Secretary Hillary Clinton and Foreign Minister Mourad Medelci gave the following remarks in Washington, DC

Secretary Clinton. Good morning, everyone, and it's a pleasure to welcome Foreign Minister Medelci here to Washington for consultations. I've had the opportunity to work with him now and it's a great tribute to the strong bilateral relationship between our two countries that we have ongoing consultations like this.

Our two nations have worked closely on security and economic issues, particularly counterterrorism, for more than a decade. Algeria is a charter member of the Global Counterterrorism Forum which we launched last September in New York. And we recently initiated a Counterterrorism Contact Group to further facilitate cooperation in the Sahel.

We discussed the evolving situation in Syria and the need to end the Assad government's assault on its own people. Algeria has participated in the Arab League's monitoring mission in Syria, but regrettably, the violence has not stopped. And we will continue to work with Algeria and all our partners in the Arab League to end the violence in Syria and to hold those responsible for the violence accountable.

We also discussed Algeria's upcoming parliamentary elections and ongoing political reforms. The United States is committed to working with Algeria to support an open, free, democratic nation with a thriving civil society and institutions that give the Algerian people the future they so deserve.

We thanked Algeria for the support it has given to Tunisia and Libya. We encouraged greater cooperation with Morocco and an active role in the UN-led negotiations to resolve the conflict in Western Sahara.

So I appreciate this time together, Minister, and look forward to many more opportunities to work together.

Foreign Minister Medelci. Thank you very much, Madam Secretary. I was delighted to have this first meeting with you early in this new year, and I do hope that our upcoming meeting, our next meeting, will be in Algiers, where you are invited. And I can only applaud the quality of the discussions that we have had and we have, all working together to work on all of these sensitive and difficult issues, and we are all striving and working together to improve the conditions of the inhabitants of these regions.

And as I stated, Madam Secretary, Algeria will spare no effort to help improve our relations and the situation in the Maghreb and the countries of the Sahel. And of course, in order to do so, we are counting on the support of our partners, notably the United States.

We did indeed talk about the situation in Syria, and we did have a concurrence of views. Both sides denounced the violence which is taking place in Syria. And in this respect, the Arab League's mission needs all of the support that it can get from its international partners. And notably, we pride on the fact that this mission benefits from the support from the United States.

And in this regard, I would like to take this opportunity to urge all parties in Syria, be it the government or the opposition, to work together with the Arab League in order to help solve this extremely complex problem and issue.

Algeria has acceded to the chairmanship of the Group of 77 of the United Nations since yesterday, and on this occasion I thought it would be most important that our very first meeting would be with you, Madam Secretary, because one of the major efforts that the Group of 77 wants to carry out in the future is to increase bridges between our group and our partners.

So let us express the wish that this year 2012 will be a better, more peaceful year than some recent years that we have experienced lately, and let's hope that our cooperation between Algeria and the United States will grow even more strong and more intense. Thank you very much, Madam Secretary.

Secretary Clinton. Thank you, sir.

Foreign Minister Medelci. Thank you.

Spokesperson Nuland. We'll take two questions today, the first from Jill Dougherty at CNN.

Q. Thank you, Madam Secretary. Just yesterday you were talking with us about the efforts by the United States to talk with the Taliban. And unfortunately, today we have this video of U.S. Marines apparently desecrating the bodies of dead Taliban. Is this going to complicate and make much more difficult talks with the Taliban? And have U.S. officials heard anything from the Taliban about that video?

And just one connected with the talks: You mentioned Mr. Grossman is—Ambassador Grossman will be there discussing this issue. Are you absolutely convinced that President Karzai is totally on board with these talks?

And then if I might, in our old tradition of adding one more important issue, which it really is—Pakistan, a lot of political instability there, the civilian government under pressure from the military. What is the U.S. doing to shore up that very fragile civilian government?

Thank you.

Secretary Clinton. Well, Jill, first I want to express my total dismay at the story concerning our Marines, who I have the highest respect and admiration for. But I share completely the views expressed by Secretary Panetta earlier today. I join him in condemning the deplorable behavior that is reflected in this video. It is absolutely inconsistent with American values, with the standards of behavior that we expect from our military personnel and the vast, vast military personnel, particularly our Marines, hold themselves to. So I know Secretary Panetta has ordered a complete investigation of this incident. Anyone—anyone—found to have participated or known about it, having engaged in such conduct, must be held fully accountable.

Now with respect to the implications of this, as I said yesterday, the United States remains strongly committed to helping build a secure, peaceful, prosperous, democratic future for the people of Afghanistan. And we will continue to support efforts that will be Afghan-led and Afghan-owned to pursue the possibility of reconciliation and peace. We don't have any idea standing here today what the outcome of such discussions could be. I think all of us are entering into it with a very realistic sense of what is possible, and that includes, of course, President Karzai and his government, which, after all, bear the ultimate responsibility and the consequences of any such discussions.

I'm not sure we need to interpret this.

Secondly, with respect to Pakistan, I was delighted to welcome the new ambassador here yesterday. She is someone that I've known for some time. My message to her was very straightforward: The U.S.-Pakistan relationship is crucial to both of our countries, to the future of our people, to the safety and security of South Asia and the world; we recognize there have been significant challenges in recent months, but we are steadfastly committed to this relationship and working together to make it productive.

So we will continue to do so, and we obviously have expressed a lot of concerns about what we see happening inside Pakistan. It has been our position to stand strongly in favor of a democratically elected civilian government, which we continue to do, and we expect Pakistan to resolve any of these internal issues in a just and transparent manner that upholds the Pakistani laws and constitution.

Spokesperson Nuland. The next question is from (inaudible).

Q. Thank you. How do you see the political reforms introduced by Algeria? And the second question: What is your position about Western Sahara question? Thank you.

Secretary Clinton. Well, let me begin by saying that Algeria has undertaken very significant reforms, and we welcome those. We want to see Algeria having a strong democratic foundation that reflects the aspirations of the Algerian people. We commend the Government of Algeria's recent efforts in that direction.

We will be eagerly watching the outcome of the parliamentary elections. I am pleased to hear that more women will be participating, and we are also very supportive of the Algerian Government's invitation to international organizations to monitor the elections. And we're also encouraged by the Algerian Government's moves to open up the broadcast media so more voices can be heard, and we think that's very much in keeping with the goal of greater democratization that the government has committed to.

And with regard to the Western Sahara, our policy has not changed. We continue to support efforts to find a peaceful, sustainable, mutually agreed upon solution to the conflict. We support the negotiations carried out by the United Nations, and we encourage all parties, including Algeria, to play an active role in trying to move toward a resolution.

Do you care to add anything, Minister?

Foreign Minister Medelci. Since no question was asked of me directly, I would probably just seize this opportunity to say that we are ready to work with all of our partners on development issues. And since indeed these upcoming elections are to take place, we are indeed ready to work with all of our partners.

With respect to the situation in Western Sahara, I don't think I could have summarized it any better than you did, other than just to say that I just learned yesterday, in fact, that the secretary general of the United Nations is planning a meeting in February involving all parties concerned.

Secretary Clinton. Thank you.

President Barack Obama and King Abdullah of Jordan gave the following remarks at the White House

President Obama. Good afternoon, everybody. It is a great pleasure for me to once again welcome His Majesty King Abdullah of Jordan, as well as his delegation.

We have very few countries around the world that are better friends and better partners than the Jordanians. The fact that they are in such a difficult neighborhood makes the relationship between our two countries that much more important.

And so I want to publicly express my appreciation for His Majesty's leadership not only in forging a strong bilateral relationship, but also all the multilateral efforts that he is engaged in to encourage peace and prosperity during what has been an extraordinary time.

The last time we met, the face of the region was very different. Since that time, you've seen new governments emerging in Egypt, in Libya; transitions taking place and a new government in Tunisia; transitions taking place in Yemen; and now obviously great volatility in Syria. Throughout this period we consulted closely with the Jordanians, and we value the advice and the thoughtful leadership that His Majesty provides.

We spent a great deal of time discussing a number of key subjects. We talked about the importance of us continuing to consult closely together to encourage the Palestinians and the Israelis to come back to the table and negotiate in a serious fashion a peaceful way forward. And the Jordanians have taken great leadership on this issue, and we very much appreciate their direction on this issue.

We discussed as well the extraordinary efforts that have been made by His Majesty, as well as the Prime Minister, in guiding political reform inside of Jordan. I think His Majesty has been ahead of the curve in trying to respond to the legitimate concerns and aspirations, both politically and economically, of the Jordanian population. And so we have said that we want to be as helpful as we can in encouraging this ongoing reform process that's taking place.

We also talked about a number of regional issues, including Iraq and Iran, but uppermost on our minds right now is the issue of Syria. His Majesty was the first Arab leader to publicly call on President Assad to step down, in the face of the terrible brutality we've been seeing inside of Syria.

I want to thank him for his willingness to stand up. As a consequence, Jordan has been part of an overall Arab League effort to encourage this sort of peaceful transition inside of Syria that is needed.

Unfortunately, we're continuing to see unacceptable levels of violence inside that country, and so we will continue to consult very closely with Jordan to create the kind of international pressure and environment that encourages the current Syrian regime to step aside so that a more democratic process of transition can take place inside of Syria.

Finally, Jordan, just like the rest of the world, has been grappling with a very difficult economic environment, and we are proud to have been able to provide some timely assistance in areas like food security this week. I think wheat from the United States will be arriving that will help to make sure that there's bread in Jordan.

But there's more work to do. And so through a wide range of bilateral efforts, including the Millennium Challenge grant and other mechanisms, what we're trying to do is encourage entrepreneurship, market-based reforms, small business and medium-sized businesses developing and prospering inside of Jordan. And we pledge to continue to work in strong partnership with His Majesty to make sure that all the people of Jordan have the kind of opportunity that they deserve.

So, generally speaking, our bilateral relationship could not be stronger. And I want to thank, once again, His Majesty for being not only a leader in the region but also being a great friend of the United States.

Thank you.

King Abdullah. Mr. President, thank you very much. It's obviously a great honor for me and my delegation to be back here in Washington. We so much appreciate the historical support that we always get from our friends in the United States to Jordan's challenges. And again, our personal friendship, which is very, very strong, has allowed us to look at the challenges that the Israelis and Palestinians face, as you just mentioned.

Although this is still in the very early stages, we have to keep our fingers crossed and hope that we can bring the Israelis and Palestinians out of the impasse that we're facing. We're in coordination on a regular basis with the President, as well as with his administration.

We're very, very grateful to the economic support that you're showing Jordan in this very difficult time. As we move into political reform, obviously the economy and the situation that challenges the livelihood of Jordanians is very, very important as we move forward. But we are very, very optimistic. We had the opportunity to talk about the full impact with the President this afternoon.

So, again, sir, wonderful to be back. We will be in close consultation with you on all these issues. And thank you for your kind words and your wonderful support to our country.

President Obama. Good. Thank you very much, everybody.

Ambassador Miriam Sapiro gave the following remarks in Washington, DC

Ambassador Sapiro. I am absolutely delighted to be here to help welcome Minister Eissa so warmly and to reaffirm the U.S. Government's strong support of the Egyptian people in their desire for greater economic opportunity and growth.

We all realize this is a historic time for Egypt, with the promise of tremendous change and opportunity. It would have seemed scarcely possible a year ago that, later this month, Egypt will have a democratically elected parliament and will be looking forward over the coming months to preparing for both constitutional reforms and the election of a new president.

We know from experience, though, that successful democratic transitions rely not only on political reform, but also on broadening economic opportunity.

Today, I want to say a few words on both the challenges and opportunities which I believe will emerge as Egypt pursues its drive to prosper in the global economy.

Egypt's mix of geography, population, and resources makes it a natural hub for regional trade and commerce. According to at least one study, if Egypt strengthens its economic institutions now, and embraces economic modernization, it could be one of the top ten world economies within a generation.

