LARRY KING: Let's go to the governor of New York, David Paterson. All right. Let's get right to it. What's your position on this proposed Islamic community center and mosque? It's going to be two blocks, if built, from Ground Zero. What do you think?

GOV. DAVID PATERSON (D), NEW YORK: Well, Larry, I think that there is no local, state or federal statute or any clause of the Constitution that would prohibit the mosque from being there. And so therefore anybody that thinks otherwise clearly is not realizing what has really been the bedrock core of the principles of our liberty.

But I think the issue --

KING: How about --

(CROSSTALK)

KING: I'm sorry, go ahead.

PATERSON: Well, no, Larry, I'm waiting for you.

KING: All right. What about the emotional aspects? Legally, of course, you may be completely correct. People have a right to build. How about the emotional aspects, over 3,000 killed?

PATERSON: Well, that, Larry, is exactly the point. You know, the precept of Greek tragedies is that the right are clashing with the right. And I think that's what's happening here.

I've just defined the reasons why the mosque and the developers have every right. It's their property to build on. But let's look at what's going on at Ground Zero. First, they were the epicenter of the first attack on this country, on our own soil.

We were, in addition to that, subjected to traffic delays for security. Service interruptions. For years. And then people were living in peace and working in safety as they were promised were not.

And you've got a 9/11 bill that we're still trying to get through Congress to help the sick and the families of those who were lost. Then you have a trial of some of the perpetrators scheduled to be put right in the area.

That issue has never been resolved. So I think that the stationing of this mosque and that area really has just been further anxiety and creating great fear for the people who live there. And I hear that fear. And so --

KING: All right.

PATERSON: -- what I'd like to do is talk it over, if possible, with those who are developing and looking to build the mosque.

KING: You have not talked to them yet?

PATERSON: We've talked on the staff level. We had a meeting scheduled for Monday. We postponed it because the imam was still traveling in the Middle East. And we're hoping to get together but only if they want to get together.

There's no attempt at pressure or coercion here. I just like to talk about what might be a magic moment in our history. We don't want those who -- terrorists who attacked our country to have any more time than they deserve fostering division among us.

And it's my firm --

KING: When you --

PATERSON: It's my firm belief that if we talk about perhaps maybe some way of working this out, which would be suitable to both parties, it would be a great day for this country.

KING: Simply put, Governor, if they asked you your input, would you ask them to seek another location?

PATERSON: I'm -- it's certainly a suggestion worth considering. We wouldn't violate any laws. All these transactions have to be at arm's length. But I think that that might be a way that would suit the needs of a community that was actually there in some form before what happened on September 11th.

And at the same time recognize that I think the people who have lived in that area have been through too much. The scars of that day have not healed. And we owe all of them, more than anything else, our greatest respect and admiration for staying there and trying to rebuild that needed section of Lower Manhattan.

KING: All right. As governor of New York, you can't stop it legally. You can certainly put the pressure of your office on them or suggest it. Do you think the president should --

PATERSON: I would never do that, Larry. I'm not putting the pressure on anyone. I just want to have a dialogue, to think about what a magic moment -- you know, sometimes -- you know, back in 1984 in Auschwitz, there was obviously the -- the convent that was moved in 1993 after there was heightened tension and intervention by the Vatican.

And what he said at that time was that this would help to keep the peace. So the sacrifice often ignites compassion. So if one of the two sides of this issue would stop engaging in who's right, who's wrong, who's winning, and who's losing, what's good and what's bad, and think about how to bring us together, that sacrifice might bring us all together in a way more so than we had been before this.

KING: Should the president get more involved?

PATERSON: Well, I think that the president spoke very eloquently on the issue and so have many others. Not to leave out the mayor of the city of New York. But I think there's another half of this problem which is that so many people who normally would understand this issue are very upset by the fact that this is happening.

And what that tells me is that the wounds of 9/11 haven't healed. And I think if they haven't, perhaps we can find ways to bring about that healing by perhaps creating a situation where people will feel more comfortable.

And if anything else, what I think was wrong after September 11th is that we did not appeal to the religious leaders of the world, all of them, to condemn this act of wanton violence.

And so perhaps --

KING: So you think --

PATERSON: -- spiritually we can get through this period by dialoguing with each other in a way we never have before.

KING: So you think there is a solution acceptable to all sides?

PATERSON: I think if we work hard enough that we can find one. And if people would stop talking about what's impossible and talk about what is -- that what could actually happen, if people put their heads together, maybe we could find a site that's away from the site now but still serves the catchment area, that would be a noble gesture to those who live in the area who suffered after the attack on this country, and at the same time would probably in many ways change a lot of people's minds about Islam which is really a peaceful religion practiced by peace loving people.

KING: Always good having you with us. Thank you, Governor.

PATERSON: Thank you, Larry.

KING: Governor David Paterson, the governor of New York.