Corrected entry: Arnold Schwarzenegger originally was offered the part of Reese, something Cameron thought an extremely bad idea. He went to meet with Arnold "to pick a fight with him" to see if he could somehow get him out of the film, but discovered during the meeting that he thought Arnold would be an excellent Terminator. He was therefore delighted when Arnold's agent called him later and said that Arnold really REALLY wanted to play the part of Terminator instead.
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Correction: Not entirely the case. Arnold was the one who suggested he play The Terminator after reading the script and relating more with it. It was he who suggested it, just as Cameron was about to tell Arnold he doesn't want him as Reese, which Cameron responded by saying "That's actually a good idea".