This will not come without effort, however. Egypt's quest to stimulate its economy comes during one of the worst international downturns in recent history. It's a time when the need for jobs and economic opportunities are on the minds of leaders everywhere, including in America.

Ultimately, growth in Egypt will be led by the private sector's ability to generate new demand for products and services in Egyptian markets and in foreign markets which buy from Egypt, including neighboring markets.

As we in the United States know well, increased foreign trade and investment play a key role in stimulating growth.

We also acknowledge that experience shows that economic growth is far likelier to be stimulated quickly and substantially through a country's open trade and investment policies than through assistance.

Looking around the world at countries that have seen dramatic growth, such as Brazil, India, and Turkey, we believe it is clear that deliberate integration into the global marketplace can help strengthen Egypt's economic competitiveness and therefore its prospects for sustained growth.

The United States stands ready to help. We are committed to a strategic economic partnership with Egypt and the MENA region, based on the shared objective of increasing the well-being of the Egyptian people and their neighbors. We hope to use our resources bilaterally, as well as leverage additional resources from like-minded countries and international institutions, to help Egypt boost its economy to a new level of development and growth.

Our trade and investment strategy will be based on a two prong approach. One aspect is a short-term strategy for delivering concrete results for Egypt, quickly. The other aspect is a longer-term strategy which positions the countries in the region in a fundamentally different position vis-à-vis the global economy. Both are critical. We believe Egypt in particular can increase bilateral trade with the United States and other key markets and serve as a regional hub for manufacturing, trade, innovation and investment.

Let me mention a few important steps we are taking:

Multilaterally, as the chair for the G8 process for 2012, the United States is committed to making the best use of the Deauville Partnership to coordinate efforts related to the MENA region by major economies and the international financial institutions.

Bilaterally, we are ready to work with our Egyptian counterparts to step up our joint work in such areas as SMEs, trade facilitation, services and investment, agriculture, good regulatory practices, as well as regional trade and investment arrangements to create more export opportunities and grow Egypt's economy. We look forward to working with Minister Eissa to create a concrete bilateral Action Plan to achieve our shared goals.

We would like to see Egyptian companies take greater advantage of existing programs that would benefit Egyptian exports to U.S. markets, such as the Globalized System of Preferences (GSP). These programs allow certain types of Egyptian goods to enter the U.S. duty-free, making it cheaper to “Buy Egyptian.”

While Egypt exported over $50 million dollars worth of goods under GSP in 2010, some eligible products, as diverse as car parts, fruit juices, and carpets, were exported to the U.S. without claiming duty-free status.

We will also be working actively with the Egyptian government and the private sector to help Egyptian companies of all sizes capitalize on global market opportunities.

For example, next month—on February 20 in Cairo—we are collaborating with the AmCham, the US-Egypt Business Council, the Egyptian General Authority for Investments, the Federation of Egyptian Industries, and the Industrial Modernization Center on a Suppliers' Conference.

This event is aimed at pairing local Egyptian companies with U.S. firms working in the region, with the aim of showing Egyptian businesses how they might become part of the supply chains of major U.S. corporations.

Then in April, the U.S. Trade & Development Agency—in collaboration with our U.S. & Foreign Commercial Service and the Egyptian Government—will host in Cairo workshops on the ICT and energy sectors, as follow up to the highly successful “Egypt Forward Conference” held in Washington, DC last June.

And as always, the Commerce Department's Commercial Service is recruiting Egyptian buyers to participate in delegations to trade shows in the United States. This year the Commercial Service is actively recruiting for 12 separate events.

Finally, while official assistance cannot substitute for the efforts of the private sector—properly targeted, it can mobilize other resources, support infrastructure development, and otherwise complement private sector initiatives.

Our goal is to promote trade, investment and innovation to help create jobs, and assist Egyptian businesses increase and diversify their activities as the surest path to increased prosperity throughout Egypt.

But it will be companies and entrepreneurs like all of you, from Egypt, countries throughout the region and the world, who will play the largest role in the ongoing transformation of the Egyptian economy.

Increased cooperation between our private sectors will help Egypt jumpstart its economy and develop its huge potential as a center of regional and global trade. Most importantly, it can expand economic and other opportunities for all Egyptians.

The United States stands ready to do all it can to help Egypt develop its private sector, encourage U.S. firms to participate fully in Egypt's economic growth, and support an economic foundation for the Egyptian-American partnership that will remain strong and durable for years to come.

President Barack Obama gave the following remarks during the State of the Union address at the U.S. Capitol

President Obama. Ending the Iraq war has allowed us to strike decisive blows against our enemies. From Pakistan to Yemen, the al Qaeda operatives who remain are scrambling, knowing that they can't escape the reach of the United States of America.

From this position of strength, we've begun to wind down the war in Afghanistan. Ten thousand of our troops have come home. Twenty-three thousand more will leave by the end of this summer. This transition to Afghan lead will continue, and we will build an enduring partnership with Afghanistan, so that it is never again a source of attacks against America.

As the tide of war recedes, a wave of change has washed across the Middle East and North Africa, from Tunis to Cairo; from Sana'a to Tripoli. A year ago, Qaddafi was one of the world's longest-serving dictators—a murderer with American blood on his hands. Today, he is gone. And in Syria, I have no doubt that the Assad regime will soon discover that the forces of change cannot be reversed, and that human dignity cannot be denied.

How this incredible transformation will end remains uncertain. But we have a huge stake in the outcome. And while it's ultimately up to the people of the region to decide their fate, we will advocate for those values that have served our own country so well. We will stand against violence and intimidation. We will stand for the rights and dignity of all human beings—men and women; Christians, Muslims and Jews. We will support policies that lead to strong and stable democracies and open markets, because tyranny is no match for liberty.

And we will safeguard America's own security against those who threaten our citizens, our friends, and our interests. Look at Iran. Through the power of our diplomacy, a world that was once divided about how to deal with Iran's nuclear program now stands as one. The regime is more isolated than ever before; its leaders are faced with crippling sanctions, and as long as they shirk their responsibilities, this pressure will not relent.

Let there be no doubt: America is determined to prevent Iran from getting a nuclear weapon, and I will take no options off the table to achieve that goal.

But a peaceful resolution of this issue is still possible, and far better, and if Iran changes course and meets its obligations, it can rejoin the community of nations.

The renewal of American leadership can be felt across the globe. Our oldest alliances in Europe and Asia are stronger than ever. Our ties to the Americas are deeper. Our ironclad commitment—and I mean ironclad—to Israel's security has meant the closest military cooperation between our two countries in history.

We've made it clear that America is a Pacific power, and a new beginning in Burma has lit a new hope. From the coalitions we've built to secure nuclear materials, to the missions we've led against hunger and disease; from the blows we've dealt to our enemies, to the enduring power of our moral example, America is back.

Anyone who tells you otherwise, anyone who tells you that America is in decline or that our influence has waned, doesn't know what they're talking about.

That's not the message we get from leaders around the world who are eager to work with us. That's not how people feel from Tokyo to Berlin, from Cape Town to Rio, where opinions of America are higher than they've been in years. Yes, the world is changing. No, we can't control every event. But America remains the one indispensable nation in world affairs—and as long as I'm President, I intend to keep it that way.

Dr. Rajiv Shah gave the following remarks in Washington, DC

Adminstrator Shah. It's a great honor to be able to welcome the first group of Bush Institute Egyptian Fellows to Washington. You bring with you a wealth of experience in the arenas of education, health, business, politics, law and the media. You have achieved so much in your lives already—I understand that one of you is actually only 23 years old. I'm humbled. But then again, it is a sobering thought to think that when Mozart was my age, he had been dead for 23 years.

Your accomplishments are even more impressive when seen against the backdrop of a difficult environment for women's achievements in Egypt in the political, social and economic areas. Regrettably, the disparity in opportunities for women in Egypt is stark, notwithstanding a period of rapid economic growth over the past years and the recent political openings since the departure of Mubarak. Women are barely represented in the new parliament; they suffer a 40 percent unemployment rate; and the illiteracy rate for women is nearly twice as high as that of men.

I had the privilege to travel to Egypt not so long ago, and one of the first meetings I held was with women political and economic leaders. They delivered to me a strong message on the need for inclusion and a purposeful approach toward gender equality and women's empowerment. They said that there is are nascent but promising networks of women in Egypt who need the support of the outside community, and that we could achieve much together if we all heeded their voices and advice. They reminded me that no one has a monopoly on good ideas, resources, ground truth, or moral authority. They also highlighted that the need to reach beyond the urban elites to address those living in poverty in urban settings and in the rural community. Finally, they stressed that a number of achievements in social issues over the past decades—ranging from more equitable divorce laws to actions again child marriage and female genital mutilation—needed to be preserved.

We listened. In response, we are reinforcing our efforts to support women's political, economic and social leadership, including through support for political caucuses, girls education, maternal-child health care, and women's entrepreneurship. We are supporting not just microenterprise, but women's engagement in small, medium and large enterprises, addressing the factors that impede such engagements, factors that include discriminatory inheritance laws, land ownership, and access to investment capital.

As a second pillar, we are working with government, civil society, and business groups to protect and empower women during this period of change. Too frequently, such periods are accompanied by an increase in sexual and gender based violence, domestic violence, child abuse, and trafficking in persons, and we are helping those institutions in Egypt that are addressing such phenomena.

Finally, we are working to mainstream gender considerations into all of our development efforts in Egypt, whether that is food security and agricultural development, health, or education. We have a world-wide requirement that every project proposal includes the equivalent of a ‘gender impact statement,’ assessing how the project will promote the status and advancement of women and girls.

In conclusion, our work in this area has the highest possible support. Not only do we have remarkable leadership from Secretary of State Hillary Clinton and her ambassador for women's issues, Melanne Verveer, but President Barack Obama has directed us to highlight these issues. Indeed, last May, as part of his address welcoming the openings in Egypt and other nations in the Middle East, he said, “History shows that countries are more prosperous and peaceful when women are empowered. That is why we will continue to insist the universal rights apply to women as well as men—by focusing assistance on child and maternal health; by helping women to teach or start a business; by standing up for the right of women to have their voices heard and to run for office. For the region will never reach its potential when more than half its population is prevented from achieving their potential.” Powerful words, and ones that guide our work.

Once again, congratulations on your engagement in the Bush Institute Egyptian Fellowship program, and best of luck during your time in the United States. Thank you.

Secretary Hillary Clinton gave the following remarks in Tunis, Tunisia

Secretary Hillary Clinton gave the following remarks in Tunis, Tunisia

Secretary Clinton. I just had an excellent meeting with the president, the foreign minister, and other officials of the Tunisian Government. And I think the message is one that I particularly resonate to because the revolution here in Tunisia has not only made a significant difference in the lives of Tunisians, but it has also given hope to people everywhere.

The political side of the revolution is going quite well. The elections were done in a very impressive way. The assembly is now constituted. The government is up and running. The challenge is how to ensure that the economic development of Tunisia matches the political development. And I would make just three points.

First, this is not an unusual challenge. Anytime there is a revolution, there will be the need to reconstitute the economic institutions as well as the political ones. The era of cronyism and corruption is over. The new era of entrepreneurship and opportunity is coming. How we hasten its arrival is the very important question that we are working on with the Tunisian Government.

Secondly, there is a need for both short-term relief and a longer-term economic plan that will make the changes in Tunisia that will open Tunisia to the world and bring opportunity here to your country. I have pledged to the president that I will do whatever I can on behalf of the United States Government to help in the short run to deal with the immediate economic needs of the Tunisian people, and also to support the longer-term changes that will make a real difference for Tunisia.

And finally, I will reach out to other governments and countries. I am a very strong champion for Tunisian democracy and what has been accomplished here. And that includes ensuring that the economic opportunities that the Tunisian people are seeking are made available.

So both on behalf of the United States and in my capacity as Secretary of State, working with colleagues from countries around the world, I will do my best to provide the support that is needed in the short term. I don't want to over-promise. As you know, there's a global economic downturn affecting much of the world right now, but I am confident that Tunisia has a way forward that will lead to success for this important country at this point in your history. And I thank the president for the very thorough briefing and discussion we had. I'm looking forward to meeting now with the prime minister. But I mostly come with a very specific and committed statement of support for both the political and the economic reforms that are occurring here.

