CQ Transcriptswire

Sept. 26, 2008

PART ONE: SEPTEMBER 24, 2008

SPEAKERS: GOV. SARAH PALIN, R-ALASKA

KATIE COURIC, CBS ANCHOR

COURIC: Republican vice presidential candidate Sarah Palin kept up her busy schedule today, meeting with several world leaders who are here in New York for the U.N. session. But she took time out for an interview, and we talked about the financial crisis at length. We began, though, with reports that the lobbying firm of Senator McCain’s campaign manager received payments as recently as last month from mortgage giant Freddie Mac, even as it was failing. I asked for her reaction during our exclusive interview.

(BEGIN VIDEOTAPE)

PALIN: My understanding is Rick Davis recused himself from the dealings in that firm. I don’t know how long ago, a year or two ago, and that he’s not benefiting from that. And, you know, I would hope that that’s the case.

COURIC: But he still has a stake in the company. So isn’t that a conflict of interest?

PALIN: Again, my understanding is that he -- he recused himself from the dealings with Freddie and Fannie and any lobbying efforts on his part there, and I would hope that that’s the case. Because as John McCain has been saying and as I’ve been, on a much more local level, been also rallying against is the undue influence of lobbyists in public policy decisions being made.

COURIC: Then we focused on the $700 billion government bailout of bad debt, and I asked her if she supports it.

PALIN: I’m ill about the position that America is in and that we have to look at a $700 billion bailout. At the same time, we know that inaction is not an option, and, as Senator McCain has said, unless this nearly $1 trillion bailout is what it may end up to be -- unless there are amendments in Paulson’s proposal, really I don’t believe that Americans are going to support this, and we will not support this.

The interesting thing in the last couple of days that I have seen is that Americans are waiting to see what John McCain will do on this proposal. They’re not waiting to see what Barack Obama ’s going to do. You know, is he going to do this and just see what way the political wind’s blowing. They’re waiting to see if John McCain will be able to see these amendments implemented in Paulson’s proposal.

COURIC: Why do you say that? Why are they waiting for John McCain and not Barack Obama ?

PALIN: He’s got the track record of -- the leadership qualities and the pragmatism that’s needed at a crisis time like this.

COURIC: But polls have shown that Senator Obama has actually gotten a boost as a result of this latest crisis, with more people feeling that he can handle the situation better than John McCain .

PALIN: You know, I’m not looking at poll numbers. What I think Americans at the end of the day are going to be able to go back and look at track records and see who’s -- who’s more apt to just be talking about solutions and wishing for and hoping for some opportunity to change and who’s actually done it.

COURIC: If this doesn’t pass, do you think there’s a risk of another Great Depression?

PALIN: Unfortunately, that is the road that America may find itself on. Not necessarily this as it’s been proposed has to pass or we’re going to find ourselves in another Great Depression. But there has got to be action taken, bipartisan effort, Congress not pointing fingers at this point at one other, but finding the solution to this, taking action, and being serious about the reforms on Wall Street that are needed.

COURIC: Would you support a moratorium on foreclosures to help average Americans keep their homes?

PALIN: That’s something that John McCain and I have both been discussing, whether that is part of the solution or not. You know, it’s going to be a multifaceted solution that has to be found here.

COURIC: So you haven’t decided whether you’ll support it or not?

PALIN: I have not.

COURIC: What are the pros and cons of it, do you think?

PALIN: Well, some decisions that have been made poorly should not be rewarded, of course. At the same time...

COURIC: By consumers, you’re saying?

PALIN: Consumers and those who were predator lenders also. That’s, you know, that has to be considered also.

But, again, it’s got to be a comprehensive, long-term solution found for this problem that America is facing today. As I say, it -- we are getting into crisis mode here.

COURIC: You’ve said, quote, “ John McCain will reform the way Wall Street does business.” Other than supporting stricter regulations of Fannie Mae and Freddie Mac two years ago, can you give us any more examples of his leading the charge for more oversight?

PALIN: I think that the example that you just cited, with his warnings two years ago about Fannie and Freddie, that’s paramount. That’s more than a heck of a lot of other senators and representatives did for us.

COURIC: But he’s been in Congress for 26 years, he’s been chairman of the powerful Commerce Committee, and he has almost always sided with less regulation, not more.

PALIN: He’s also known as the maverick, though, taking shots from his own party and certainly taking shots from the other party, trying to get people to understand what he’s been talking about, the need to reform government.

COURIC: I’m just going to ask you one more time, not to belabor the point. Specific examples in his 26 years of pushing for more regulation. PALIN: I’ll try to find you some and I’ll bring them to you!

(END VIDEOTAPE)

PART TWO: SEPTEMBER 25, 2008

COURIC: Governor Palin wrapped up her trip to New York City today, stopping by a visitor center dedicated to 9/11 victims and a firehouse next door. This week, I met with her a few miles north of ground zero, at the United Nations. Much of our discussion focused on foreign policy, which some say could be her weakness. Here now, part two of my exclusive interview with Sarah Palin .

(BEGIN VIDEOTAPE)

COURIC: As we stand before this august building and institution, what do you see as the role of the United States in the world?

PALIN: I see that United States as being a force for good in the world, and as Ronald Reagan used to talk about, America being the beacon of light and hope for those who are seeking democratic values and tolerance and freedom. And I see our country being able to represent those things that can be looked to as that leadership, that light needed across the world.

