Secretary Hillary Clinton delivered this statement in Washington, DC

Secretary Clinton. I commend China's decision to lift its ban on HIV-positive individuals entering the country. The Obama Administration has taken similar action here at home, repealing the longstanding policy that prevented people living with HIV from entering the United States.

China's step, like our earlier action, is supported by current medical knowledge of HIV transmission and risk. And it will help reduce the stigma and discrimination around HIV/AIDS that fuel the global pandemic and too often prevent people from accessing much-needed services.

I am encouraged by the growing international consensus against discriminatory HIV-based travel restrictions, and I congratulate China on being a part of this progress.

Secretary Hillary Clinton and Ambassador Jon Huntsman delivered these remarks in Washington, DC at a reception for the opening of the USA Pavilion at the 2010 Shanghai Expo

Assistant Secretary Marisa Lago delivered this statement in Tashkent, Uzbekistan at the Asian Development Bank 43rd Annual Meeting

Assistant Secretary Lago. I am honored to be here at the 43rd Annual Meeting of the Asian Development Bank. I would like to thank the Government and people of Uzbekistan for their extraordinary hospitality and for giving us such a warm welcome during our stay.

I am going to focus my remarks today on the major challenges for the coming year, both for the region and for the Asian Development Bank.

After a tumultuous period for the global economy and the region, Asia is now experiencing a return to robust growth as a result of well-timed stimulus measures, strong capital inflows, and surging exports. This resurgence of growth has contributed significantly to the fragile, though unmistakable, recovery in global demand.

We commend the international community for acting decisively, and in concert, to support this recovery, without resorting to distortionary trade barriers or capital controls. As we move forward, we must continue to rely on our collective experience to effectively meet new challenges that will enable this growth to endure.

The first challenge will be to decide how and when to withdraw extraordinary stimulus measures. These will be key to restraining inflationary pressures without choking off an embryonic recovery. Several countries in the region have already scaled back fiscal stimulus and raised interest rates in response to resurgent private sector demand and inflationary pressures in their economies. We view these steps as prudent and timely.

The second, more critical challenge is to lay the foundation for future growth that does not exacerbate the mutual imbalances that fed the recent financial crisis. We have a shared responsibility to support this objective. In the United States, we intend to do our part. Specifically, we have committed to cutting our fiscal deficit in half by 2012. We are also building a financial regulatory system for the 21st century that balances innovation and stability. A key element is international coordination on financial sector reform, which is essential to ensure a consistent approach to regulation.

In Asia, we see encouraging steps by a few countries toward more rapid consumption growth, and hope that others will follow suit. Such policies are ultimately in Asia's interest: they will raise living standards in the region, spread the benefits of growth more widely throughout society, and support global growth that is stronger, less volatile, and more sustained.

Let me turn now to the Asian Development Bank. In 2009, the ADB made the largest commitments in the Bank's history, totaling $17 billion in assistance to help cushion the impact of the crisis in the region. I want to thank President Kuroda for his stewardship of the Bank during this critical period.

This much needed development assistance was made possible by the General Capital Increase (GCI), approved by Governors this time last year. The United States views the governance reforms that were an integral part of the GCI to be a watershed moment for the Asian Development Bank.

The ADB's progress on reform has been strong in many areas, especially managing for development results, strengthening environmental safeguards, and improving risk management in the institution. However, as the ADB continues to focus on the robust implementation of these reforms, we must also address new challenges and priorities that are necessary to further reinforce good governance and promote accountability. These include revisions to the ADB's public disclosure policy and its accountability mechanism, as well as the adoption of a stronger and more independent audit function. We are also confident that the Bank will soon propose and adopt new, robust safeguards to guard against fraud and corruption. We look forward to working with fellow shareholders, and management, on these issues in the coming year.

Before concluding, I would like to commend the ADB for its work in assisting the poorest member states in Asia. The United States strongly supports the ADB's engagement in Afghanistan, and welcomes the opportunity to work with the Bank on a new, innovative rural finance initiative in that country. We also strongly support the Bank's continued intensive efforts to help Pakistan address its critical infrastructure needs, including the energy sector, through financing and policy reforms.

In Central Asia, the Bank has taken a leading role in promoting greater regional integration, including through its stewardship of the CAREC (Central Asia Regional Economic Cooperation) forum. And we believe that Central Asia remains an area where the Bank can expand its work. Just yesterday, I had the opportunity to see first hand the contributions that the ADB has to offer this region during a visit to School 45 in Samarkand, where the girls and boys use books and computer equipment financed by the Bank. I commend the Uzbek authorities for making the education sector such a high priority, and I thank the Bank for its support.

We look forward to another productive year at the Bank and to working with our fellow shareholders in support of this critical institution.

Secretary Hillary Clinton and President Iroij Jurelang Zedkaia delivered these remarks in Washington, DC

Secretary Clinton. I'm so pleased. I know it was a very long journey. Thank you for making it to come and meet with us.

President Zedkaia. We met at Copenhagen.

Secretary Clinton. Yes, indeed. Well, I'm delighted to welcome the president of the Marshall Islands, the Republic of the Marshall Islands, a great ally and friend of the United States. I'm looking forward to our discussion about a range of important issues.

And thank you so much, Mr. President, for coming for these consultations.

President Zedkaia. Thank you very much. It's my honor.

Secretary Clinton. Thank you, sir. Thank you. Thank you all very much

Secretary Hillary Clinton and Foreign Minister Katsuya Okada delivered these remarks in Tokyo, Japan

Foreign Minister Okada. Thank you. This is my fifth meeting with Secretary Clinton since last September. We had a very candid exchange of views. In today's meeting we had discussions centering on the regional situations in Asia, and the response to the Iranian nuclear issue—but of course, other themes as well.

Instabilities and uncertainties as represented by the sinking of the ROK Navy corvette are becoming visible. And the Japan-U.S. alliance is, therefore, all the more important. Against this backdrop, this meeting, I believe, was important and timely for the purpose of addressing these situations through mutual cooperation, with common awareness of them between Japan and the United States. And, as such, it is gratifying that Secretary Clinton has visited Japan.

With regard to the sinking of the Korean corvette, we discussed the response we should take following the announcement yesterday of the results of the investigations. Setting aside details, we confirmed that coordination among Japan, U.S., and ROK, including our future response, is important, and that we shall maintain close communication with each other in addressing the matter.

As the Secretary is on her way to attend the U.S.-China Strategic and Economic Dialogue, I explained to her the results of the Japan-China-ROK Trilateral Foreign Ministers meeting, as well as the JapanChina Bilateral meeting held in its margins, and exchanged the views on JapanChina and U.S.-China relations, as well.

On the Iranian nuclear issue, while we will need to watch how the recent agreement between Iran, Turkey, and Brazil will play out, we see eye to eye that the cause for concern remains unchanged as Iran has publicly stated that it will continue the enrichment of uranium to approximately the 20 percent level.

I told Secretary Clinton that Japan will actively play a role in the discussions for a new UN Security Council resolution in order to enable the international community to put out a unified message. We confirmed that our two countries will continue to work closely together. We confirmed afresh the significance of the Japan-U.S. alliance, including the above-mentioned exchange of views, and we shall carry on our consultations to further deepen the alliance.

On the question of relocating the Futenma air station, working-level officials of our two countries were having a meeting today, as well. And I also explained Japan's position on this. Talks are proceeding intensively between Japan and the United States. Both Japan and the United States will make further efforts towards a settlement by the end of May. That's all for me. Thank you very much.

Secretary Clinton, please.

Secretary Clinton. Well, first, it's a pleasure to be back in Tokyo, and to reaffirm the enduring alliance between our two nations. I thank Minister Okada for his warm welcome and the substantive discussions that we've had, and I look forward to seeing the prime minister.

Japan was the first nation I visited as Secretary of State, because we recognize that this relationship continues to be a cornerstone of security, stability, and progress in a region that is so crucial to the future of our entire world.

This year, as the United States and Japan mark the 50th anniversary of our alliance, we can be very proud of all we have accomplished together; the peace we have kept, the prosperity we have built, and the bonds we have forged. This partnership is essential for meeting the challenges not only of today, but also of tomorrow. And it is a rock solid foundation for our shared future.

As the foreign minister said, we had a productive meeting on a number of critical issues and common concerns. We had a detailed discussion on the results of the international investigation into the sinking of the Korean military vessel. This was a thorough and comprehensive scientific examination, and the United States and other international observers were deeply engaged. The evidence is overwhelming and condemning. The torpedo that sunk the Cheonan and took the lives of 46 South Korean sailors was fired by a North Korean submarine. And the United States strongly condemns this act of aggression. As Minister Okada and I discussed, we will be in deep and constant consultations, not only between the United States and Japan, but also with South Korea, China, and others to determine our response.

We appreciate Japan's support of South Korea and this investigation, because we recognize the threat that North Korea's aggression poses is also to the people of Japan. Last year I met with families of the abducted, and expressed my personal sympathy and concern. The United States and Japan continue to work side by side to meet the challenges posed by North Korea. We agree that North Korea must stop its provocative behavior, halt its policy of threats and belligerence toward its neighbors, and take irreversible steps to fulfill its denuclearization commitments, and comply with international law.