Thank you very much.

Secretary Hillary Clinton gave the following remarks in Algiers, Algeria

Secretary Clinton. Well, thank you, Ambassador, for inviting us into your home for this very important meeting. I am honored to meet with leaders from Algeria's civil society who are representing many others around the country. I am looking forward to hearing about the work you are doing to promote economic opportunity, educational opportunity, and other forms of activities.

I am in Algeria to consult with the government, to meet with representatives of the private sector, which I just did as part of a partnership called NAPEO, and to hear from civil society. I've come from Tunisia. Tomorrow, I will be in Morocco. My message is the same: The people of the Maghreb are as talented, creative, and hard-working as people anywhere in the world; they need and deserve the opportunity to make decisions on behalf of themselves, because that is good for the dignity and rights of every individual and it is good for every society.

In the 21^st century, I think of society as a three-legged stool. One leg must be an accountable, effective government that delivers results for its people. One must be a vibrant, dynamic private sector open to the world to create jobs and economic opportunity for people. And the third stool is civil society—people like yourselves who are working to improve lives for your fellow citizens.

Fifty years ago, Algeria became an independent nation. Now, for the next 50 years, Algeria needs to assume its rightful place as a nation among nations where prosperity, peace, and security are available for the people. And the United States wants to be your partner—a partner of your government, a partner of your economy, and a partner of your civil society—to see these kinds of positive changes occur.

And I look forward now to hearing from our guests. Thank you all very much.

Secretary Hillary Clinton and Foreign Minister Saad-Edine Al-Othmani gave the following remarks in Rabat, Morocco

Foreign Minister Al-Othmani. (In Arabic.)

Secretary Clinton. Thank you so much, Minister, for the warm words and the gracious welcome. It is wonderful to be back in Rabat. So much has changed since my last visit to Morocco two years ago, but what has not changed is our commitment to our partnership and friendship, which goes back to 1777 when Morocco became the very first country to recognize our new nation. And the United States and Morocco have been allies and partners ever since. We collaborate on everything from trade and economic development to joint military exercises and counterterrorism efforts. So we had a long agenda today, and I would very much look forward to continuing our conversation in Washington when the minister is able to come.

I want to say a few words about two issues in particular that are of great concern to the American and Moroccan people. First, Syria. I thank the foreign minister for the important role that Morocco has played, first within the Arab League and second within the Security Council. Morocco is in a unique position to help shape the international community's efforts, and it is imperative that we continue working today. I visited with the minister first in London about Syria. And then in Tunis, we attended together the Friends of Syria meeting.

And I want to reiterate my message to those Syrians who still support Assad, especially members of the Syrian military and business community: The longer you support the regime's campaign of violence against your brothers and sisters, the more it will stain your honor. If you refuse, however, to prop up the regime or take part in attacks on your fellow citizens, your countrymen and women will hail you as heroes. Assad would have the Syrian people believe that it is only terrorists and extremists standing against the regime, but that is wrong. So many Syrians are suffering under this relentless shelling. All Syrians should be working together to seek a better future. That is what we hope for the Syrian people. That is what Morocco has led us in the international community in trying to achieve.

There are three areas where concrete action is needed: providing immediate humanitarian assistance to the Syrian people, increasing the pressure on the regime to assault its own brutal assault—to stop its brutal assault on its own people, and helping to prepare for a democratic transition. And I look forward to working closely with the foreign minister on all of these issues in the days ahead.

And what's so exciting about being here in Morocco is that Morocco stands as an example, as a model of what can be achieved. Moroccans are strengthening their own democracy. Young people are having a say in their own future. His Majesty King Mohammed VI has begun the process of reform. We see women's rights protected and expanded, a more transparent and accountable government, establishing the Arab world's very first truth commission on human rights.

So Mr. Minister, on behalf of my government, let me congratulate your government and His Majesty on the successful constitutional referendum and parliamentary elections that occurred during this momentous last year. The Moroccan constitution provides for an independent judiciary. It contains new protections for freedom of thought, expression, and other universal rights. I was just briefed by the new speaker of the parliament, who advised me that Morocco now has more women in public office than any other Arab country. And frankly, the percentage is as good as we have in our own country in terms of women's representation in the parliament.

But Morocco understands, as does the United States, that democratic reform takes constant effort and unending attention. It has to lead to the institutionalizing of democratic habits and practices, and of course to tangible improvements for the Moroccan people. And we stand with the government and people of Morocco as they continue this absolutely historic effort.

Let me close with a word about the Western Sahara. The United States continues to support efforts to find a peaceful, sustainable, mutually agreed upon solution to that conflict. U.S. policy toward the Western Sahara has remained constant for many years. We have made clear that Morocco's autonomy plan is serious, realistic, and credible, and that it represents a potential approach that could satisfy the aspirations of the people in the Western Sahara to run their own affairs in peace and dignity. And we continue to support the negotiations carried out by the United Nations, and encourage all parties to work toward a resolution.

So again, Minister, thank you for hosting me and my delegation here today, and I look forward to working closely with you as we continue to move our countries toward even more productive partnership and friendship. Thank you, sir.

Foreign Minister Al-Othmani. Thank you. Thank you very much.

Q. (In Arabic.)

Secretary Clinton. No. Our policy on Western Sahara has not changed. We continue to (inaudible) efforts to find a peaceful, sustainable, and mutually agreed solution to the conflict that respects the fundamental human rights of all parties. We commend the UN envoy, Mr. Ross, for his continued leadership of the negotiating process. And we know that Morocco's newly elected and appointed government leaders are fully engaged in pushing this process forward to an effective resolution. And as I said in my remarks, we think Morocco's autonomy plan is serious, credible, and realistic.

And we also are pleased to see positive actions like Morocco and Algeria's biannual intergovernmental meetings. They are a step in the right direction. We want to see both countries expand cooperation and constructive dialogue. That is the message I delivered in Algeria at the highest levels of the Algerian Government. I shared that with the meetings I had today here in Morocco because I think it's, in today's world, very much in the interests of Morocco and Algeria to work together on as many areas of agreement as possible. It's good for the two countries, it's good for the Maghreb, it would be good for economic development, it would be good for security, so we want to see that kind of continued progress between Algeria and Morocco.

Q. (Inaudible) questions for you, Mrs. Secretary of State. First one is: What's going to be of the Moroccan prisoners that are still held in Guantanamo Bay? And the second one is: Do you think that the political changes that Morocco has undergone in the recent months meet the United States's criteria of democracy and political reforms?

Secretary Clinton. Well, as to the first question, we remain in constant consultation with the government officials here in Morocco, and we are continuing to discuss that matter with them.

In regard to your second question, we are very pleased at the progress we have seen in Morocco. We applaud the millions of Moroccans who participated in last November's parliamentary elections. It was exciting to see Moroccan men and women take part in this democratic process. And we are ready to work, as I enjoyed today, with the new government, with the new parliament, because there's no denying Morocco has made significant progress along the path of democratic reform, and not only with an election, because after all, one election is not democracy. It takes a lot of hard work to establish a democracy. But the significant constitutional reform that has gone on under the leadership of His Majesty King Mohammed VI has led to the voters of Morocco approving a constitutional referendum. And the building blocks are all in place.

We understand. We've been at the business of democracy for 236 years. And we know how hard it is, and it does not happen overnight. It takes time and it takes the participation of every Moroccan. It doesn't end when the votes are counted. It doesn't end when the winners are announced, it's not a spectator sport—for some, but not for others. Everyone has to be involved, and we think that the Moroccan experience is a very good model for others who are also seeking to have their own democratic reforms.

Secretary Hillary Clinton gave the following interview in Rabat, Morocco

Q. You got a busy day here and there's a lot to talk about. I'd like, first of all, to ask you what did you tell the Egyptian foreign minister about these cases against democracy promoters? Would you ever let these Americans appear in a courtroom in Cairo?

Secretary Clinton. Well, Michele, obviously we've been working on this ever since December, when we learned of the actions against not only American NGOs but NGOs from other countries as well. And we have been engaging at the highest levels of the Egyptian Government.

Our two concerns were, number one, to try to understand what the issues were, since both we and the Egyptian Government believed that our NGOs had been invited to help assist in ensuring that the elections were done in a credible way, which they were. But then also, we know that, ever since the Mubarak regime, there are a wealth of laws that are difficult to follow, even if you are intending to do so, which, of course, we were. And our NGOs kept trying to register so they could be viewed as legally entitled to operate within Egypt. So there was a lot of confusion, and the confusion was at all levels of the Egyptian Government as to what this all meant. So we have been engaging persistently and we hope that this matter will be resolved.

Q. And how many Americans are now sheltering at the Embassy?

Secretary Clinton. I—the exact account, maybe, I think, 16, 17.

Q. Turning to Syria, Syrian tanks have been battering Homs. There's no sign of aid getting in. What do you and the Friends of Syria do now?

Secretary Clinton. Well, I think, as I've said, we have to continue to consult with those who truly are Friends of the Syrian People, which of course, includes the United States and the many governments and organizations that gathered in Tunis on Friday. We are doing everything we can to facilitate humanitarian aid. It was distressing to hear that the Syrian Red Crescent and the ICRC, after many hours of negotiation just yesterday, were not permitted to go back into Homs. We are looking to set up and stage areas for getting humanitarian aid in. Secondly, we continue to ratchet up the pressure. It is an increasingly isolated regime. And third, we push for a democratic transition by working with and trying to build up the opposition so they can be an alternative.

Q. But there's—there was a lot of talk about—and controversy about whether you arm the opposition, help them get arms. Is there anything the U.S. can do short of that, I mean, logistical support for the Free Syrian Army, satellite images to help them set up these humanitarian corridors?

Secretary Clinton. Well, they don't have tanks and they don't have artillery. So I know there's a lot of frustration, and I share it. This is a deeply, deeply distressing set of events. But you have one of the most highly militarized, best-defended countries on earth, because, of course, they spent an enormous amount of money with their Iranian and Russian friends so equipping themselves. And even if you were to somehow smuggle in automatic weapons of some kind, you're not going to be very successful against tanks. And so the dilemma is how do we try to help people defend themselves? How do we push the Russians, Chinese, and others, who are, in effect, defending and deflecting for the Assad regime, to realize that this is undermining not only Assad's legitimacy but theirs as well?

Q. You spoke in Tunisia and Algeria about the need for moderate voices. And I wonder if you worry—if you're worried that they're being drowned out, that this—these changes across the region are becoming particularly violent. And what does that mean for U.S. interests?

Secretary Clinton. Actually, I am not worried about where we are speaking today, here in the Maghreb. I mean, we're in Morocco, which has had a very good election that led to new leadership taking place. I'm looking forward to working with them. I was just in Algeria, where they are planning for elections in May. And of course, you were with me in Tunis, where an Islamic-based party was elected but is in government in a coalition with parties representing other parts of view. That's the way it should be in a democracy, because no matter who you are or where you live, there's not unanimity of thought or feeling or political philosophy.

So I'm not expressing concern so much as speaking out about what we hope to see, because we're judging these new governments not only on what they say but what they do. And certainly in Tunisia, they are saying all the rights things. They are saying that they will protect women's rights, that—they are saying that they will protect human rights. And now we want to see that actually take place.

But there is one element, which I am concerned about, and that is how people who were oppressed for so long—and particularly those who are of Islamic persuasion—are so well organized, because they had to be, it was a matter of survival, whereas many other voices in the society, the voices of business leaders, the voices of academia, the voices of young people are not politically organized. So wherever I go, I encourage those who are also hoping to reap the benefits of freedom and democracy to get involved in politics. I mean, politics is no easy game, as I know as well as anyone. But if you're not at the table, then how can you blame people for pursuing certain programs that you may not agree with?

