Donald Trump, the multi-millionaire real estate developer, is sounding more like a politician these days than America's most grandiose and controversial builder. When he disagrees with a matter of policy, he does it in a big way. Today, he sunk $95,000 into a full-page newspaper ad, appearing in many papers, criticizing the administration's foreign policy. Rumblings in the Trump camp point as far as the presidency. Could the Manhattan magnate be eyeing the White House, or is he just calling a bluff? Are you a Republican, Donald? I'm a Republican, yes. So, if there were politics, it would be as a Republican. It would be, I guess, as a Republican. But I don't see that there will be politics. Why the ad, then? I mean, you said you wanted to say it. There are a lot of ways you can say things. I guess an ad is one way. You could have called up shows like this, it would -- trying to have you come on. Why now? Well, it was very easy. I was tired, and I think a lot of people are tired, of watching other countries ripping off the United States. This is a great country. They laugh at us behind our backs, they laugh at us because of our own stupidity and the leaders. I mean, what we have, we have a Persian Gulf situation. You saw what happened today. Billions and billions of dollars are being spent on getting oil for Japan, and they're not paying anything for it. Essentially, they're paying nothing for it. We have tankers going back and forth that our men are protecting, losing their lives. I mean, they're losing their lives, Larry. We're spending billions and billions in protection, and those tankers are going over to Japan. It's just preposterous. I watched the Kuwaiti oil minister the other day laughing as he was explaining how much money they intend to make with the Bridgeton, which has been a total disaster, the Bridgeton. And I said to myself, isn't that a shame. He's talking about how much money they're gonna make, and here we are. He's smiling and laughing. Why don't we get some of it? Why is it that we're protecting, we have frogmen, we have helicopters, we have aircraft carriers, and all sorts of ships, all over the Persian Gulf, so that this man and his little group can make a lot of money? I think it's ridiculous — One of the reasons we say we're doing it is 'cause we've been doing it, and that all previous presidents have endorsed doing it. I guess the kind of thinking of an entrepreneur is, because somebody else said it was right, doesn't make it right. Right? Larry, the country is losing two hundred billion dollars a year. Two hundred billion. This country cannot continue to lose two hundred billion dollars. Japan is one of the wealthiest machines ever created. Saudi Arabia -- and it's not -- hey, lemme tell ya, I'm a big beneficiary of Japan. They buy my apartments in spades. They're fine people. But they must be -- they're laughing to themselves as to what's happening over here. We're not kidding ourselves. They're laughing to themselves, Larry, as to what's happening with this country. But, Donald, a lot of people feel the way you feel. And a lot of people maybe with as much money, or certainly some people with as much money feel the way you feel. Why did you go public? Because somebody had to, Larry. I watch -- and again, it's a very important point. Japan is a money machine. Saudi Arabia is a money machine. Kuwait. These are money machines, the greatest ever created. The United States is -- if it were a corporation, it would be bankrupt. It's losing two hundred billion dollars a year. For years now it's been losing that. What right do we have to go out and defend -- why aren't these countries, these wealthy money machines, paying us for the defense of their freedom and their nations? Why aren't they paying us? We are kind of the world's keeper, are we not? I don't believe we should be. I think Japan should certainly make a contribution. Japan is -- one of the reasons they're so successful is they don't have to worry about defense, because why should they worry about defense when the United States will do it for nothing? I mean, it's crazy. Saudi Arabia. I mean, you saw what happened with Saudi Arabia. We're going through the Gulf. We have old-fashioned, obsolete minesweepers. We ask Saudi Arabia for the use of their minesweepers, which are the best made, the most modern, the best, and they say no? Who are they to tell us no? We're not going to give you our minesweepers? It's ridiculous. They're only there, they're only there because of us as far as that's concerned. We are protective of Saudi Arabia. They should pay for that. Are we going to be hearing more from Mr. Trump on issues like this, as we go along? I really don't know, Larry. This is an issue that's been bothering me. It's been bothering a lot of people that I know. And I think it's an issue that had to be brought out to the fore. The concept of America -- financing and paying, and losing lives for countries that won't even allow us to use their ships, and these are the countries that in twenty-four hours they'd be wiped off the face of the Earth if it weren't for America -- it's ridiculous. By the way, a couple of other things, and then we'll take some calls for Donald Trump. Is it true that you're going to go to New Hampshire in October at the invitation of Mike Dunbar, who's heading a group called "Draft Donald Trump"? Well, I was asked about three or four weeks ago, whether or not -- by a very good friend of mine -- whether or not I'd go to New Hampshire. That's turned out to be now a much bigger deal than I had ever anticipated. And perhaps -- I don't know. I am going. I made the commitment to go. I made the commitment about three weeks ago. And I will go, yes. You will go. Even though you realize now, in just setting foot in that state, people