I will be discussing these issues with my counterparts in Beijing next week, and then I will travel to Seoul, to consult with our South Korean partners about the way forward. But let me be clear. This will not be and cannot be business as usual. There must be an international—not just a regional, but an international—response.

The Minister and I also conferred about our efforts at the United Nations to secure a strong resolution on Iran. The draft resolution agreed to by the P-5+1 and circulated at the Security Council this week sends an unmistakable message to the Iranian leadership: Comply with your obligations or face growing isolation and consequences. The burden is on Iran to demonstrate through its actions, not its words, that it will live up to its responsibilities. The international nonproliferation regime cannot survive if violators are allowed to act with impunity. And the United States appreciates Japan's support on this issue, and its leadership on the broader nonproliferation agenda.

Today we also discussed issues relating to the continued successful operation of U.S. bases in Japan. These are the front line of our alliance, and an anchor of stability in the region. The United States continues to work closely with Japan on basing issues to find a way forward that serves the interest of both our countries, and an arrangement that is operationally viable and politically sustainable. Our shared goal remains unchanged: to maintain Japanese security and regional stability, while minimizing the impact on basehosting communities.

We salute Japan's commitment to regional and global engagement, and I particularly applaud Japan's generous contribution of $5 billion over 5 years to support the people of Afghanistan, as they combat violent extremism, and work to build a secure and stable nation. From reconstruction efforts in Iraq, to combating piracy off the horn of Africa, to fighting climate change, Japan is providing crucial contributions and leadership on a wide range of global challenges. Japan is making a real difference, and is an essential partner for the United States in pursuit of our common goals and values.

Last year, during my town hall discussion at the University of Tokyo, a student asked me how we can continue developing the U.S.-Japan relationship from a regional alliance to a global partnership. This is exactly the right question. And it is the question that animates our discussion and drives our collective action. And today we look to the future full of confidence in our friendship and our ability to work together.

And so, let me thank Minister Okada once again for his hospitality and leadership, and let me state how much the United States looks forward to continuing our work together to ensure that the next 50 years are as fruitful as the last.

Q. Mizushima with Jiji Press. Question for both Minister Okada and Secretary Clinton, and the same question on Futenma. While the end of May is approaching, any settlement that can win the understanding of Okinawans remains elusive. How do the two countries intend to overcome the situation? And do the two countries plan to issue some kind of a joint statement towards the end of May? Thank you.

Foreign Minister Okada. As I said earlier, between Japan and the United States we would like to come up with a clear direction. And with regard to that general direction, we would like to ask (inaudible) make firm efforts to gain the understanding of Okinawans. Coming Sunday, Prime Minister plans to visit Okinawa. So we will—the entire cabinet will continue to engage in efforts to explain the government's position and gain the understanding of the people.

At the same time, to the Japanese people, we would like to have their understanding that in the current security environment the presence of U.S. forces is indispensible for the security and stability of Japan. But not only just that, but the region's stability.

Secretary Clinton. Well, I agree completely with Minister Okada's statement about the importance of our alliance, and the United States's commitment to the defense of Japan. It has always been important. It is good to be reminded, as we recently were with the unprovoked attack on the Korean vessel, that there are still dangers and challenges that confront us together.

We are working closely to resolve the outstanding issues concerning our basing. We both seek an arrangement that is operationally viable and politically sustainable. The goal of our governments remains unchanged. We want to maintain the security of Japan and the stability of the region. And I am confident we will resolve this matter in a way that reflects the very best of our alliance, the strength of that alliance, for the next 50 years, and provides the security guarantees that the Japanese people are looking for. So we have committed to redoubling our efforts to meet the deadline that has been announced by the Japanese Government, and we look forward to a resolution of this matter.

Secretary Hillary Clinton published this op-ed, titled “US-China Achievements Go Beyond the Expo,” in the Global Times of Shanghai, China

The relationship between the United States and China is critical to both our countries and to the future of our world.

The coming days offer two powerful examples of how diplomatic and cultural dialogues can broaden our understanding and deepen our cooperation. Next week in Beijing, I will join Treasury Secretary Tim Geithner for the Strategic and Economic Dialogue with Chinese Vice Premier Wang, State Councilor Dai and many other cabinet-level officials from our two governments. We will discuss how to continue building a positive, cooperative, and comprehensive relationship that advances our shared interests and is capable of addressing common challenges, from ensuring balanced and sustainable economic recovery and development to cooperating on clean energy and climate change to addressing international and regional security issues such as Iran and North Korea.

Few global problems can be solved by the U.S. or China alone and few can be solved without the U.S. and China together.

I am also looking forward to visiting the Shanghai Expo. With over 70 million visitors expected in the coming six months, the Expo will be the largest World's Fair in history and an opportunity for people from around the world to learn more about each other and to exchange ideas and strategies for meeting the global challenges we all share.

Its success is a testament to China's hospitality and to the hunger for mutual understanding and cooperation that draws people together across cultures and continents.

Each pavilion showcases the culture and accomplishments of the nation it represents, but the Expo as a whole tells the broader story of our common aspirations and challenges. The China Pavilion, a soaring inverted pyramid, has much to show the world. As does our own pavilion. The USA Pavilion showcases the qualities that make America dynamic and prosperous, including innovation, sustainability and diversity, and is an example of successful public-private partnership.

Creative problem-solving is a key theme of the USA Pavilion in Shanghai. Many of America's leading companies helped build the Pavilion and their cutting-edge technologies that hold the promise of unlocking a more sustainable and prosperous future are not just displayed, they are woven into the building itself. From the photovoltaic cells that convert sunlight into electricity and help power the Pavilion to the solar water heater, the rooftop garden and the recycled bamboo flooring, the USA Pavilion is a model of both innovation and environmental responsibility that will be carbon neutral for the duration of the Expo.

The United States and China are the world's two largest energy consumers and greenhouse gas emitters. So we have a unique responsibility to lead the effort against climate change and to chart a clean energy future.

At the Strategic and Economic Dialogue meetings in Beijing, we will discuss ways that our two countries can expand our cooperation on energy and climate issues.

And some of the new tools and technologies that will help us meet this global challenge are on display at the Expo. Innovation has always been a hallmark of world's fairs and expositions. Many people got their first look at the telephone, typewriter, x-ray and even the ice cream cone at an expo or fair. We are pleased to carry forward that tradition in Shanghai.

And because innovation is fostered by the free flow of commerce, the open exchange of ideas and the unfettered expression of creativity, we are working to turn the USA Pavilion into a launching pad for new partnerships and ventures, a hub of commercial diplomacy and a laboratory for new ideas. More than half a million people have already visited the Pavilion and more are coming every day.

One of the most moving exhibits they will find there is dedicated to the millions of Chinese-Americans who have contributed so much to the cultural and economic development of the United States. From Yo-Yo Ma to I.M. Pei to my Cabinet colleagues Commerce Secretary Gary Locke and Energy Secretary Steven Chu, Chinese-Americans have achieved great success in business, government, the arts and sciences.

But at the USA Pavilion, we also celebrate the lives and contributions of all the Chinese-Americans whose names are unlikely to ever end up in the newspapers. Thousands of them have sent photographs and testimonials documenting the Chinese experience in America—parents and children, teachers and students, small business owners and hard-working professionals— a true pageant of American life. We Americans are proud of our diversity, and our sometimes noisy democracy. We believe it makes us a stronger and more vibrant nation. At the USA Pavilion, this spirit is embodied by the Student Ambassadors who greet our visitors. Every day, with outstretched hands and wide smiles, and in fluent Chinese, these young American students are building bridges of understanding and respect. I can't wait to meet them.

When he opened the first world expo hosted by the United States, in Philadelphia in 1876, President Ulysses S. Grant pledged “our earnest desire to cultivate the friendship of our fellow-members of this great family of nations.”

Today in Shanghai we share the same goal. The doors of the USA Pavilion are open. We welcome the people of China and the world to join us.

Secretary Hillary Clinton delivered these remarks in Shanghai, China at the Boeing Maintenance Facility, Pudong International Airport

Secretary Timothy Geithner delivered this statement in Beijing, China at the Economic Track Opening Session

Secretary Geithner. On behalf of my U.S. colleagues, I would like to thank you, Vice Premier Wang, and your colleagues from ministries and agencies throughout China's government, for welcoming us to Diaoyutai for the Economic Track of the Strategic and Economic Dialogue.

At the beginning of the first meeting of the Strategic and Economic Dialogue in Washington last July, President Obama emphasized the importance of cooperation between our nations. As he said: “…[T]he United States and China share mutual interests. If we advance those interests through cooperation, our people will benefit and the world will be better off— because our ability to partner with each other is a prerequisite for progress on many of the most pressing global challenges.”

Over the past year, we have demonstrated a commitment to cooperate and an ability to work closely together on the most important economic challenges facing the world economy.

Because of the actions the United States and China took over the past year, the world economy is much stronger today than it was when we last met. The global recovery continues to strengthen, although we still face significant challenges.

