Speaking to former New York City Mayor Rudy Giuliani on Wednesday’s CBS Early Show, co-host Harry Smith asked: "But standing in this building...feeling the enthusiasm, don't you think Republicans have something to worry about?" Giuliani, who has been attending the Democratic convention and will give the keynote address at the Republican convention next week, replied: "No, I think Republicans are very heartened by this convention. Everything seems to have not gone the way they have planned it."

Giuliani went to describe Bill Clinton’s recent anonymous comparison of Hillary and Obama, suggesting Obama was not ready to be president: "...the fact is yesterday, Bill Clinton set up this equation that only Bill Clinton could do, about candidate 'Y' and candidate 'X.' I don't know if you heard that. He said candidate 'Y' is somebody you agree with completely, but don't think is prepared to be president. And candidate 'X' is somebody you agree with half the time but is prepared. Who would you vote for?" Apparently, Smith had not heard about the comment as he reacted with a surprised: "Wow."

Later, Smith asked about Giuliani’s upcoming speech at the Republican convention and managed to remark on how much he liked one of Hillary Clinton’s one-liners from her Tuesday night speech: "Let me ask you this question because, as your convention comes up next week in the twin cities, and I have to say, Hillary Clinton had a very funny line about that. You can't tell them apart, George Bush and John McCain, twins just like the twin cities. What do you think your most important job is next week? Because this election is as close as can be in terms of the polls."

Earlier in the segment, Giuliani criticized Clinton’s speech: "I noted that she did not answer the major question that she's raised about Barack Obama. She's the one who said during the primary that he's not prepared to be President of the United States, as Joe Biden did, and nowhere in that speech did she answer that question about his character, his ability to lead." Smith had no comment on that observation, but instead went on to ask about Republicans being worried by Democratic enthusiasm.

Here is the full transcript of the segment:

7:08AM SEGMENT:

HARRY SMITH: Democrats aren't the only ones at the convention. Republicans are here, too, in force, watching intently. One of them is Rudy Giuliani. He's giving the keynote address at the Republican convention next week. He is with us, actually here in the Pepsi Center about, oh, maybe 40 rows away or so. Good morning, Mr. Mayor.

RUDY GIULIANI: Good morning. This is a strange place to be early in the morning, but-

SMITH: How does it -- how does it-

GIULIANI: -they were very nice to me last night when I showed up.

SMITH: Well, it's very interesting, because I saw Governor Romney, I spent a little time with him. I said you guys are like the merry pranksters. You guys are having more fun than legally possible.

GIULIANI: We are. I enjoyed Hillary's speech. I noted that she did not answer the major question that she's raised about Barack Obama. She's the one who said during the primary that he's not prepared to be President of the United States, as Joe Biden did, and nowhere in that speech did she answer that question about his character, his ability to lead. The things that are really at issue here. And-

SMITH: -here's the other thing though-

GIULIANI: -but she did make it clear that they agree as Democrats.

SMITH: But standing in this building-

GIULIANI: And you know, it's the-

SMITH: -feeling the enthusiasm, don't you think Republicans have something to worry about?

GIULIANI: No, I think Republicans are very heartened by this convention. Everything seems to have not gone the way they have planned it, and the fact is yesterday, Bill Clinton set up this equation that only Bill Clinton could do, about candidate 'Y' and candidate 'X.' I don't know if you heard that. He said candidate 'Y' is somebody you agree with completely, but don't think is prepared to be president. And candidate 'X' is somebody you agree with half the time but is prepared. Who would you vote for?

SMITH: Wow.

GIULIANI: It sounded to me like Hillary Clinton was talking about candidate 'Y' last night and never answered the question about is he prepared to be president. And until she does, you're going to have a lot of Hillary Clinton supporters that are either not going to vote, I talked to some of them here, or are going to vote for John McCain.

SMITH: Mayor is there -- is this -- I don't remember any precedent for this, where I've actually seen very, very high profile members of the opposition party literally in the same building during the convention. You're here. We're going to talk to you.

GIULIANI: Well, you know, I was there four years ago, the morning of John Kerry's speech. You know, the one where he reported for duty. I was on the floor of the Democratic convention then, too. So this is my second one. And Republicans came to -- I mean, Democrats came to our convention in New York. So this change in tradition goes back at least one campaign.

SMITH: Let me ask you this question because, as your convention comes up next week in the twin cities, and I have to say, Hillary Clinton had a very funny line about that. You can't tell them apart, George Bush and John McCain, twins just like the twin cities. What do you think your most important job is next week? Because this election is as close as can be in terms of the polls.

GIULIANI: My most important job is to talk to the Republican convention and the people from the heart. I mean, John has been a friend of mine for 20 years. He's been someone that I consider a hero. Even when I ran against John, I announced that if I wasn't running, I'd be supporting him. So my job is to explain to the American people why John McCain would be so much more effective a leader than Barack Obama, who has no experience.

SMITH: Mr. Mayor, we thank you for your time this morning. Take care.

GIULIANI: I will. I'll be safe. You be safe, too.

SMITH: Take care, right.

—Kyle Drennen is a news analyst at the Media Research Center.