President Barack Obama and Prime Minister John Key delivered these remarks in Washington, DC

President Obama. I want to welcome Prime Minister Key to the Oval Office. We have had occasion to work together at various multilateral summits in Asia, and have always been struck by the intelligence and thoughtfulness that the Prime Minister brings to his work.

Obviously, we are very pleased that the relationship between New Zealand and the United States is growing stronger by the day. Part of that has to do with the great affection that our peoples have towards each other. Part of it has to do with a great deal of common interests and a set of common values.

So the Prime Minister and I discussed a range of economic issues, including our great interest in promoting a more effective trade regime among the Asia Pacific nations, and we're working on this Trans-Pacific Partnership; we hope to have a framework agreement by the time that we go to Honolulu for the APEC meeting.

We discussed how countries can cooperate around disaster response. Obviously we are still heartbroken by the loss of life and property resulting from the earthquakes in Christchurch and are incredibly impressed by the resilience of the people of New Zealand as they rebuild from that tragedy. But both of us, having seen what happened in Japan as well, understand that when these kinds of natural disasters strike it's important for us to be able to pool our resources to help each other.

We discussed our security cooperation and continue to thank New Zealand for its participation in our efforts in Afghanistan. We're very grateful to the outstanding servicemen and women whom New Zealand has sent there.

And we discussed a wide range of regional issues. Our respective foreign ministers are currently in Bali—or at least—I'm not sure if they've left yet—but they're talking about how we can work on a wide range of issues—every-thing from green growth to trying to standardize regulations to include the flow of trade. And throughout this process, whether it's in APEC settings, now the East Asia summit, we've always found New Zealand to be an outstanding partner. And Prime Minister Key personally has always been an outstanding partner on these issues.

So, welcome. We know it's hot out there, so this is a warmer welcome than you perhaps had expected. But we very much appreciate your visit.

I do want to also just make note—we were just discussing the fact that there has been a bombing in Oslo, Norway, as well as a shooting there. We don't have information yet, but I wanted to personally extend my condolences to the people of Norway. And it's a reminder that the entire international community has a stake in preventing this kind of terror from occurring. And so we have to work cooperatively together both on intelligence and in terms of prevention of these kinds of horrible attacks.

I remember fondly my visit to Oslo and how warmly the people of Norway treated me. And so our hearts go out to them, and we'll provide any support we can to them as they investigate these occurrences.

So, with that, John, welcome again. Thank you for being here.

Minister Key. Mr. President, firstly, thank you for the invitation to Washington, to the White House.

Similarly, I echo your sympathies and concern for that situation in Norway. If it is an act of global terrorism, I think what it shows is no country, large or small, is immune from that risk. And that's why New Zealand plays its part in Afghanistan as we try and join others like the United States in making the world a safer place.

We've had a very good and tremendous reception the last couple of days. I want to thank you for that, personally. We're excited about the opportunities of the Trans-Pacific Partnership. We're excited about the chance to put together a regional trade deal which includes the United States and which will expand over time beyond the nine countries—and I think it can deliver strengthened and continued economic growth, jobs and higher incomes and better opportunities.

I just want to thank the United States for its response when it came to the Christchurch earthquake—your urban search and rescue team were fabulous, and your call immediately after the earthquake and the tremendous outpouring of support from the people of America. So thank you very much, indeed.

We are great friends and strategic partners. The Marines are coming down next year to commemorate their amazing contributions—so we're looking forward to welcoming them to New Zealand.

Thank you for allowing us to have this visit. And we thoroughly enjoyed our time here, and we'll see you very soon.

President Obama. You're welcome, and I look forward to returning the visit sometime.

Minister Key. Great.

President Obama. My understanding is the American team is heading out to New Zealand for the World Rugby Cup—

Minister Key. The World Cup—

President Obama.—the Rugby World Cup. And so, good luck, guys. Although I hear the New Zealanders, the Kiwis are pretty good at rugby so—I don't think we're seeded number one. I have confidence that we will acquit ourselves well.

All right? Thank you, everybody.

Secretary Hillary Clinton delivered these remarks with Minister Yang Jiechi in Bali, Indonesia

Secretary Clinton. Well, it is a pleasure to see you again, and to see you here at this important meeting. We have much to discuss when it comes to our bilateral relationship, as well as regional and global issues. I think we will review the progress that we have made since the excellent meeting that our presidents held during President Hu Jintao's visit to Washington. And, of course, I extend greetings to him from President Obama.

We will also have a chance to review the work we did at the strategic and economic dialogue that furthered our cooperation in a number of critical areas. And I want to commend China and ASEAN for working so closely together to include implementation guidelines for the declaration of conduct in the South China Sea. And, of course, we will discuss our mutual desire for peace and stability on the Korean Peninsula. And I look forward to addressing these and other important issues with you. And, again, it is a pleasure to see you.

Minister Yang. Madam Secretary, first of all, I would like to say that, thanks to the current efforts of our two sides, President Hu Jintao's visit to the United States at the warm invitation of President Obama was very successful. The two leaders have reached an important consensus, and they have pointed the way forward. So China would like to work very hard, together with the United States, to keep the good momentum of our relationship, based on mutual respect and mutual benefit.

And I agree with you, that SED has been a success, and the people-to-people cultural exchanges, and the high-level meeting that you had with the Chinese has also been very successful. And looking down the road, I think there will be a couple of very important multilateral meetings in which both our presidents and our top leaders will participate. I refer to the (inaudible) meeting in France, the APEC meeting in Honolulu, and the EAS in this very place, this beautiful island of Bali. And I am sure that we will work together to contribute to the success of these meetings, and I am sure that the top leaders will meet each other, have good meetings, in the course of these important multilateral conferences.

And certainly I would immediately convey the warm wishes and regards from President Obama to President Hu Jintao.

And I do believe that the conclusion of the guidelines for DOC is of great significance, and it will go a long way to maintaining peace and stability and good (inaudible) in this region. And this will also provide favorable conditions for the proper handling and the settlement of the disputes among the claimants.

I also believe, like you, that China, the United States, and the other members of the Six Party Talks need to work together. Anything we can do together to promote a better atmosphere and a good dialogue among the parties concerned, and to work together to restart the Six Party Talks will be in the best interest of peace, stability, and security of the region. And this is also something, I think, which will be warmly welcomed by the participants of the meetings here, and by the international community.

So, I am looking forward to the meeting. I think there is a lot that China and the United States can do together in the Asia-Pacific region so that this region will continue to enjoy peace, stability, and prosperity. Thank you.

Secretary Clinton. Thank you.

Secretary Hillary Clinton delivered this statement in Washington, DC

Secretary Clinton. We commend this week's announcement that ASEAN and China have agreed on implementing guidelines to facilitate confidence building measures and joint projects in the South China Sea. This is an important first step toward achieving a Code of Conduct and reflects the progress that can be made through dialogue and multilateral diplomacy. We look forward to further progress.

The United States is encouraged by this recent agreement because as a Pacific nation and resident power we have a national interest in freedom of navigation, open access to Asia's maritime domain, the maintenance of peace and stability, and respect for international law in the South China Sea.

We oppose the threat or use of force by any claimant in the South China Sea to advance its claims or interfere with legitimate economic activity. We share these interests not only with ASEAN members and ASEAN Regional Forum participants, but with other maritime nations and the broader international community.

The United States supports a collaborative diplomatic process by all claimants for resolving the various disputes in the South China Sea. We also support the 2002 ASEAN–China Declaration on the Conduct of Parties in the South China Sea. But we do not take a position on the competing territorial claims over land features in the South China Sea. We believe all parties should pursue their territorial claims and accompanying rights to maritime space in accordance with international law, including as reflected in the 1982 Law of the Sea Convention.

The United States is concerned that recent incidents in the South China Sea threaten the peace and stability on which the remarkable progress of the Asia-Pacific region has been built. These incidents endanger the safety of life at sea, escalate tensions, undermine freedom of navigation, and pose risks to lawful unimpeded commerce and economic development.

In keeping with the 2002 ASEAN–China Declaration, each of the parties should comply with their commitments to respect freedom of navigation and over-flight in the South China Sea in accordance with international law, to resolve their disputes through peaceful means, without resorting to the threat or use of force. They should exercise self-restraint in the conduct of activities that would complicate or escalate disputes and affect peace and stability including, among others, refraining from taking action to inhabit presently uninhabited islands, reefs, shoals, cays, and other features, and to handle their differences in a constructive manner.

The United States encourages all parties to accelerate efforts to reach a full Code of Conduct in the South China Sea.

We also call on all parties to clarify their claims in the South China Sea in terms consistent with customary international law, including as reflected in the Law of the Sea Convention. Consistent with international law, claims to maritime space in the South China Sea should be derived solely from legitimate claims to land features.