are going to presume things. Well, they can presume whatever they want. I have no intention of running for president, but I'd like a point to get across that we have a great country, but it's not going to be great for long, if we're going to continue to lose two hundred billion dollars a year. You're going to get into the early 90s -- 1990, 1991 -- and the whole thing's going to blow. Because this country cannot continue to support Japan, and Saudi Arabia, and Kuwait, and many other countries that are much wealthier than we are. We're not a wealthy country. You can't be a wealthy country when you're losing the kind of money that we're losing. We're a debtor country. A couple of other things, and then we'll break and take some calls. Don, why don't -- there are some who say this -- why don't people like you -- you and people like you -- build low-income, medium-income housing? Well, as far as building housing is concerned, and low-income housing, I've built a lot of it. I haven't recently, but I've built a lot of it. I've built senior citizens' housing -- and beautiful, beautiful housing. I've built low-income housing, and I'm very proud of it. The policies of the government right now just don't allow it, because really, what's happened, by the tax incentives that were taken away, and by the lack of federal programs -- you used to have federal programs. You don't have them anymore. And it really doesn't allow it to be done on any economic basis. And it's a pretty rough situation. I mean, you just don't have subsidized housing, low-income, moderate-income housing, and it's a really big problem. If they did, you would do it. I would absolutely love to do it. I'd be honored to do it. I used to do it. I mean, people think of me in terms of Trump Tower and all the other jobs. I'm just as proud. I mean, you folks don't talk about it, because maybe it's not as interesting to some people. I am frankly just as proud of all the low-income and the senior citizen housing I built. Well, so far, it's the only building's I've asked about. [Laughter] Casinos. You're very big in Atlantic City. You're going to Vegas? Well, I don't think so. I'm not looking to go to Las Vegas. I have stock in companies that are in Las Vegas, and I'm not particularly looking to do it. We've done a great job in Atlantic City. I'm very proud of the results. We have just about the best casinos I think anywhere in the world as far as that's concerned -- hotel casinos. And we're very proud of it. And that's really -- pretty much where I want to be. What's the drive, Donald, that -- you don't have to do this anymore -- that keeps you wanting to build more and more? Well, it's a creative process. I enjoy the creative process. I like building things. I like building beautiful buildings. I like doing other things. I've been doing a lot of other things. It's a creative process, Larry, and it really gives you something to do with your life, and it's something you can feel fulfilled and proud of when you're finished, if you do a good job. Do you want a break because of what you do -- in other words, are you saying to New York and other places, "I'll come in and do this, please give me what you will, not give to someone else?" No, I'm not looking for breaks. I think I would probably have a harder time getting breaks. I mean, you talk about Ed Koch. The man tried to fight me on so many different things, and he's failed. In each case, he's failed. And it's nice. I like beating -- I really get a charge out of beating Ed Koch. And, it's just one of those things. He's fought me on a lot of different things. He's consistently fought me. And he's consistently lost. In other words, you don't want more or less than anyone else would get? I don't want more or less than anybody else, no. Donald Trump is our guest. He spoke out quite vociferously today in the New York Times and other papers in a major statement on American foreign policy. He's a noted, of course, builder. And we're going to take your phone calls for Donald Trump [Commercial Break] Our guest, the famed developer Donald Trump of New York. We're ready to go to your phone calls. Redlands, California, hello. Hello, sir. Comment and a couple of quick questions. I think it would be really a big mistake for the United States to attempt to tax its allies for protection, because that would demote them to the role of a client state of the United States. And secondly, I think it would also be pretty unconstitutional, because the Congress has the authority to raise armies and support them with taxes for the defense of the United States, not to be hired out as a mercenary force. All right, Donald? Well, number one, it wouldn't at all be unconstitutional. And number two, if you're talking about taxing, I'm not talking about taxing. I think that people should make a contribution, and a major contribution -- other countries -- to this country for what we're doing to keep their freedom, and to keep them free, and to allow them to be free. And would you rather have that, or would you rather see this country go totally bust in another couple of years, because this country cannot afford to defend Japan and every other country in the world? It just cannot afford it. It wouldn't be a tax. It would be more a payment in kind, like for landing space at airports, right? It would a -- you could call it anything you want. To be perfectly honest, I don't care what it's called. But I think that Japan and all of these other countries should certainly pay. They can well afford to pay. Donald Trump's our guest. This is Larry King Live. We go to Toronto. Hello. Yes, good evening, Larry. Hi. My question for Mr. Trump -- it's a two-part question relating to international trade. Is the solution to the American trade deficit to restrict trade through