This is a partial transcript from "Your World with Neil Cavuto," July 7, 2005, that was edited for clarity.

NEIL CAVUTO, HOST: My next guest says, while the terrorists (search) might have won a tactical victory, strategically, they did not.

Joining me now by phone is Retired Lieutenant Colonel Ralph Peters. Also here, Republican Congressman from New Jersey Jim Saxton of the House Armed Services Subcommittee on Terrorism.

Congressman, I ended it with you, begin with you.

What do you think these guys gained today?

REP. JIM SAXTON, R-N.J.: Well, I don't think they gained anything. I think they did their cause a lot of harm.

My experience over the last two years has been that the American people, and presumably the folks in the U.K. as well, were making 9/11 part of their distant memory. And today woke everyone up again. And you know, that is, on their part, I think was something that does not work in their favor.

CAVUTO: But, Colonel, they must had known they would wake us up again and scare us again. I would imagine they would be tickled pink with that.

RETIRED U.S. ARMY COL. RALPH PETERS: No, I think they were actually engaging in wishful thinking. They were hoping for another Madrid (search), hoping that somehow they would persuade the Brits to pull out.

But the — you know, the Londoners are a very different breed of cat than the Madrilenos. So, I think they did win a tactical victory in the sense that they pulled it off. They proved they can still do it. And they made headlines.

We've got to remember, the terrorists have become addicted to publicity. The global media are their only hope at this point for driving us out of the Middle East, at least in their minds. But, as the congressman observed, they have brought a terrible strategic defeat upon themselves again.

What I tell people is, look at the pictures. Look at the outtake. When Tony Blair (search) was reading the joint statement this morning from the G-8 (search), plus five, look at Jacques Chirac's face. Clearly, I mean, he got the message. It could have been Paris. Every other leader there, all together, they got the message.

CAVUTO: Colonel — and I do want to get back to the congressman in a second. But would it have been Paris? Was London and England more properly chosen because of its participation in the war?

PETERS: Well, I think London was certainly chosen because of its participation in the war.

But, in the long term, Paris is even more vulnerable, because England's Muslims, although there are certainly problems, they are much better integrated in society. They have hope.

It's a huge community. There are some bad apples. But, overall, they don't support this kind of thing. France and other European countries have Muslim minorities that can't and won't and don't want to assimilate, and that the French and Germans, for instance, don't want.

CAVUTO: All right.

PETERS: So, long term, I would certainly see bigger problems for continental Europe.

CAVUTO: Congressman, I didn't hear Gitmo mentioned once today. I didn't hear a lot of talk about abuse of prisoners today. Do you think, in a perverse sense, that this renewed fear, or angst, whatever you want to call it, puts this whole Gitmo thing in perspective, or does it?

SAXTON: You know, citizens of the U.S. are citizens of the U.S. And we have a value structure that does not permit us to mistreat human beings, much different than what we see going on, on the part of our enemies.

The Gitmo issue is certainly one that has concerned a lot of people in the United States. It has caused members of Congress to go and visit there. In fact, I'm leading a group there next Monday. And so, we continue to be concerned about human rights and treating people the way we would like to be treated ourselves.

CAVUTO: All right.

SAXTON: Unlike those who committed these acts of barbarism today.

CAVUTO: Very good point.

Congressman and Colonel, I want to thank you both. Appreciate it.

Content and Programming Copyright 2005 Fox News Network, L.L.C. ALL RIGHTS RESERVED. Transcription Copyright 2005 eMediaMillWorks, Inc. (f/k/a Federal Document Clearing House, Inc.), which takes sole responsibility for the accuracy of the transcription. ALL RIGHTS RESERVED. No license is granted to the user of this material except for the user's personal or internal use and, in such case, only one copy may be printed, nor shall user use any material for commercial purposes or in any fashion that may infringe upon Fox News Network, L.L.C.'s and eMediaMillWorks, Inc.'s copyrights or other proprietary rights or interests in the material. This is not a legal transcript for purposes of litigation.