Secretary Hillary Clinton delivered these remarks in Nusa Dua, Indonesia

Secretary Clinton. The United States takes no position on any claim made by any party to any disputed area. What we want to see is a resolution process that will be aided by the code of conduct that ASEAN is working toward, based on the Declaration of Conduct, and that the principles of international law will govern so that there can be peaceful resolution of all the claims. In order to achieve that, every claimant must make their claim publicly and specifically known so that we know where there is any dispute.

All of us have a stake in ensuring that these disputes don't get out of control, and in fact the numbers have been increasing of intimidation actions, of ramming, of cutting of cables, the kind of things that will raise the cost of doing business for everyone who travels through the South China Sea, which as I said earlier is half of all global commerce.

Secretary Hillary Clinton and Minister Marty Natalegawa delivered these remarks in Bali, Indonesia

Minister Natalegawa. A very good afternoon, dear colleagues from the media. I would like to begin once again by welcoming and expressing our appreciation to Secretary Clinton, as well as her delegation, for having attended and participated actively in this second Joint Commission meeting between the United States and Indonesia.

I had begun our discussion this morning by expressing one key thought. First, that during the past few days, as you are aware, Secretary Clinton has given Bali to attend the ASEAN-U.S. meeting, the East Asia Summit meeting at the ministerial level, as well as the ASEAN Regional Forum. And during the course of those sets of meetings, Indonesia and the United States worked very closely, all for the purpose of promoting peace, stability, and prosperity for our region.

But I have also suggested the idea that all those endeavors would not be possible without being anchored by strong bilateral relations, as Indonesia and the United States today enjoy. And that is why today's second JMC is extremely strategic and extremely important. As colleagues will be aware, the JMC process was launched last September 2010 for the purpose of injecting momentum and ensuring concrete (inaudible) to the vision of a comprehensive partnership between Indonesia and the United States.

And during the course of that period, since September 2010 until today, we have seen, based on the report that we have just now received from the six working groups—namely the working groups on democracy and civil society, working group on climate and environment, working group on education, on trade and investment, on security issues, and on energy—based on the submission from the six working groups, I think both Secretary Clinton and I feel ever more confident that the comprehensive partnership between our two countries are in a good state, and that we are actually further deepening and strengthening our collaboration and partnership.

And more specifically, each of the working groups were able to share with the Secretary and myself the kind of progress they have made in their own respective domain, and lay out the concrete work plan for their year ahead, in order to ensure that the momentum is maintained.

More specifically, as you are aware, come next November, in 2011, we are to have the East Asia Summit here in Bali. And on that occasion, we are anticipating, of course, the first participation by the United States, by President Obama, to that summit. And, at the same time, there will be, no doubt, a bilateral meeting between the two presidents: of Indonesia and President Obama. In other words, the work that we are doing now, today, of the JCM, becomes a useful (inaudible) for us to be able to take stock where we are and where we wish to become next November.

So, all in all, I would say, Secretary, it has been—and I am sure you would agree with me—a most productive meeting, and encouraging, as well, because not only have the working groups been extremely diligent and energetic in their work over the past few months, but they continue to be driven by a sense of wanting to achieve better achievement and identifying more potentials for the future.

Of course, besides the issue of bilateral relations, the Secretary and I had the advantage on this occasion to compare notes on various regional and international issues, following on from the discussions that we have been having at the ASEAN Regional Forum, as well as the East Asia Summit at the ministers level.

That is by way of introduction for myself. I should now like to give the floor to Secretary Clinton to also deliver her remarks. Please.

Secretary Clinton. Thank you very much. I want to express my appreciation to the Foreign Minister and the delegation from Indonesia for not only welcoming us today, but preparing the opportunity for such a productive second meeting of our joint commission. As the foreign minister said, we covered a lot of ground. I want to just touch on a few of the highlights.

First, we discussed how to increase trade and investment between our countries. Because while Indonesia is the largest economy in ASEAN, trade between our two countries still lags between others in the region. For example, our trade this year with Indonesia was $20 billion, but our trade with Malaysia was $40 billion. So we want to look at what are the impediments and the potential barriers. How do we reduce tariffs? How do we create more dynamic trade and investment between Indonesia and the United States?

Secondly, we discussed how we can work together more closely to protect the environment and to address the challenge of climate change. I know that is something that the Government of Indonesia and President Yudhoyono has been particularly focused on. I emphasize that, as we enter the final stage of negotiations on a Millennium Challenge Corporation compact that aims to promote low carbon development, we look forward to the quick creation of an accountable national trust fund to implement the compact, and to spur sustainable growth here in Indonesia.

Third, we discussed our shared goal of expanding educational exchanges. And I was so pleased to hear the report from the two chairs of the education working group. We are well on the way to doubling the number of Indonesians who study in the United States, and increasing the number of American students who come to study in Indonesia. We have expanded study abroad initiatives, such as our Fulbright Program, and we are eager to continue to build on that, as we will at a higher education summit to be held in Washington on October 31st.

Finally, we discussed Indonesia's growing role as a regional and global leader, and the important leadership that Indonesia is providing in ASEAN, in the ASEAN Regional Forum, in the East Asia Summit, in APEC, in the G-20, in all the major multilateral fora where the hard problems facing us in the world today are addressed.

This is an exciting time, and I was very impressed by the work that has been done by the working groups. And I think that this comprehensive partnership is, indeed, producing results for both of our people. Because, after all, we have to report to the people of Indonesia, and the people of the United States. And I think they can be reassured that we are not meeting for the sake of meeting; we are meeting to build relationships, to explore potential, and to deliver results for both of our people.

So, again, let me thank the Foreign Minister for his hospitality and his friendship, and to commend you, Marty, on the excellent job done in hosting these important gatherings in the last week.

Minister Natalegawa. Thank you very much, Hillary. Before opening the floor for questions, may I express a sentiment which I am sure Hillary would want to associate herself to, as well? Once again, to reaffirm and communicate our (inaudible) with regard to the attacks that took place in Norway just recently, the loss of life, of innocent lives lost, and our condemnation for that event, yet, at the same time, our confidence in the strength of the Norwegian nation, of its government, to be able to overcome this particular challenge, and that we, as members of the international community, stand by them in expressing our solidarity and support.

Q. Thank you very much (inaudible). I have a question for you, ma'am, and one question to you, Mr. Marty.

First question, I would like to know what is your opinion on how ASEAN works on problems such as the border disputes (inaudible), issues of human rights (inaudible), and especially South China Seas issue. And do you think that we should always be (inaudible)?

My second question. There has been (inaudible) on the human (inaudible) Indonesia following the statement of Human Rights Watch. How (inaudible) participation of human rights in Indonesia, especially (inaudible).

And to Mr. Marty, (inaudible).

Minister Natalegawa. Ah, right. Thank you very much.

Secretary Clinton. Let me begin with responding. I want to commend Indonesian leadership of ASEAN this past year. Because of its active role in promoting a resolution to the border disputes between Cambodia and Thailand. Indonesia played that role very effectively, to the point that both countries have asked Indonesia to continue playing such a role, even after its chairmanship of ASEAN expires.

And I think the international court of justice's decision about the disputed territory between two ASEAN members itself highlighted the importance of ASEAN continuing to seek a permanent resolution.

Secondly, with respect to human rights in Burma, we discussed that in our meetings, in the ASEAN Regional Forum, and in the U.S.-ASEAN dialogue. And I think it is very important that we continue to press the new Government of Burma to take action that will demonstrate a break with the past. And again, here I commend Indonesia's leadership, both as chair of ASEAN, in reaching out to the new government, but also, based on your own experience, I think there is much for Indonesia to share, as to how you make a successful peaceful transition to a democracy as vibrant and successful as the one here in Indonesia.

And with respect to the South China Sea, as you know, that took up a great deal of our time in discussions, both prior to and during the meetings. I have to comment Indonesia's leadership again. Because, as chair of ASEAN, Indonesia led the way to the adoption of the declaration of conduct. I think that it is important for all of us to realize what is at stake here. Because, clearly, the South China Sea is absolutely essential to global trade. At least 50 percent of all global trade goes through the South China Sea every single year. And it is important for us to support freedom of navigation, unimpeded commerce, so there is no question as to the rights of every nation for its ships, its goods to pass through the South China Sea. But it is especially important for the region.

And the United States takes no position on any claim made by any party to any disputed area. What we want to see is a resolution process that will be aided by the code of conduct that ASEAN is working toward, based on the Declaration of Conduct, and that the principles of international law will govern, so that there can be peaceful resolution of all the claims. In order to achieve that, every claimant must make their claim publicly and specifically known, so that we know where there is any dispute. And secondly, all claims must be related to territorial characteristics.

So, we think that it was an important first step, but only a first step in adopting the Declaration of Conduct. And we commend, again, Indonesia's leadership in achieving that, and urge that ASEAN move quickly—I would even add urgently—to achieve a code of conduct that will avoid any problems in the vital sea lanes and territorial waters of the South China Sea.

With respect to—you had two questions in there—with respect to human rights, we have a working group in our Commission on democracy on human rights. We had a very positive discussion about those important issues during the reporting from that working group, and we look forward to continuing to support Indonesia in its important leadership on democracy and human rights, not only in the region, but globally. And, therefore, we look forward to continuing to make progress.