Let me touch briefly on the key challenges that will be the focus of our discussions now and in the coming months and years.

Our common challenge is to make sure that as the global economy recovers from the crisis we are laying the foundation for strong, sustainable, and balanced global growth in the future.

In the United States, the President's comprehensive program of investments, tax incentives and financial measures stabilized the economy and restarted economic growth. The U.S. economy is now expanding, led by private investment. The financial system is stronger. Private savings have increased, and we are borrowing much less from the rest of the world.

And as the economy strengthens, we will bring down our fiscal deficits to sustainable levels. The President has laid out a detailed, comprehensive plan to cut our budget deficit as a share of GDP by more than half over the next few years. The health care reforms adopted earlier this year will produce substantial reductions in health care costs. We have established a bipartisan Presidential Commission to recommend by the end of this year additional measures to achieve further reductions in our long term deficits.

China's stimulus measures have been successful in supporting growth and shifting its composition towards domestic demand. The challenge will be to reinforce this shift to domestic demand as exceptional stimulus measures are withdrawn and as the rest of the world moves back over time to full employment and growth. This will require sustaining and deepening the measures China has already begun to raise household incomes, strengthen the social safety net, expand the range of financial services and products for households, and increase the role of the market in allocating investment capital.

We welcome the fact that China's leaders have recognized that reform of the exchange rate is an important part of their broader reform agenda. Allowing the exchange rate to reflect market forces is important not just to give China the flexibility necessary to sustain economic growth with low inflation, but also to reinforce incentives for China's private sector to shift resources to more productive higher value-added activities that will be important to future growth.

China has benefited enormously from the open and rules-based global system of trade and investment, as have we. Continued, reliable access to the large and growing United States market is an important underpinning of China's prosperity and growth.

One of the most important objectives of this dialogue is to expand economic opportunities through trade and investment.

After joining the WTO, China became more open to imports and to foreign investment. And we want to encourage you to go further and take additional steps to make sure that companies that export to China, that operate in China, and that compete with Chinese companies around the world are competing on a level playing field.

In this context, we will have a chance during these meetings to discuss policies to encourage technological innovation in China and our concerns that those policies, including government procurement preferences, enforcement of intellectual property rights, and proposed new preferences for specific products designated by the Government, not unfairly disadvantage American firms and American technology.

We are asking that China give American firms the same opportunities to compete in China that Chinese firms enjoy in the United States. This is a simple principle of fairness.

We are both engaged in important and comprehensive reforms of our financial systems. Here we face very different challenges, but our common objective is to build more resilient financial systems that can better meet the financial needs of households and businesses and channel capital to the most productive enterprises with the most innovative ideas.

We will provide an update on our reforms and how they will address the very substantial weaknesses in our financial system that produced this crisis.

And we look forward to hearing from the Chinese side an update on your financial reforms to expand saving and borrowing opportunities for your households and open up your financial system further to foreign firms and investment.

And we will further deepen cooperation among our financial regulators and supervisors, to reflect the closer integration of our two financial systems.

And we will continue to work together to build stronger institutions for cooperation on global economic and financial issues. We are working closely in the G-20, which we have now made the principal forum for addressing global economic policy issues. We are committed to further reform of the international financial institutions. We need to make sure these institutions have the right tools and the right governance to address global challenges, from development, to financial instability, and climate change. And important part of this is giving China and other rapidly growing economies a place in these institutions that reflects your greater economic importance in the global economy.

I hope we will take full advantage of this valuable opportunity to reach shared understandings and make concrete progress on the issues most important to each of us, as we continue to approach this relationship with mutual respect for our mutual interests.

Secretary Hillary Clinton, Secretary Timothy Geithner, and State Councilor Dai Bingguo delivered these statements in Beijing, China at the U.S.-China Strategic and Economic Dialogue

State Councilor Dai. Dear friends from the press, friends, good afternoon. With the personal care of President Hu Jintao and President Obama, and through the joint efforts of the two sides, the second round of the China-U.S. strategic and economic dialogues came to a successful conclusion.

Just now, President Hu Jintao and Premier Wen Jiabao met Secretary Clinton, Secretary Geithner and other members, they had very rich and profound discussions. Our dialogues have taken two days. And, looking back, starting from 2005 we have had several rounds of strategic dialogues. And last year we had the first round of the strategic and economic dialogue. For the strategic dialogue we have had over 100 hours of dialogues. And this mechanism, I am afraid, is one of the most special mechanisms, if it is not the most unique mechanism in the world. And I think both sides need to make the best out of this mechanism, and continue to improve and safeguard this mechanism, and to serve the interest of building the positive, cooperative, and comprehensive relations.

And for this round of the dialogue I fully agree with Vice-Premier Wang Qishan's positive comments on the dialogues. During this round, Secretary Clinton and I reviewed the achievements made in the previous strategic dialogues. We had in-depth and candid discussions and communications with a focus on advancing China-U.S. relations in the new era, respecting each other's core interests and major concerns, strengthening coordination and major international regional issues, and jointly promoting transformation of the international system, and development of cooperation mechanisms in the Asia Pacific region.

Competent departments of the two countries held a consultation in bilateral meetings on issues including energy, security, climate change, and UN peacekeeping operations. We have signed a number of agreements, and the dialogues produced many results. Although we haven't agreed on each and every of the major issues, the dialogues, I believe, are conducive to the further advancement of the positive, cooperative, and comprehensive relations in 21st century.

We both recognize that the world has entered a post-financial crisis era. The circumstances we're in and the responsibilities on our shoulders decide that only by exchanging ideas closely we can expand our mutual trust. Only by advancing cooperation can we achieve and win results. And only by strengthening coordination we can meet the challenges. And only by helping each other out as passengers in this gigantic ship of China-U.S. relationship will (inaudible) forward, braving winds and waves.

We believe that the China-U.S. relationship is critical to both countries and the whole world. The two sides also believe that, to cultivate and deepen China-U.S. strategic mutual trust is important to the advancement of China-U.S. relationship in the new century.

The two sides emphasized that it is impossible for China and the United States to agree on all issues. And the two sides will have disagreements and differences. What is important is to observe the spirit and principles enshrined in the three Sino-U.S. communication, China-U.S. joint statement: respect and accommodate each other's core interests and major concerns; properly handle all defensive and sensitive issues, including Taiwan and Tibet-related issues; and consolidate thebasics of mutual trust. As long as we keep to this right direction, we will be able to remove disruptions and obstacles and further advance our relations. The two sides re-emphasize that we will respect each other's core interests and major concerns. We will continue to properly handle the defensive and sensitive issues in the relations, according to the principle of mutual respect and equal discussions, so that our relations will steadily and soundly move forward.

The two sides stated that we will stay committed to increase the stability in the relationship. We agreed to advance communication, consultation, coordination, and cooperation on bilateral, regional, and global issues. During the dialogues, the two sides exchanged views on the current situation on the Korean Peninsula.

The two sides believe that ensuring peace and stability in northeast Asia and the Korean Peninsula is critical. And under current circumstances, relevant parties should proceed from the—safeguarding the overall interests of peace and stability in the region, calmly and appropriately handle the issue, and avoid escalation of the situation. In the dialogues we further discussed the building of the positive, cooperative, and comprehensive relationship in the 21st century. We believe that it is a relationship of—between cooperative partners, instead of between rivalries and enemies. It is the cooperation of peaceful coexistence, instead of being on guard against each other, or (inaudible) each other. It is a mutually beneficial win-win relationship, instead of one that is seeking one's own benefits at the expense of the others. It is a relationship equal— equality, instead of yielding—one side yielding to the other side. It is a relationship in which we exchange ideas frankly, trust each other, and have a reasonable and objective perspective of each other's strategic intentions, and respect each other's core interests and major concerns. And it is a relationship out of a strong sense of responsibility to the two peoples, and the people of the rest of the world. It is not a relationship of alignment, or targeted against any third party.

Finally, I would like to sincerely thank Vice-Premier Wang, Secretary Clinton, and Secretary Geithner. I would like to thank all the members of both teams, and thank all those who care about and support the China-U.S. strategic and economic dialogue. Thank you.

Secretary Clinton. Thank you very much. On behalf of all of the American delegation, I want to thank our generous hosts, Vice-Premier Wang and State Councilor Dai, for their excellent preparation and the extraordinary time that has been given to this dialogue, along with the Chinese team and the American team. This dialogue is the premier forum for one of the most important and complex relationships in the world. And the breadth and depth of our delegation continues to grow, because it reflects the agenda that we are working on together.

Earlier this year, our relationship faced uncertainty, and many questioned the direction we were heading. Now, in an earlier era, we might have experienced a lasting set-back. But this dialogue mechanism, and the habits of cooperation it has helped create, along with the confidence it has built, helped put us rapidly back on a positive track. This strategic and economic dialogue (inaudible), and it reflects the maturity, durability, and strength of our relationship. So, over the last days we discussed a wide range of the most complex bilateral, regional, and global challenges.