Under Secretary David Cohen gave the following remarks in New York City

Under Secretary Cohen. It is a great pleasure to be here this morning to address SIFMA's Anti-Money Laundering and Financial Crimes Conference.

I have now been serving as Under Secretary for Terrorism and Financial Intelligence for one year. Looking back, it has been an action-packed twelve months for my office, including the adoption of several new sanctions programs, ranging from Libya to Syria to transnational organized crime; the implementation of an array of new measures to increase the financial and economic pressure on Iran; continuing efforts to stem financial support to terrorist organizations, including al Qaeda and its increasingly worrisome affiliates and allies in Yemen, Somalia, and the Maghreb; and steady progress in disrupting the financial support networks of drug kingpins and their associates.

It has also been a year in which important anti-money laundering regulatory steps have been taken, including final rules regarding money services businesses and prepaid access; a finding that the Lebanese Canadian Bank and the entire jurisdiction of Iran are primary money laundering concerns under Section 311 of the USA PATRIOT Act; a proposed rule requiring the reporting of the international transport of prepaid access products; and, just today, the publication of an advance notice of proposed rulemaking for a customer due diligence requirement for financial institutions.

This has driven home for me the important role of the Treasury Department, with our unique tools and competencies, in combating illicit finance and advancing our national security and foreign policy goals. And it has also reinforced my respect for the role of the financial sector—including the firms represented by SIFMA and each of you—in helping to achieve those goals.

I would like to spend a few minutes this morning illustrating this by focusing on three cases where the complementary efforts of the Treasury Department and the financial industry have been, and will continue to be, crucial: first, the sanctions we imposed on Libya, which contributed to the fall of a ruthless dictator and the liberation of the Libyan people; second, the very powerful set of sanctions that we have imposed on illicit actors in Iran, which are a key part of our dual-track strategy designed to bring about a peaceful resolution to the very serious and well-founded concerns about Iran's nuclear program; and third, our plans to increase financial transparency, specifically through stronger and clearer customer due diligence requirements, that will contribute to our overall mission of protecting the integrity of the financial system and advancing our country's national security and foreign policy goals.

The Libyan Sanctions Program

At this time last year, the movement that began in Tunisia demanding relief from an authoritarian, unresponsive and repressive government had taken root next door in Libya, where the Libyan people, suffering under more than four decades of erratic and abusive rule by Colonel Qadhafi, began an uprising against his oppressive regime.

As the Libyan opposition grew in scope and strength, Colonel Qadhafi recognized that his grip on power was threatened. He responded by unleashing the Libyan military on the Libyan people.

Working closely with our allies around the world, the United States moved rapidly to support the Libyan people in a variety of ways—including by launching a major economic sanctions program against Colonel Qadhafi and the Government of Libya.

The objective of our sanctions program was threefold: first, to deprive Colonel Qadhafi of the resources necessary to sustain his violent assault against his own people; second, to preserve Libya's wealth for the Libyan people; and third, to make clear to Colonel Qadhafi and his regime allies that they were isolated and their days were numbered.

A year out, I think we can confidently say that the sanctions served their purpose. And I am delighted to say that swift action by you—the securities industry—was crucially important in bringing this about.

Let me take you back to February of last year. The uprising in Libya began in mid-February, and by Wednesday, February 23, Qadhafi's crackdown on the Libyan people was in full force. Groups of heavily armed militiamen cruised the streets of Tripoli, spraying crowds with machine-gun fire.

The Treasury Department was asked to begin preparing options for economic sanctions, and we quickly began developing a comprehensive sanctions program.

Folks in Treasury's Office of Foreign Assets Control, including some who had worked on the Libya sanctions program from a decade ago, reached out to their contacts at U.S. financial institutions and asked them to begin identifying assets controlled by the Libyan government, Qadhafi, his family and their cronies, in anticipation of a new program.

We thought that a broad-based program might capture $100 million or so in Libyan assets—not small change by any measure. But on the afternoon of Friday, February 25, an analyst in OFAC sent around an email that stunned us all. Our initial estimate of total assets to be frozen was off. Way off.

We learned that just one financial institution was the custodian of Libyan assets in excess of $29.7 billion. Another institution was holding almost $500 million in one portfolio.

The news that there were more than $30 billion in assets under U.S. jurisdiction created a fresh intensity. If Colonel Qadhafi accessed this money, it could substantially aid his campaign of violent repression. Freezing those assets was a top national security priority, and a draft Executive Order creating a new sanctions program was finalized later that day.

There were, of course, many other pieces were also in motion, including evacuating our personnel from Tripoli. The Administration was concerned that Qadhafi's response to a powerful sanctions program freezing his assets could be to lash out against Americans who had not yet evacuated the country. But a ferry sent to evacuate Embassy personnel and other Americans was stuck at the dock in Tripoli because of severe storms.

At about 8 p.m. that night, the ferry with the Americans on board left the dock and set sail for Malta, and President Obama signed the Executive Order, prohibiting transactions by U.S. persons with Colonel Qaddafi, certain members of his family and the Government of Libya, including its Central Bank. The Libya sanctions were under way.

Compliance teams at firms like yours—who had been waiting at their posts for the signal—swung into action that Friday night and froze Libyan assets at lightning speed. By Monday morning, we received reports that more than $30 billion of assets under U.S. jurisdiction had been frozen. This total swelled over the next several months to more than $37 billion.

Just as the United States reacted with unprecedented speed, so did the international community. The day after President Obama signed the Executive Order, the UN Security Council adopted a resolution imposing sanctions on six members of the Qadhafi family, and then a few weeks later extended its sanctions to require all member states to impose an asset freeze largely identical to the sanctions we had adopted.

Securities firms here and abroad played a central role in this story. Many frozen Libyan assets were held in securities, some in relatively simple investments in blue chip stocks and corporate bonds, and some in more sophisticated investments in private investment funds. Administering a sanctions program involving such sophisticated global investments presented multiple novel and difficult challenges, both for OFAC and for you.

For instance, many of Libya's securities were held in complex structures that masked beneficial ownership information, making it difficult to determine whether the Government of Libya or members of the Qadhafi family maintained an interest. Confirming this fact was further complicated because some of these investments spanned multiple jurisdictions, including some that do not regularly collect, or that protect, certain client information. Nonetheless, the global effort to freeze Qadhafi's and Libya's assets was hugely successful.

It is important to note, of course, that sanctions alone did not bring the Qadhafi regime to an end. Not hardly. But U.S. and UN sanctions reinforced intense diplomatic and military efforts, including the UN arms embargo and NATO military operations that helped neutralize Qadhafi's armed forces and protect civilians. And most importantly, as President Obama has said, the liberation of Libya belongs to the Libyan people, who exhibited tremendous courage and perseverance during even the bleakest days of the conflict.

But I remain convinced that sanctions played an important role in speeding the demise of the Qadhafi regime. Not only did the sanctions appear to motivate some Libyan leaders, like Libya's Foreign Minister, Moussa Koussa, to defect, the robust implementation of sanctions by firms like yours helped starve Qadhafi of the resources he needed to supply his military and pay his mercenaries, and safeguarded the wealth of the Libyan people from Qadhafi and his cronies.

Sanctions, in short, served an important purpose in Libya, and we have each of you to thank for that.

Increasingly Powerful Sanctions Against Iran

Turning to Iran, as all of you are well aware, we have been engaged in a much longer term sanctions effort when it comes to a very different—and increasingly dire—threat to international peace and security: the threat posed by Iran's illicit nuclear program. And again, the effectiveness of our sanctions program depends in no small measure on the efforts of the financial community.

Iran poses a multi-faceted threat to our national security and the security of our allies. It is the leading state-sponsor of terrorism in the world today. It violates the human rights of its own citizens and fuels the repugnant repression taking place in Syria today. And, of course, Iran's illicit nuclear program threatens to undermine the stability of the Gulf region, the broader Middle East, and the global economy.

There is no question that Iran is the most pressing national security issue of our day, and we are leaning heavily on sanctions in our efforts to bring about a peaceful resolution to the situation. We are continuing to pursue a dual-track strategy, which offers a clear choice to the Iranian regime: either Iran's leadership can choose to meet its international obligations and achieve greater security and prosperity for the Iranian people, or it can continue to flout its responsibilities and face greater international isolation and sanctions pressure.

We are reviewing with our P5+1 partners the offer this month from Iran's chief nuclear negotiator, Saeed Jalili, to resume talks. But, as Secretary of State Hillary Clinton has said, any talks must be a sustained effort. In the meantime, we have no choice but to continue to increase the pressure on Iran, including by imposing ever more powerful sanctions.

Many of you are familiar with the range of sanctions Iran is facing, from the U.S. and the broader international community. Since 2006, the United Nations Security Council has adopted four Chapter VII resolutions imposing sanctions with respect to Iran's nuclear program, creating a multilateral sanctions framework targeting Iran's illicit nuclear activities and the Iranian entities, financial institutions, and infrastructure supporting those activities.

For our part, Treasury has taken a series of actions to disrupt the Iranian nuclear program, expose Iranian banks' deceptive financial conduct and combat Iran's efforts to evade international sanctions. Perhaps most notably, we have pursued a campaign to isolate Iranian banks involved in illicit activities from the international financial system, imposing sanctions on approximately two dozen Iranian banks for their connection to proliferation activities or terrorism support. We have taken similar actions against Iran's national shipping line, the Islamic Revolutionary Guard Corps, the Iranian intelligence service, and a host of other Iranian government entities. And last November, we identified Iran as a “primary money laundering concern” under Section 311 of the USA PATRIOT Act, identifying the entire Iranian financial sector, including the Central Bank of Iran, as posing an illicit finance risk to the global financial system.

And we are not alone. The European Union, the U.K., South Korea, Japan, Canada, Australia, Switzerland and Norway have imposed strong sanctions against Iran.

This sustained, global effort has brought very substantial economic and financial pressure on the Iranian regime. Iran's deepening economic difficulties are reflected most dramatically in its plummeting currency, the Iranian rial. The weakening of the rial began in earnest last fall as it began to lose value against the dollar. Altogether since early September, the rial has lost about half of its value. The Iranian government has tried to stem the decline of the rial, including by banning the sale of Western currency and reportedly restricting Iranian citizens' ability to trade currency by blocking text messages containing the word “euro” or “dollar.”

But the spiraling rial is not the only indicator of the troubling economic situation the Iranian regime faces. International sanctions have disrupted Iranian trade to such an extent that, as of late last year, many Iranian banks were experiencing capital shortages. Officials at most of Iran's government-owned banks considered their institutions bankrupt, and the only thing keeping most Iranian banks solvent and open to customers were cash infusions from the Iranian government.

The impact of the sanctions has attracted the attention of the highest levels of Iran's leadership, with the Supreme Leader, Ayatollah Khamenei, recently referring to the sanctions in a speech broadcast to the nation as “painful and crippling.” Likewise, President Ahmadinejad acknowledged a few weeks earlier that “our banks cannot make international transactions anymore.”

And there is more to come. The United States, along with our partners in the European Union and elsewhere, are entering a new phase in our sanctions effort by actively working to reduce Iran's revenues from its oil exports and to isolate the Central Bank of Iran.

For our part, we are working to implement fully the new sanctions under Section 1245 of the National Defense Authorization Act, which was signed into law by President Obama on December 31. Under this new law, foreign banks risk losing direct access to the U.S. financial system if they engage in certain types of transactions involving the CBI. Indeed, today marks day 60 since the law was enacted, which means that foreign private banks that, after today, engage in significant transactions with the CBI unrelated to the purchase of oil risk losing their correspondent account access to U.S. financial institutions. Come June 28, 180 days after enactment, these sanctions apply to any foreign banks engaged in significant transactions with the CBI for the purchase of Iranian oil. The law also provides a powerful incentive for countries that import oil from Iran to reduce those imports—namely, if they significantly reduce their Iranian oil imports over time, their banks are protected from the possibility of sanetions for their transactions with the CBI.