Minister Natalegawa. If I may just also add to the point that Secretary Clinton has made on the South China Sea, Indonesia is acutely aware of the need to maintain momentum. Of course, the conclusion of the guidelines just now—a couple of days ago now—is a very important development. I would not wish to underestimate its importance. But, at the same time, it reminds us of the further work that needs to be done maintaining momentum, maintaining a sense of urgency. And we have a road map at the back of our minds of what needs to happen between now and then, whenever the “then” is. But you can be assured that we have a clear outline and expectations of what needs to happen. And not least, of course, the identifications of elements for Code of Conduct within the process of its eventual conclusion, as well.

On the specific question asked—addressed to myself, namely Indonesia and the United States with regard to the East Asia Summit, as you are very much aware, of course, the process, the very process of United States participation and addition to the East Asia Summit was, among others, a product of a process that Indonesia and the United States bilaterally (inaudible) about.

I remember my first conversation with you, Hillary, in Singapore, if I am not mistaken, at the sideline of a conference. This was an issue that you raised then. And, therefore, even from the beginning, the United States and Indonesia have been engaged in a very thorough way to discuss, to compare notes of our strategic vision of what the East Asia Summit is all about. And now that the United States is part of the East Asia Summit, it is our task, together with the other members of the EAS to give flesh to this—to give value to this forum. And I think that the discussion that we had yesterday was extremely instructive—a couple of days ago now—among others, to ensure that the East Asia Summit, besides discussing the five priority issues that we have been discussing, also deepen and broaden its engagement or discussion on so-called broad strategic issues.

The East Asia Summit must provide solutions to many of the region's challenges, and opportunities, as well. And I am glad that, with the United States being part of the equation, being part of the architecture, then the chances of having this summit providing that answer is suitably enhanced. Thank you.

Q. I am going to follow up on a couple of human rights issues. Foreign Minister, do you believe that the change that occurred in Myanmar, Burma, this year is sufficient for Burma to take its place, for instance, as head of ASEAN? I don't believe the United States thinks so. I mean you both can comment on that.

And in advance of the Secretary's visit, a number of media groups, a human rights group, issued statements critical of Indonesia's handling of the situation in Kampar, saying that aid groups and journalists were being barred, and that there were reports that—of a crackdown on the indigenous people. And I was just wondering if you both can comment on those specifics.

Minister Natalegawa. Thank you. In a way, the questions are somewhat related, as relates to human rights and democratization.

One thing that we have learned in the course of our decade-long now—nearly—democratization is that it is a process. It is impossible to have a snapshot of one moment in time and sort of decide, “Are we there yet, or are we not there yet?” And this is most definitely the case with respect to Myanmar. Myanmar is obviously a work in process, in terms of democratization. To put it more—in a more—I guess—yes, I don't want to use—describe it as a work in progress.

But it is very much related to the issue of chairmanship. As you know, at the moment, the decision has not been made by ASEAN. When we last met as foreign ministers, the decision has been left—not quite done yet. But we have to see and have a sense of—comfort level whether Myanmar is actually prepared and ready to assume chairmanship of ASEAN in 2014. I am aware—we are aware—of the responsibilities and the expectations that is inherent in a particular country chairing ASEAN, especially on the eve of 2015. So we are well aware of that, and we are going to have plenty more discussions among ASEAN member states to ensure that there is a real comfort level about the issue.

On the issue of human rights situation in Indonesia, the kind of concerns that we have expressed, many—we hear such comments and expectations on a regular basis. But the only thing is nowadays it is also a concern that is shared by all Indonesians alike. So it doesn't take an external party to suggest to us we need to do this and that, because it is being—efforts are being made to ensure that our own democratic and human rights expectations are fulfilled, as we expect them to be.

But, you know, as Secretary Clinton has said, we have this working group within this forum on human rights and civil society that has been working not only in promoting bilateral cooperation on human rights issue, but also increasingly now, of cooperation of a multilateral character, as well, a lot of experience sharing that we are disseminating to some other countries in transition, including in the Middle East and North Africa, which shows the potential demonstrative effect that countries like Indonesia, working together with United States, can impact—impart upon our partners, as well. Thank you.

Secretary Clinton. Well, we greatly appreciate Indonesia's leadership in promoting progress toward political reconciliation and democracy in Burma. And, as the foreign minister said, Indonesia's own recent history provides an example for transition to civilian rule and building strong democratic institutions.

And we have, in many different settings, expressed our deep concern about the oppressive political environment in Burma. We have called on the newly-elected government to release political prisoners, open a meaningful dialogue with Aung San Suu Kyi by utilizing decision-makers who can respond to her legitimate suggestions and concerns, and we will continue to press for the kind of changes that we see benefiting the people of Burma in the future.

With respect to Papua, the United States supports the territorial integrity of Indonesia, which includes the Papua and West Papua provinces. We, of course, believe in open dialogue between Papuan representatives and the Indonesian Government to address grievances and support development. But, as the Foreign Minister said, this is a matter for the Indonesian Government, and they are addressing it. And we hope to see full implementation of the special autonomy law for Papua, which is a commitment on the part of the Indonesian Government to address many of the concerns that have been expressed.

Q. Thank you, Madam Secretary and Mr. Foreign Minister. I want to ask about how far this relation has progressed since you (inaudible), especially about the (inaudible) and security sector.

And then, what will U.S. President Barack Obama of United States bring to the East Asia Summit next November? Thank you.

Secretary Clinton. Well, I think that there has been a discernable amount of progress in the relationship between the United States and Indonesia under the Obama Administration. President Obama came to office very committed to deepen, broaden, and strengthen the bilateral relationship between our two countries. And, based on the work that I have overseen, and that I have been able to analyze, given the work of the Commission, I am very pleased by the progress that our bilateral relationship is making.

We, on both sides, have more to do. And so, this is a continuing process that we will be focused on. I know President Obama is looking forward both to attending the East Asian Summit and the U.S.-ASEAN Summit, and his bilateral meetings with President Yudhoyono and others. But this is a very important relationship, one that the United States highly values, and that we are deeply invested in. And I think, based on the progress we have made in a very short period of time, there is a tremendous potential for future cooperation.

Q. Hi. I am Anthony Kuhn with NPR, National Public Radio of the U.S., and I would like to hear both from Secretary Clinton and Minister Marty on this.

To go back to the South China Sea, Secretary Clinton, you have asked claimants to back up their claims in international law. This is probably the most—as China would put it—core interest, or core matter, the thorniest issue you could raise. It has taken the better part of a decade just to come up with a non-binding resolution that says very little about what to do when there are spats. What about the medium term? What about the short term?

What do you propose to address—to prevent incidents which you say threaten security? Might you—although you are both not claimants in this—for example, engage in diplomacy in, say, to claimants, at least try to get to your different domestic departments in line, reading from the same page on this issue? Thank you.

Secretary Clinton. Thank you very much, Anthony. I think that the progress that we saw this year stands in marked contrast to our meeting last year. The achievement of a declaration, as you point out, had been a long time coming, thanks to the hard work and leadership of the foreign minister and the Indonesian Government as chair of the ASEAN meeting, as well as the ARF. There has been progress on the dialogue between China and ASEAN.

The Declaration is a first step. Nobody claims it is more than that. It is a first step. It needs to be quickly followed up on by the code of conduct. There needs to be a lot of dialogue between ASEAN and China in their already-existing mechanism. And the rest of the world needs to weigh in, because all of us have a stake in ensuring that these disputes don't get out of control. And in fact, the numbers have been increasing. The intimidation actions of (inaudible), of cutting of cables, the kinds of things which will raise the cost of doing business for everyone who travels through the South China Sea, which, as I said earlier, is half of all global commerce.

So, we support a collaborative, diplomatic process by all claimants to resolve all of their disputes. What we do not support, and are strongly against, is the use or threat of force by any nation to advance its claims. Therefore, we think simultaneously there needs to be a very concerted effort to realize a code of conduct, and there needs to be a call by the international community for all parties to clarify their claims, both land and maritime, and to conform them to international law, including as reflected in the UN Convention on Law of the Seas.

This is the way the world is supposed to work. And in the 21st century, this is the way it must work. Because no nation can, on its own, manage everything that needs to happen. And those days are and must be over. And, therefore, we have to have the kind of cooperative, collaborative effort that Indonesia has led.

Minister Natalegawa. Well, thank you very much for that question. Collaborative and cooperative mindset is an effort—is certainly exactly the kind of spirit and outcome we are promoting as Indonesia, as ASEAN chair, for our region. Of course, the obvious recent manifestation among others has been on South China Sea, as well as on the Thai-Cambodia situation.

In other words, we are keen to avoid for our region the kind of fault lines and schisms and divisions that may not be—that would not be to the interest of any countries in this part of the world. And the South China Sea, the guideline itself, the Declaration and its guidelines, when you look at it, it may not seem to suggest much. It may not. However, if you look at the broader picture of what it represents, the fact that after about eight years, finally, this year, after much strong effort, and in contrast to—like Secretary Clinton said, in contrast to last year's ambience and conditions, we were able to get this done. I think that is a good start. And it is an asset for us to develop on.

