Jan. 24 Republican debate transcript

Giuliani: Well, first of all, let's distinguish it from the presentation of the $10 million check. That was a very different circumstance.

The prince came to Ground Zero at the request of the White House. I took him there to show him the devastation. I think in part to see how much of an alliance we could get and how much empathy we could get and how much support we could get.

He presented me with a $10 million check for the Twin Towers Fund. And I took it. And then, an hour or so later, he -- I found out he issued a press release attacking American foreign policy and saying that American foreign policy and America's support for Israel was one of the causes of it.

And I gave him the check back, because I thought, and so did the people that advised me, they thought of it as bought money. That's a different circumstance than an investment in a private institution.

America is in a global economy. That's what we are. That's where we are. And we have to look carefully at investments to make sure they're honest, to make sure they're transparent, to make sure there's no other hidden motivation behind it.

But we are engaged in the global economy. And when countries invest in the United States, there's a mutuality of interest that's developed that is helpful to us.

Remember back in the '80s, all of the discussion and worry about Japanese investment in -- I think they even bought your building.

Williams: Rockefeller Plaza.

Giuliani: Right. Well, there was a big worry that it was going to become a Japanese building. And it all changed. What happened? It all worked its way into the economy. Japan and the United States became even closer friends. They're one of our strongest allies now.

I'm pretty much in favor of trade, and I'm pretty much in favor of free trade. You've got to be careful when you have investments like this, that there's no ulterior motive. But if there isn't, then this is a good thing.

And we should be considering what we should be selling to them. We should be very aggressive about the global economy. Americans should be thinking about, how much can we sell to the rest of the world? And how much can we invest in them, as they're investing in us?

Williams: Mr. Mayor, time up.

Russert: The Wall Street Journal-NBC News asked people all across the country in our poll today, "Which party would be better in dealing with the economy?" The Democrats had an 18-point advantage.

With that in mind, and looking at the record over the last seven years, the unemployment rate in 2001 was 4.2 percent; it's now 5.0 percent. The debt was $5.7 trillion; it's now $9.2 trillion. There was a $261 billion surplus; there's now a $250 billion deficit. Gas was $1.47 a gallon; it's now $3.02.

Why should the American people continue a Republican in the White House with that kind of economic record, Senator McCain?

McCain: Because you can be sure, if you watch the Democrat debates, that they will increase spending, they will increase taxes, they will expand the size of government, and they will continue this spending spree which, to a large degree, the Republicans have a greater responsibility. I'll give you some straight talk.

And they will not restore the stability of the entitlement programs, which are becoming more and more unfunded in their liabilities in the future. The Democrats have already run and told us they will increase our taxes, they will increase spending.

Look, the president of the United States signed into law two years in a row pork-barrel-laden bills, $35 billion worth of pork, worth of earmarked projects which are outrageous.

Now, we could have given $1,000 tax credit for every child in America for that $35 billion. Instead, we chose a bridge to nowhere.

I will, as president, veto every one of these big spending bills. I will impose some fiscal discipline.

There is nothing that anything the Democrats have said, except, that I have seen, except tax and tax, spend and spend, elect and elect.

We will clean up our act. And we will regain the confidence of the American people as being careful stewards of their tax dollars. And we will fix this problem with having to borrow money from China, because then we will balance our budget, just like every governor in America has been required to do, as well.