protectionist policies, or to train American business to be more aggressive and entrepreneurial? And I'd also like to know if Mr. Trump would support a Canadian-US free trade agreement. Well, I think, just to answer your first part, I believe it's very important that you have free trade. But we don't have free trade right now, because if you want to go to Japan, or if you want to go to Saudi Arabia or various other countries, it's virtually impossible for an American to do business in those countries. Virtually impossible. Now I have many friends, they go over to Japan, they can't open up anything. They need approvals, they need this, that. In the mean time, Japan comes over to this country, they're buying up Wall Street, they're buying up all of Manhattan's real estate, they're buying -- which is fine as far as I'm concerned because they're paying premium prices that put people like myself in a very good position -- if I ever want to sell something. So, the fact is that you don't have free trade. We think of it as free trade but you right now don't have free trade. And I support anything having to do with Canada because I think they've been one hell of a good ally. Do you do any business in Canada? I do a little bit of business with Canada, and the Canadian people are wonderful people, and they're with us one hundred percent, as opposed to many other people in the world. We support so many countries, that -- I mean, you walk out into the airport, and they say, "Yankee, go home." They have signs all over. "Yankee, go home." But we're giving billions. We don't give anything to our farmers. Our farmers are dying. There's no question about it. Farms that were for generations in families, they're being taken away. The homeless are all over the streets of the major cities, the sick, and the problems. And yet we give billions of dollars in defending countries that have five times more money than we can ever hope to have. It's ridiculous. By the way, if you put up one of your properties for sale at, say, Trump Tower, would the Japanese be at the head of the line, bidding for it? It would be very tough to compete with them, or some other countries. Some other European countries right now, because of what's happening with the dollar, and the yen, and the mark, and the various other currencies. But the Japanese are at the forefront, and it's very, very tough to compete with them in terms of the purchase of anything in this country that's prime. Middletown, New York for Donald Trump. Hello. Hi, Mr. Trump. Knowing that you have major differences with Mayor Koch in New York, would you be interested in a mayoral race against him? No, I don't want to run for the mayor of the city of New York. Being mayor of New York is certainly not an easy job, but it's a job that's very possible to be done correctly. We have a man who's not a competent mayor. I think that most people that live in New York know that. He's been bad for the city. He's been losing a lot of business in the city, and he shouldn't be. And he's really been a pretty big disaster. And I think that probably over the next period of time, something's going to come out where he will not be the mayor of the city of New York hopefully much longer. Should this mayor of the city be someone who knows business? Well, what we need is competence. We don't have that. We have a one-line artist, that's all he is. And, you know, he's sort of got one-liners that are okay but not great, and that's all he's got going and it's a problem. It's a problem because we have the greatest city in the world. It's an incredible, incredible city. And I'm proud of this city. And I hate to see the job that he's done, because it's really been pathetic. You have said -- you have offered to build a huge metropolis on the West Side. NBC apparently -- officials at NBC told me a couple of years ago that that's where they'd like to move. And now there are rumors that NBC may leave 30 Rock and go to New Jersey. But I had a top NBC official tell me he wanted to move to your plan on the West Side. Where is that, now? Well, I think we have a real good chance. You know, again, no thanks to Ed Koch, but I think that we have a real good chance of getting NBC to stay in New York, and we're fighting very hard for it. We have a very, very good shot. And I anticipate that they'll be making the decision over the next four or five weeks. And it'll be a very, very big decision, very important to the future of New York City. Lowell, Massachusetts for Donald Trump. Hello. Yes, hello Larry. Hi. Donald. First of all, I want to commend your stand regards to that other nations should take part in the expense of helping the Persian Gulf. Thank you very much. My question to you is the following: You are a very wealthy man, and have many contacts. Why can't you do more for the hungry and the homeless of New York? Thank you. Well, I think it's a very good question, and I'd like to. The problem that you have -- and you have a major problem -- the problem that you have is you need -- it's such a big, big dilemma. You really need federal government assistance. Not even city government. City governments have to be competent, capable, et cetera. But you really need the federal government to step in. That's why it bothers me so much that where we give this kind of money to the wealthiest countries in the world, and yet for our own people -- the homeless, the sick, the poor, the farmers, who are really going through hell right now -- those people we're not helping. And why should we? I think it's ridiculous. And this country shouldn't be raising taxes. We ought to be lowering taxes. We should have a surplus, not a deficit. Because the kind of money that I'm talking about -- and as the gentlemen before said, you can call it a tax, you can