Now, as we have said many times, we do not agree on every issue. We don't agree even sometimes on the perception of the issue. But that is partly what this dialogue is about. It is a place where we can discuss everything, as State Councilor Dai said, from Taiwan to universal human rights. And in the course of doing so, we are developing that positive, cooperative, and comprehensive understanding that leads to the relationship for the 21st century that both President Obama and President Hu Jintao put into motion when they agreed to do this dialogue.

The success of the U.S.-China relationship will ultimately be measured by the results we deliver to our people. Do our dialogues and our collaborations produce changes that people see in their daily lives, and that contribute to global progress or not? That is both our challenge and our responsibility.

So, this round of the dialogue did not solve all of our shared problems, but it did produce a number of concrete results, some of which you saw as Chinese and American officials came forward to sign memoranda of understanding.

One in particular is in our efforts to meet the challenges of climate change and clean energy. We signed an agreement that, for the first time, will allow American experts to work closely with Chinese colleagues to begin exploring China's vast natural gas potential. We believe that could well lead to new economic opportunities in both countries, and a lower carbon emission load for our planet. This is part of the broader drive for energy security and greater market transparency and efficiency, closer cooperation, and more focus on cleaner energy (inaudible).

Earlier today I was pleased to sign with State Councilor Liu (inaudible) U.S. China consultation on people-to-people exchange. President Obama has announced a goal of sending 100,000 American students to China in the next 4 years to learn Mandarin, to experience Chinese culture, and to learn about the hospitality of the Chinese people, while they serve as ambassadors for the United States in China. And toward this end, I want to thank State Councilor Liu for her announcement of 10,000 scholarships for American students.

China and the United States are two great nations with a compelling interest in global stability and security. We have different histories, and are at different stages in our development. But we recognize that we share a responsibility for meeting the challenges of our time, from combating climate change to curbing nuclear proliferation and rebalancing the global economy. This dialogue is a mechanism to exercise that collective leadership and meet our collective responsibilities.

So, there is much that we have worked on and that we are accomplishing that can only happen when people come together and meet as we have. Yesterday, President Hu Jintao said in his opening remarks, “Not even the most sophisticated telecommunication technology can replace face-to-face exchanges.” Well, he is absolutely right. So I am very pleased that we had face-to-face exchanges, and we developed greater understanding and deepened our relationship. And we look forward to hosting you, Vice Premier Wang and State Councilor Dai, next year in Washington for the third round of the strategic and economic dialogue.

Secretary Geithner. (Inaudible) offer my appreciation to Vice-Premier Wang and State Councilor Dai. (Inaudible.) I want to thank all of those who joined us from the administration here today, and to say what a pleasure (inaudible) together in China. (Inaudible.)

Our economic relationship is strong and will get stronger. It rests on recognition by Presidents Hu and Obama (inaudible) and shared responsibilities. Over the past year, we have acted together to help restore financial stability and economic growth to a (inaudible). And because we stood together, and because our presidents (inaudible) act quickly and decisively, (inaudible) in a much stronger condition (inaudible) to successfully overcome the challenges still ahead.

When people write the history of this economic crisis, they will point to the decisive role played by international cooperation, in stark contrast with much of the pattern in past crises, where division (inaudible) and nations turn (inaudible). And in writing that story, the story will point to the critical role played by the United States and China, and the remarkable story of two nations, with such different traditions and such different stages of development, coming together with common objectives (inaudible) action.

Last July, when we met in Washington, China and the United States (inaudible) economic growth. The G20 embraced that cause, and recognized it as a global (inaudible). And since that time, China and the United States (inaudible). Americans are (inaudible) investing more, and borrowing less from the rest of the world, and China is consuming and importing more.

We work together, China the United States, (inaudible) substantial increase in financial resources for emerging markets and developing economies through the IMF and the multilateral development banks, and to restore trade (inaudible). And these commitments, these actions, were essential to arresting the freefall in global economic activity and averting much greater damage to the livelihoods of hundreds and millions of people around the world.

And, quietly but surely, we—China and the United States—are building a very strong network of cooperative arrangements on a range of goals, from boosting access to trade financial facilities for small and medium-sized enterprises, (inaudible), helping each (inaudible).

This second meeting of the strategic and economic dialogue takes place against the backdrop of a promising (inaudible) pave the road to China and the United States and across (inaudible), tempered by a recognition of the challenges faced by countries in Europe in (inaudible), sustainable, and promoting more balanced economic growth.

We agree here to do (inaudible) to strengthen and reinforce this global economic recovery, and we agree to support the strong programs of policy reforms and financial support now being undertaken by the nations of Europe. We welcome the strong commitment of President Hu to the process of economic reform to expand domestic demand and increase household consumption, to expand market access and keep with established international, economic, and trade goals, and to advance trade and investment liberalization.

We welcome the fact that China's leaders have recognized that reform of the exchange rate mechanism is an important part of their broader economic reform agenda. Allowing the exchange rate to reflect market forces is important, not just to give China the flexibility necessary to sustain more balanced economic growth with low inflation, but also to reinforce (inaudible) resources more productive, higher value-added activity (inaudible).

Now, this is, of course, China's choice. And we welcome the progress we have achieved to provide a more level playing field for American firms exporting to China and operating in China. China has taken a series of steps to adjust and modify its programs designed to promote (inaudible) and technological advancement. China has revised certain aspects of this (inaudible), such as the requirement that products be (inaudible) or trade-marked in China, eligible for certain (inaudible). China has a firm commitment to abide by the principles of non-discrimination, market competition, open trade, intellectual property rights protection, and leaving the terms of technology transfer and production (inaudible) to agreements between enterprises.

And we have agreed to a process of dialogues in the coming weeks and months, led by my colleague, Ambassador Kirk, Secretary Locke, and Office of Science and Technologies Director, John Holdren to find ways to address our main concerns.

We also welcome (inaudible) procurement by July of 2010, as well as a commitment to reduce barriers (inaudible) high-technology goods, high-end (inaudible), and energy saving products (inaudible) facilitate more (inaudible). With this progress, it does not (inaudible) all our concern, but it gives us a set of (inaudible). And I want to thank Vice-Premier Wang, in particular, for his personal role in advancing the practical solutions to our concerns.

The relationship between our two countries is strong and beneficial to both sides. American exports to China are growing much more rapidly (inaudible). Compared to the first quarter of 2009, (inaudible) by the crisis. Our exports to China have risen by almost 50 percent, roughly double (inaudible). And these developments demonstrate (inaudible) the strength and dynamism of the American economy. It demonstrates the importance and the (inaudible) process (inaudible) in China, (inaudible). It demonstrates that our strengths are complementary. They demonstrate that American companies are leaders in innovation in the goods and services that the world needs to grow.

We are seeing a (inaudible) rise in private investments in the United States, dramatic ongoing (inaudible) supported by a stronger financial system, a carefully designed and very substantial commitment by the U.S. Government to promote investment, innovation, and basic research.

We bring to the dialogue respect for China's interests, and a commitment to close cooperation on all the major global challenges of our time. And we bring a recognition of the special responsibility of the United States to contribute to the stability of the global financial (inaudible).

I want to conclude, again, by expressing my sincere appreciation to President Hu, Premier Wen, Vice-Premier Wang (inaudible), for their commitment to work to strengthen this relationship, and we look forward to continuing progress in the forthcoming G20 meetings. (Inaudible.) Thank you.

Secretary Hillary Clinton and Secretary Timothy Geithner delivered these remarks in Beijing, China

Q. Secretary Geithner, in your closing statement, you said that U.S. and China have agreed to support the financial reforms and the financial efforts that Europe is making to restore stability. What exactly does that mean? And how might the U.S. and China act to offer that support?

Secretary Geithner. Through the IMF. Obviously, the developments in Europe were part of our conversations over the last several days. But I think you see in China and the United States very encouraging signs of stronger growth, recovery that's more broad-based—led, of course, by the private sector in the United States. And in China, you're seeing it translate— you're seeing it come with a substantial shift in the composition of growth towards growth led by domestic demand. And I think that's very important to point out because, again, we come to this stage in recovery with a world economy that is in a much stronger position than it was three months ago, six months ago, nine months ago.

But of course, we both have—China and the United States have a strong interest in seeing Europe put in place this very strong program of economic reforms and financial support. And of course, as I like to say all the time, it's important to understand that Europe has the capacity to manage these challenges. And we're confident they will.

Q. Thanks very much. Mr. Secretary, what is the timeline for when you will need to say something about the foreign exchange report to the Congress? You are required to submit—the Treasury Department is required to submit this report by law. You've delayed it by three months. What do you need to say and when?

Secretary Geithner. That time will come. But Rebecca, I think it's important to emphasize that we came—we come to this relationship with three very important objectives. One is to see a growing economy in China with growth coming from domestic demand, stronger household income, stronger consumption. Second is to make sure that we're making progress in making sure that American exporters, American companies operating in China are able to compete on a level playing field. And of course, we want to see China continue on the broad path of reform of its exchange rate system.

And again, it is important to note that what China has undertaken just in this past year has been remarkable. And you're seeing very substantial increase in economic opportunities for U.S. firms in China, very rapid growth in American exports to China. That's very important to us, it's obviously very beneficial to China, and it will make a very important contribution to strengthening this global recovery.

