Kerry got his turn to question Fox and started out politely enough,
praising Fox's up-by-the-bootstraps life story and his generosity with
non-political charities, while also asking him about American foreign policy
vis-à-vis the European community.

The tone then changed sharply when Kerry switched gears and, indicating he
had concerns about Fox's judgment, said "I assume that you believe the truth in
public life is important."

"Yes, sir," answered Fox.

"And might I ask you what your opinion is with respect to the state of
American politics, as regards the politics of personal destruction?" said
Kerry.

This started a lengthy monologue from Fox in which Bush's nominee railed
against how campaigns are funded in the United States, saving most of his bile
for 527 groups, saying " I'm against 527s, I've always been against 527s. I
think, again, they're mean and destructive, I think they've hurt a lot of good,
decent people."

I'm sure some people in the hearing room must have been stifling laughs
hearing something like that coming from a man who was a major contributor to the
scummiest 527 group ever, but the worst was to come in the next few
sentences.

"Senator Kerry, I very much respect your dedicated service to this
country," said Fox. "I know that you were not drafted -- you volunteered. You
went to Vietnam. You were wounded. Highly decorated. Senator, you're a hero. And
there isn’t anybody or anything that's going to take that away from you. But yet
527s tried to."

Here's the exchange that followed:

Kerry: I certainly appreciate the comments you just made, Mr. Fox, and I'm
not looking for anyone to call me a hero. I think that most heroes died, and do
die, and those of us who are lucky enough to get out of there are lucky.But
notwithstanding the comments you made, you did see fit to contribute a very
significant amount of money in October to a group called Swift Boat Veterans for
Truth, correct?

Fox: Correct.

Kerry: Why would you do that given what you just said about how bad they
are?

Fox: Well, Senator, I have to put it in the proper context and bear with
me. Marilyn and I have lived the American dream -- there's no question about it.
My father came here with the clothes on his back and the Fox family and the
Woodman family have truly lived the American dream that's been very, very good
to us.I heard someone mention here that we gave to 250 charities. I also went
back and had my staff count in '05 and '06, we've made more than 1,000
contributions. More than 100 of those were political, 900 and some odd were
charitable and to institutions of learning and so forth. A great deal of those
had to do with basic human needs. I think it was Senator Danforth who mentioned
every time he got a letter that had Harbour Group on it, he shuddered because it
was going to cost him money. Marilyn and I both raise a lot of money from a lot
of people.The point I'm making is this: We ask a lot of people for money and
people ask us for money. And very fortunately, we've been blessed with being
successful financially and when we're asked, we generally give -- particularly
if we know who gave it.

Kerry: So, well, who asked you to give to the SBVT?

Fox: I can't tell you specifically who did because, you know, I don’t
remember. As a matter of fact, if I…

Kerry: You have no recollection of why you gave away $50,000?

Fox: I gave away $50,000 because I was asked to.

Kerry: But you have no recollection of who asked you to give away
$50,000?

Fox: No, sir. I've given away sums much larger than that to a lot of other
places and I can't tell you specifically who asked me, no.

Kerry: Well, you don’t think that's it's important as a citizen, who
doesn’t like 527s to know where your money is going and how it’s going to be
spent?

Fox: Well, I think with most contributors and if you go to the other side
of the political campaigns and we give to individual candidates, we don’t know
how they’re going to use that money and what…

Kerry: Well at least it's accountable to an individual candidate for whom
people have to vote or not vote. 527s as you said are mean, ugly and not
accountable.

Fox: I agree with that. I absolutely agree with that.

Kerry: Why would you give $50,000 to a group you have no sense of
accountability for?

Fox: Well, because if 527s were banned, then it's banned for both parties.
And so long as they’re not banned…

Kerry: So two wrongs make a right?

Fox: Well, I don’t know, but if one side is contributing then the other
side…

Kerry: But is that your judgment? Is that your judgment that you would
bring to the ambassadorship? That two wrongs make a right?

Fox: No, I didn’t say that two wrongs make a right, sir.

Kerry: Why would you do it then?

Fox: Well, I did it because politically, it's necessary if the other side
is doing it.

Kerry: My question to you is why? When you say you couldn’t have known --
these were people very publicly condemning it. How could you not have
known?

Fox: I guess, Mr. Senator, when I'm asked I just generally give.

Kerry: So, again, I ask you the question, do you think now that you and
others bear responsibility for thinking about where we put money in American
politics? What we're saying, what we present to the American people -- is truth
important or isn’t it?

Fox: Senator, if I had reason to believe and if I were convinced that the
money was going to be used to, in any untruthful or false way, knowingly, I
would not give.

Kerry: Well, sir, let me ask you this question: Did you or did you not in
any of the public comments being made at the time, which I assume you were
following, hear or read of any of the public statements at that point in time,
with respect to the legitimacy of these charges and these smears?

Fox: Mr. Senator, I can say this…

Kerry: Did you miss this: In September of 2004, Vice Admiral Ruth, with the
Navy Inspector General, wrote a letter to the Secretary of the Navy that was
made public -- the New York Times, the Washington Post, every major newspaper in the country carried, saying their examination found that the existing
documentation regarding my medals was legitimate.Did you miss that too?

Fox: I don’t remember those, but I'm certain at the time I must have read
them.