Transcript: Clinton and Giuliani

And then I'm troubled by the symbolism of it, also. It seems to me that the Obama administration is getting away from the fact that we're at war with these terrorists. They no longer use the term war on terror. They have been very slow to react to the whole situation with Major Hasan, which was clearly a terrorist act in the name of Islamic terrorism. Gosh, he announced it as such when he did it. He was carrying around business cards saying "soldier of Allah."

So, it would seem to me that this is the worst symbol to send, that this is a civilian matter. It was the mistake we made in '93. In '93, we treated the attack on the World Trade Center as a civilian matter. Understandable back then. We didn't have the example of September 11th. Many people think that was a mistake.

STEPHANOPOULOS: Let me press you on that. Do you believe that Major Hasan should be tried in a military tribunal?

GIULIANI: I don't know about that. I mean, I would want to see the facts develop. I think the administration has been very slow to come to the conclusion that Major Hasan was an Islamic extremist terrorist. I mean, the reality is, he announced "Allah akbar" when he shot and killed those people. He was communicating with a cleric who was encouraging terrorism. And now it turns out he has -- he even has business cards saying "solder of Allah."

And I suspect that -- I suspect that Major Hasan, although I don't know if a decision has been made, will be tried in a court-martial. I suspect, but he could be tried either way. But these are acts of war.

STEPHANOPOULOS: OK. Let me change subjects now, because we are dealing with this "Going Rogue" book tour of Sarah Palin. She made the cover of Newsweek today. I don't know if you've seen it yet, but we're going to put it up for our viewers right there. It says, "how do you solve a problem like Sarah?" She's there in I think it's a running outfit. She's bad news for the GOP and for everybody else too.

What is your answer to that question?

GIULIANI: Well, I think first of all, being on the cover of Newsweek is good for the GOP. It shows that there is an awful lot of attention being paid to our party. She's an exciting figure in the Republican Party. She's someone who draws an enormous amount of attention.

I saw it for myself, George, this summer when I took her to Yankee stadium. Democratic territory, 7:1 Democrats in the Bronx, probably. She got a great reception. So there's something -- there is something extra special that Sarah Palin has in terms of reaching out to people, and my party needs that kind of excitement.

STEPHANOPOULOS: So you don't believe that...


STEPHANOPOULOS: ... as some others have suggested, that she's going to push moderates out of the party?

GIULIANI: Moderates just shouldn't get pushed out of the party. She -- Sarah can push for the positions that she has. Other people can push for the positions that they have. That's the kind of competition we want. And we want attention on the Republican Party. After all, it's good for a two-party system. And she creates attention. She raises money. She helps candidates. I don't agree with everything that she says, but she doesn't agree with everything I say.

STEPHANOPOULOS: Almost two-thirds of the public doesn't think she's qualified to be president. Do you?

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