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Full Transcript of Obama's Interview with CNN

CANDY CROWLEY, CNN CORRESPONDENT: Congratulations, Senator, big-time for you.

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Thank you.

CROWLEY: Let me start out with a couple of political questions first. And that is you know and I know that, if Senator Clinton wanted to tamp down this vice-presidential conversation by her surrogates, that she would. She has, as she will tell you, more than 17 million voters. She has come -- she has more delegates than any runner-up in history. Do you have to put her on the ticket?

OBAMA: Well, let me begin by saying -- repeating what I said on Tuesday night. She has been an extraordinary candidate. She's been an extraordinary public servant for years now. She ran as tough a race as could be imagined. And I have nothing but respect for Senator Clinton and what she's going to contribute to the party. And I'm also confident we're going to be unified.

What I've also said is the vice presidency is the most important decision that I'll make before I'm president. And it's something that I take very seriously. I know Bill Clinton took it very seriously when he had to go through this process. Senator Clinton, I'm sure, would take it very seriously if she were going through this process.

So we've got a committee that's made up of some wonderful people. They are going to go through the procedure and vet and talk with people and get recommendations. I will meet with a range of people. And I'll ultimately make a decision. Senator Clinton would be on anybody's short list.

CROWLEY: You don't feel this -- there's an enormous amount of pressure out there for you to put her on the ticket. Do you feel that pressure?

OBAMA: You know, I am a big believer in making decisions well, not making them fast and not responding to pressure. And I think Senator Clinton right now is in the same position I am, which is we just completed 54 contests. We want to catch our breath. We need to take stock of where we are. I'm sure she has to do the same thing.

And so she and I will have a conversation. We won't be doing it through surrogates or the press. To talk about how we move forward, join forces to make sure we are successful in November. And so there's going to be a lot of time for that.

CROWLEY: Isn't it the best way to win over her supporters, though? To put her on the ticket. You've seen, I'm sure, the polling showing that you're dropping in women, sort of down-scale voters and those kind of voters. Isn't it the best way to win them over, is to put them on that ticket?

OBAMA: As I said, I think everybody just needs to settle down. We've just completed this arduous process. It's only been two days. And you know, I think it's both -- not just in my interests and Senator Clinton's interests, but in the Democratic Party's interests and the country's interest to make sure that I make this decision well. And I will be deliberate and systematic about it, because this will be my final counselor when I'm making decisions in the White House. And I want to make sure that I get it right.

CROWLEY: You don't feel at this moment you have to put her on the ticket, is bottom line?

OBAMA: Well, the bottom line is, is that we're going to go through a process, and I'll make my decision some time in the weeks to come.

CROWLEY: When nominees go into this stage (ph), they generally have a signature domestic issue. George Bush, it was the No Child Left Behind. It was cutting taxes. Bill Clinton, welfare. What is Barack Obama's signature domestic issue?

OBAMA: Well, I'm not -- I'm not sure I can restrict myself to one. I think that there are two big issues that have to get done very quickly on the domestic side. We are going to pass a universal health care bill. It is long overdue. The time is right. Not only are families feeling the crunch but our federal budget is feeling the crunch of a health-care system whose costs are out of control. Our state budgets are getting crunched. And business are groaning (ph) under the weight of a broken health-care system.

So I think the time is right for us to revamp our health-care system, not only to provide coverage to everybody but to make it more efficient. The second thing is energy. We've got $4-a-gallon gas. Who knows where it may go by the end of the summer? And I had, obviously, a significant debate with the other candidates about the gas-tax holiday. I believe that's a short-term gimmick.

The only way we're going to deal with gas prices is to have a long-term energy policy. And that means increasingly fuel efficiency in our cars, investing in alternative fuels, drastically revamping how we think about clean energy like solar, wind, biodiesel. And we have to do that, not only for our economy, but also for our national security. We're making Iran wealthier because of our dependence on foreign oil. We're making Venezuela wealthier.

So those two issues are going to have to be dealt with immediately. And -- and that's going to be a handful. So obviously, there will be a host of other things that we have to concern ourselves about, and I'm going to be occupied with dealing with Iraq and Afghanistan, as well. But when it comes to the domestic front, if we can get health care right and energy right, then I think we've started putting ourselves back on the right track.

CROWLEY: I want to ask you about something you said in AIPAC yesterday. You said that Jerusalem must remain undivided. Do the Palestinians have no claim to Jerusalem in the future?

OBAMA: Well, obviously, it's going to be up to the parties to negotiate a range of these issues. And Jerusalem will be part of those negotiations.

CROWLEY: But you would be against any kind of division of Jerusalem?

OBAMA: My belief is that, as a practical matter, it would be very difficult to execute. And I think that it is smart for us to -- to work through a system in which everybody has access to the extraordinary religious sites in old Jerusalem but that Israel has a legitimate claim on that city.

CROWLEY: You've upset the Palestinians with this, who have said -- some of the leaders have said, "It shows he's not for peace if he believes Jerusalem should remain undivided." It -- it causes a problem, doesn't it, as the U.S. being an honest broker?

OBAMA: Well, keep in mind, though, that I've said some things, and I've said even some things yesterday, that probably some Israelis aren't happy with, which is that we have to look at the settlement policy of the Israeli government, and that has not been helpful to peace, as well. That we have to have a contiguous and cohesive Palestinian state that functions effectively.