Q. Okay. First of all, congratulations on the successful conclusion of the Strategic and the Economic Dialogues. And thank you for including—Secretary Clinton, questions for you and the—Secretary Geithner.

So my question is although we never—we should never evaluate the dialogue based on its many accomplishment—agreements to have signed or breakthroughs we have cracked open or the compromises we have made. I want to ask—what we want to know is that— what does the Obama Administration plan to take—what kind of substantial measures or steps the Obama Administration plan to take to implement or carry out the—what we have agreed here during past two days? Thank you very much.

Secretary Clinton. That's an excellent question, because it is important that we report to the press and through the press to the public, in both China and the United States, about the results of these intensive negotiations. A lot of work goes into them before we ever show up. Secretary Geithner and I have the benefit of a wonderful team of people in both the Treasury Department and the State Department who work with the entire United States Government in order to prepare for these dialogues. And of course, on the Chinese side, the same is true with our counterparts, Vice Premier Wen and State Councilor Dai.

So here are some of the things—and we will prepare a more thorough accounting of the results of the dialogue—but let me put it into three, sort of, categories. One, the high-level discussions that I engaged in on the strategic track and that Secretary Geithner engaged in on the economic track build an enormous amount of understanding and create an environment in which both the United States and China are able to better appreciate the other's point of view, to work through in an open, candid manner the problems that we are going to encounter, because we're not going to agree on everything. No two countries possibly could.

And as I said in my statement over at the Great Hall of the People, we got through some rocky periods this past year, I would argue, in part because of the good relationship between President Hu Jintao and President Obama, but also because of the relationship that went down from our presidents into our governments that has been developed over the last 15 months through the Strategic and Economic Dialogue. So it's intangible, but understanding confidence, trust is a very big result of what we are doing.

Secondly, there are some long-term problems that we are tackling. Many of the issues that we are addressing are in the headlines. You just heard questions about some of them—North Korea and Iran, currency. Those are in the headlines. And we want the people of both of our countries to know that we're working together, we are taking action together, and we are attempting to deal with global and regional instability on either the economic or the security and strategic front. So each of those difficult problems is being given an enormous amount of attention.

But finally, there is so much more work that's going on every single day becauseof these dialogues. Those of you who saw the signing ceremonies saw a number of memoranda of understandings signed. Each of those represents months of work and consultation between our respective governments. I mentioned one of them, the first time ever that American experts and Chinese experts will work to develop China's natural gas resources. Imagine what it would mean for China if China unleashed its own natural gas resources so you are not dependent on foreign oil, particularly from such a difficult area as Iran.

So working together to try to enhance China's energy independence is not something that's going to happen next week or maybe even not next year. But the process that we are doing together is a very strong example of our long-term commitment to each other. Similarly, the agreement today to send a hundred thousand more American students to China over the next four years to study Mandarin, to learn more about your country, is a very tangible result of the dialogue. We want to build people-to-people connections and more exchanges at all levels of society.

So we will give you a full accounting with all of the health agreements and the education agreements, the customs agreements, the energy agreements, the science and technology agreements. There's a very long list. Some of them will have immediate impact and benefits, some in the medium-term, and some are long-term investments that come out of our long-term commitment to the relationship.

Second Meeting of the U.S.-China Strategic & Economic Dialogue: U.S. Fact Sheet—Economic Track

As the world's third largest and fastest growing major economy, China presents enormous opportunities for U.S. workers and firms but also considerable challenges. President Obama is committed to making our relationship with China more beneficial for the American people, and his goal of doubling exports in the next five years to support two million U.S. jobs will be achieved in part through expanded trade with China. Reducing Chinese trade and investment barriers that create an uneven playing field for U.S. workers and companies and rebalancing to ensure that major surplus economies like China depend more on their own domestic demand for growth are key components of our efforts to achieve the President's goal.

The Strategic and Economic Dialogue allows U.S. and Chinese officials at the highest level to work together to address these and other important challenges through candid and constructive engagement. Secretary Geithner led a delegation of 10 heads of U.S. government agencies to Beijing for discussions with President Hu, Premier Wen, Vice Premier Wang, and a delegation comprised of all key Chinese economic ministry and agency heads.

Creating New Opportunities for U.S. Workers and Firms: The United States and China are among the largest beneficiaries of open trade and investment. Ensuring a thriving and mutually beneficial bilateral trade and investment relationship between our two dynamic economies is a key priority. China has become the third largest export destination for U.S. goods and services—and one of the fastest growing. U.S. exports to China are now growing faster than overall U.S. exports. Reducing Chinese barriers to U.S. exports will help the U.S. take full advantage of the many growing opportunities represented by trade with China and create jobs for U.S. workers We made progress on several key trade and investment goals at the S&ED, and will continue to pursue them:

Ensuring that innovation policies encourage the best ideas wherever they originate.

*China and the United States committed to innovation policies consistent with strong principles, including nondiscrimination, intellectual property rights protection, market competition, and no government interference in technology transfer.

*China agreed to launch expert and high-level bilateral innovation discussions with all relevant U.S. and Chinese agencies and to take into account the results of these discussions in formulating and implementing its innovation measures.

*China removed troubling elements of its product accreditation circular following extensive engagement with the U.S. government and business community and has delayed implementation to assess public comments.

Ensuring fair government procurement treatment for U.S. goods and services.

*China agreed to submit a robust revised offer by July 2010 to join the WTO's Agreement on Government Procurement and issued draft regulations for public comment containing a 50 percent local content provision.

Promoting U.S. exports through bilateral cooperation.

*China and the United States agreed to strengthen cooperation on inspections of soybeans to ensure the smooth flow of US soybean exports, which were more than $9 billion in 2009.

Reducing barriers to foreign investment.

*Since S&ED I, China met important commitments to triple the threshold for foreign investments that require central government approval. China also agreed to reduce barriers to foreign investment in services, high-technology goods, high-end manufacturing, and energy saving products and to accelerate and narrow the scope of foreign investment reviews.

These measures will create new opportunities for U.S. firms and workers through increased trade and investment over time.

Promoting a Strong Recovery and More Balanced Growth: The global economy is now recovering, due in part to timely and comprehensive stimulus policies in both the United States and China coordinated through the G-20. In the face of vulnerabilities in other parts of the global economy, it is more important than ever that the U.S. and China take strong policy actions to secure the recovery, create jobs and rebalance growth to make it more sustainable.

Promoting more home-grown, consumption-led growth in China.

*Following S&ED I, China implemented a range of measures to increase the contribution of consumption to its growth. In 2009, consumption accounted for 4.6 percentage points of China's real GDP growth, up from 4.1 in 2008. And, in the first quarter of 2010, consumption contributed 6.2 percentage points, the largest amount ever. The share of consumption in China's GDP though is still low; there is ample scope for the expansion of Chinese consumption to continue to support GDP growth over the years ahead.

*Strong growth in China has increased U.S. exports. U.S. exports to China are now 20 percent above where they were at this time two years ago—while U.S. exports to the world are still below their level two years ago. The rebound over the past year has been even stronger.

*China's current account surplus in 2009 fell by one-half from its peak, as a share of GDP and has declined further in the first quarter of 2010.

*To sustain this progress, at S&ED II China agreed to accelerate development of services and its social safety net, including by expanding its new rural pension system.

*Chinese workers are now earning more. Guangdong in China's industrial heartland raised its statutory minimum wage by 21 percent this month, and ten other provinces are following suit. As workers’ earnings increase, their demand for imports will also rise.

*Moving to a more market-determined exchange rate will make an essential contribution to securing the global recovery and achieving more balanced global growth and was an important focus of the Dialogue. We will continue to have intensive discussions with China on this in the run-up to the G-20 Leaders’ summit.

Reinforcing fiscal consolidation and private savings in the United States.

*The President proposed a number of important deficit-reduction steps to achieve fiscal sustainability in the medium and long term, including the creation of the National Commission on Fiscal Responsibility and Reform to reduce the deficit to about 3 percent of GDP by 2015 and stabilize the debt-to-GDP ratio at an acceptable level.

*U.S. policy will also reinforce and sustain post-crisis gains in household savings rates, which in turn will mean a smaller role than in the past for the U.S. consumer in driving global growth.

Working together on policies to eliminate fossil fuel subsidies.

*Inefficient fossil fuel subsidies encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources, and undermine efforts to deal with the threat of climate change. Through the G-20, the United States and China have agreed to rationalize and phase out inefficient fossil fuel subsidies over the medium term.

*As we do that, we recognize the importance of providing those in need with essential energy services, including through the use of targeted cash transfers and other appropriate compensation mechanisms. We have been working together to develop implementation strategies for the June G20 Leaders Summit.

A Chinese economy that is powered more by consumption will contribute to stronger and more sustainable global growth. China's measures to develop the services sector will also shift China away from heavy industry toward less energy- and carbon-intensive growth.

