The following is an edited transcript of a chat conducted on Tuesday, March 16, 1999 with GOP presidential candidate Steve Forbes.

Chat Participant: Why did you announce your presidential candidacy on the Internet?

Steve Forbes: I did so because I thought it was a wonderful combination of cutting-edge, high-tech technology and the American tradition of having people as individuals reinvolved with the political process. It's a way of getting your message out in real time, it's a way of getting feedback in real time, and it's a way of involving people who haven't been involved before. In short, it's a way of reviving participatory democracy in America, which is why on our Web site (forbes2000.com) we will be having the electronic equivalent of fireside chats. That is, e-chats. We will have a very active, fast-changing web site.

Chat Participant: How will you be using your Web site and the Internet to get out your message? How will that be different than other presidential campaigns?

Steve Forbes: We have video, we have my daily schedule, we have pictures and news of what we do each day. We have in-depth position papers for those who are interested and we will have the political equivalent of chat rooms so that we can have crew interactivity. We need that kind of dialogue in the political process and we hope to show others the way to do it.

Chat Participant: Some political analysts have noted that you are trying to run in 2000 as a more conservative candidate then you did in your 1996 campaign.

Steve Forbes: The themes in this campaign will be largely the themes of the last campaign. But this time, we think, there will be more time to get these messages across. My campaign can be summed up with the conviction that America is about to experience a new birth of freedom. Freedom from the IRS, freedom for parents to choose schools that work for their children, freedom for patients to choose doctors they trust, freedom for young people to have their own retirement accounts - free from the grasp of Washington politicians. The freedom to be born, and a newly strong military to preserve our freedoms in an increasingly dangerous world.

Chat Participant: Mr. Forbes, what is your opinion on equal rights for gays, same-sex marriages and gays in the military?

Steve Forbes: I believe in equal rights for all. Special rights for none. If a person, for example, has lost a job for reasons not based on performance, that person should sue for "wrongful discharge." Concerning the military, I will follow the advice of the military chiefs who currently recommend the policy of "don't ask, don't tell." I believe in traditional marriage between a man and a woman.

Chat Participant: Mr. Forbes, where do you stand on the downsizing of the military? Will you make further cuts or begin rebuilding?

Steve Forbes: The next president must immediately begin a major rebuilding of our military. Our armed services are now being hollowed out. Our people in the military are not being adequately paid, they are not receiving the training they should, and they are having to cannibalize equipment to keep equipment going. It is a moral disgrace that our government puts our sons and daughters in harm's way without giving them the tools and the backup they need to do the job. We must also begin immediately to build an effective missile defense shield. China has missiles that can now reach California. North Korea will soon have missiles that can reach Hawaii and Alaska. Iran is rapidly developing both nuclear weapons and the means to deliver those weapons by missiles. What are we waiting for?

Chat Participant: Mr. Forbes, if elected, what would be your absolute priorities in the U.S. and regarding foreign policy.

Steve Forbes: When elected, I will begin to restore America's military strength and ensure that we maintain a strong presence in both Asia and Europe as an insurance policy to preserve long-term peace. Smaller nations in Asia badly want a strong, credible American presence. I will also take China to task in every international forum possible for their human rights abuses. I will also work very hard to reduce trade barriers. For example, why not extend NAFTA to Ireland, Britain, and eventually others? Why not begin major negotiations for a genuine free-trade agreement with Japan? Those negotiations will take time, but they will put us on a path that will benefit the people of both countries. And concerning the International Monetary Fund, my view can be summed up with the phrase, "If a doctor is guilty of malpractice, you don't renew his license or raise his pay." Recent American and IMF policies of devaluations and high taxes do more harm than good. Let me close with five principles of economic progress: sound money, low taxes, the rule of law, particularly individual equality before the law, so that entrepreneurs can challenge powerful interests, non-bureaucratic interference in setting up and running a business, and finally, removing trade barriers.

Chat Participant: Mr. Forbes, would you be for the end of the embargo against Cuba?

