Secretary Hillary Clinton and Minister Murray McCully delivered these remarks in Washington, DC

Secretary Clinton. Well, good morning, and welcome to the Treaty Room. It's a great pleasure for us to have this opportunity to meet with Foreign Minister McCully and his delegation. The United States and New Zealand have a long history of partnership, and today we had the opportunity to discuss a broad range of issues.

Five months ago, just as we were electing a new president, our friends in New Zealand elected a new government led by Prime Minister John Key. And we're off to a great start together. The U.S.-New Zealand relationship is the best it has been in 25 years, and we look forward to building on the progress we have already made.

We join New Zealand in encouraging Fiji's interim government to abide by the Pacific Islands Forum's benchmarks and timetable to restore democracy to that country. We share a common determination that democracy must not be extinguished there.

As original signatories of the Antarctic Treaty, the United States and New Zealand have enjoyed close cooperation in the Antarctica for half a century. Yesterday, along with other treaty members, Minister McCully and I participated in a ministerial meeting to mark the 50th anniversary of the Antarctic Treaty. And I just thanked the minister for one of their government energy companies supplying wind energy to our facility, so we'll have renewable energy way down at the South Pole. That's pretty exciting, Minister McCully.

Now, in addition to these many areas of collaboration, today the minister and I will be signing an arrangement to combat nuclear smuggling. And I want to thank the minister and his government for their commitment to address this global threat. This is a prime example of how our two countries share a vision and work collaboratively on issues of common concern.

So again, I am pleased to welcome Minister McCully here in Washington. This makes his seventh Pacific nation that he has visited. And I hope sometime during my time as Secretary of State I will have the opportunity to visit your beautiful country. Thank you, sir.

Foreign Minister McCully. Thank you, Madame Secretary. As the Secretary of State has indicated, it was approximately five months ago that new administrations took office in both the United States and in New Zealand. The relationship has seen significant improvements over recent years, and as a party in opposition, my party was pleased to work with the then-government to try and advance the New Zealand relationship with the United States. Now, having assumed office, we have the opportunity to try and move that relationship forward, and I've been greatly encouraged by the approach that Secretary of State Clinton has taken in our discussions today.

Finally, with regard to the Pacific, a large expanse of ocean, some small nations that are highly vulnerable in every possible way—economically, the first to feel the effects of climate change—we have discussed today some opportunities for us to work more closely together providing leadership in that region. It's an area with which New Zealand is closely familiar. We have a large Pacifica population in our country. We have close family links, close links of every possible sort—a unique opportunity to render assistance to the smaller nations of the Pacific and therefore a particular responsibility. And today, we have looked at some of the ways in which we can cooperate in that respect, particularly in terms of renewable energy.

So I've had a very important first meeting with Secretary of State Clinton today. The two new administrations have the opportunity to bring new energy and new eyes to a relationship which has already seen significant improvement. And we will be working closely in the months ahead to get that relationship moving in that direction.

Thank you very much.

Secretary Clinton. Thank you, Minister. Now we're going to sign the agreement.

Moderator. The Secretary and Foreign Minister are now signing the Arrangement between the Department of Energy of the United States of America and the Ministry of Foreign Affairs and Trade of New Zealand for Cooperation on Nonproliferation Assistance.

(The agreement was signed.)

Australia-United States Ministerial Consultations 2009 Joint Communiqué

Secretary of State Hillary Rodham Clinton, Secretary of Defense Robert Gates, Minister for Foreign Affairs Stephen Smith, and Minister for Defence Joel Fitzgibbon met in Washington D.C. on April 9, 2009 to further the United States-Australia alliance and to discuss global and regional security issues. The talks marked the 24th anniversary of the Australia-United States Ministerial Consultations (AUSMIN) and 58 years of strategic partnership under the ANZUS alliance.

The 2009 AUSMIN, the first such meeting under the Obama Administration, confirmed the strength and contemporary relevance of the U.S.-Australia alliance in strategic, security, military, and foreign policy fields. The discussions reaffirmed the commitment of both countries to work together closely to support their common interests and to achieve their shared objectives.

Global Security

The United States and Australia reaffirmed their commitment to stabilization and reconstruction efforts in Afghanistan. Noting the recently released Afghanistan and Pakistan strategic policy review undertaken by the United States in cooperation with allies, the two countries agreed on the importance of a comprehensive approach to regional challenges. They endorsed the Chairman's Statement of the March 31 International Conference on Afghanistan in The Hague. The two countries agreed on the continuing priority attached to curbing the ability of al-Qaida and other terrorist groups to operate in the region. They reaffirmed their commitment to work together to give the Afghan people the means to secure their own future, particularly by building the capacity of the Afghan National Army and Police.

The United States and Australia reinforced their commitment to working with the democratic government in Pakistan to support security and stability. They discussed the increased security concerns in Pakistan, especially on the border with Afghanistan, and pledged continued support for capacity building among Pakistan's security forces in counterterrorism and counterinsurgency. Both countries noted the importance of strong support by the international community for Pakistan. They agreed the April 17 Friends of Democratic Pakistan meeting and Pakistan Donors' Conference in Tokyo will be important opportunities for the international community to demonstrate the strength of its commitment to helping Pakistan address its many challenges both in the short and long-term.

The two countries remain deeply concerned by Iran's nuclear activities, including continued defiance of UN Security Council Resolutions requiring Iran to suspend all uranium enrichment-related, reprocessing, and heavy water-related activities and to cooperate fully with the IAEA. While acknowledging Iran's right to civil nuclear energy, they noted that without full transparency and cooperation with the IAEA, the international community is unable to verify that Iran's nuclear program is solely for peaceful purposes. Australia strongly supported the United States' willingness to engage in direct diplomacy with Iran and encouraged Iran's leaders to respond positively.

