"Mayor Giuliani believes Hugo Chavez is not a friend of the United States and his influence continues to grow because of our increasing reliance on foreign sources of oil," the statement said. "As the mayor has consistently stated -- the development of alternative fuels is a priority that demands a solution in order to ensure the United States energy independence."

The Citgo lobbying contract represents the first time that a client of one of Giuliani's private businesses has become an issue for his campaign. The campaign had previously acknowledged that his clients might be used against him .

Q: “What about grants for sex education in the United States? Should they include instructions about using contraceptives? Or should it be Bush’s policy, which is just abstinence?”

Mr. McCain: (Long pause) “Ahhh. I think I support the president’s policy.”

Q: “So no contraception, no counseling on contraception. Just abstinence. Do you think contraceptives help stop the spread of HIV?”

Mr. McCain: (Long pause) “You’ve stumped me.”

Q: “I mean, I think you’d probably agree it probably does help stop it?”

Mr. McCain: (Laughs) “Are we on the Straight Talk express? I’m not informed enough on it. Let me find out. You know, I’m sure I’ve taken a position on it on the past. I have to find out what my position was. Brian, would you find out what my position is on contraception – I’m sure I’m opposed to government spending on it, I’m sure I support the president’s policies on it.”

Q: “But you would agree that condoms do stop the spread of sexually transmitted diseases. Would you say: ‘No, we’re not going to distribute them,’ knowing that?”

Mr. McCain: (Twelve-second pause) “Get me Coburn’s thing, ask Weaver to get me Coburn’s paper that he just gave me in the last couple of days. I’ve never gotten into these issues before.”

In the case of Club For Growth, I’ve got to be honest with you. Ronald Reagan taught me the 11th Commandment, and that is you don’t speak ill of other Republicans. The reason why we don’t have a majority in the Senate today was the attacks that Club For Growth made on Lincoln Chafee, the Senator from Rhode Island, a liberal Republican Senator, but would have voted for Mitch McConnell to be the Majority leader of the Senate. They have continuously attacked Republicans that they don’t agree with. I believe in the big tent party. I believe there’s room for someone from Rhode Island that may not agree with everything that I agree with. But I still want him in the Republican Party. That’s not the case with the Club For Growth. So I’m not sure what the Club For Growth and I have really in common.

On McCain's claim he has little in common with the Club: "I would ask McCain, he said he doesn't have anything in common with us. He doesn't believe in low taxes? He doesn't believe in limited government? He doesn't believe in free trade?"

On the fact that McCain has missed so many conservative summits of late (he also skipped both CPAC and the National Review conference): "He keeps claiming he has scheduling conflicts, but people are growing suspicious that there's more to the story."

On McCain's charge about Chafee: "We pretty much think Linc Chafee was a goner anyway."

And her own suspicions on why McCain is skipping the Club's upcoming event: "I think he was afraid of getting booed. I’ve seen some political pundits say that, that it was smart for McCain not to show up, because he risked getting booed."