Steve Forbes: Sadly, there won't be much liberalization in Cuba as long as the Castro brothers are in charge, just as there wasn't much progress in China until Mao left the scene. Once the oppressive hand of the Castros' is removed, all barriers should be lifted, and then you will see Cuba begin an impressive revival.

Chat Participant: Mr. Forbes, would you favor having the European NATO allies take over the military policing in Bosnia and Kosovo?

Steve Forbes: Concerning Bosnia and Kosovo, it was a mistake to put American ground forces in Bosnia, and it would be a mistake to put them in Kosovo. In each case, what should have been done was to arm those who were victims of aggression. In Bosnia, it was primarily the Muslim population, and occasionally the Croats. In Kosovo, the victims are the Albanian majority. We should make clear to Serbia that we will not only arm the Albanians with whatever they need to preserve their security, but also we will use air power to break up any major military offensives that Milosevic, who was the Serbian dictator, might plan. That way, Kosovo can preserve its safety and we won't have to put in American ground forces. The problem is that the Clinton-Gore administration puts our forces in areas with no conception of how and when to get them out.

Chat Participant: How will you save Social Security?

Steve Forbes: The way to save Social Security is to make it clear that we as a nation are rich enough to preserve the current system for those who are on it and for those who are about to go on it. In other words, promises made should be promises kept. There should be no more tampering with adjusting the age of retirement or finding sneaky ways to reduce benefits such as taxing them more, or artificially adjusting the Consumer Price Index. For younger Americans, we should immediately begin phasing in a new system where eventually the bulk of your payroll tax will go to your own individual retirement account. In other words, take Social Security out of the hands of the Washington politicians, and return it to "We the people." The basic problem with Social Security is that Washington does not set aside a surplus, a Social Security surplus, for future beneficiaries. In fact, they don't put the money in the trust fund. Instead they steal it, and spend it now. In the private sector, raiding people's pension funds is illegal. But that is what Washington does with Social Security. If you have a pot of honey, bears will want to put their paws in it. It's in their nature. The same is true of money in Washington. The politicians there can't help putting their paws on it. So don't tempt them. The money should belong to you, and be in your hands, not theirs.

Chat Participant: Mr. Forbes, do you still support a flat tax? I hope so! Will you be emphasizing the flat tax message that you emphasized in 1996?

Steve Forbes: I will vigorously continue advocating junking the current tax code, root and branch, and replacing this abomination with a simple flat tax with generous deductions for adults and children. A family of four, for example, would owe no federal income tax on their first $36,000 of income. Such a family would thereby save $1,700. Anything earned above $36,000 would be taxed at only 17 cents on the dollar. There would be no tax on pensions, and there would be no death taxes. You could leave the world unmolested by the IRS. There is an additional feature that is new. When we phase in the new system, you will have a choice of filing under the new, simple system, or under the old system. That way, you don't have to take my word for it. You can see for yourself which one is better, and I believe that 99 percent of the people will file under the new, simple, honest system.

Chat Participant: How much money do you think you will need to win the Republican nomination? Is there a limit to the amount of money that you will use for your 2000 campaign?

Steve Forbes: I have reassured my five worried daughters that I will spend as little as possible. In fact, we will have a major grassroots effort to raise resources nationwide for this positive campaign. We will get our message across, and that is why we will win. And by the way, if you want to help out, we show you how on our Web site, which is Forbes2000.com.

Chat Participant: What is your strategy to win? Do you need to win Iowa, New Hampshire, the Super Tuesday states? What states are you targeting?

Steve Forbes: We are targeting all of the early states. Our strategy for victory is to have our strong message of a new birth of freedom, and we are putting together strong grassroots organizations everywhere, particularly in the early states. If you wish to volunteer for this crusade, please consult our Web site. We need your help. I'm very grateful for your participation, and I look forward to conversing with you, either on CNN or on our Web site in the weeks and months ahead. Thank you very much.

Chat Moderator: Thanks for being with us today Mr. Forbes.