Promoting More Resilient, Open, and Market-Oriented Financial Systems: Although the United States and China face different challenges, reforming our financial sectors and strengthening regulation is critical to achieving both strong and sustainable growth. China's financial reforms should channel resources away from large state-owned banks, which lend mainly to large state-owned firms, and toward private and small and medium-sized enterprises, particularly in the service sector. Higher interest rates for deposits would help support household income and thus household consumption.

Cooperating on key financial regulatory issues to reduce regulatory arbitrage, contain systemic risks, protect small investors, create opportunities for U.S. financial service firms and make global financial markets more robust.

*Since S&ED I, China has agreed to support U.S. efforts to strengthen global financial regulation and supervision—by promoting higher, better quality, and counter-cyclical capital requirements, strengthened liquidity risk requirements, and the introduction of a leverage ratio as a supplementary measure to the Basel risk-based framework.

*In support of U.S. efforts to confront the “too big to fail” problem, the United States and China agreed at S&ED II to strengthen cooperation on the resolution of cross-border entities.

*The FDIC and China's central bank agreed to deepen their engagement to promote rural financial inclusion.

*The United States and China agreed to strengthen cooperation on insurance regulation including asset management.

*China has agreed to allow both foreign joint ventures in China and foreign investors, like pension funds, investing in China through the Qualified Foreign Institutional Investor (QFII) program to trade stock index futures.

*Since S&ED I, China has increased the quota for the QFII program (which allows foreigners to invest in Chinese stocks and bonds) from $15 billion to $17 billion and allowed foreign firms to establish consumer finance companies.

Strengthening the International Financial Architecture: The United States and China recognize that multilateral institutions and mechanisms have an important role to play in promoting a strong recovery and job creation, global standards of good governance, open trade and investment, poverty reduction, and an international financial system less prone to crisis.

Working together to promote reforms that strengthen the legitimacy of multilateral institutions and ensure that they have the resources to carry out their tasks.

*Since S&ED I, China agreed to contribute to the New Arrangements to Borrow that will supplement the IMF's financial capacity and to capital increases for the World Bank, African Development Bank, and Inter-American Development Bank.

*We have supported a shift in voting share in the World Bank to emerging markets.

At S&ED II, China agreed to work together to replenish the Multilateral Development Banks’ concessional facilities to lend to the poorest countries.

*China and the United States agreed that both countries would provide their full share of the financing necessary to cancel Haiti's debt to the Inter-American Development Bank.

Deepening Bilateral Engagement to Achieve Real Results: We are building a network of cooperative arrangements with China, from boosting access to trade finance facilities for small and medium-sized enterprises, and ensuring fair labor standards and strengthening protections for workers, to fighting money laundering and terrorist financing.

Secretary Robert Gates delivered these remarks in Singapore

Secretary Gates. I had five meetings today with my counterparts from Indonesia, New Zealand, India, Vietnam and, just now, the Republic of Korea. I would say a common theme was growing military-to-military cooperation across the board with all these countries.

With Indonesia, I commended their defense reforms in recent years and the way that those reforms have enabled a broadening of defense cooperation and engagement. I asked for their help in training in Afghanistan, particularly, of symbolic importance of the world's largest Islamic democracy helping another Islamic country. We also talked about the modernization of the Indonesian military.

With respect to New Zealand, we talked about the completion of the New Zealand policy review that now opens the way for broadening cooperation for the first time in roughly a quarter of a century between New Zealand and the United States. Again, I asked about trainers for Afghanistan.

I met with Ambassador Menon, the national security adviser from India. I noted that this meeting was taking place at almost exactly the same time as Secretary Clinton is meeting with the minister of external affairs. In a way, it's symbolic of the global connection, if you will, between the United States and India and the tremendous improvement in relations and opportunities for cooperation.

I did talk about defense trade and the foundational agreements that we've been talking about, the communications interoperability and security memorandum of agreement, the basic exchange cooperation agreement, the logistics support agreement and why those are important for further progress.

I did tell them that we thought that, as they contemplate bids for their medium multi-role aircraft going forward, that our entries of the F-16 and the F/A-18 are high-quality competitors. We talked about the need and value of export control [reform on] both sides and also about circumstances in Afghanistan.

With respect to Vietnam, I suppose the most important thing is that Vietnam will host the ASEAN Defence Ministers Meeting Plus in October. Minister Thanh invited me to attend that meeting, and I said that I would be honored to do so. And so I will attend the ASEAN Defence Ministers Meeting Plus in Hanoi in October.

We talked about our defense policy dialogue that will take place in August. I thanked them for their proposals to accelerate the pace of work on identifying those missing in action—American servicemen—the 13 new areas that they have opened up for us. And then we talked about a range of opportunities for increasing bilateral cooperation.

With respect to the Republic of Korea, finally, we talked about the—we talked about the response to the sinking of the Cheonan. I expressed my condolences to the families of the sailors who were lost and also our admiration for the way in which the Republic of Korea government has responded to this serious provocation and, obviously, expressed our full support for them going forward.

I did say that I thought that we should ensure that our coordinated response accomplished two objectives. The first was to reassure the public in the Republic of Korea that our alliance will effectively ensure their security and, second, that our coordinated response enables us to— enables our initiatives to enhance our capabilities to deter and, if necessary, respond to any further provocations.

So with that, I'd be happy to take a couple of questions.

Q. Yeah. Just shifting slightly back to North Korea, do you expect the U.N. Security Council to impose serious penalties on the North? And are you concerned that the failure to do so will send a message to Iran and others that the U.S. is a paper tiger?

Secretary Gates. Well, I don't think anybody believes the United States is a paper tiger. And—you know, first of all, it's not clear exactly what path the Republic of Korea intends to pursue in the U.N., whether it's a resolution, a president's letter or whatever.

What I will say is that it's clear that whatever they choose to do at the U.N., they will have the full support of the United States. Whether or not that involves a resolution, I don't know. And I think the failure to—you know, not going for a resolution, I think, is not a manifestation of a lack of recognition of the nature of the provocation we have seen from North Korea but may be more addressed to the worry about provoking further instability and further provocations from the North.

Secretary Robert Gates delivered these remarks in Singapore

Secretary Hillary Clinton delivered this statement in Washington, DC

Secretary Clinton. I join President Obama in congratulating President-elect Benigno “Noynoy” Aquino III, whom the Filipino people have chosen to lead their nation. The Philippines’ successful election exemplified the vitality of the country's democratic institutions and should be a point of pride for Filipinos everywhere. The Filipino people now look to President-elect Aquino to carry forward the democratic traditions that his parents did so much to champion. The United States has long stood with the Philippines as a trusted ally and friend and we will continue to support the ongoing efforts of the Filipino people to build a secure and prosperous country.

Ambassador Demetrios Marantis delivered these remarks in Hanoi, Vietnam

Ambassador Marantis. Xin chao'! And, ‘cam on’ to your University President and to Ambassador Michalak for those kind introductions. It is wonderful to be back in Vietnam and see so many familiar faces and old friends. I was looking forward to introducing you to my boss and President Obama's U.S. Trade Representative Ron Kirk. After hearing me talk about my living in Hanoi for two years, I know Ambassador Kirk was very excited to come to a country that to me radiates dynamism and opportunity. Unfortunately, Ambassador Kirk was involved in car accident that forced him to cancel his travel. But I am glad to report that he is recovering well at home and is already looking for a time to reschedule his trip to Hanoi.

Whenever I come to Vietnam, I try to find a few free minutes to visit the places that were home to me when I lived in Hanoi eight years ago. This week I woke up early one morning to see my old apartment on Hang Khay near Hoan Kiem Lake. Later I walked down Ly Thai To Street to the former offices of the U.S. Vietnam Trade Council where I used to work. I was happy to see the little shop where I always bought my tea and the stall whose pho ga I still crave.

I think I take comfort in seeing a few familiar things in Vietnam, because everything else changes so quickly. The first time I travelled to Vietnam in 1993, the United States still had its embargo in place. We didn't trade at all. When I came back to Vietnam in 2001, our countries had signed a bilateral trade agreement, and you were in the process of acceding to the World Trade Organization. Since then, Vietnam held a successful APEC host year, and the United States and Vietnam began negotiating a Bilateral Investment Treaty.

Today, I am in Hanoi just a month short of the 15th anniversary of the reestablishment of diplomatic relations and in the middle of the Trans-Pacific Partnership trade negotiations in which Vietnam is a key partner.

In the seventeen years since I first travelled to Vietnam, you never ceased to pursue your ambitions and seize new opportunities in international trade and investment. The United States couldn't have a better partner, as President Barack Obama and Ambassador Kirk work to seize the opportunities of the 21st century in global trade.

Earlier this year, President Obama released the annual Trade Policy Agenda for the United States. His vision of trade policy for the next year, and for the coming decade, is one that: supports global economic recovery in a stronger trading system, recognizes the value of strong ties with responsible partners, like Vietnam, and opens new opportunities for the future—such as those we are seeking along with Vietnam in the Asia-Pacific Economic Cooperation forum and in the Trans-Pacific Partnership.

The Obama Administration sees strong trade flows as a key component of world economic recovery.