COURIC: In preparing for this conversation, a lot of our viewers and Internet users wanted to know why you did not get a passport until last year, and they wondered if it indicated a lack of interest and curiosity in the world.

PALIN: I’m not one of those who maybe came from a background of, you know, kids who perhaps graduate college and their parents get them a passport and give them a backpack and say, go off and travel the world.

No, I’ve worked all my life. In fact, I’ve usually had two jobs all my life until I had kids. I was not a part of, I guess, that culture.

The way that I have understood the world is through education, through books, through mediums that have provided me a lot of perspective on the world.

COURIC: Governor Palin, you’ve had a very busy week and you’re meeting with many world leaders.

You met with President Karzai of Afghanistan. I know the McCain campaign has called for a surge in Afghanistan. But that country is, as you know, dramatically different than Iraq. Why do you believe additional troops, U.S. troops will solve the problems there?

PALIN: Because we can’t afford to lose in Afghanistan, as we cannot afford to lose in Iraq, either, these central fronts on the war on terror.

And I asked President Karzai, “is that what you are seeking also, that strategy that has worked in Iraq that John McCain had pushed for, more troops, counter-insurgency strategy?” And he said, yes. And he also showed great appreciation for what America and American troops are providing in his country.

COURIC: The United States is deeply unpopular in Pakistan. Do you think the Pakistani government is protecting Al Qaida within its borders? PALIN: I don’t believe that new President Zardari has that mission at all. But, no, the Pakistani people, also, they want freedom. They want democratic values to be allowed in their country, also. They understand the dangers of terrorists having a stronghold in regions of their country, also. And I believe that they, too, want to rid not only their country but the world of violent Islamic terrorists.

COURIC: You’ve cited Alaska’s proximity to Russia as part of your foreign policy experience. What did you mean by that?

PALIN: That Alaska has a very narrow maritime border between a foreign country, Russia, and on our other side, the land boundary that we have with Canada. It’s funny that a comment like that was kind of made to -- I don’t know, you know -- reporters...

COURIC: Mocked?

PALIN: Yes, mocked, I guess, that’s the word, yes.

COURIC: Well, explain to me why that enhances your foreign policy credentials?

PALIN: Well, it certainly does, because our-- our next-door neighbors are foreign countries. They’re in the state that I am the executive of. And there in Russia...

COURIC: Have you ever been involved with any negotiations, for example, with the Russians?

PALIN: We have trade missions back and forth. We do. It’s very important when you consider even national security issues with Russia as Putin rears his head and comes into the airspace of the United States of America. Where-- where do they go? It’s Alaska. It’s just right over the border. It is from Alaska that we send those out to make sure that an eye is being kept on this very powerful nation, Russia, because they are right there. They are right next to-- to our state.

COURIC: When President Bush ran for office, he opposed nation building, but he has spent, as you know, much of his presidency promoting democracy around the world. What lessons have you learned from Iraq, and how specifically will you try to spread democracy throughout the world?

PALIN: Specifically, we will make every effort possible to help spread democracy for those who desire freedom, independence, tolerance, respect for equality. That-- that is the whole goal here in fighting terrorism, also. It’s not just to keep the people safe, but to be able to usher in democratic values and ideals around the world.

COURIC: You met with former Secretary of State Henry Kissinger, who is for direct diplomacy with both Iran and Syria. Do you believe the U.S. should negotiate with leaders like President Assad and Ahmadinejad? PALIN: I think with Ahmadinejad, personally, he is not one to negotiate with. You can’t just sit down with him with no preconditions being met. Barack Obama is so off base in his proclamation that he would meet with some of these leaders around our world who would seek to destroy America, and that-- and without preconditions being met. That’s beyond naive, and it’s beyond bad judgment...

COURIC: So you’re saying Henry Kissinger is naive for supporting that?

PALIN: I have never heard Henry Kissinger say, yes, I’ll meet with these leaders without preconditions being met. Diplomacy is about doing a lot of background work first and shoring up allies and positions and figuring out what sanctions, perhaps, could be implemented if things weren’t going to go right. That’s part of diplomacy.

COURIC: You recently said three times that you would never, quote, “second-guess Israel” if that country decided to talk Iran. Why not?

PALIN: We shouldn’t second-guess Israel’s security efforts because we cannot ever afford to send a message that we would allow a second Holocaust, for one. Israel has got to have the opportunity and the ability to protect itself. They are our closest ally in the Mideast. We need them. They need us. And we shouldn’t second-guess their effort.

COURIC: You don’t think the United States is within its rights to express its position to Israel, and if that means second-guessing or discussing an option?

PALIN: No, absolutely-- we need to express our right and our concern and...

COURIC: But you said never second-guess them.

PALIN: We don’t have to second-guess what their efforts would be, if they believe it is-- that it is in their country and their allies, including us, all of our best interest, to fight against a regime, especially Iran, who would seek to wipe them off the face of the earth. It is obvious to me who the good guys are in this one and who the bad guys are. The bad guys are the ones who say Israel is a stinking corpse and should be wiped off the face of the earth. That’s not a good guy who is saying that.

Now, one who would seek to protect the good guys in this, the leaders of Israel and her friends, her allies, including the United States, in my world, those are the good guys.

(END VIDEOTAPE)

COURIC: Incidentally, we confirmed Henry Kissinger’s position following our interview. He told us he supports talks, if not with Ahmadinejad, then with high-level Iranian officials, without preconditions.

END

Source: CQ Transcriptions, Sept. 26, 2008

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