Gen. Paul Vallely Exclusive!

This is a partial transcript from "Hannity & Colmes," November 8, 2005, that has been edited for clarity.

ALAN COLMES, CO-HOST: We start with a potentially explosive development in the CIA leak investigation. Did Ambassador Joe Wilson expose his wife himself? That's exactly what our next guest says. Joining us now, in an exclusive interview you're not going to see any place else, FOX News military analyst and retired Major General Paul Vallely, who says that Wilson told him that Valerie Plame was a CIA agent in 2002.

General, where did this happen?

MAJ. GEN. PAUL VALLELY, FOX NEWS MILITARY ANALYST: Well, Alan, Joe Wilson and I met in Washington in the green room of the bureau there for FOX, met several times in 2002. And as we talked about our families, he did not say that she was an agent, only that she was employed by the agency.

And, as we've since learned, she is, in fact, and has been an analyst in Washington for a number of years. So that, basically, is how we met and how we discussed that.

COLMES: I went through the files here to find out when you were both on shows together or when you might have crossed paths. I couldn't find it. Could you tell me what show it was or when you were both in the green room together?

VALLELY: Well, FOX has that all in the archives. Joe Wilson did about 25 shows, and maybe more, between August and December 31st, 2002. So...

COLMES: Let me show you what the special prosecutor said when he gave his news conference, right after the indictments about revelations about Valerie Plame. Here's what he had to say.

(BEGIN VIDEO CLIP)

PATRICK FITZGERALD, SPECIAL PROSECUTOR: In July 2003, the fact that Valerie Wilson was a CIA officer was classified. Not only was it classified, but it was not widely known outside the intelligence community. Valerie Wilson's friends, neighbors, college classmates had no idea she had another life.

(END VIDEO CLIP)

COLMES: I find it remarkable that that would be the case, and yet you're claiming he told you. Did you talk to the FBI, or do you plan to talk to the FBI?

VALLELY: Well, no, I haven't talked to them. But the point of the show that I did last week on WABC Radio, which sort of sparked all of this, was the fact that many of us as private citizens really challenge the depth and the extensiveness of Special Prosecutor Fitzgerald, because he never called in Joe Wilson or Valerie Plame, who was an analyst, by the way — and that's documented — or any of the hierarchy of the CIA.

And so, to me, that's an incomplete process, and probably should be null and void...

(CROSSTALK)

COLMES: I don't know how you would know who he called in or who he didn't. The indictment said, prior to July 14, 2003 — I'm quoting from the indictment — "Valerie's Plame's affiliation with the CIA was not common knowledge outside of the intelligence community."

So I'm curious. I mean, if you've got information that the prosecutor doesn't have, did you go to him to give him the information? Did you volunteer to talk with him?

VALLELY: Well, Alan, you covered the story. Did you hear anything about CIA, or Valerie Plame, or Joe Wilson being called to testified under oath?

COLMES: I heard a lot of allegations.

(CROSSTALK)

VALLELY: So that's the question we have.

COLMES: No, I'm just wondering...

VALLELY: It's a question.

COLMES: Did you go talk to the FBI, or do you want to talk to the FBI? Or did you go to the prosecutor with this information? Because you're coming out with it now after the indictment's already come out. I question the timing.

VALLELY: Well, as I said, it happened on the radio show, is how I met Joe Wilson. The critical point is that the special prosecutor did not complete an investigation because he didn't bring critical people in under oath. And we think that needs to be done.

The other part is, the hierarchy of the CIA, those who worked around Valerie Plame, it was pretty common knowledge among a lot of people at State Department and CIA that she was an analyst. She was not a covert agent.

SEAN HANNITY, CO-HOST: All right, General, thanks for being with us.

By the way, I want to remind our audience here that we're waiting momentarily. We're going to have all the information for you, results in today's elections, New York, New Jersey and Virginia. A couple of important governors races that are going on. And we'll have the very latest, Dick Morris on our panel, coming up in just a few minutes here.

General, this is important here. First of all, you wouldn't have volunteered to go before the special prosecutor. I mean, that's something, in part of his investigation, he may now ask you.

And this is why I urge people from the beginning to be careful, because discovery has to take place. There's another side of the story yet to be told. But you were in a green room and Joe Wilson himself told you that his wife worked for the CIA agency, for the agency?

VALLELY: It was a casual conversation. We talked about where my wife worked, talked about our careers when Joe served over in NATO.

Listen, there is no personal vendetta here, Sean. I want to make that clear. It all came about questioning why the special prosecutor did not include in his inquiry...

HANNITY: Yes.

VALLELY: ... bring under oath Joe Wilson, Valerie Plame, or anybody in the CIA, as far as we know. So the question is out there to be answered.

HANNITY: Do you know about when — well, they didn't go until the Monday before to question the neighbors, which I found that timing absurd, after a two-year investigation. Do you know around when he told you this, about any — within a three-month time frame, for example?

VALLELY: Well, I — when they first asked me — you know, it's trying to remember what you did a month ago. But it was in the summer of 2002 or early fall, probably...

HANNITY: Right.

VALLELY: ... the frequency, at times, that we were together at FOX in Washington, D.C.

HANNITY: Because, if this was such a secret thing, and his wife lobbied to get him to go to Niger, and then he wrote an op-ed on one of the most controversial issues of our time — there you see these two posing later for Vanity Fair — you know, if he didn't want his wife and his family, and didn't want to draw attention to his family, he wouldn't have written the op-ed, if that was such an important issue, would he have?

VALLELY: No, he wouldn't have. Plus, in the CIA processes there, he signed no confidentiality agreement.

HANNITY: Yes.

VALLELY: And he wasn't an employee of the CIA. So why did they send him over, bring him back, no confidentiality agreement, and then write an op-ed in the paper?

HANNITY: Right.

VALLELY: So there's a lot of unanswered questions here, Sean.

HANNITY: All right. But now, Wilson himself wrote a letter to his attorney asking whether or not he could sue you. I want you to comment on that. You've been threatened with a lawsuit. What do you plan to do here? And do you know of anybody else that he may have told?

VALLELY: Well, WorldNetDaily and I both were absolutely a little shocked on Saturday evening when we got an e-mail from Joe Wilson's lawyers in Washington really asking us to 100 percent retract our statements that were made on the radio show.

And then, within an hour after the lawyer found out that he had a trail of e-mails from Joe Wilson asking, "Can we sue this guy for slander?" And so, from that standpoint, Sean, I'm not going to back down on the fact that we had a casual conversation. And the fact is that we were there together. We didn't agree on a lot of the things about the war, but we agreed to disagree.

HANNITY: And by the way — hang on there, General. As you can see on our screen there, the A.P. has projected Tim Kaine will be the next governor in the state of Virginia. We're going to have more on this in our next segment, coming up in just a second here.

But bottom line: You're not going to give into the threat of a lawsuit. Do you know, specifically, if any other person was told by Wilson himself that his wife worked for the agency?

VALLELY: Well, I have friends back in Washington, D.C., who have told me that, on the social circuit back there, the State Department, the social circles, also in CIA...

HANNITY: Andrea Mitchell.

VALLELY: ... that it was very well-known that she worked for the agency. She was an analyst, not a covert agent.

COLMES: All right, General. Thank you for being with us.

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