Section 1245 encourages multilateral action to cut ties to the CBI and reduce Iran's oil revenues in a timed, phased manner. Echoing this theme, in January the European Union announced that it would ban imports of Iranian crude oil, freeze the assets of the Iranian Central Bank, and take additional action against Iran's energy, financial, and transport sectors.

As we work to implement the full range of sanctions in our toolbox, we will also continue to identify and expose Iran's illicit activity that is so dangerous and damaging to international peace and security. As has been the case for years, we expect Iran to work to evade the sanctions that it faces, and preventing this will require continued vigilance by both governments and financial institutions.

One of the keys to thwarting Iran's efforts to evade sanctions—and the broader illicit activities of Iran and others who abuse the international financial system—is to enhance financial transparency. Standards related to customer due diligence are the touchstone of financial transparency, and I would like to spend a few minutes explaining our efforts to strengthen those standards here in the United States.

Promoting Financial Transparency

Financial transparency has long been recognized as central to efforts to combat all manner of illicit financial activity, from proliferation financing to terrorist financing to more traditional forms of financial crime like money laundering and securities fraud. Put simply, financial transparency shines light where criminals and sanctions evaders seek to hide.

And this is yet another area where the role played by financial institutions is so critical. At the most basic level, financial transparency depends on effective customer due diligence undertaken by financial institutions. This includes identifying their customer, understanding the purpose and nature of the business relationship, and conducting ongoing due diligence in order to monitor for suspicious activity.

But that may not be enough to conduct truly effective customer due diligence—to be able to achieve real financial transparency. For that, a financial institution must do more than “know” its immediate customer, the account holder. It must know and understand the beneficial owner of the customer, who is ultimately calling the shots and who stands to gain from activity in the account.

In the abstract, this proposition should not be controversial at all. Everyone in this room knows only too well how sophisticated—and some not-so-sophisticated—criminals seek to disguise their ownership and control of the proceeds of illicit activity through shell companies, front companies, intermediaries, nominees and seemingly impenetrable legal structures.

As the Financial Action Task Force (“FATF”) has observed, our tools to pierce through this financial fog are not as robust as they could be. This is a systemic vulnerability in our efforts to combat financial crime.

The rub, of course, is what to do about it. How do we move from our current paradigm, which is focused on making sure that your customer is who she says she is, to one focused on knowing who your customer really is? How do we do that in a way that is neither unduly burdensome nor exceedingly complex in its own right? And how do we establish a clear and consistent customer due diligence obligation while also retaining the flexibility of a risk-based approach that allows financial institutions to allocate risk mitigation and compliance resources most effectively?

Along with industry, colleagues across the government, and foreign counterparts, we have been working hard on this problem for several years now, led by the tireless efforts of the Treasury's Chip Poncy. We believe the solution lies in a three-part approach that includes the following elements: revised international standards, just issued earlier this month by the FATF, that clarify the global standards related to customer due diligence and the transparency of legal entities and trusts; legislation that would enhance law enforcement's access to meaningful beneficial ownership information for legal entities formed in the United States; and a clearer customer due diligence regulatory requirement, including an express obligation to collect beneficial ownership information.

I want to focus today on the domestic regulatory element of this strategy.

We believe that a tailored obligation to collect beneficial ownership information as part of the customer due diligence process will enhance our ability to combat money laundering, terrorist financing and other financial crimes. With reliable beneficial ownership information in hand, financial institutions, including securities firms, will be able to develop better customer risk profiles, thus improving their ability to identify transactions prohibited by OFAC regulations and to monitor for suspicious activity. Beneficial ownership information not only will help protect your firms against the risk of involvement in illicit finance, it will provide more useful information to law enforcement to pursue those who are engaged in financial crime.

Accordingly, today the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking (“ANPRM”) designed to solicit public comment on a wide range of questions relating to the development of a possible customer due diligence regulation. The ANPRM specifically asks for input on how a customer due diligence rule would include a requirement that certain financial institutions, including those now subject to a Customer Identification Program rule, identify and verify the beneficial owners of their customers.

As we move forward, we are committed to doing so together, in a manner that is both sensitive to regulatory burden and calculated to improve the quality of anti-money laundering, sanctions compliance, and countering terrorist financing. Accordingly, the ANPRM seeks information as to how we can best strengthen our current customer due diligence regulatory expectations in a way that maximizes the benefit of financial transparency while minimizing the burden on customers of providing, and financial institutions collecting and verifying, this information.

Moreover, the ANPRM seeks your input on how a customer due diligence rule should address specific features of the securities industry, such as omnibus accounts. We understand that your business has unique complexities and nuances that make a 'one-size-fits-all' approach potentially problematic. While we seek to promote consistency across sectors, we will look closely at sectoral differences as we carefully balance the costs and benefits.

Your responses to these and the other questions posed in the ANPRM will be instrumental as we move forward to consider whether and how to implement a customer due diligence rule with a specific beneficial ownership component. Regardless of precisely how we resolve this regulatory issue, we remain convinced that we can—and, indeed, must—improve financial transparency so that, together, we do an even better job of combating illicit financial activity.

In conjunction with the ANPRM, Treasury is also working closely with the federal functional regulators and law enforcement to engage industry on ways that we can improve financial transparency. With respect to the securities industry and capital markets more broadly, we will continue to work together with the SEC, the CFTC and the self-regulatory organizations to enhance our understanding of the illicit financing vulnerabilities that we face. This will inform our discussions with industry in determining the best ways to strengthen our regulatory framework through Customer Due Dilligence.

Secretary Leon Panetta gave the following remarks in Washington, DC

Introductory Remarks Omitted

Secretary Panetta. It's my great honor to be here—and to be the first Secretary of Defense to address an AIPAC Policy Conference in more than 20 years. I come here as Secretary, but more significantly, I come as a lifelong friend to Israel.

A few weeks ago, I had the opportunity to sit down with Howard Kohr and Lee Rosenberg in my office at the Pentagon. They briefed me on how they saw the future of the U.S.-Israel relationship. And together we discussed ways to strengthen, to enhance, and to deepen the security relationship between the United States and our great ally, Israel.

This commitment—to an even stronger U.S.-Israel relationship—is one that is shared by the President, by me as Secretary of Defense, and by my entire military and civilian leadership at the Department of Defense.

The strength of that shared commitment is reflected in the size and makeup of this audience. Your presence here today is a testament to the broad and unshakable support that the American people, the American leaders, of all backgrounds have for Israel. I'm told there are more than 1,500 students from hundreds of campuses in attendance. My wife and I, as some of you may know, developed a public policy institute, the purpose of which is to inspire public service and that's exactly what AIPAC does here.

As current and future leaders come together, you send a strong and an unmistakable signal to the entire world that the United States and Israel stand together. Our shared values, our shared interests, and our shared desire to work together are essential to the security interests of both nations and to a peaceful and prosperous Middle East.

[] I, and some of our dearest friends, made a visit to Israel together. That visit was in August of 1991. And it left a very deep and a very lasting impression on me. It was at a time when hundreds of thousands of Jews from the Soviet Union were making aliyah and fulfilling the dream to live a free and more prosperous life in their historic homeland. That trip gave me an even stronger appreciation for Israel's promise as a Jewish and democratic state.

And coming just months after Saddam's SCUD missiles had attacked Tel Aviv and Haifa, the visit also underscored the complex array of security threats facing Israel, by virtue of its geography, by virtue of politics, and by virtue of history.

In the years since, I've been honored to work on the full range of issues of utmost concern in the relationship between Washington and Jerusalem.

As a member of President Clinton's cabinet, one of my lasting memories was standing on the South Lawn of the White House to witness that historic moment when Yitzhak Rabin courageously extended his hand in peace. And then, tragically, after Rabin's death, as President Clinton's Chief of Staff, I was honored to go to Israel and witness the President pay tribute to the memory of his fallen friend.

Whether at a time of tragedy or a time of hope, the courage of the people of Israel is fundamental to its survival. Courage is woven into the fabric of Israel's history and its soul. From Abraham to David to Joshua to the courage of the modern day IDF, the Jewish people have shown their strength and resilience and ultimately fulfilled their dream to live in their homeland.

When I returned to government as Director of CIA and had the responsibility to confront terrorists whose sole goal was to destroy my country, I had a greater appreciation for the terrorism and threats that face Israel every day.

And as a consequence, I have developed even stronger bonds with my counterparts in the Israeli government—ties of mutual trust, mutual respect and mutual interest that are the cornerstone of the unprecedented cooperation that now exists between our two governments.

During my tenure as Director of CIA, I consulted regularly with my counterparts like Mossad Directors Meir Dagan and Tamir Pardo, and I saw the benefits that came from close intelligence cooperation between our governments at the very highest levels. And I can tell you that after our operation to get Bin Laden, the first congratulations that I got were from my buddies in Mossad.

And in my current job as Secretary of Defense, I've been reunited with my dear old friend and counterpart, Ehud Barak.

Ehud and I talk frequently. I just met with him for 90 minutes in my office last Wednesday. There is no Minister of Defense I have met with more frequently or consulted more often. We talk. We argue. We eat. We are family.

I also met yesterday with my friend Prime Minister Netanyahu. I've come to know the Prime Minister well since my days in the Clinton Administration when I was Chief of Staff, and have now had the opportunity to meet with him regularly each time I go to Israel.

From these visits to Israel and my frequent meetings with Israeli leaders, I am acutely aware of the dangers that confront Israel and the significance of our defense relationship. As a consequence, the level of cooperation and interaction between our militaries and intelligence agencies is deeper and stronger and broader than at any other time during my experience in government.

Let me assure you that the security bonds between Israel and the United States will only grow as America goes through a historic turning point after a decade of war.

Even in the face of budget reductions imposed by the Congress, the defense strategy we have designed at the Department of Defense for the future makes clear our commitment to confront and defeat any adversary—anytime, anywhere. Although we have ended the mission in Iraq and begun a transition in Afghanistan, and the threats we face in the world are still very real and are still there—we are involved in a war in Afghanistan, and we are still confronting terrorism. As much as we have been able to decimate their leadership and damage their command and control, they still remain a threat whether in Pakistan, Yemen or Somalia; we still have the proliferation of weapons of mass destruction and materials; we have the threat from Iran; we have the threat from North Korea; we have continuing turmoil in the Middle East, we have rising powers in Asia, we have a new threat, the threat of cyber intrusions and attacks.

In the face of these threats, we must never rest easy—too many lives have been lost, too much blood has been spilt. The range of security challenges facing both the United States and Israel remains very real. And for that reason, it's absolutely vital that this cooperation continue, and not only continue, but deepen.

The cornerstone of this unprecedented defense cooperation is our commitment to maintain and expand Israel's qualitative military edge.

This is an ironclad pledge which says that the United States will provide whatever support is necessary for Israel to maintain military superiority over any state or coalition of states, as well as non-state actors.

The United States makes this pledge and fulfills this commitment because of the very real security concerns that Israel faces every single day. Israel is surrounded by neighbors that have waged wars against it. The Israeli people have been subjected to rocket attacks, to terrorism, and they live in a world where larger nations have threatened to wipe them off the map.

Moreover, the Jewish people carry the burden of centuries of exile, persecution, and the memory of knowing that six million people were murdered not because of what they did but simply because of who they were.

This is the undeniable history, and these are the undeniable security concerns that President Obama made clear to the UN General Assembly last year and confirmed to all of you last Sunday.

He has made it his priority to boost Israel's military superiority in the Middle East for another very simple reason as well: we have no better ally in this critical region of the world. A strong Israel deters potential aggressors. A strong Israel sends a message to the region and to the world that America will not waver in defense of our allies.

And for this reason, even though we are facing serious fiscal constraints, U.S. security assistance to Israel has increased dramatically since this President took office. This year, the President's budget requests $3.1 billion in security assistance to Israel, compared to $2.5 billion in 2009.

That's part of a 10-year, $30 billion commitment to Israel's security.

Over and above this commitment, the President has committed more than $650 million in DoD funding for Israeli missile defense.

