Transcript: National Security Adviser Gen. James Jones and Sen. John McCain, R-Ariz.

And by the same token, there are a lot of things that you can do to diminish that existential threat by working hard towards achieving a two-state solution. This is a very strategic issue. It's extremely important. And we're looking forward to having a good, constructive dialogue with our Israeli friends when they visit Washington in the next seven or eight days.

STEPHANOPOULOS: General Jones, thank you very much for your time this morning.

JONES: It's my pleasure to be with you, thanks.

STEPHANOPOULOS: And let me bring in Senator John McCain.

Welcome again.

MCCAIN: Thank you, George.

STEPHANOPOULOS: You just heard General Jones, let's pick up right there. Does President Obama have to say quite clearly to Prime Minister Netanyahu, we've got to begin with the two-state solution?

MCCAIN: Well, I think that it has been previous policy in previous Israeli governments. We respect the results of a democratic process. And the fact is that I think that we have to push the entire peace process forward.

But I'm not sure the timing is right, right now, with a new government in Israel for us to dictate to them their policy. But I applaud the Obama administration's renewed efforts to try and move this process forward.

STEPHANOPOULOS: Let me also ask you about Guantanamo. You saw that the general and I talked about that. And you and President Obama share the same goal where you both say that Guantanamo should be closed. You and the president share the same goal on the enhanced interrogation techniques.

Yet, especially on Guantanamo right now, it appears that there has been rising opposition to the Congress -- to this, what appears to be a necessity, that some of these detainees are going to have to come to the United States.

So how do you work with President Obama to meet the goal that you both have set? MCCAIN: Well, I don't know how you walk it back to the initial announcement. To announce you're going to close Guantanamo within a year, and not have a comprehensive package for how you address these issues that understandably have arisen.

I mean, what do you do -- what kind of process do you put the people through that remain? How do you ensure that they don't return to the battlefield, as about 10 percent of them have, including some very high-ranking people?

What should have taken place, in my view, was the announcement of the closing and an announcement of exactly how we're going to put these people on trial. The Military Commissions Act that Senator Graham and I originally proposed is clearly what they are returning to.

How you -- where you're going to put the people that are enemy combatants that you don't have enough information to convict them, but it's clear that they can't come back...

(CROSSTALK)

STEPHANOPOULOS: That key group, the 5,200, are probably going to have to come and be detained here in the United States, correct?

MCCAIN: I don't know what they're going to do. Because...

STEPHANOPOULOS: Would you be opposed to that?

MCCAIN: I would certainly be -- would -- well, I don't know if I would be "opposed" to it, because I would probably want to judge them on a case-by-case basis. I understand the local objection. And senators and congressmen objection to saying, here are some people that we're just going to dump onto the community.

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