The recent economic crisis has shown the world two things: first, how interconnected all of us are in this global economy—and second, the vital importance of a robust, rules-based global trading system.

World leaders committed during the economic downturn to keep markets open. And the World Trade Organization found that those pledges were largely kept. Member economies including the United States and Vietnam largely avoided the protectionism that might have made the crisis worse.

The rules-based trading system proved its worth during this difficult time. And that is why Vietnam deserves such a large measure of congratulation and admiration for the challenging work you undertook to conclude the Bilateral Trade Agreement and join the WTO and for your robust participation in the global trading system.

Cooperation for economic prosperity is another major goal of President Obama's trade agenda.

The U.S. relationship with Vietnam is one of the best possible examples of how far a relationship can come in a short period of time when partners are committed to growth.

Vietnam deserves the admiration of the world for its rapid integration into the global trading system. As I mentioned, it was a mere 15 years ago that the United States and Vietnam renewed diplomatic ties. Shortly thereafter, Vietnam and the United States sat down at the table to negotiate the Bilateral Trade Agreement, which we sealed in 2001. This agreement enabled us to move our relationship forward, establishing normalized trade relations to complement our diplomatic ties. The United States was proud to support the implementation of the Bilateral Trade Agreement and help Vietnam advance its transition toward a market-oriented economy.

Secretary Timothy Geithner delivered this statement in Washington, DC before the Senate Finance Committee

Secretary Geithner. Chairman Baucus, Ranking Member Grassley, Members of the Committee, thank you for the opportunity to testify about China.

I want to talk today about the opportunities, and challenges, in this important relationship.

Our policy is to expand the opportunities provided to Americans from a growing China. We want future growth in China to result in more exports from the United States and more jobs in the United States. We want China to change those policies that disadvantage American companies and to provide greater protections for American intellectual property. We want China to provide a level playing field for the products of American workers and investments by American companies. And we want China to change its growth strategy to rely less on exports and more on consumption.

Promoting a Level Playing Field

One of the most important objectives of the S&ED and our broader engagement is to expand economic opportunities for American workers and firms through trade and investment with China. That is why we have urged China to take action to provide a more level playing field for American firms that export to China, that operate in China, and that compete with Chinese producers in our markets and around the world. We have asked China to make meaningful market access contributions in the WTO Doha Round negotiations thatwill result in new trade flows for U.S. manufacturers, farmers, ranchers, and service suppliers. We are working to improve protections for U.S. intellectual property and to reduce piracy affecting the U.S. software and entertainment industries. At every opportunity, the Administration will continue to push these important trade issues in various forums, including the Joint Commission on Commerce and Trade (JCCT).

It is especially important to the United States that the large number of policies China has put in place to promote what it calls “indigenous innovation”—including government procurement preferences, enforcement of intellectual property rights, design of product standards, and proposed new preferences and other forms of government support for specific products designated by the Chinese government—do not disadvantage American workers, firms, and technology. American firms operating in China should have the same rights enjoyed by Chinese companies, just as Chinese firms have in the United States. This is a simple principle of fairness.

In response to some of our concerns, China has acted to modify its policies to promote innovation and technological advancement. China published a draft measure proposing revisions to some of the troubling elements of its product accreditation system, and we will continue to work with China to address our concerns. At our strong urging, China has also pledged that its innovation policies would be consistent with the principles of non-discrimination, market competition, open trade and investment, strong enforcement of intellectual property rights, and leaving the terms of technology transfer, production processes, and other proprietary information to agreement between individual enterprises. Sharing the concerns of U.S. companies about China's innovation policies, we secured agreement from the Chinese to establish a high level process over the coming weeks and months, led by my colleagues Ambassador Kirk, Secretary Locke, and Science and Technology Director Holdren, to find ways to address the unresolved issues, and to take into account the results of these discussions in formulating and implementing their innovation measures. While we still have more work ahead, we now have agreed to a broad set of common principles and a framework on which to move forward and resolve our differences.

The best way to limit China's use of government procurement preferences to promote its industrial policies is having China join the rules-based WTO Agreement on Government Procurement. China has now committed to submit a revised offer by July 2010, and just before the S&ED, it issued for public comment draft regulations on the determination of “domestic products” under its government procurement law containing a 50 percent local content provision.

China has also committed to revising its investment catalog and to encourage and expand areas that are open to foreign investment, including certain services, high-technology goods, high-end manufactoring, and energy saving products. Finally, China also agreed to facilitate foreign investment by narrowing the scope of its investment review and approval processes.

Economic Reforms to Reduce Export Reliance and Promote More Balanced Growth

The United States and China recognized two years ago that the pattern of growth in both countries and globally was unsustainable. While we both acted aggressively to stimulate our economies and stave off the worst of the financial crisis, we also both took actions to create a more balanced, sustainable base for strong growth in the future.

In the United States, we are saving and investing more, and it is important that future growth is less reliant on consumption financed by excess borrowing.

Exchange Rate Reform

Reform of China's exchange rate is critically important to the United States and to the global economy. And it is in China's own interest to allow the exchange rate to reflect market forces.

President Hu stated in public this month that China is committed to the reform of the exchange rate, and stated that reform is a key part of China's strategy to produce more balanced growth, growth that relies more on domestic demand.

President Barack Obama delivered this statement in Toronto, Canada

President Obama. Well, I just had an excellent discussion with President Lee and his team. Obviously we are marking the 60th anniversary of the Korean War and the extraordinary friendship and alliance between our two countries. And when I last visited the Republic of Korea, President Lee shared with me a wonderful story of what the American presence had meant to him as he was growing up, and it was a reminder and a testament I think of the importance of the relationship and the alliance between our two countries.

I expressed to President Lee once again the condolences of all Americans for the tragic Cheonan incident, and indicated to him that we stand foursquare behind him. He has handled this issue with great judgment and restraint. He rightly is insisting on North Korea being held—held to account for its actions in the United States Security Council. We are fully supportive of that effort. We think it is the right thing to do. There have to be consequences for such irresponsible behavior on the international stage.

We also reaffirmed the importance of our military alliance. One of the topics that we discussed is that we have arrived at an agreement that the transition of operational control for alliance activities in the Korean Peninsula will take place in 2015. This gives us appropriate time to—within the existing security context—to do this right, because this alliance is the lynchpin of not only security for the Republic of Korea and the United States but also for the Pacific as a whole. And South Korea is one of our closest friends—we want to make sure that we execute what's called the opcon transition in an effective way.

One of the other points that we discussed extensively was the issue of commercial and trade ties between our two countries. There has been a lengthy negotiation to arrive at a free trade agreement. The last time I was in Korea, I said that I would be committed to moving this forward. And today I indicated to President Lee that it is time that our United States Trade Representative work very closely with his counterpart from the ROK to make sure that we set a path, a road, so that I can present this FTA to Congress.

We are going to do it in a methodical fashion. I want to make sure that everything is lined up properly by the time that I visit Korea in November. And then in the few months that follow that, I intend to present it to Congress. It is the right thing to do for our country. It is the right thing to do for Korea. It will strengthen our commercial ties and create enormous potential economic benefits and create jobs here in the United States, which is my number one priority.

So both on the security front and on the economic front, our friendship and alliance continues to grow. My personal friendship with President Lee and my admiration for him continues to grow. And I'm looking forward to working diligently with him and I'm looking forward to an opportunity to visit Korea once again because I had a wonderful time the last time we were there.

The U.S.-Indonesia Comprehensive Partnership

The Comprehensive Partnership is a long-term commitment by Presidents Obama and Yudhoyono to broaden, deepen and elevate bilateral relations between the United States and Indonesia. It recognizes the global significance of enhanced cooperation between the world's second and third largest democracies, the tremendous possibilities for economic and development cooperation, and the importance of fostering exchanges and mutual understanding between two of the world's most diverse nations.

We have made significant progress since work began on the Partnership in mid-2009. Together we launched a Peace Corps program that will promote understanding between the Indonesian and American people. Our two governments signed agreements for Science and Technology Cooperation and the Overseas Private Investment Corporation, which will underpin deepened engagement by our two countries in two of the most dynamic sectors of our relationship. The U.S. Department of Defense and the Indonesian Ministry of Defense signed a Framework Arrangement on Cooperative Activities in the Field of Defense that will enhance the quality of security cooperation. Most recently, Ex-Im Bank Chairman Hochberg announced in Jakarta on June 18 a $1 billion credit facility in partnership with 11 Indonesian banks to facilitate bilateral trade.

We have also seen unprecedented levels of high-level consultation and engagement on bilateral, regional, and global issues. This is the second bilateral meeting between the two Presidents in the past eight months. Secretary of Defense Robert Gates met with Indonesian Minister of Defense Purnomo in Singapore on June 4th to discuss ways to deepen our already robust security cooperation. Secretary of Commerce Gary Locke led the first cabinet-level trade mission to Indonesia May 25-26, promoting U.S. exports in a broad range of clean energy technologies. Environmental Protection Agency Administrator Lisa Jackson announced the “Breathe Easy Jakarta” initiative, partnering with the Jakarta regional government to assess and reduce key sources of urban air pollution in Jakarta. Science Envoy Bruce Alberts explored new areas for cooperation in Science and Technology during a visit to Indonesia in May. Under Secretary of State for Political Affairs William Burns and Under Secretary of State for Democracy and Global Affairs Maria Otero visited Indonesia and engaged their Indonesian counterparts in wide-ranging strategic dialogues.