Recognizing that rockets and missiles—whether fired from Gaza or from further afield—pose one of the most immediate threats to the security of Israel. This package more than doubles the previous administration's planned level of $320 million over the same period.

On missile defense, we are actively working with Israel at all levels. For short range defense to guard against the continued threat of rocket barrages from Gaza, the administration provided more than $200 million for the Iron Dome rocket defense system—support that enabled the fielding of a third and fourth battery of that proven system.

Iron Dome is fielded, it is operational, and this new system has already saved the lives of Israeli civilians with over 30 real world successful hit-to-kill intercepts in 2011.

Iron Dome is but one layer in a comprehensive multi-layered rocket and missile defense system that is being built through close U.S. and Israeli partnership. We are proceeding to implement medium-range missile defense with David's Sling, and upper tier ballistic missile defense with the Arrow-3 system. We are also working to upgrade Israel's Patriot missile system and batteries.

We are committed to moving forward with all of these systems and more—because as the Prime Minister told me and I agree—these missile shields do not start wars, they prevent wars.

Supporting Israel's missile defense is important because it saves Israeli lives.

Beyond missile defense, we must also ensure Israel's qualitative military edge by equipping them with the highly advanced weapons that are restricted to only the closest of our allies and partners.

As just one example, the United States will ensure that Israel continues to enjoy unquestioned air superiority by delivering to Israel the advanced fifth-generation stealth fighter aircraft, the F-35 Joint Strike Fighter.

The F-35 is the future of tactical aviation for the United States military, and providing Israel with this advanced fighter makes it the only country in the Middle East with a true fifth-generation fighter capability, upholding Israel's edge not just now but for years to come.

But providing military hardware is only part of our support for Israel's military superiority. Another way is by honing operational concepts, building greater capability and improving partnership through realistic exercises, joint training and personnel exchanges.

Each year, U.S. and Israeli forces take part in numerous exercises. For example, in 2010, more than 1,000 U.S. troops participated in the missile defense exercise JUNIPER COBRA. This year, we have scheduled an even larger exercise, AUSTERE CHALLENGE, which will involve more than 3,000 U.S. troops.

Going forward, we are also committed to exploring with Israel cooperative ways that the Department of Defense and the Israeli Defense Forces can reduce our dependencies on oil.

DoD is developing alternative fuels, greening our fleet, testing planes with bioblends, and making bases net-neutral on the power grid. Together, we must find ways to reduce dependence on oil.

This kind of cooperation is mutually beneficial to both my country and to Israel. It has made both of our militaries stronger, it has made both of our countries safer, and it has saved American and Israeli lives.

For example, it was an Israeli company that met the call to help protect American soldiers serving in Iraq and Afghanistan by surging production of up-armor kits for Humvees and mine-resistant vehicles. The kits were made in an Israeli kibbutz, and they saved the lives of our men and women in uniform.

One of my most solemn duties in this job as Secretary of Defense, and one frankly that is the most difficult, is to write condolence letters to the families of our service members who make the ultimate sacrifice for their country, and for our freedom. It is difficult to take the time and sit and write those families who have lost their loved ones. And I say to them that as difficult of this moment is, by virtue of them giving their lives to this country, the ultimate sacrifice, that they are heroes, that they are patriots, and we will never forget them.

I wrote one recently to a young boy whose father died in Afghanistan. And I can tell you with each letter, I thank God for those whose lives have been saved. There are simply no words that can adequately thank the people of that kibbutz whose ingenuity have allowed fathers and mothers to come home to their sons and daughters.

This level of cooperation—technological and strategic—in every way is absolutely essential because we are clearly confronting a time of great turmoil and uncertainty in the Middle East.

And when it comes to the challenges in the region, none is of greater concern than Iran. No greater threat exists to the security of Israel and to the entire region—and indeed the United States—than a nuclear armed Iran. As President Obama made clear here on Sunday and as he has said consistently, the United States is determined to prevent Iran from obtaining a nuclear weapon.

Let me be clear—we do not have a policy of containment; we have a policy of preventing Iran from acquiring nuclear weapons.

This administration has applied unprecedented pressure on the Iranian regime, and they now face crippling sanctions and growing isolation. Their closest ally—the Asad regime of Syria—is collapsing, and the Iranians now face a choice: to either meet their international obligations and rejoin the community of nations, or violate their international obligations, and face the consequences.

We have made clear to the regime in Tehran and to our allies in the region: we want diplomacy to work … we will back this diplomacy with strong and increasing pressure … and we will keep all options—including military action—on the table to prevent them from obtaining a nuclear weapon.

As the President has made clear, the United States does not bluff. In this town, it's easy to talk tough. Acting tough is a hell of a lot more important. The President ordered 30,000 additional troops into battle in Afghanistan to confront a resurgent Taliban. He launched a comprehensive precision bombing campaign to protect the Libyan people, and ultimately toppled a brutal dictator. He has ordered U.S. warships to pass through the Strait of Hormuz despite threats that we have received from Tehran. He has been the driving force behind the most successful and lethal counterterrorism campaign in U.S. history, culminating in the bold decision to send U.S. Special Operations Forces hundreds of miles into Pakistan to take the risk to take down Bin Laden. And he did.

The President has shown that we will do whatever is necessary to protect our people, to protect our allies, and to protect our interests.

Of course, we do not make these decisions lightly. As the President said on this stage, these are the most consequential decisions a President can make. We prefer a diplomatic path. As the Prime Minister himself has said—military action is the last alternative when all else fails. But make no mistake, when all else fails, we will act.

I believe—and I truly do—that we will succeed if the United States and Israel continue to work so closely together, and forge an international consensus to compel Tehran to change course.

That is the kind of benefit that cooperation can bring, that partnership can bring, and I believe that cooperation is going to be essential to confronting the security challenges of the 21^st century. In confronting these challenges, and in securing peace, Israel will always have the unshakable backing of the United States. And the United States must always have the unshakable trust of our ally Israel.

Last October, I traveled to Israel on one of my first visits overseas as Secretary of Defense. I had the opportunity to visit the Yad Vashem Holocaust Memorial and lay a wreath in the Hall of Remembrance.

I told those gathered nearby that it was a very moving experience for me personally, because what we learned at Yad Vashem commits all good people to work together to ensure that it never happens again.

That is my pledge, and that is the solemn and sacred pledge of the United States. We are stronger when we act as one. We are stronger when we work together to support a sovereign and secure Israel. We are stronger when we both embrace our histories that pledge us to fight for what is right and to fight for the dream of giving our children a better and more secure life.

Thank you, and may God bless Israel, and may God bless the United States of America.

Secretary Hillary Clinton and Prime Minister Abdurrahim El-Keib gave the following remarks in Washington, DC

Secretary Clinton. Good morning, everyone. I just have to express that it is not only an honor, but a personal pleasure to welcome the prime minister of a free Libya on his visit to Washington, where he's had excellent consultations in the White House meeting with, among others, the President, and an excellent presentation before the UN Security Council yesterday in New York. Just think, this time last year, the United States was working to build an international coalition of support for the Libyan people, and today we are proud to continue that support as the people of Libya build a new democracy that will bring about peace and prosperity and protect the rights and dignity of every citizen.

The prime minister and I had a very productive, comprehensive discussion about the many issues Libya is facing. We do not underestimate how challenging the road ahead will be. We are aware of that. We've been on the path to democracy for more than 235 years, and we know that there are potholes and pitfalls along the way. Qadhafi spent 42 years hollowing out Libya's institutions, ruling through intimidation and division, but after his defeat, over the last four months, the prime minister and this interim government have provided essential and effective leadership and they've begun the hard work of putting Libya back together. We've seen progress in each of the three key areas of democratic society—building an accountable, effective government; promoting a strong private sector; and developing a vibrant civil society. And we will stand with the people of Libya as it continues this important work.

On the governance front, the interim leadership has established an inclusive election law and set up a supreme elections commission with the goal of holding constitutional assembly elections this June. This is a critical first step that will pave the way for a new constitution grounded in democratic principles. We fully support the elections commission as it works to meet its deadlines and ultimately elect a fully democratic parliament that can begin delivering results for the Libyan people. We're also encouraged by the prime minister's and the government's commitment to promoting human rights and the rule of law, and we are offering help to the government as they continue investigating allegations of human rights violations. They realize and we applaud their commitment to ending this kind of violence in the new free Libya.

We also know there are problems with border security, with integrating militias, with working toward national reconciliation, and on all of these and more, we are working with our Libyan partners. At the same time, on the economic front, business is picking up. Libya has exceeded everyone's expectations in resuming oil production. The United States and the UN have removed almost all restrictions on doing business, and we are encouraging American companies to look for opportunities inside Libya. We also are supporting the booming new civil society that is developing in Libya. I was delighted when I visited Tripoli to go to the university, to talk with young people, to meet with others who are fighting for women's rights and human rights in their country.

Our Middle East Partnership Initiative and USAID's Office of Transition Initiatives are working with many civil society groups. And the UN support mission in Libya is playing a valuable role. We're exploring ways to promote partnerships and exchanges in the health field with a particular emphasis on continuing to assist the war wounded. We're looking at establishing a U.S.-Libya higher education task force with the goal of expanding academic and student exchanges. And I am pleased that we will begin providing visa services at Embassy Tripoli for Libyan Government officials. We want to get permanent facilities, but obviously in the short term, we want to set up shop and begin to reach out in the most important way—on a people-to-people basis to the Libyans.

So Mr. Prime Minister, I and our government look forward to working with you and the Libyan people as you continue to make progress on behalf of a new, free, democratic Libya.

Prime Minister El-Keib. Madam Secretary of State, thank you very much for your kind words and for hosting me today and my team. On behalf of the Libyan people, I extend our deepest appreciation to the American people and leadership and say, simply and deeply, thank you. I also thank Dr.—President Obama, Secretary Clinton, and Ambassador Rice for having been a tremendous support and for their strong leadership in supporting the Libyan revolution, which has been so successful that it did indeed impress everybody. We Libyans are very proud of our young men and women who brought freedom to our country after 42 years of a brutal regime that nobody felt would disappear in eight months. So we do thank our friends and partners so much for having been there when we needed them.

We have come here today to find ways on how we can work and how we can better work together. One of the things that I did request help with from Madam Secretary was the remnant of the past regime. They have been a nuisance and have been—they have been causing problems and we need them back to give them proper justice. And we also need the funds they have stolen from the Libyan people to come back to Libya. So we look forward to help in that area from the U.S. and from everybody else who can help us here. It's very important to us.

During the revolution, the Libyan people demonstrated time and time again great courage and resilience. Our citizen army of teachers and mechanics, lawyers, students, professors, our sons and daughters suffered great losses along with the civilian population, but with great bravery and unfortunately too much in terms of losses. But however, in the end, we succeeded in making the dream of a free Libya a reality, and we'll keep it that way.

We also, in a direct fashion and I hope Madam Secretary would forgive me for having done that, requested help with our wounded young men with very difficult cases. And the response was very positive, and we cannot thank you enough for that. Libyans are putting the same energy and determination that fueled the revolution into establishing a new Libya that has a positive contribution, maybe in a small way, at least, to the environment around it and to the world around it. And we are determined to do that. Libya needed the facelift and the revolution has given it to her. We are looking for a new Libya founded on the principles of democratic governance and rule of law and dedicated to improving the quality of life for the Libyan citizens. And we call on our friends and partners who helped us to become free to also help us meet the aspirations of our people.

We had a very productive meeting today that focused on a number of areas of mutual interest and future opportunities for cooperation between our two countries. The Libyan Government is fully committed to holding free, fair, and transparent elections in June, and we look for continued support from the U.S. and our partners in that area. Now that the war of liberation of Libya is almost over—after we get those remnants of the past regime, it will be over—now that we are—the war is almost over, the U.S. private sector can help play an important role in rebuilding Libya and enabling us to meet our aspirations for peace, prosperity, and high quality of life. And we are determined to do that.

In the past year, the dynamics between the U.S. and Libya has been dramatically transformed for the better. We look forward to the continued strengthening of this relationship as Libya moves forward with its democratic transition and rebuilding its economy.