call it whatever you want to call it -- but those countries should be paying us major billions of dollars, and you won't have any deficits whatsoever, and then we'll be able to help the poor, and the sick, and the homeless, and the farmers, and everybody else. Donald, what were you hearing today after that ad appeared? What were people telling you? I imagine you got tons of calls. It was unbelievable, to be perfectly honest. I put the ad in thinking maybe a couple of politicians would see it, and maybe they'd say, "Hey, you know what? That happens to be a great idea, and he happens to be right." We've gotten thousands of phone calls. We've gotten tremendous support. I've never seen anything like it. I have literally never -- I never dreamt that this kind of reaction could have happened from taking a newspaper ad essentially saying, "Hey, we're making a mistake. And this is what we should be doing." West Paterson, New Jersey. Hello. Hello. I'd like to -- hi, Larry -- I want to ask Mr. Trump a question about the Japanese and -- if they keep on buying up all the real estate, in Hawaii and in New York, won't it come to a point where they will be dictating our policy, and we'll be afraid to move against them? I think it's almost to that point now, isn't it? There's a book out, Don, that says that already exists. That Japan is, in a sense, wielding the rope with us. I believe it already is true, to a large extent, and there's no reason for it to be. We had -- if we had the right people, if we had the right people with the right instincts and business ability, there'd be no way that that could happen. And that's why I hate to see what I see. By the way, I like the Japanese very much. I do tremendous amounts of business with them. They do very well as far as I'm concerned. A man just bought a twenty-one million dollar apartment in one of the buildings I own. A what? A twenty-one million. He bought seven apartments. A Japanese man. Wonderful man, he bought seven apartments, put 'em together. He's building a twenty-one million dollar apartment. That's without the cost of construction, by the way. Plenty of money. I like 'em very much. But they laugh at us. They're laughing at this country and the way the country's being managed. And they should be laughing. They should be laughing. Donald. In a three million dollar apartment, if you got Apartment 3B, and 3A is hanging a picture, you wouldn't hear that in 3B, would you? Well, hopefully not in the kind of buildings I make. Okay, now it's just a little question -- from someone -- okay, okay. I know, I know. Ocean City, New Jersey. Hello. Yeah, Larry, and Donald, how are you doing? How are you? I have a comment and a question, then I'll hang up and I'll listen. Go ahead. First off, I really, really enjoyed having Mr. Trump here. As a 32-year-old businessperson myself, I think he is a tremendous role model for young people like myself that look at him and write down their goals and strive to be better. That's the comment. The question is — Thank you very much. I've always felt that NATO and West Germany, I mean, we have all those troops over there -- I feel that they should pay their way. And my second question is -- and I'll hang up -- is, what other topic is near and dear to his heart. Thank you. Okay. Thank you very much. I appreciate it. And I agree with you on NATO. I agree with you on other countries. I don't want to single out Japan. I don't want to single out Saudi Arabia. But these are countries that people understand the kind of wealth we're talking about. And I will single them out, but there are many other countries, and -- taking tremendous advantage of this, including NATO. If you look at the payments that we're making to NATO, they're totally disproportionate with everybody else's. And it's ridiculous. As far as other causes that are near and dear — Yeah. — this is the cause, because if we can solve this, then we're able to take care of something that I conider to be ultimately of ultimate importance, and that is the homeless situation, that is the farmers, that is the sick. We don't have any money. We're going -- this country is busted. And it's busted because we're doing things that we shouldn't be doing. If we had business ability in this country, we'd be making lots of profit -- so-called surplus -- profit. And that profit, that money, could be going to defend our -- and I literally mean defend -- our homeless, and our poor, and our sick, and our farmers. And that's where we ought to be spending the money. Not giving it to countries that don't give a damn for us to start off with. Give me a development forcast for the rest of the 80s. Good or bad, for buildings? I think it's going to be good in New York City. It's been bad in a lot of other places. It's going to get bad unless we do something about this horrible, horrendous deficit. You cannot continue to lose two hundred billion dollars a year. It's going to be so bad that people will never -- I really believe this could be much, much worse, unfortunately, than recession. This could be the step beyond. I hate to use the word "depression," but if we don't solve the two hundred billion a year loss, which is exactly what we have, this country is going to have some very, very serious problem in the early 1990s. One other thing. Could the next presidency be a one-term presidency because of that? I think the next president of the United States could have some very, very, very serious problems. It's gonna be, I think, a very difficult -- it's going to be a very difficult presidency, because of the problems that we're talking about right now. And you don't want it to be Donald Trump. I do not want it to be Donald Trump, but I do want the problems to be solved, Larry. Thanks, Donald. See you in New York. Thank you, Larry.