The key point here is that we must make sure that this is not the end of the line. This is but the beginning. And I can assure you that Indonesia, as chair of ASEAN, we have a road map—as I said before in my earlier remarks, we have a clear road map of what needs to happen between now and, say, November. That is the next junction, when we will be having the summit of ASEAN, the East Asia Summit, to ensure a constant sense of progress and momentum. Because we do sincerely and genuinely feel letting things not going anywhere, letting things be state of status quo can be possibly destabilizing, and creating uncertainty and opening up the potentials for miscalculation. And this is what we wish to avoid. Transparency, in terms of intent, in terms of claims, is extremely important.

But all this must be done within the diplomatic process. And I don't mind having very difficult debate—frank and candid, as we say it in diplomatic parlance—as long as it is all done in the construct of a conference room, rather than out there at sea. And there has certainly been, as Secretary Clinton said, recent incidents at sea. I am afraid it is a general trend, not only in the South China Sea; the other seas of all parts of the world also have been marked by tensions. The militarization of fishing vessels, for example, that—how fishing vessels have been protected by the navies of different countries and creating incidences at sea, and these are very serious developments.

That is why, among our initiatives just now, was to have a maritime forum for our region, an East Asia or Asia Pacific ASEAN maritime forum, where all the different assets of maritime ocean issues can be discussed in a cohesive way. Indonesia, you recall, is an archipelago. It is a country that is not small, made up of some 17,000 islands. We used to think of the oceans as a factor that divides us. But, thanks to the foresight of our founding fathers, the oceans, the seas between the islands, becomes an issue that binds us in accordance with this archipelagic outlook.

Now, we would like to think that East Asia and the Asia Pacific, a great deal of which is made up of the seas, can also have a similar integrative outlook, to look at the seas as a potential for cooperation, rather than a source for conflict and tensions. That is certainly the kind of outlook we would like to promote. Thank you very much.

Secretary Hillary Clinton delivered this statement in Washington, DC

Secretary Clinton. I had a very productive trilateral meeting yesterday with Foreign Minister Kim of the Republic of Korea and Foreign Minister Matsumoto of Japan. We had a chance to consult and coordinate our diplomatic efforts and approaches with North Korea.

Following the first round of denuclearization talks between the nuclear negotiators of the Republic of Korea and North Korea, the United States has invited North Korean Vice Foreign Minister Kim Kae-gwan to New York later this week.

Vice Foreign Minister Kim will meet with an interagency team of U.S. officials for discussions on the next steps necessary to resume denuclearization negotiations thru the Six Party Talks.

This will be an exploratory meeting to determine if North Korea is prepared to affirm its obligations under international and Six Party Talk commitments, as well as take concrete and irreversible steps toward denuclearization.

As we have stated repeatedly, we are open to talks with North Korea, but we do not intend to reward the North just for returning to the table. We will not give them anything new for actions they have already agreed to take. And we have no appetite for pursuing protracted negotiations that will only lead us right back to where we have already been.

The U.S. position remains that North Korea must comply with its commitments under the 2005 Joint Statement of the Six Party Talks, relevant United Nations Security Council Resolutions, and the terms of the Armistice Agreement.

As always, we will remain in very close coordination with the Republic of Korea and other partners.

Secretary Hillary Clinton delivered these remarks in Shangri–La, Hong Kong

Secretary Hillary Clinton delivered these remarks in Bali, Indonesia

Secretary Clinton. Thank you very much. It's a pleasure to be once again in our trilateral meeting with Ministers Kim and Matsumoto. And I thank Japan for hosting this second ministerial trilateral. I also congratulate the Republic of Korea for the excellent news about hosting the Olympics. And I congratulate Japan for its hard fought victory over the U.S. Women's team in last week's World Cup finale which cost me some very good New York apples in my bet with the foreign minister. We were not happy with the results, but we were very impressed with the Japanese team. It was a great game. And I think that friendly bet that we made between apples and pears is just another small but significant example of our continuing close partnership, and friendship, and alliance among the three of us.

As we noted in December after our first meeting, trilateral coordination and cooperation between our three countries is essential to addressing common challenges and advancing our shared interests in peace, security, and prosperity in the region and beyond.

Today once again, we have a wide-ranging agenda to cover. We will be closely coordinating and exchanging ideas on the next steps associated with North Korea. And we will discuss how to work together more closely in the ASEAN Regional Forum and the East Asia Summit.

So I look forward to another full and productive meeting. Thank you.

Vice President Joe Biden and Chairman Wu Po-hsiung delivered these remarks in Beijing, China

Chairman Wu. Mr. Vice President, on behalf of the National People's Congress of China, a very warm welcome.

Vice President Biden. It's a delight to be here.

Chairman Wu. And what a delightful thing to see you again in Beijing. We had a very good conversation back in September 2009 when I visited the United States, and you were very kind to show me your office.

Vice President Biden. Mr. Chairman, this is much nicer than my office.

Chairman Wu. Well, I remember I said to you back then that your office was exquisite but not very big.

Vice President Biden. That's right. You said that very diplomatically.

Chairman Wu. But you said with a great sense of humor that this office is the closest to the President's office.

Vice President Biden. That's right.

Chairman Wu. And that shows its importance. And your visit is a very important one. Foreign Minister Yang just told me that you had very good discussions with Vice President Xi.

Vice President Biden. Yes.

Chairman Wu. You had a deep discussion about issues of mutual interest, and tomorrow you will have meetings with the President and the Premier. I'm sure that your visit will give new impetus to our bilateral relationship. We will further promote the steady and sustainable growth of China-U.S. ties.

Now, it's been 10 years since your last visit to China.

Vice President Biden. Too long.

Chairman Wu. Well, many changes have taken place here. I'm happy to learn that besides Beijing, you're also going to Chengdu.

Vice President Biden. Yes.

Chairman Wu. And you will have more opportunities to engage with the young people, and also opportunities to see the post-earthquake reconstruction there.

While the city of Dujiangyan has a culture and civilization of over 2,000 years, I'm sure that trip will help you gain a deeper understanding about China. I sincerely wish you a very happy stay in China. And you will leave this country with a very fond memory. Once again, very warm welcome.

Vice President Biden. Well, it's a delight to be here, Mr. Chairman. As I told you when you were in my office, when I was a chairman, I had a much bigger office. I used to have an important job when I was chairman of the Foreign Relations Committee. I had a big office, and a large staff, and then I became Vice President.

There's an old joke told by a former Vice President. He said, I once had two brothers, one went to sea and the other became Vice President. I never heard from either again.

But unfortunately, your colleagues are hearing from me again and again and again and again. I beg their indulgence. We sat together all morning. The Ambassador has been very gracious, as has the Minister, so I hope they don't mind listening again.

As we discussed in my office, Mr. Chairman, you know I now and have since my first visit in 1979 with Vice Premier Deng Xiaoping, I'm of the view that this is a central, critical relationship—China and the United States. I hope this doesn't sound chauvinistic to other countries, but our mutual success will benefit the whole world. As the two largest economies in the world, at the moment when the world economic circumstance is uneasy, I think we hold the key together to not only our own prosperity, but to generating growth and jobs worldwide. And that's the overwhelming reason I've come, to talk about jobs and growth; and the—as was phrased this morning, the reordering of our economies—yours and ours.

So I'm anxious to talk to you, and I appreciate your hospitality.

Chairman Wu. Well, thank you for your warm remarks.

Vice President Joe Biden and Vice President Xi Jinping delivered these remarks in Beijing, China

Vice President Xi. Honorable, Mr. Vice President, Joseph Biden, the ancient Chinese philosopher Confucius said, isn't it delightful to welcome friends coming from afar? I would like to, again, extend a warm welcome to you.

Your visit this time is a major event in this year's China-U.S. relationship, and it's very important for further implementing the outcomes of President Hu Jintao's visit to the United States, and to pushing forward the building of the China-U.S. cooperative partnership.

Mr. Vice President, you've been in China twice. You've long cared about and been committed to promoting the China-U.S. relationship. Your belief that a successful, stable and prosperous China is good for the United States and, of course, for China and good for the whole world. I appreciate that statement.

I, too, believe that under the new situation China and the United States have ever more extensive common interests, and we shoulder evermore important common responsibilities. It is the joint desire of the people of China and the United States and elsewhere in the world to see a close cooperation between China and the United States. We would like to work with your country to promote the development of relations between our two great nations.

Our talks this morning is an important component of your engagements and activities here. I would like to have an in-depth exchange of views with you on our bilateral relationship and international and regional issues of mutual interest.

Vice President Biden. Mr. Vice President, and, delegations, it's a genuine honor to be here. It's an honor to be back in China. As you know, as you mentioned, Mr. Vice President, this is—it's been 10 years since I've been here last. And my first visit was in 1979 when I had the honor of being with Vice Premier Deng Xiaoping at the time.