The U.S. Secretary of State and the Indonesian Foreign Minister will co-chair a Joint Commission later this year that will ensure continued momentum and progress on the Comprehensive Partnership. The two Presidents will launch the Comprehensive Partnership when President Obama visits Indonesia. In that spirit, today the two Presidents agreed to initiate major initiatives advancing Higher Education and confronting Climate Change.

Higher Education Partnership

The United States will invest $165 million over five years in programs facilitating the vital exchange of leadership and management experience, scientific and technical expertise, and cultural understanding between Americans and Indonesians. This support includes: Expanding of our exchange programs, including Fulbright, the Community College Initiative, and the State Department's English-language training, student advising services, and other exchanges; Launching a major five-year effort to improve the quality of higher education in Indonesia through a University Partnership program supporting collaboration between select U.S. and Indonesian higher education institutions; The U.S. Government has also invited the Indonesian Minister of National Education to travel to the United States next summer for a U.S.-Indonesia Higher Education Summit to advance our cooperation in education.

Environment and Climate Change Cooperation

The United States recognizes President Yudhoyono's early pledge at the G-20 in Pittsburgh to reduce Indonesia's greenhouse gas emissions by up to 41% below business as usual by 2020, as well as Indonesia's support for the G-20 to pledge to eliminate fossil fuel subsidies. In order to support these pledges, the Copenhagen Accord, and our shared goals on climate change, President Obama committed $136 million over three years in an array of programs toward Environment and Climate Change cooperation, which include: The $119 million SOLUSI partnership, which represents the major areas of Environment and Climate engagement—Science, Oceans, Land Use, Society and Innovation—and means “Solution” in Indonesian. Programs encompassed under SOLUSI include a second Tropical Forest Conservation Act agreement, Forestry and Climate Support Project (IFACS), Marine and Climate Support Program (IMACS), Clean Energy Development (ICED) program, and others.

Supporting Indonesia in establishing a Climate Change Center that will work closely with national, regional, and local stakeholders in and out of government, linking science to policy on strategic priorities in the climate change area, and focusing initially on emissions from peatlands. The United States is pleased to announce $7 million in support for the Center and $10 million for associated projects and partnerships, including public-private partnerships focused on addressing climate-related challenges in Indonesia. Indonesia and the United States welcome Norway's matching contribution to the Center and encourage other countries and institutions to join in its development.

President Barack Obama and Prime Minister Naoto Kan delivered these remarks in Toronto, Canada

President Obama. Well, Prime Minister Kan and I just had an excellent conversation and bilateral meeting after three days where we've had an opportunity to share ideas on not only the most pressing issues that are facing our economies but also a range of security issues.

I congratulated Prime Minister Kan on his leadership, and we both noted the significance of 50 years of a U.S.-Japan alliance that has been a cornerstone not only of our two nations’ security but also peace and prosperity throughout Asia.

We discussed some very pressing security issues, in particular North Korea, the sinking of the Cheonan, and the importance of both our countries standing in solidarity with South Korea and the entire international community standing with South Korea in condemning the incident and making sure that North Korea gets a clear signal that such provocations are unacceptable.

I also expressed appreciation to Japan for its support for the Iran sanctions that we passed through the United Nations Security Council, and we discussed issues of implementation.

But, of course, in addition to significant dangers, we also talked about great opportunities. We see the possibilities of strengthening our economic ties across a whole range of issues. That's been, obviously, the subject of this summit.

We're both determined to pursue opportunities in clean energy and job growth and promoting the kind of sustainable recovery that will create opportunities for our people and increase opportunities not just for this generation but for future generations.

And I'm very much looking forward to visiting Japan and enjoying the hospitality of Prime Minister Kan as he helps to shape the agenda for the next APEC meeting. And I thanked him for the very generous offer of boom and skimmers coming from Japan that can help in what is going to be a very lengthy process of cleaning up the Gulf in the wake of the oil spill.

But it's an example of a friendship and an alliance in which Japan and the United States have consistently been there for each other. And although that friendship and alliance has to continually be renewed and reshaped in light of new circumstances, the core values and the shared vision at the heart of our alliance remains strong, and I am very confident that working with Prime Minister Kan, we are going to be able to continue to build on that tremendous history over the last 50 years.

Prime Minister Kan. I am very happy to have such a—have candid discussions with President Obama today. And at the outset of our meeting, I talked about my experience from 30 years ago when I visited the United States on the invitation of the Department of State, and about the experience of seeing the various NGOs are making activities depend solely on nations, and I saw the grassroots democracy there. And I shared my recognition that President Obama was elected on such a background of the democracy in the United States.

And I said to the President I have an experience of political life based on such grassroots activities, and I will also continue to pursue such a style of politics with my allies.

And I am also happy to have such a meeting in a year which is a milestone of 50 years—50th anniversary of the Japan-U.S. alliance. And this alliance between Japan and the United States not only has brought peace and prosperity not only to Japan, but also it has been a foundation and cornerstone of civility of the whole Asia-Pacific region. And President Obama has such a recognition and he completely shares the same understanding about our alliance. And for the stability of Asia, Japan is proud of having been working together with the United States.

And I told the President that it is very important to further enhance the partnership and our alliance, and at the same time, in order to pursue that goal, it is important for the Japanese public themselves to think really about the significance of our alliance, and for them to think about the decisions for the future of our alliance.

And I talked about my recognition with President Obama today. And in other words—in other words, it is often the case that people see the way—people see the situation as politicians make their decisions and the public makes complaints about it, that it is important for us to avoid such a situation by creating real discussions about our future ways.

And we talked also about the incident in which North Korea attacked the—attacked and sunk the North Korean naval—South Korean naval vessel, and we talked also about the issue of Iran and Afghanistan. Always we have to work together to respond, and we share a common understanding of those issues.

And I also reaffirmed our recognition that it is important for us to cooperate in such issues as climate change or nuclear disarmament in North Korea's regime.

And during the past three days, we talked about economic issues at the G8 and G20 meetings, and we discussed these issues together. And President Obama expressed the support for the economic course that Japan will pursue, and I wasstrongly encouraged by his comments.

When I was the finance minister, Mr. Geithner was my counterpart but now Finance Minister Noda is his counterpart, and we have other counterparts between us. And we will make sure that these counterparts will work together well.

And I'm happy that in November we are hosting the APEC meeting, and on that occasion, we will be welcoming President Obama to Japan. I will make sure that we prepare much ice cream for him.

President Obama. That's my favorite.

Prime Minister Kan. And even before November, if I have an opportunity to visit the United States, I would be happy to do so, and as President Obama has suggested, that if our schedules meet, it would be good to create such an opportunity. And in September, I haven't made the final decision, but there is a possibility of visiting the United States for the United Nations General Assembly. So I will be considering it then.

President Barack Obama and President Susilo Bambang Yudhoyono delivered these remarks in Toronto, Canada

President Obama. Good morning, everybody. Selamat pagi.

It is wonderful once again to see my good friend, the President of Indonesia, and members of his delegation. I obviously have enjoyed our interactions here, although my hope and wish was that I was going to be seeing him in Jakarta. Because of the crisis that we've had in the Gulf, I've had to delay the trip. But graciously, for a second time now, the President has re-extended the invitation, and I am confident that we are going to get there.

We're having breakfast this morning because the friendship between Indonesia and the United States has always been strong, and it is our intention to continue to make it even stronger. Working within the G20, we have been able to stabilize the world economy. I was just hearing from the President the progress that's been made in getting back to pre-crisis levels in Indonesia with respect to economic growth and employment, inflation. But obviously, we have many challenges that still have to proceed.

Two areas where we are particularly interested in working together is on the issue of climate change, where we are helping to create a climate change study center in Indonesia that I think can provide enormous support for not only studies there but also in the region and around the world.

And the second area is education, where we're looking to put an additional $160 million into joint programs that can enhance cooperation on educating our youth, which is obviously one of our top priorities in terms of future development.

So I just want to once again thank the President for his graciousness, his cooperation, and reaffirm the great friendship between our two countries.

Mr. President.

President Yudhoyono. Thank you. Good morning. I am very pleased to meet again once again Barack Obama this morning to discuss issues of common interest, both bilaterally and multilaterally.

Indonesia and America are entering and developing a comprehensive partnership which is elevating and transforming our relations based on the equal partnership and aim to meet the challenges of the 21st century—promoting peace, reforming the world economy, addressing climate change, as well as promoting harmony among civilizations. A stable, dynamic, and strong relations between Indonesia and the U.S. is good for our region and for our world.

I appreciate the leadership of President Barack Obama and I thank to him for his friendship and goodwill toward Indonesia.

I want to thank you.

President Obama. Okay. Thank you, everybody.