columnist charles kraut ma'amer. >> i think we can control the audio here. let's start with the panel. what do you think? >> look, brian fallon is very good at what he does. but there's no getting around the fact that it's a bad headline today. for hillary and for her campaign heading into california. to me what stood out was the not that implicit pretty direct recitation of something she's been saying all along, which is it doesn't matter because my records were preserved in the sort of other emails that other people were sending around. they included therein. and the ig directly refutes that. says no, that's not good enough under the federal record-keeping rules. that's been a mainstay of her story all along.

and it's not holding up here. >> i don't know how we have throwing shade at the ig appointed by president obama is a positive retort for them. the inspector general. >> i think that's a losing argument. in fact not only did we not see any bias in this report, it's written in bland language precisely because of that, it's an independent watchdog, confirming that hillary clinton flauted the rules, i think that's where the power comes from and from the ig to say she should surrender all eat mails upon her resignation, which fuels the impression that she was acting like she had something to hide. and now that we know there's a specific request for her to use government email like everyone else in the state department, that response where you read to brian fallon. don't want any risk of the personal becoming accessible, knocks down the i did it for my convenience argument. what she was trying to do was

shield from the public and the press things that she considered personal. >> when you look at the fox news poll, honest and trustworthy numbers, she's at an all-time low. now we see the different statements compared to what the ig says about those same very statements. listening to brian explain each one. they have an answer. but what do you make of all of it? >> the used to complicate everything to the point where you can't follow, or electorate can't follow. people have the general impression that he was not telling the truth. particularly about why, i didn't want to carry two cell phones, is absurd she was obviously trying to hide from inquiries that could come, would come from the congress or from the freedom of information act. to me an example of how losses get obfuscated is this line from the report.

she did not comply with the department's policies. that were implemented in accordance with the federal records act. all the headlines i've seen today, did not obey state department policies. which makes it sound like a bureaucratic rule-breaking. but the fact is that these policies are promulgated, they're instituted as a way to carry out the law. so you violate the policies. you actually have violated the law. that's the headline you would expect to see, that's not the headline she is getting. of course it adds to the weight of her being shifty, unreliable and untrustworthy. but it doesn't hit it on the head, which is what the ig is saying, this is law-breaking. >> the fbi has all this information. we'll talk more about the political fallout and the day's events on the trail with the panel after this quick break.

... flush

crooked hillary. she's as crooked as they come. she had a little bad news today, as you know, from some reports came down, weren't so good. but, not so good. the inspector general's

report, not good. >> still ongoing process. and this is part of that process. i think we should let the process play itself out. this is just one piece of a bigger process. and as the senator said, as you pointed out back as early as november, this is not something that needs to be kicked around in the political arena. >> well, two dinner takes on the hillary clinton report, the ig report. there you see weaver, the campaign manager for bernie sanders saying they are not talking about it and obviously donald trump has a different approach. we're back with the panel. howie? >> bernie sanders still doesn't care about her damn emails but maybe he doesn't need to because it's getting all this oxygen. look, hillary clinton was getting a rare bit of media traction for accord nateed attacks on donald trump going back to old comments he made about gleefully making money if there was a housing crash. it comes off when hillary clinton can't move honesty and trustworthy numbers.

fighting a two front war against bernie who won't give up and against trump who whacks her every day, this is not helpful for that reason. >> charles? >> bernie sanders, i think, must be regretting he said that way back when about the emails. because he threw away an issue that is very powerful. >> he could reclaim it. >> well, and he would be open to the charge of hypocrisy. but, honestly, the problem for hillary is within the party, a lot of the base does not view her as honest and trustworthy. it's not just republicans who have that view of her. their reasons are different. it has to do with policy and the sense that she has sold out on policy or that she has taken money from goldman sachs. and bernie could have added this to the arsenal, but he didn't. >> meantime, another attacker of donald trump comes in the form of massachusetts senator elizabeth warren, who released a video. she did not mention hillary clinton or bernie sanders but did talk a lot about trump. and trump responded on the trail today.

>> a small, insecure money grubber who doesn't care who gets hurt, so long as he makes a profit off it. >> pocahontas. that's elizabeth warren. i call her goofy. she has got a big mouth and that's about it. but they use her because hillary is trying to be very presidential. she is stopping with the shouting. >> all right. what about elizabeth warren and donald trump? >> in that clip you see the secret of trump's success. when the word poke pocahontas came out you laugh. you can't help but laugh. line not politically correct. >> goes back to her time as saying she had heritage in indian. >> dubious claim of indian heritage a way to advance herself. >> spoken solemnly i have here years ago when it came out. he does here one sentence crooked hillary, little

marco. but i think what's interesting for his campaign is attacking warren is easy and gets an easy applause line. what he did that i thought was rather interesting and a lot more complicated was his attack on new mexico, republican governor. a woman, hispanic, popular, who is the chairman of the republican governor's committee. he attacked her because she was slow to or has not yet endorsed him and wouldn't show up at the rally. that, i think, is not a terribly smart move and it does show people, particularly republicans who are coming on board the trump train, that the idea that they are going to contain or sort of soften the edges of trump if they surround him and influence him is something of a pipe dream. that was 90% revenge and he exacted it. >> susanna martinez responded today she is not going to be bullied in to supporting trump. final thoughts when

tomorrow on "special report," he says he will not apologize. we will bring it to you. what, exactly is happening with that puerto rico bill up on capitol hill and is there push back? we'll look into that. thanks for inviting us into your home tonight. that is it for this "special report," fair, balanced and unafraid. a little different tonight with that brian fallon interview. greta goes "on the record" right now. guess what? "special report" online is back. and it begins in six seconds. >> it's thursday march 26th. hillary is in hot water over e-mails. donald trump taking direct aim.

>> hillary, as i say crooked hillary, crooked hillary. she is as crooked as they come. she had a little bad news today. >> could clinton's e-mail violations effect her campaign. >> tornadoes destroyed more than a dozen homes. look at that right there. maria molina is on the ground. >> incredible moment of bravery. a little boy fights off two armed men with a fluffy toy. "fox & friends first" starts right now. ♪

>> good morning. that song will wake you up as will the beautiful view of new york city. you are watching "fox & friends first" on this thursday morning. i am heather nauert. >> i am heather childers. thank you for starting your day with us as always. bombshell reports right now. the clinton e-mail investigation wide open. state department inspector general reports the former secretary of state broke the rules by using a personal e-mail server. garrett tenney is here with how the clinton camp is responding. this new roeport will only hurt clinton and her case. they looked at several past