I've always been an admirer of the Chinese people and the great sweep of history and the contributions that your country has made for centuries. When I arrived in 1979, I got the first opportunity I ever had to see some of the great wonders of this country, including as all visitors mention, I'm sure, the Great Wall. But I would presume to suggest that in the great sweep of your history, there has been more progress made between 1979 and 2011 than maybe any time in your history. It's amazing. You personally and all your colleagues should be complimented.

I come from the United States, Mr. Vice President, at the invitation of your President and you with hope and expectation and looking forward to your reciprocal visit to Washington.

I also come with a strong message that the United States of America is—plans on looking—will continue to be engaged totally in the world and events of the world; and maybe even a stronger message that our commitment to establish a close and serious relationship with the people of China is of the utmost importance to my country and—presumptuous of me to say—I think maybe your country, as well.

Fifty years from now, 100 years from now, historians and scholars will judge us based upon whether or not we're able to establish a strong, permanent and friendly working relationship.

For I would suggest that there's no more important relationship that we need to establish on the part of the United States than a close relationship with China.

As we say in the chamber where I worked for 36 years, the United States Senate, if you permit me a point of personal privilege: I came away from our visit in Rome greatly impressed—impressed with your sweep and knowledge of history, impressed with your openness and candor and impressed with the notion that you, as I—and I know your ambassador believes—that foreign policy is more than just formal visits; it's establishing personal relationships and trust. And it is my fond hope that our personal relationship will continue to grow, as well.

Let me conclude by saying to you and your colleagues, Mr. Vice President, that I'm absolutely confident that the economic stability of the world rests in no small part on the cooperation between—between the United States and China. It affects every country from your neighbor to the north, to Argentina in the southern tip of South America. It is the key, in my view, to global economic stability.

Vice President Joe Biden and President Hu Jintao delivered these remarks in Beijing, China

President Hu. Honorable Vice President, it is a great pleasure to meet you again in just half a year's time. I want to welcome you to pay this official visit to China.

Mr. Vice President, you're an old friend of the Chinese people. You've made two previous visits to China, the first one in 1979 and then again in 2001.

During my visit to the United States this past January, you and Secretary Clinton hosted a welcoming banquet for me, and you gave a warm and a friendly remarks at that occasion. I wish to express my sincere appreciation for that again.

Over the last two days, National People's Congress Chairman Wu Bangguo, Premier Wen Jiabao and Vice President Xi Jinping have had very good meetings and talks with you. You attended a China-U.S. Business Dialogue, and tomorrow you will be visiting Chengdu of Sichuan province. I believe your current visit will help you have a deeper understanding of China and the Chinese people.

This visit will also help push forward exchanges and cooperation between our two countries in various fields and make new contribution to the building of a China-U.S. cooperative partnership.

Now, I'd like to listen to you, Mr. Vice President.

Vice President Biden. Mr. President, it's an honor to be here. I thank you for your time. Your poor colleagues have had to be in my company and been so nice to me the last two days. We spent hours together thus far. Mr. Ambassador, again, thank you.

To get straight to the point, Mr. President, President Obama asked me to come to Beijing to meet with you and others to reaffirm our absolute, total commitment to a strong and enduring positive relationship with China, and to reaffirm our commitment to stay engaged in the world in the most vigorous way possible.

I have—I have made two visits to China, but, Mr. President, in light of President Obama's request, I expect, with your indulgence, I'll make many more in the near term. Your meeting with President Obama made a very strong, positive impression on the American people. And my meetings here thus far have been extremely helpful to me. I began to establish a very good relationship with Vice President Xi, and the President and I look forward to working with him, as well as hoping to continue the great legacy you've begun in the relationship.

Vice President Joe Biden and Premier Wen Jiabao delivered these remarks in Beijing, China

Premier Wen. It's a great pleasure to meet you today, Mr. Vice President. I note that we were born in the same year. You have spent about 35 years in public service, and I've been working in the government compound of Beijing for more or less the same period of time. And I know that you are a big sports fan, so am I.

I know that in the past weeks and months, you have put in a large amount of effort to assisting the President in securing an agreement with the Congress about raising the U.S. debt ceiling, cutting U.S. deficit and stabilizing the U.S. economy. You have played a vital role in this process.

In spite of the difficulties facing the U.S. economy at present, I have full confidence that the United States will overcome these difficulties and get its economy back on the track of healthy growth. The prosperity and stability of the United States is in the interest of the whole world.

In the past two to three days, you have engaged widely with the sectors in China, both public and private. You have been sending a very strong message that is the further growth of China-U.S. ties is not only important for our two countries, but also for the whole world.

It's particularly important that you sent a very clear message to the Chinese public that the United States will keep its word or—and its obligations with regard to its government debt. It will preserve the safety, liquidity and value of U.S. treasuries.

I'm sure that will give a boost to the investors’ confidence in the U.S. economy. You have already had some meetings with other Chinese leaders. Today, I would like to focus our discussion on economy. Now, I would like to give the floor to you, Mr. Vice President.

Vice President Biden. Well, Premier, thank you very much for the hospitality. What a magnificent place. Now I know why even though we were born in the same year, you look so much younger than I. You worked in a much more commodious environment than I do.

Premier Wen. Well, I have—this idea for our post-meeting schedule today, that is maybe we can take a brief walk in the surrounding areas of this whole compound. The compound was first built back—500 years back, and this current structure that we are having this meeting today has about 250 years of history.

Vice President Biden. I would be delighted to do that if you would just write a note to President Hu of why I'd be late. As Vice President, I'm very accustomed to accommodating Presidents. But I would love to see your place.

Let me say that we have something else in common besides our birth year, and that's the—it's our absolute and mutual confidence in the U.S. economy. No one has ever won betting against the U.S. economy. And I'm anxious to talk to you about both our economies and how we can work together. But I point out U.S. treasuries, we're going to—we're going to take care of very closely not merely because China owns 8 percent of them, but because the Americans own 85 percent.

It is—we appreciate and welcome your concluding that the United States is such a safe haven because we appreciate your investment in U.S. treasuries. And very sincerely, I want to make clear that you have nothing to worry about in terms of their—their viability.

I just had the opportunity to meet with the American business community, some of the leaders here investing in China, and then we had a joint meeting with leading Chinese business enterprises along with—along with the Vice President whom I have found to be a—

Vice President Joe Biden and Vice President Xi Jinping delivered these remarks in Beijing, China

Vice President Xi. Vice President Biden, representatives of the business communities of the two countries, ladies and gentlemen, dear friends, it gives me great pleasure today to have this operation to attend together with Mr. Vice President, an opportunity presented by your visit to China, actually—the China-U.S. Business Dialogue.

I know that the representatives present are accomplished business people in your respective fields, and you have made active contribution to the business cooperation between our two countries.

Let me take this opportunity to express my appreciation and pay my tribute to the efforts you have made in advancing the business cooperation between our two countries. Enterprises are key contributors to the wealth of human society and important forces in driving world progress and development.

Business people of both China and the United States—honest—over the past 30 years and more since we established diplomatic relations, the business people of the two countries have worked together in a pioneering effort and returned a lot of—January this year, President Hu Jintao paid a successful state visit to the United States.

President Hu and President Obama jointly inaugurated a new stage in China-U.S. ties that is our joint effort to build a cooperative partnership based on mutual respect and mutual benefit.

During his visit to the U.S., President Hu Jintao encouraged business people of the two countries to make the most of the opportunities presented by the deepening economic globalization, actively explore each other's market, and promote our mutually beneficial cooperation.

President Obama also stressed that the cooperation between the business communities of the two countries is the most important part of U.S.-China ties. The businesses of the two countries are the primary force of the business cooperation between us. And it's for you to work together in exploring and shaping the future of our cooperative partnership.

I believe it's important that China-U.S. businesses should seize the opportunities and work together to pursue common development as China-U.S. relations continue to deepen and in particular in the face of a complex and severe situation of the world economy.

To do that I would like to make the following four points. First, we need to reinforce confidence. The international financial markets, drastic fluctuations and uncertainties and destabilizing factors confronting world economic recovery have intensified, posing new challenges to economic growth and the businesses of the two countries. Under such circumstances what's most important is to reinforce confidence as confidence is more precious than gold.

As far as China is concerned, we will continue to pursue a proactive fiscal policy and prudent monetary policy. We will maintain the continuity and stability of our macro-economic policy and make it more targeted, flexible and forward-looking. We are going to strike a proper balance between fast and steady growth, adjustment of economic structure and managing inflation expectations. We are confident that we are able to keep steady and fast economic growth. There will never be a so called “hard landing” for the Chinese economy.

Yesterday in my discussion with Vice President Biden, he briefed me about efforts of the U.S. government in spurring growth and jobs, cutting the budget deficit, properly handling the debt problem, and preserving the confidence of global investors.

