• With: Diane Sawyer

    O'REILLY: All right. So you are going to have a whole new change. Now, I want you to come back mid-campaign.

    SAWYER: I'll be back.

    O'REILLY: Ok, good.

    SAWYER: I will fully be back.

    O'REILLY: One of the things that you changed. I worked at "World News" when Peter Jennings was on the desk. And you were working, I think "20/20" at the time or one of those news magazines.

    SAWYER: "Primetime".

    O'REILLY: "Primetime" ok. One of the things that Jennings resisted, ok, was an advocacy position in the broadcast. He was an old-school guy, just straight down the line, another liberal guy. But Jennings, he won in fairness. That's why -- he liked me.

    You have taken a little bit more advocacy in a sense that you are trying to get Americans jobs on "World News". Right?

    SAWYER: "Made in America."

    O'REILLY: Yes.

    SAWYER: We are not diluted about the world economy and global economy. But we have talked to every single person we can to ask the same series of questions which is what will create jobs for Americans and is there something -- we're galled that American flag pins are made overseas. When we go in the Museum of Natural History, we go into the Smithsonian and their gift shops are filled.

    O'REILLY: With Japanese, Chinese stuff.

    SAWYER: As other things. Is it time to stop saying to ourselves, what is it in our closet. What in our house? You know our number? $3.33 per person a year will create 10,000 American jobs.

    O'REILLY: Is it a union intrusion though because the manufacturing can be done for far less overseas than here because the union rules here as we have covered now for months are pretty stringent.

    SAWYER: Well, you have wages overseas that have been so much lower than here.

    O'REILLY: Yes, because they don't have unions over there.

    SAWYER: Not a function of unions. You have Chinese, you have the billions of people in China. But they're rising to 17 percent a year, the Chinese salaries are rising. Some companies are bringing them back here because not only are the American workers fully competitive but they are more productive.

    And we're just saying, all things being equal -- all things being equal, why not say when you walk in the store hey --

    O'REILLY: Buy American.

    SAWYER: Is there something American?

    O'REILLY: I have a GM car. No Volvo for me. I'm buying a GM.

    SAWYER: But you know one of the things we're going to be asking. It's a really interesting question. Which creates more jobs actually pound for pound more jobs -- a car, a GM car made here or a Toyota car made here? They create equal --

    (CROSSTALK)

    O'REILLY: I think you are on the right track, buy American if you can.

    SAWYER: Will you take the challenge?

    O'REILLY: Sure. Whatever you want, Diane, I'll take.

    SAWYER: The challenge is to go into your house and you e-mail and tell me what's made in America.

    O'REILLY: All right. And I will set on fire anything that's not --

    (CROSSTALK)

    O'REILLY: Diane Sawyer, everybody. We are watching her. She'll be back and we appreciate it.

    SAWYER: Ok.

    O'REILLY: Thank you very much.

    SAWYER: I'm going to be back.

    O'REILLY: Excellent.