You know, there are a whole host of areas where I think there's going to have to be compromise on both sides. And what I said yesterday is that we're going to have to start earlier than we have historically on this process. I -- I recognize that a president comes in with a lot of stuff coming at him. But the Middle East peace process is so important that we can't reserve it to the end of a presidency. We've got to start soon, and I'm going to be absolutely committed to making that happen.

CROWLEY: You have said you want to go back to Iraq...

OBAMA: Yes.

CROWLEY: ... see what the situation is on the ground. Is there nothing that they could show you or that General Petraeus could tell you that would move you from wanting to immediately begin removing U.S. troops?

OBAMA: Well, you know, I'd never say there's nothing or "never" or "no way" in which I'd change my mind. Obviously, I'm open to the facts and to reason. And there's no doubt that we've seen significant improvements in security on the ground in Iraq. And our troops, and General Petraeus, deserve enormous credit for that.

I have to look at this issue from a broader strategic perspective, though. And in terms of long-term strategy, I am absolutely convinced that the best thing we can do is to set a clear timetable, tell the Iraqis, "We are going to start pulling out," do it in a careful fashion, make sure...

CROWLEY: When you say "careful"...

OBAMA: Yes.

CROWLEY: ... what are we going to be careful about?

OBAMA: Well, we're going to be careful about two things. One is, we've got to be careful about the safety of our troops. It's not an easy exercise to bring out the thousands of troops that we have there, the tons of equipment that we have there. So we've got to execute that effectively.

But we also have to do it and pace it in a way that works in concert with the diplomacy that's happening inside Iraq and in the region. And it's got to be coupled with increased humanitarian aid, something that we have not done a good job of. It's going to have to be combined with getting the United Nations and other international agencies to put in place monitors so that we can assure that we don't see genocide, we don't see ethnic cleansing taking place.

There's a lot of work that's going to have to be done. It's a very complicated operation. And I've got no interest in doing it carelessly.

(CROSSTALK)

CROWLEY: ... then. I mean, if you took all those things into consideration.

OBAMA: But I think it's important for us to say to the Iraqis, "We're not here for the long haul. It's time for you guys to achieve agreement on critical issues like how you're dividing up oil revenues, how provincial government is relating to the national government. Those are issues you've got to resolve. We are not going to be here forever.

And we will continue to work with you to make Iraq a cohesive, coherent state."

But we have a lot of other interests. We've got to make sure that Afghanistan is not sliding into chaos. We've got to go after al Qaeda much more aggressively. Pakistan, the -- the peace agreements that they've been making with tribal leaders in those areas do not appear to be resulting in a better safety situation for our troops or for the Afghan government.

We've got to deal with Iran. We -- and we have to tamp down the anti-American sentiment that has become so pervasive in the Middle East.

Those are all things that I've got to take into account, and that's why I believe that my Iraq approach is much better to an approach that is, essentially, open-ended when it comes to John McCain.

CROWLEY: They're going to close us down here, but I want to see if I can get two quick answers.

OBAMA: Sure.

CROWLEY: The Gitmo trial has started. You want to close down Gitmo. I've heard you say that many times. What are you going to do with the people inside there, with the prisoners?

OBAMA: What I think that we have to do is transfer them to military prisons and make sure that they are receiving the due process that is necessary. Those who we have tried and we find are not culpable, we need to release. Those who have committed terrorist acts or helped terrorism, we need to imprison.

And -- and so, you know, we have experience dealing with these issues. We -- we've, very effectively, tried and convicted those who were responsible for the first attack on the World Trade Center. There was no sense that somehow or other we were getting soft on them. But it was done in a way that was consistent with our -- our belief in due process and the rule of law. And it sent a message around the world that, even under duress, we're going to stay true to our values.

That's, I think, how we've got to approach these issues.

CROWLEY: Give me your best 30-second pitch for a 45-year-old female Hillary Clinton supporter who's saying, I'm not going to vote for him.

I'm going to vote for John McCain, or I'm going to stay home.

Why does she come vote for you?

OBAMA: We've got, I think, as important an election as we've seen in years, maybe in a generation. And there's going to be a clear choice, and for that 45-year-old woman who is trying to figure out -- how am I going to send my kids to college? I've got a plan to make college more affordable. John McCain doesn't. For that 45-year-old woman who is trying to figure out how do I manage my health care bills? I've got a plan to provide her health insurance if she doesn't have it, and to lower premiums if she does. John McCain essentially is going to provide tax cuts, but may lead to her employer dropping her coverage altogether.

If she's got a son, who is in Iraq right now, maybe on the third or fourth rotation, I'm telling her that I'm going to bring her son home, and start ending our commitment there. John McCain would continue it.

And when that son comes home, I would make sure that that son, or daughter, is getting a G.I. Bill that allows him or her to go to college. John McCain rejects it.

I would tell that 45-year-old woman that we're going to have Supreme Court appointments. And John McCain and I have very different philosophies when it comes to who should be on the bench, and critical issues like a woman's right to choose is going to be at stake. And so on every issue, there are going to be major differences and I think that once people -- once Democrats or Independents or thoughtful Republicans take a look and say, do we want to continue effectively the same policy approaches that we've seen over the last eight years, or do we want to move this country in a better direction because -- if we continue on this current path, we're going to see a decline in opportunity for the American people. I think that's the choice that I feel confident will tip our way.

CROWLEY: Senator, you mention reform (INAUDIBLE) so I have to ask you, Celtics or Lakers?

OBAMA: I am actually rooting for Kevin Garnett. I think he's a great player. But I would say Lakers in six. They look like the best team in the NBA already.

CROWLEY: Thank you very much. I appreciate it.

OBAMA: Thank you.

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