The U.S. economy is highly resilient and has a strong capacity for self-repairment. We believe that the U.S. economy will achieve even better development as it rises to challenges. We hope that the business people of the two countries will reinforce confidence, work hard to turn challenges into opportunities and embrace change and innovation.

I hope that the business people of the two sides will make active contributions through their development to the growth of China and U.S. economies and to the strong, sustainable and balanced development of the global economy.

Second, we need to take a long-term perspective. If one is to have a full view of the scenery, one needs to cast his eyes to the far horizon. Over 30 years ago, when China just launched a firm and prudent exploration of reform and opening up, crossing the river by testing out the stones, the business people of the United States already showed extraordinary vision and courage and came to China for investment and business establishment.

Over the past 30 years and more, they have witnessed China's fast development and shared the opportunities of China, their investment has produced bountiful results. Today's China has a more enabling policy environment, improved infrastructural facilities, better services and a larger pool of human resources. There is even broader space in the Chinese market.

It has been clearly stipulated in China's 12th five-year plan that we will accelerate a shift of growth model and stimulate greater domestic demand. In the next five years, China is expected to import over $8 trillion of commodities, and by 2015, the total retail sales of China are expected to reach 31 trillion RMB-yuan, and that will create greater business opportunities for American businesses and businesses of other countries.

At the same time, an increasing number of competitive and far-sighted Chinese businesses are actively exploring the American market. We hope that the business people of the two sides will take full advantage of the enormous opportunities for cooperation in energy, environment, infrastructure, biomedicine, financial services and between small- and medium-sized enterprises.

We hope that they will work closely with each other, make the most of the current favorable conditions and invest in the future, writing together new chapters in our business cooperation.

Third, we need to deepen cooperation as China's reform, opening up and modernization drive gather momentum. There has been a fundamental change in our conventional model of cooperation where the United States provides capital and technologies; and China labor, resources and the market. Today an increasing number of U.S. businesses—is providing quality services and products to Chinese consumers. And more and more Chinese businesses are going to the United States to make investment and start businesses, contributing their part to the growth of the U.S. economy and the creation of jobs in the U.S.

For example, the North America route opened by COSCO has contributed to the prosperity of American ports and more jobs there. The Novel and Haier Group have opened factories and R&D centers in the U.S., and their products are wildly popular with American consumers. The Xiangtan Electric Manufacturing Corporation of Hunan province will also soon establish a branch in Delaware. Mr. Lu Quanqiu from Wan Xiang Group has employed over 600 local people in his company's branch in the United States.

These are the vivid examples of the growth of our business cooperation, and it shows that our cooperation is expanding and moving to a higher level.

There is competition in our cooperation. Yet such competition is healthy based on mutual learning and mutual reinforcement. In a fundamental sense it is conducive to our common development.

Fourth, we need to be mutually inclusive. A Chinese proverb reads, as an ocean admits all rivers, one is to be inclusive to all things.

Given the big size and rapid expansion of our business cooperation, it's only natural that we have some differences and frictions in our cooperation. But we need to approach them with an inclusive mind, and we need to properly handle these differences through equal consultations in compliance with the law of the market and WTO rules. We should not politicize or sensationalize the trade issues.

Here I want to emphasize that China will continue to free its mind and stay committed to reform and opening up. We will—running the country according to the law, and make continual improvements to our laws and regulations related to foreign business cooperation. We will intensify IPR protection and treat all businesses as equals in terms of the accreditation of indigenous innovation products and government procurement.

At the same time, we hope the United States will eliminate the interferences of trade and investment protectionism. We hope that there will be early and concrete actions on the part of the United States on issues which are of high concern to the Chinese side, including easing the export restrictions of high-tech products to China and providing a fair environment for Chinese businesses to make investment in the United States.

I believe as long as we treat each other as equals and embrace mutual understanding and mutual accommodation, we will have even better growth in our business cooperation.

In conclusion, I wish even greater accomplishments for the business people of the two countries. And together we can write more success stories in our practical cooperation.

Thank you.

Vice President Biden. Thank you. I will be brief. There's much to talk about. The Vice President and I—and I want to thank him for his hospitality and look forward to his reciprocal visit to the United States. I—we've had an opportunity to talk at some length, and we'll have further opportunities, so I will be brief because I'm mainly here to listen.

Much has changed since my first visit here, actually to this hotel over 30 years ago with a group of—I was then a very junior United States senator, and we were the first delegation to meet with Deng Xiaoping. And I brought with me the heads of—we brought with us, the senators, the heads of certain American companies, two of whom are here today and—although they weren't here 30 years ago—both Caterpillar and DuPont. And there was open discussion about the possibility of American business doing business in China, which was unheard of up to that point, and the reverse, as well.

And I'm pleased to say over 30 years later, I look around this table at such a group of successful and powerful business leaders, both in China and America, and it gives me reason to have great optimism about the next 30 years.

I agree with what the Vice President said, and he listed the four areas that I will not go into detail, the four points that he wanted to make. But with regard to the point about confidence, I want you to know that I have absolute, unequivocal confidence in the strength and the vitality and the growth of the American economy. No one has ever made money betting against America. And I am absolutely confident, as well, that the two largest economies in the world are the road to world recovery. And we've had many discussions so far, many hours of discussions.

I also agree with the Vice President that competition is healthy. It is good. It has awakened us. It has regenerated us. It has—it is nothing but welcome on the part of the United States. And one other point we'll get to discuss today, I hope you will discuss, is that we welcome—President Obama and I, we welcome, encourage and see nothing but positive benefits flowing from direct investment in the United States from Chinese businesses and Chinese entities. It means jobs. It means American jobs.

We also welcome and are really encouraged by the 12th five-year plan and the reordering of the economy toward a more consumer-based economy. That is also—I never tell another man or another country what's in their interest, but it seems to me it's very much in the interest of the Chinese and the Chinese people, but it's also in the interest of the United States.

So I would also like to point out that we've made much progress, but there are some real and perceived barriers that exist in both countries that have to be dealt with. I think it's legitimate for Chinese business persons and government officials to point to the dilemma with the American visa process, which I very much want to work on with the Vice President. I think there's other things.

But I also think you are aware that we think market access is—changes have to take place here in China, as well. And so the Vice President and I have had all of our discussions, going back to our first meeting in Rome, based on mutual respect. And one of the things that I have a bad reputation for is being straightforward, and I'm really pleased that the Vice President has been straightforward, as well.

And so only friends and equals can serve each other by being straightforward and honest with them about the perceived injustices or the perceived tilting of a playing field; and you have legitimate concerns about access to America. And I would argue we have legitimate concerns in reverse. But the trajectory—the trajectory of the relationship is nothing but positive, and it's overwhelmingly in the mutual interest of both our countries. And it's presumptuous to say this, but I think it's in the interest of the world. It's in the interest of the world that we increase—increase—the interaction between not only our business community, but our economies writ large.

Obviously, economic issues have been a particular focus of the growing cooperation between the United States and China. Our governments are committed to and working hard to promote economic growth. It's strong. It's sustainable, and it is balanced, fair and open. Bilateral trade and investment between the United States and China, as is pointed out, is growing rapidly in both directions. We'd like it to go even more rapidly in terms of investment in the United States because it creates jobs and it creates economic opportunities in both countries. And we will have more good news later today about greater access and also continued development and investment both ways.

Our enhanced cooperation to put it bluntly and succinctly is extremely good for the United States. I would suggest, although you would make—be your own judge, I think it's good for China, as well. And I think it's good for the wider world.

And so in the spirit of trying to figure out how to resolve both perceived and real barriers that exist on both sides of the Pacific, I'm anxious to listen and be educated.

So, thank you very much, Mr. Chairman. And thank you, Mr. Vice President. I'm anxious to hear what people have to say.

Vice President Joe Biden and Prime Minister Sukhbaataryn Batbold delivered these remarks in Ulaanbaatar, Mongolia

Prime Minister Batbold. First of all, I'm grateful to the United States Vice President Biden for accepting my invitation to pay an official visit to Mongolia. And I am pleased to welcome Your Excellency and your delegation to Mongolia.

This visit is significant as it coincides with a series of important anniversaries in the history of Mongolia. Next year, we will celebrate the 25th anniversary of bilateral relations.

Your visit is the expression of the fact that U.S. recognizes Mongolia's irreversible choice to develop democracy and the will of the Mongolian people and to uphold legal forces to uphold democracy. We are grateful to the United States for the continued support and the economic assistance.

It gives me great pleasure to note that we had a very productive meeting with Vice President Biden. We have discussed the issues related to furthering our bilateral cooperation in the spirit of the comprehensive partnership, based on our common values and shared interests. We have noted with satisfaction the progress achieved in our relations and affirmed our commitment to advance these relations.

Mongolia has started chair the Community of Democracies from this July. I discussed this issue before, when I was a foreign minister with State Secretary Clinton, and today, I had the opportunity to discuss this issue with Vice President Biden, as well. I would like to highlight that Mongolia is ready to share its experiences in promoting democratic values and culture.

