Fox News The Big Story with John Gibson - Transcript

Fox News Network

SHOW: THE BIG STORY WITH JOHN GIBSON (17:21)

HEADLINE: Interview With Susan Collins

GUESTS: Susan Collins

BYLINE: John Gibson, Bret Baier

BODY:
GIBSON: Congress is moving forward on the $87 billion President Bush wants for Iraq and Afghanistan. But some lawmakers want Iraq to pay back some of that money, once the country is up and running. Republican senator from Maine, Susan Collins joins me from Capitol Hill. Senator, the big question -- should Iraq have to pay back reconstruction money?

SEN. SUSAN COLLINS (R) MAINE: I believe that Iraq should have to repay part of the president's package, $15 billion or so that is designated for construction of the infrastructure. Obviously, Iraq should not have to repay other money, having to do with our military operations or security. But it does make sense when Iraq is back on its feet and is a free, prosperous nation that the American taxpayer receives some money back from Iraq.

GIBSON: Now, senator, I think Iraq is already $200 billion in the hole to a bunch of other countries, including the Russians and the French. Are we talking about tacking this $15 billion or $20 billion on top of that or have we waved our arms somehow and made that $200 billion go away?

COLLINS: I think that $200 billion should go away because those were debts that were incurred by Saddam Hussein. The largest creditors are Saudi Arabia, France, Germany, and Russia. If at least three of those nations had had their way, Saddam Hussein would still be in power. So, I don't see the new Iraqi government having a moral or a legal obligation to pay the debts that were incurred by Saddam.

GIBSON: Well, I guess what I'm asking is, you know, you get a treaty of Versailles thing going here where the country comes out into its new, peaceful existence, so burdened with debt, that it never really gets rolling and it causes more resentment, more discontent with us, more temptation to arm and lash out in some way. Isn't this -- and I think the administration is saying we've got to give them this money, just to get 'em going?

COLLINS: I'm not talking about repeating the mistakes that were made after World War I. The American people are generous and we understand that Iraq needs our help now and cannot afford to repay this money today or even next year. But, ultimately, Iraq is going to be a prosperous nation. It has the second largest oil reserves in the world. It has abundant natural resources and an educated population. It seems to me that it would help lessen the impact on the American taxpayers if, ultimately, in the long- term, the Iraqi people repaid a small percentage of the investments that we're making in their country.

GIBSON: Now senator, you know, the president is a tax-fighting beast. He wants to cut taxes everywhere there are. And I'm sure he doesn't want to load up the American taxpayer with extra burdens. What response are you getting from the administration from your own president, your own party, about, hey, let's have 'em pay it back?

COLLINS: Well, the administration, needless to say, is standing by its original proposal. But discussions are ongoing and I'm finding there is considerable interests within the Republican caucus in structuring $15 billion or $10 billion of the $87 billion supplemental, which I agree we must pass as a loan to the Iraqi people. And, again, there's nothing punitive about this. We're talking about a loan that would be repaid only after the Iraqi economy has recovered. And I have to say that I think it would be outrageous if any American tax dollars are going to Iraq so that it could repay the debts that were incurred by Saddam Hussein.

GIBSON: Yes. Senator Susan Collins of Maine. Senator, thank you very much. It's good of you to talk to us.

COLLINS: Thank you.