Secretary Clinton. Thank you, sir.

Q. Good morning. My questions will focus on Libya, if I may. Mr. Prime Minister, first for you, at the United Nations yesterday, the Russian Ambassador to the Security Council accused Libya of running camps to arm and train Syrian rebels. I'm hoping you can respond directly to this accusation. And also to discussion of these calls for autonomy in Benghazi and concern that this is going to threaten the future of the Libyan revolution, can you address that, please?

And for Madam Secretary, I'm wondering if you can tell us if you received any new assurances on the Megrahi case in your discussions today.

And both of you, if you could discuss what lessons Syria's rebels should take from the Libyan experience. Thank you.

Prime Minister El-Keib. Excuse me. On the Syrian issue, we, I believe, were the first country to recognize the Syrian Transitional Council, and we did it because we felt that the Syrian cause is a good cause. It's people who are voicing their voice, raising their voice, asking for freedom. As far as training camps, unless this is something that is done without government permission, which I doubt, I'm not aware of any.

Concerning the East, the issue of a group of not more than few thousand trying to create a state, I can tell you this is democracy in practice; that is simply that. I know the person who is appointed by this small group. I know him very well, he's actually a friend, and I have respect for him as a result of his past. I disagree with the approach not because it's an opinion that people are sharing with others but because it has to be toward a constitution that we are about to create, that this issue should be raised.

Secretary Clinton. Andy, I, of course, raised the Megrahi Pan Am 103 issue as I do whenever I meet with Libyan officials. You know where I stand. I believe that Megrahi should still be behind bars. And we know that Libya faces a multitude of challenges, but at the same time they have assured us that they understand the sensitivities of this case, and they will give the matter the consideration it deserves. We will continue to fight for justice for all the victims of Qadhafi and his regime. And in this particular case, the U.S. Department of Justice has an open case, and it will remain open while we work together on it.

Finally, with respect to Syria, I think what we saw coming out of Libya with the unity and the vision that the Transitional National Council presented to the world with the close linkage between the civilian representatives and the fighters for freedom, they presented a unified presence that created an address as to where to go to help them, a lot of confidence in their capacities on the ground, their commitment to the kind of inclusive democracy that Libya is now building. And we are working closely with the Syrian opposition to try to assist them to be able to present that kind of unified front and resolve that I know they feel in their own—on their behalf is essential in this struggle against the brutal Assad regime.

Q. Good morning to both of you. Madam Secretary, if I may on Iran, the P-5+1 issued at the IAEA a statement calling for Iran to open up the facility at Parchin. Do you consider that a condition for the talks to go ahead? And how confident are you that Iran will come to these talks seriously discussing the nuclear concerns you have?

Secretary Clinton. Well, Lachlan, I think that what we have demonstrated consistently through the P-5+1 is that the international community is united. We are united in our concerns and condemnation of Iran's actions that violate their international obligations, and we are united in continuing to press the Iranian regime to come to the diplomatic forum that the P-5+1 offers. So as the president made clear in his remarks just a few days ago, we continue to believe we have space for diplomacy. It is obviously coupled with very strong pressure in the form of the toughest sanctions that the international community's ever imposed.

We want to begin discussions with Iran. They insist that their nuclear program is purely peaceful and if that's the case, then openness and transparency, not only with the P-5+1 but also with the IAEA and the Security Council and the international community, is essential. That's why we want to respond as we did, positively, to the letter that came from the Iranians. I would also draw your attention to the statement that China released today in Vienna on behalf of the P-5+1 with regard to our expectations that access to Parchin and other Iranian sites will be provided. So we are hoping that the Iranians will come to the table prepared to have the kind of serious and sincere discussion we have been looking for, for several years. We think it is even more pressing and imperative today than it has been in the past and we would like to see diplomatic progress, which we support.

Thank you all very much.

Secretary Hillary Clinton gave the following remarks at the UN Security Council in New York

Secretary Clinton. Thank you very much Foreign Secretary Hague for calling us together. Secretary General, thank you very much for your leadership.

Today, we gather to discuss the wave of change that has swept the Middle East and North Africa. While each country's experience has been unique, all of these democratic movements have sprung from a common desire for rights, freedom, economic hope, and human dignity. These universal aspirations are enshrined in the Universal Declaration of Human Rights and in the UN Charter, and they are fundamental to my country's identity and history and to those of many countries. These principles—and the people who struggle to realize them in their own societies—deserve and demand our collective support. We are inspired by the courage of the people of the region, as they have shown their determination to move forward, and we believe that their efforts should be supported.

Now I approach these conversations with a healthy dose of humility, because we know that these revolutions are not ours. They are not by us, for us, or against us. But we also know that, as an international community, we do have the resources and capabilities to support those who seek peaceful, meaningful, democratic change. We must also have the will.

Now of course, change is unfolding in different ways in different places, and in each unique case, our tools have to be matched with the circumstances. Here at the UN Security Council, three cases in particular demand our attention today.

Let me start with Libya and the encouraging vote this morning to renew and update the UN Support Mission in Libya, UNSMIL. Last year, this council—backed by the Arab League and countries around the world—acted to support the Libyan people at the hour of their greatest need. Today's vote reflects our continued commitaient to Libya and its transitional government, which has made tremendous strides. And it also reflects the recognition that our work is not yet done.

We will continue to aid UNSMIL's efforts to support the Libyan Government as it reintegrates those who took up arms in the name of change into a professional national army and a peaceful society. We will continue helping Libya secure its borders against proliferation, trafficking, and extremism, while treating refugees and migrants humanely. And after so much courage and sacrifice from the Libyan people, we are proud to help Libya build a new foundation for the rule of law and respect for human rights.

Just last week, Prime Minister el-Keib was here in the Security Council, where he forcefully and eloquently defended this Security Council's assistance on behalf of the aspirations of the Libyan people to chart their own futures. I don't think there's any additional comment any of us need to add to the record as to the appropriate measures taken by the Security Council in furtherance of the resolutions so authorizing action. We also met with Prime Minister el-Keib in Washington, where we discussed Libya's progress in paving the way for fair and free elections, as well as our work together on security, student exchanges, civil society, and medical care for Libya's war-wounded. Ultimately, the measure of success for Libya will not be the death of a dictator but the birth of a successful, stable, and free nation.

The second case is Yemen. As Yemen unraveled into violence last year, this Security Council stood behind the efforts of the Gulf Cooperation Council and Yemeni stakeholders to find a peaceful solution. In the face of setbacks, we held firm. Now many challenges lie ahead. But last month's successful presidential election and inauguration were promising steps on the path toward a new, democratic chapter in Yemen's history. As Yemen continues its multiyear transition, reforms its constitution, convenes a national dialogue, and continues to grapple with its security and humanitarian challenges, we must remain engaged and supportive.

The third case is Syria. Five weeks ago, this council was unable to stand united against the horrific campaign of violence that has shocked the conscience of the world, one that continues unabated as we meet. We were blocked from even condemning the violence and endorsing a peaceful plan developed by Syria's own neighbors.

Now the United States believes firmly in the sovereignty and territorial integrity of all member-states, but we do not believe that sovereignty demands that this council stand silent when governments massacre their own people, threatening regional peace and security in the process. And we reject any equivalence between premeditated murders by a government's military machine and the actions of civilians under siege driven to self-defense. How cynical that even as Assad was receiving former Secretary General Kofi Annan, the Syrian army was conducting a fresh assault on Idlib and continuing its aggression in Hama, Homs, and Rastan.

We took note of the fact that this past weekend in Cairo the Arab League and Russian Foreign Minister Lavrov agreed on the necessity of an end to violence, full, unimpeded humanitarian access, and a political process led by Kofi Annan and based on the terms of the Arab League and the United Nations General Assembly resolutions. We believe that now is the time for all nations, even those who have previously blocked our efforts, to stand behind the humanitarian and political approach spelled out by the Arab League. The international community should say with one voice—without hesitation or caveat—that the killings of innocent Syrians must stop and a political transition must begin.

The Syrian people deserve the same opportunity to shape their future that the Tunisians, Egyptians, Libyans, and Yemenis now enjoy. And our work here at the Security Council is just one part of what the international community must do to assist democratic transitions all across the Middle East and North Africa. We must support calls from within the region to strengthen each of the building blocks of stable, thriving societies: a responsive, accountable government; an energetic, effective economy; and a vibrant civil society.

Politically, many countries —including a number at this table –have unique, firsthand expertise in how to build durable democracies. And I appreciate the comments of the foreign minister of Guatemala. These are lessons we can and should share. Where countries are making gradual reforms, we should offer our support and everywhere we must safeguard, in word and action, the basic principles of democracy and universal human rights.

Now, I know that today there are those who question whether Islamist politics can really be compatible with these democratic and universal principles and rights. The people of the Arab Spring have a chance to answer that question.

Our policy is to focus less on what parties call themselves than on what they choose to do. All political parties—religious and secular alike—have a responsibility to their people to abide by the basic tenets upon which this body is founded: to reject violence; to uphold the rule of law; to respect the freedoms of speech, association, and assembly; to safeguard religious freedom and tolerance; to protect the rights of women and minorities; to establish independent judiciaries; to promote a free press; to give up power if defeated at the polls; and to avoid inciting conflicts that pull societies apart. These are standards against which we should all be measured, and we need to commit to uphold them together.

Our experience elsewhere in the world has taught us that successful political transitions are those that quickly deliver economic results—job opportunities and the hope for a better future. To succeed, the Arab political awakening must also be an economic awakening.

Governments across the region who share these priorities will need to keep making the sometimes difficult policy choices required to build a foundation for inclusive, private sector-led growth. As this year's G-8 president, America is continuing the work of the Deauville Partnership started by France to promote regional integration, economic participation, job creation, and stabilization. The last of these is especially pressing: the international community must provide strong support for the IMF to quickly conclude an economic reform and stabilization program with Egypt. And we call on Egypt's friends in the region and around the world to be prepared to use bilateral assistance to reinforce an IMF program with Egypt.

And of course, these efforts, economic and political, must include women. And I thank the Secretary General for making that one of the five points he recited. No transition can succeed with half the population left behind.

And durable democracy depends on civil society, and we are proud to support individuals and organizations seeking to improve their own societies. Now, I know again there are those who say the whole concept of civil society is a Western imposition. But after 2011, how can anyone honestly say that civil society is not indigenous to the Middle East and North Africa—and I would add everywhere?

We know that lasting change comes from within. Societies must be the authors of their own futures. But the international community can provide tools that help societies reach those goals. As new, elected legislatures abolish old laws intended to control civil liberties, we should continue our collective support for measures that will protect and nurture civil society, consistent with international human rights norms of free association, assembly, and expression.

No one in the region is exempt from the demands for change we have seen. When a country like Iran claims to champion these principles in the region—and then brutally suppresses its own people and supports suppression in Syria and other places—their hypocrisy is clear to all.

And President Obama and I have been consistent in our belief that the Palestinian people—like their Arab neighbors, Israelis, and all people—deserve dignity, liberty, and the right to decide their own futures. They deserve a viable, independent Palestine, alongside a secure Israel. And we know from decades in the diplomatic trenches that the only way to get there is through a negotiated peace—one that cannot be dictated from outside and one we will continue to pursue through every productive avenue, including a Quartet consultation this morning.

And let me also condemn in the strongest terms the rocket fire from Gaza into southern Israel which continued over the weekend. We call on those responsible to take immediate action to stop these attacks. We call on both sides—all sides—to make every effort to restore calm.

Finally, and crucially, we have to recognize that the most consequential choices are the ones that will be faced in the months ahead. It is up to the people and leaders of the region to resist the calls of demagogues, to compromise and build coalitions, to keep faith in their system even when they lose at the polls, and to protect the principles and institutions that ultimately will protect them. Every democracy has to guard against those who would hijack its freedoms for their own ignoble ends.