The successful implementation of Millennium Challenge Corporation projects will significantly reduce poverty, increase transportation—the Mongolian side has expressed its interest in launching talks in the MCC second compact agreement.

We have discussed the possibilities to develop and enrich trade and economic relations with the United States and attract more United States investments to Mongolia. We are grateful that Vice President Biden reaffirmed the continued support of the part of the United States for implementation of democratic reforms and strengthening market economy in Mongolia. During the meeting, we have discussed possibilities to conclude a transparency agreement in near future.

The signing of the memorandum of understanding between MIAT Mongolian Airlines and the U.S. Trade and Development Agency aimed at developing civil aviation sector and improving MIAT training and capacity basis would make an important contribution to the development of the bilateral economic cooperation.

Moreover, we have exchanged our views on other fields of our bilateral cooperation, particularly cooperation in the field of education. The Mongolian side has requested the United States side to explore the possibilities to increase the number of scholarships for Mongolian students. This year alone 16 Mongolian students were selected to study in the United States through Fulbright Scholarship Program.

I expressed our special gratitude on behalf of the people of Mongolia for the U.S. decision to provide $695,000 grant from the Fund for Cultural Preservation.

We have touched on many issues, particularly in the fruitful views of our bilateral consultation mechanisms. We have also discussed our cooperation in peacekeeping operations. The U.S. side has expressed its appreciation for Mongolia's contribution to the peacekeeping activities.

Mr. Vice President, there is a proverb saying that an old friend is the best friend. Therefore, the visit of the U.S. Vice President to Mongolia after 67 years is certainly an old friend's visit for us. I welcome you again and wish you a pleasant stay in Mongolia.

Thank you for your attention.

Vice President Biden. Well, Mr. Prime Minister, thank you for the invitation. And it's an honor to be here. I've been looking forward to this. I also want to thank your President, as well as the Mongolian people for their generous hospitality. I only have one regret that I'm not able to stay longer and see more of your country. I hope you'll invite me back.

I am particularly pleased to make this visit, following your President's meeting this June with President Obama at the White House.

Our nation does have a shared history that goes back at least 100 years. In 1923, a fellow named Roy Chapman Andrews, a naturalist and a explorer, and the Director of the Smithsonian National Museum of Natural History in Washington traveled to Mongolia to excavate a site in the Gobi Desert he called the Flaming Cliffs.

That expedition captured the world's imagination by discovering a treasure trove of fossils, including the largest mammal to ever walk the Earth and the first dinosaur eggs ever found intact. But in the last 20 years, Mongolia has captured the imagination of the world by its remarkable transition to democracy: five presidential elections, five democratically conducted parliamentary elections. And it's truly remarkable, the progress you've made since 1991.

So although we go back 100 years, quite frankly, we've grown much closer since the Mongolian people began to embrace democracy 22 years ago.

That journey started with a small demonstration of—on Human Rights Day in 1989, then it blossomed into a movement that inspired thousands of Mongolians. And it led to the country's first free elections, and eventually ended—that eventually ended decades of one-party rule.

I guess the translator opposes one-party rule. I'm only kidding. I shouldn't joke. I shouldn't joke.

Today Mongolia is not just a shining example for other nations in transition but it's an emerging leader in the worldwide democratic movement, a responsible actor on the world stage, and a close friend and partner of the United States. And none of that is an exaggeration. It is literal.

In July, as you referenced, Mongolia assumed the chairmanship of the Community of Democracies—a coalition of democratic countries dedicated to promoting democracy around the world. And Mongolia's term as chairman will culminate with a Democratic Summit held in 2013 right here in your capital.

I also want you and your colleagues to know that Americans admire and appreciate Mongolia's contributions to international peace and security. In the past decade alone, Mongolia's army—whose proud martial tradition dates to Ghengis Khan—has been deployed as US [sic] peacekeepers and observers in Sierra Leone, Chad, Darfur, Kosovo, Western Sahara and many other countries.

And Mongolian soldiers have also served with the International Coalition Forces in Iraq and are now serving in Afghanistan—in Afghanistan, where the Mongolian troop contributions will soon increase to nearly 400 military personnel.

During his June visit—during his June visit to Washington, your President laid a wreath in the Arlington National Cemetery, and he met with wounded American soldiers at Reed Army Medical Center. And Americans noticed that gesture. For not every visiting world leader takes the time to do that. President Obama and I genuinely and greatly appreciate it.

Now the United States and Mongolia are also developing closer economic relations. As we discussed in our bilateral meeting, to enhance these economic ties, we are mutually working toward a transparency agreement that would make Mongolia an even more attractive destination for America and foreign investment.

I would just like to flatly state the United States remains strongly committed to helping the Mongolian people build a better future. That is why over the last 20 years USAID has provided more than $200 million in grant assistance to Mongolia, with programs that seek to bolster democracy and economic growth.

And as you pointed out, that's why we have committed another $285 million through the Millennium Challenge Corporation compact. That assistance is focused on a critical set of issues including combating corruption through training programs at all levels of government, improving rule of law by developing checks and balances at all levels of government, vocational training to prepare Mongolians for better jobs and improving infrastructure to make the country's critical north-south corridor more accessible.

I hope that you and the people of Mongolia will take my visit here today—and President Obama's meeting with your President earlier this summer—as signs of how impressed we are by the progress you've already made.

These reciprocal visits are also signs of how important this relationship is to the United States. As I told you earlier, we are very proud to be considered a “third neighbor.” And, like any good neighbor should, we'll continue to do our part to support Mongolia's political and economic development. And, Mr. Prime Minister, we look forward to even closer ties in the years to come.

And I want to thank you again for the hospitality.

Vice President Joe Biden and Prime Minister Naoto Kan delivered these remarks in Tokyo, Japan

Prime Minister Kan. I would like to sincerely welcome you, Mr. Vice President. Since immediately after the March 11th (inaudible) we have been receiving enormous assistance from the United States (inaudible) and we would like to reiterate our gratitude—the people of Japan would like to reiterate our gratitude (inaudible). I understand you are scheduled to go to Sendai this afternoon (inaudible) assistance to the people in the (inaudible) affected areas (inaudible) and making great efforts (inaudible). And we are back in business and for traveling and with (inaudible) and this visit of Mr. Vice President to Japan demonstrates to the world that Japan is open for business and travel, and this is a splendid opportunity to demonstrate that.

Thank you very much.

Vice President Biden. Mr. President, thanks for your hospitality (inaudible). I came for two reasons. First of all, I came to express my sympathy—admiration and support—the Japanese people have endured the consequences of (inaudible). Looking at it from afar, it was absolutely breathtakingly—breathtakingly heartbreaking to see what your people (inaudible).

But I want you to know—and your Ambassador to the United States knows this because (inaudible)—the admiration of the American people (inaudible) the resolve, the courage, the commitment of the Japanese people was a model for the whole world to see. And, Mr. Prime Minister, you do not need to express gratitude to us. You would do the same for us.

Our only regret is we could not even do more. That's the first reason why I'm here to express that (inaudible).

And the second reason is in accepting the kind invitation President Hu and Vice President Xi is increasing our dialogue and establish a special relationship with Vice President Xi, I wanted to make it clear that we want these relationships. We are a Pacific power. You are a Pacific power. You are our ally both—and your power economically and politically is something that we value a great deal.

I make the point that while you're struggling to deal with one of the greatest natural disasters any country has faced, we are dealing with getting our budget in order. There are voices in the world who are counting us out. They're making a very bad bet.

Vice President Joe Biden delivered these remarks in Sendai, Japan

Readout of President Obama‘s Call with Prime Minister-elect Yoshihiko Noda

President Obama spoke to Prime Minister-elect Yoshihiko Noda today to congratulate him on his election. The two leaders underscored the enduring nature of the U.S.-Japan friendship and alliance, and its critical importance to the peace and stability of the Asia Pacific. The President and Prime Minister-elect also pledged to work closely together to reenergize the global economy and promote strong, sustainable, and balanced growth.

Vice President Joe Biden authored this Op-Ed in the New York Times China's Rise Isn't Our Demise

I first visited China in 1979, a few months after our countries normalized relations. China was just beginning to remake its economy, and I was in the first Senate delegation to witness this evolution. Traveling through the country last month, I could see how much China had changed in 32 years—and yet the debate about its remarkable rise remains familiar.

Then, as now, there were concerns about what a growing China meant to America and the world. Some here and in the region see China's growth as a threat, entertaining visions of a cold-war-style rivalry or great-power confrontation. Some Chinese worry that our aim in the Asia-Pacific is to contain China's rise.

I reject these views. We are clear-eyed about concerns like China's growing military abilities and intentions; that is why we are engaging with the Chinese military to understand and shape their thinking. It is why the president has directed the United States, with our allies, to keep a strong presence in the region. As I told China's leaders and people, America is a Pacific power and will remain one.

But, I remain convinced that a successful China can make our country more prosperous, not less.