Building prosperous, democratic societies is not the job of a day, a week, or even a year. It is a continuous commitment, and one we share. We, as a community of nations, must help the people of the Middle East and North Africa make the most of the rights and freedoms for which they have risked so much.

Thank you.

President Barack Obama and Prime Minister Recep Tayyip Erdogan gave the following remarks in Seoul, South Korea

President Obama. I just want to say how much I appreciate the opportunity to once again meet with my friend and colleague, Prime Minister Erdogan. I think it's fair to say that over the last several years, the relationship between Turkey and the United States has continued to grow across every dimension. And I find Prime Minister Erdogan to be an outstanding partner and an outstanding friend on a wide range of issues.

We devoted a lot of this meeting to the issue of Syria, where the United States and Turkey have worked with a broad-based coalition, an international coalition of countries in the region, as well as around the world, who deeply object to the killings that have been taking place in Syria and are absolutely committed to trying to help those innocent civilians who are being killed by the Assad regime. And we are very much in agreement that there should be a process whereby a transition to a representative and legitimate government in Syria takes place.

So I expressed my thanks for Turkey hosting the next “Friends of Syria” meeting. And we worked on a common agenda in terms of how we can support both humanitarian efforts, political efforts, the efforts of Kofi Annan to bring about much needed change inside of Syria. And not only Prime Minister Erdogan but his entire team has shown outstanding leadership on this critical issue.

We also had the opportunity to discuss the issue of Iran and its nuclear program. I expressed to the Prime Minister once again that I believe there is a window of time to resolve this question diplomatically, but that window is closing. And it's absolutely critical for us to be able to move forward in an effective way, in a serious way, in concert based on negotiations through the P5-plus-1 and other channels, to ensure that Iran abides by its international obligations, which also then assures them the right to engage in peaceful nuclear power. I very much appreciate the Prime Minister's insights obviously as a neighbor of Iran and as someone who is interested in seeing this issue resolved in a peaceful fashion.

Beyond those two specific issues, we had a wide-ranging conversation about our continued support of counterterrorism efforts, including the efforts that are taking place in Turkey with respect to the PKK. We are very supportive of making sure that the kinds of terrorist attacks that we've seen in the past are not occurring. I congratulated the Prime Minister on the efforts that he's made within Turkey to protect religious minorities. I am pleased to hear of his decision to reopen the Halki Seminary.

We discussed our joint NATO efforts, and I look forward to welcoming him to my hometown of Chicago to discuss the transition process in Afghanistan, to provide support for an effort within Afghanistan so that they can provide for their own security and a stable government that's representative of its people and provides them with opportunity and prosperity.

And we discussed some of the important humanitarian efforts that are being made jointly in places like Somalia.

So the bottom line is that we find ourselves in frequent agreement upon a wide range of issues. Our discussions are frank and honest, and I very much appreciate our collaboration. And I also appreciate the advice he gives me, because he has two daughters that are a little older than mine—they've turned out very well, so I'm always interested in his perspective on raising girls.

Prime Minister Erdogan. My dear friend, Barack, thank you very much for a very fruitful meeting today. The first topic that we discussed was Syria. We extensively evaluated the situation in Syria. Of course for a country like Turkey, which has a border of 910 kilometers with Syria, the events that are taking place in Syria is very close to us, and we feel it in our hearts and we're very encouraged to see some of the developments.

Our country has become a center of migration in that more than 17,000 people have had to come over from the Syrian side to Turkey as a result of the events in Syria. And we also see significant number of people who are killed, and there seems to be continuous action in terms of bombing and burning cities and settlement areas by headquarters and the need to do more of this.

And of course, as human beings, people with conscience, we cannot remain a spectator to these developments, which are things that we have to be doing something about within the framework of international law. And I'm also very pleased to see that our views in general very much overlap on this subject.

We've also had an opportunity to talk about, with respect to Syria again, developments in the region—Iran, Russia, and China, in that context.

On my return from South Korea I will be visiting Iran, specifically on the issue of Syria. And I was hoping that we would have a chance to discuss that aspect as well, which we did today. And there are also developments in Iran which were important which we wanted to discuss, and those have also been discussed in our meeting.

We discussed about developments in Iraq to see how we can create greater impetus towards greater peace in Iraq. And I'm hoping that all efforts will in the end help contribute to greater peace in Iraq.

We're also very pleased to see the United States standing with us in our fight against the separatist terrorist organization. Our fight against the separatist terrorist organization will continue, but we also have to have discussions with the political extension of this organization.

We also had a chance to evaluate the situation with respect to Cyprus. Our hope is that we can achieve the desired future for Cyprus sooner.

A very, very important point has been that from the moment Barack became President we upgraded the status of our relations from a strategic partnership to a model partnership, which he also placed a lot of importance on.

A second meeting after the first one that was held in Washington will be held in Turkey in June this year to talk about those relations, which, in turn, in my opinion, will also lead to a significant increase once again for those relations.

And I also told you about my daughters.

Thank you.

Secretary Hillary Clinton and Foreign Minister Saud al-Faisal gave the following remarks in Riyadh, Saudi Arabia

Secretary Clinton. Thank you very much, Your Highness. It's wonderful to be back here in Riyadh. And I thank you for your warm hospitality, and I also wish to thank the secretary general and the GCC for the work that went into preparing this meeting and the hospitality you have provided us.

I was delighted yesterday to have the opportunity to visit with the Custodian of the Two Holy Mosques, His Majesty, King Abdullah. And I want to thank him again, publicly and personally, for his leadership and hospitality.

The partnership between our two countries goes back more than six decades, and today we are working together on a wide range of common concerns, both bilaterally and multilaterally. For example, both the United States and Saudi Arabia share an interest in ensuring that energy markets foster economic growth. And we recognize and appreciate the leadership shown by the kingdom. We are working together to promote prosperity in both our countries and globally.

In today's inaugural session of the Strategic Cooperation Forum, I underscored the rock-solid commitment of the United States to the people and nations of the Gulf. And I thanked my colleagues for the GCC's many positive contributions to regional and global security, particularly the GCC's leadership in bringing about a peaceful transition within Yemen. We hope this forum will become a permanent addition to our ongoing bilateral discussions that exist between the United States and each nation that is a member of the GCC. We believe this forum offers opportunities to deepen and further our multilateral cooperation on shared challenges, including terrorism, nuclear proliferation, and piracy, as well as broader economic and strategic ties.

Among other things, it should help the American and GCC militaries pursue in concert a set of practical steps, such as improving interoperability, cooperating on maritime security, furthering ballistic missile defense for the region, and coordinating responses to crises. Let me turn to a few of the specific challenges facing the region that we discussed.

I will start with Iran, which continues to threaten its neighbors and undermine regional security, including through its support for the Assad regime's murderous campaign in Syria, threats against the freedom of navigation in the region, and interference in Yemen. The entire world was outraged by reports that Iran was plotting to assassinate the Saudi ambassador to the United States and by allegations of Iranian involvement in recent terrorist attacks in India, Georgia, and Thailand.

Of course, the most pressing concern is over Iran's nuclear activities. The international community's dual-track approach has dramatically increased pressure on Iran through crippling sanctions and isolation, while at the same time leaving open the door if Iran can show it is serious about responding to these legitimate international concerns. It soon will be clear whether Iran's leaders are prepared to have a serious, credible discussion about their nuclear program, whether they are ready to start building the basis of a resolution to this very serious problem. It is up to Iran's leaders to make the right choice. We will see whether they will intend to do so starting with the P-5+1 negotiations in Istanbul, April 13^th-14^th. What is certain, however, is that Iran's window to seek and obtain a peaceful resolution will not remain open forever.

Q. (Inaudible) from (inaudible). My question will be for both of you. And once again, welcome to Riyadh.

You mentioned Iran so many times in your word, and we know the effect of it. They are supporting Syria; they're supporting Houthis in Yemen. We know (inaudible) in Iraq, et cetera. Is that going to—or would that impact (inaudible) the missile defense system project for the Gulf—is it going to be (inaudible)? And also, you mentioned helping Yemen or supporting Yemen. How would that be? Thank you.

Secretary Clinton. Well, we believe strongly that, in addition to our bilateral military cooperation between the United States and every member nation of the GCC, we can do even more to defend the Gulf through cooperation on ballistic missile defense. We began that conversation in this forum today. Admiral Fox, the commander of the Fifth Fleet, made a presentation outlining some of the challenges that we face when it comes to ballistic missile defense. But we are committed to defending the Gulf nations and we want it to be as effective as possible.

So just—without getting into a lot of technical discussion, sometimes to defend one nation effectively you might need a radar system in a neighboring nation, because of the—everything from the curvature of the earth to wind patterns, so that were a missile to be launched, you might get a better view more quickly from a neighboring nation, even though the missile could be headed toward a second nation. So we want to begin expert discussions with our friends about what we can do to enhance ballistic missile defense. There are some aspects of a ballistic missile defense system that are already available, some of which have already been deployed in the Gulf. But it's the cooperation—it's what they call interoperability that we now need to really roll up our sleeves and get to work on.

With respect to Yemen, the leadership of the GCC has been commendable. Saudi Arabia and its partners in the GCC laid the groundwork for the peaceful transition of power. And we now think that Yemen has a chance to unite around a different leadership. The road ahead is a long one, but I know that Saudi Arabia and other members, the United States, we are all committed to assisting. And it's not just on the political front. We want to help the people of Yemen. They are in great need of development assistance and other forms of help so that they can begin to realize the benefits of a new government that wishes to try to help them.

Foreign Minister Saud. (Inaudible) for me? Well, you can see how the diplomacy has not moved as fast as American diplomacy. American diplomacy now can speak military lingo when we do not. We don't understand. We're going to request your experts.

But for (inaudible), I think it's a country that need help. It's a country—and old country of long civilization. And it has the (inaudible) power and the ability if they can stop the fighting that happened between (inaudible) fighting that (inaudible), a fact of life in Yemen. And they have agreed to appoint a new president, with 75 percent, I believe. I may be mistaken in the number. (Inaudible), which means that most civilians support it.

This fact alone makes this incumbent on the leadership in Yemen to come up with a program (inaudible) for the Yemeni people to unite them, to bring them together, (inaudible) military, and have the people support the program of the government. If that happens, I think we are very free to talk about development projects and development of Yemen. I haven't visited any country (inaudible) are not willing to assist in that field. And so in that case, I think the resources (inaudible) for development are there for the taking, if they can establish stability in Yemen.

Q. Yes. Madam Secretary, given the deep skepticism you and many other international leaders have about Iran's intentions, what steps would you talk about today with your Arab allies in the event that the talks in two weeks time aren't successful?

And secondly, if I may, you talked about the good cooperation the U.S. and the Gulf countries have, but only just recently one of the countries present here today essentially delivered a slap in the face to U.S. democracy-building efforts. What does that say about the limits of U.S. cooperation? And are you disappointed by that step?

Secretary Clinton. With respect to Iran, we had an opportunity to discuss the P-5+1 negotiations—what we expect, what we are intending to present when the meetings begin. We're going in with one objective: to resolve the international community's concerns about Iran's nuclear program. And I had a chance to talk with our friends here about how we are approaching these talks. I also reiterated what the President has said, that our policy is one of prevention, not containment.

We are determined to prevent Iran from obtaining a nuclear weapon. The President has made clear there is still time for diplomacy to work, provided Iran comes to the talks prepared for serious negotiations. And we enter into these talks with a sober perspective on Iran's intentions and its behavior. It is incumbent upon Iran to demonstrate, by its actions, that it is a willing partner and to participate in these negotiations with an effort to obtain concrete results. We will know more when the discussions begin. But I want to underscore that there is not an open-ended opportunity for Iran. These discussions have to be viewed with great seriousness from their very beginning.

With regard to your second questions, we obviously had numerous discussions on every issue with our friends in the Gulf—sometimes we agree, sometimes we disagree. But our overriding interests to cooperate, particularly in the security arena, the anti-terrorism arena, are ones that are paramount. And so when we have questions about decisions that are made, we raise them, we discuss them, and often times we can resolve them.