As trade and investment bind us together, we have a stake in each other's success. On issues from global security to global economic growth, we share common challenges and responsibilities—and we have incentives to work together. That is why our administration has worked to put our relationship on a stable footing. I am convinced, from nearly a dozen hours spent with Vice President Xi Jinping, that China's leadership agrees.

We often focus on Chinese exports to America, but last year American companies exported more than $100 billion worth of goods and services to China, supporting hundreds of thousands of jobs here. In fact, our exports to China have been growing much faster than our exports to the rest of the world.

The Chinese leaders I met with know their country must shift from an economy driven by exports, investment and heavy industry to one driven more by consumption and services. This includes continued steps to revalue their currency and to provide fair access to their markets. As Americans save more and Chinese buy more, this transition will accelerate, opening opportunities for us.

Even as the United States and China cooperate, we also compete. I strongly believe that the United States can and will flourish from this competition.

First, we need to keep China's rising economic power in perspective. According to the International Monetary Fund, America's gross domestic product, almost $15 trillion, is still more than twice as large as China's; our per-capita G.D.P., above $47,000, is 11 times China's.

And while there is a lot of talk about China's “owning” America's debt, the truth is that Americans own America's debt. China holds just 8 percent of outstanding Treasury securities. By comparison, Americans hold nearly 70 percent. Our unshakable commitment to honoring our financial obligations is for the sake of Americans, as well as for those overseas. It is why the United States has never defaulted on its obligations and never will.

Maybe more important, the nature of 21st-century competition favors the United States. In the 20th century, we measured a nation's wealth primarily by its natural resources, its land mass, its population and its army. In the 21st century, the true wealth of a nation is found in the creative minds of its people and their ability to innovate.

As I told students in Chengdu, the United States is hard-wired for innovation. Competition is in the very fabric of our society. It has enabled each generation of Americans to give life to world-changing ideas—from the cotton gin to the airplane, the microchip, the Internet.

We owe our strength to our political and economic system and to the way we educate our children—not merely to accept established orthodoxy but to challenge and improve it. We not only tolerate but celebrate free expression and vigorous debate. The rule of law protects private property, lends predictability to investments, and ensures accountability for poor and wealthy alike. Our universities remain the ultimate destination for the world's students and scholars. And we welcome immigrants with skill, ambition and the desire to better their lives.

America's strengths are, for now, China's weaknesses. In China, I argued that for it to make the transition to an innovation economy, it will have to open its system, not least to human rights. Fundamental rights are universal, and China's people aspire to them. Liberty unlocks a people's full potential, while its absence breeds unrest. Open and free societies are best at promoting long-term growth, stability, prosperity and innovation.

We have our own work to do. We need to ensure that any American willing to work can find a good job. We need to keep attracting the world's top talent. We must continue to invest in the fundamental sources of our strength: education, infrastructure and innovation. But our future is in our own hands. If we take bold steps, there is no reason America won't emerge stronger than ever.

As vice president, I've traveled half a million miles around the world. I always come home feeling the same confidence in our future. Some may warn of America's demise, but I'm not among them. And let me reassure you: based on my time in China, neither are the Chinese.

Secretary Hillary Clinton, Secretary Leon Panetta, Minister Kevin Rudd, and Minister Stephen Smith gave these remarks in San Francisco, CA

Director Leocadia I. Zak delivered these remarks in Washington, DC

Director Zak. Good morning and welcome to the 2011 U.S.-China Aviation Summit. It is wonderful to see such a large turnout and so many familiar faces. On behalf of the U.S. Trade and Development Agency, the U.S.-China Aviation Cooperation Program, and all of our sponsors, thank you for coming. This event would not be possible without the cooperation and assistance of our many partners, especially the talented and professional members of the Civil Aviation Administration of China.

I would like to begin by welcoming our distinguished Chinese delegation, led by Deputy Administrator Xia of the Civil Aviation Administration of China. Deputy Administrator Xia has been an invaluable partner to USTDA and we are grateful for his leadership within the CAAC. I also wish to recognize State Air Traffic Control Commission Deputy Director Wang and the President of Commercial Aircraft Corporation of China Jin.

The distinguished delegation here today of almost 100 people represents not only the Chinese government aviation industry, but also the top leaders of the world's fastest growing airlines, airports and aviation sector companies. We are extremely grateful for their contributions to the Summit, and honored that they have given us so much of their time.

The delegation has been in the United States for a week now, on site visits organized by USTDA in Memphis, Chicago, Louisville, and the Washington, D.C. area to visit U.S. companies and aviation authorities. Delegates also attended the Aircraft Owners and Pilots Summit in Connecticut last week to learn more about general aviation advances in the United States. Thank you again for your commitment and dedication to our partnership.

We are also joined this morning by many members of the U.S. Government, including Acting Secretary of Commerce Rebecca Blank, Administrator Babbitt of the Federal Aviation Administration, and U.S. Department of Transportation Assistant Secretary for Aviation and International Affairs Kurland. Later in the day we also will hear from Deputy Secretary of Transportation Porcari and Administrator John Pistole of the U.S. Transportation Security Administration. The level and extent of U.S. government participation in this Summit is a testament to the immense value of the U.S.-China relationship, and the great importance which the United States places on it.

Finally, I would like to extend a special welcome to the sixth class of students from the Executive Management Development Training program, or EMDT. The EMDT program is a hallmark of the U.S.-China Aviation Cooperation Program. These executives are rising stars in their fields, and we are delighted to have them participating in the program. We are pleased that this year's training program coincides with the timing of the Summit and that we will have the opportunity to hear EMDT Class Leader Luo speak during Tuesday's luncheon.

This year, 2011, marks one decade of USTDA work in China. Today, with those years of work and partnership behind us and many more to look forward to, I would like to take some time to reflect on our progress. We all should be very proud of the many accomplishments which we have achieved together over the last 10 years.

In 2001, I was a member of the team that went to China with the objective of re-launching USTDA's program there. At the time, we knew that transportation would be an area of mutual benefit and thus an area of focus. But what we did not know was how extraordinary the growth in aviation would be over the next ten years—and what an important role the partnerships among the Chinese and U.S. governments, the Chinese private sector, and the U.S. private sector would play in that growth.

When USTDA re-launched its program in China, the U.S. private sector was already becoming involved in the Chinese aviation market. U.S. businesses saw then what we now know to be true: The Chinese market held immense potential, but there was work to be done to realize that potential. Early on, the CAAC made improving their safety record, then a major challenge, a top priority. Together the CAAC and U.S. industry approached USTDA for support.

What we could not have anticipated at the time was what a significant year 2001 would be for the aviation safety industry. After the events of 9/11, when the world turned its attention to air travel safety, USTDA provided one of its first grants in China to support a public-private partnership to train aviation safety officials.

As our investments in the Chinese aviation industry grew, the relationship between China and the U.S. continued to strengthen. In 2004, to further the growing interest on both sides, the U.S.-China Aviation Cooperation Program was launched.

Under the ACP we saw that early aviation safety training project grow into today's Civil Aviation Safety Academy of China. I had the opportunity to visit the Civil Aviation Management Institute of China earlier this year where I witnessed firsthand the exceptional quality of the instructors and students. I am pleased that we are joined today by CAMIC President Sun.

In addition to the initial training programs, USTDA's investments under the ACP, along with the support of our fifty U.S. private sector members, have produced many other successful projects. Last year, we supported a study to develop alternative runway schemes for Beijing's second airport, a priority for the CAAC. We also worked together to promote energy conservation within the sector, another CAAC priority. In support of that objective, among other activities, we brought a reverse trade mission of Chinese airport planners to the United States to witness our best practices for the development of sustainable airports.

Together we have seen China's successful implementation of state-of-the-art aviation systems, and China now has a safety record that is one of the best in the world. The sector has so expanded that today over 8,000 people travel between the United States and China each day, and that figure is growing.

Of course, there is still more to be done, and that is why we are here today. The goal of this Summit is to continue to forge the partnerships between the leaders of China's aviation sector and U.S. providers of technology, services, and goods. We continue to work together to support the rapid growth of China's aviation sector while helping U.S. companies develop valuable, export-creating trade relationships.

The aviation industry has seen remarkable gains in China, and that growth will only accelerate. By way of example, as of last year, the Chinese airline fleet size was just under 1600 aircraft. By 2015, that number is expected to grow 75%—75%— to more than 2700 aircraft—an addition of a new aircraft every two days.

At this rate of growth, absent infrastructure expansion and air space management, the Chinese air traveler could see increased flight delays, crowding, and rising costs, all of which CAAC is committed to reducing.

Over the past several decades, the United States has developed the knowledge and infrastructure capable of transporting up to two million passengers per day. This is largely due to two factors: advances in technology and air space management. We have with us today many U.S. companies that are on the cutting edge of aircraft manufacturing, environmental technology breakthroughs, and advanced avionic development.

I believe that over the next two days we have a fantastic opportunity to share experiences and learn from each other, and that by continuing our exceptionally successful partnership, we will achieve great progress in the coming decade.

Thank you.