Both governments welcomed the steady progress which has occurred in Iraq, where gains in security and stability are now being achieved by the Iraqis themselves. The improved security situation in that country, underpinned by successful provincial elections and legislative progress by Iraq's parliament, has created the conditions for continued Coalition troop withdrawals, a situation made possible by the persistent and courageous efforts of the Iraqis in partnership with the United States and other Coalition partners, including Australia.

The United States and Australia affirmed their goal of a world free of nuclear weapons. The two countries noted the importance of strengthening the Nuclear Nonproliferation Treaty (NPT) regime and pledged to cooperate closely in the run- up to the 2010 Review Conference. They saw common ground in the work of the International Commission on Nuclear Nonproliferation and Disarmament established by Australia and Japan. The United States reiterated its intent to seek the U.S. Senate's advice and consent for ratification of the Comprehensive Nuclear Test Ban Treaty. Both countries expressed their commitment to work for negotiations on a verifiable Fissile Material Cut-off Treaty.

The United States and Australia also emphasized the continued need for practical action to prevent the spread of weapons of mass destruction (WMD) and their delivery systems to states of proliferation concern and to terrorist groups. The two countries reaffirmed their commitment to work together under the Proliferation Security Initiative to counter illicit trade in WMD and missiles. They also pledged to continue coordinating nonproliferation-related outreach and capacity development activities in other countries.

Regional Challenges and Opportunities

The United States and Australia noted the constructive role China has played in addressing the global financial and economic crisis. Both countries seek a positive, cooperative relationship with China, and encourage China to continue to meet contemporary challenges in a constructive manner. They called upon China to increase regional confidence in its intentions, including by pursuing a more transparent approach to military modernization.

The United States and Australia expressed disapproval of North Korea's April 5 launch of a Taepo-dong 2 long-range rocket and made clear that the launch was a threat to peace and security and a violation of United Nations Security Council Resolution 1718. The two countries called on North Korea's leaders to suspend all activities related to its ballistic missile program, as required by the resolution, and to focus instead on making progress in the denuclearization of the Korean Peninsula through the Six-Party Process, including a verification protocol consistent with international standards. They noted the recent announcement by Australia and South Korea on enhanced security cooperation. The United States welcomed this closer relationship between two of its Allies.

The United States and Australia underscored the continued importance of trilateral cooperation with Japan, through the Trilateral Strategic Dialogue and the Security and Defense Cooperation Forum. They noted the cooperation and coordination the three countries have accomplished, at both the policy and operational levels, in areas such as counterproliferation, humanitarian assistance and disaster relief, and counterterrorism.

The United States and Australia welcomed India's continued growth in stature as a country of economic and strategic weight, underpinned by a robust democracy. The two countries expressed their desire to work effectively with India, including in the areas of counterterrorism, nuclear nonproliferation, and other transnational threats.

The United States and Australia noted Indonesia's significant progress in strengthening its democracy, reforming its military, countering terrorist groups, tackling corruption, and promoting regional security. They committed themselves to deeper and broader engagement with Indonesia, particularly on such issues as climate change and the global economic crisis. The United States and Australia reaffirmed their commitment to continue working together with the Philippines to improve military and civilian law enforcement agencies' capabilities to respond to terrorism, combat transnational crime, and promote maritime security. Both countries noted the improved security environment in Timor-Leste and underscored the need for an ongoing UN policing presence, pending the strengthening of Timorese security forces.

The United States and Australia underlined their shared commitment to encourage Vietnam's continuing economic liberalization and legal reform and welcomed Vietnam's increasing international engagement, including as a member of the UN Security Council and as the next Chair of ASEAN. Both countries reaffirmed their commitment to a free and democratic Burma that respects the rights of all its citizens. They agreed to work together in support of that goal.

The United States and Australia confirmed their support for the Pacific Island Forum's call for a speedy return to democracy in Fiji through a genuinely independent and inclusive dialogue process without predetermined outcomes. They noted the April 9 decision by the Court of Appeal in Fiji which underlined that the ousting of former Prime Minister Qarase in December 2006 was invalid. They called for the court's decision to be respected and for democracy to be restored as early as possible with full participation of the Fijian people and all political parties in free and fair elections. The two countries also discussed the Solomon Islands and noted the progress the country has made towards achieving peace and stability. The United States applauded Australia's leadership of the Regional Assistance Mission to Solomon Islands (RAMSI), which has been instrumental in sustaining momentum and progress.

The United States and Australia reaffirmed their commitment to strengthening trans-Pacific regional cooperation and institutions. Australia welcomed the United States' announcement that it would launch the process to pursue accession to the Treaty of Amity and Cooperation and encouraged it to do so. The two countries welcomed the renewed focus on the future of Asia-Pacific regional arrangements following Australian Prime Minister Rudd's initiative for an Asia Pacific community by 2020. They look forward to further discussions, including with other countries, on strengthening multilateral cooperation in the region. They agreed that the proposal and any modifications to the regional architecture should develop in accordance with the political, economic, and security needs of the region.

The United States and Australia agreed to explore opportunities to strengthen bilateral civil-military cooperation, including in addressing the needs of fragile states.

Defense Relations

The United States and Australia discussed strategic-level guidance, with Australia soon to release its Defence White Paper and the United States outlining the next steps in the 2009 Quadrennial Defense Review (QDR). The United States welcomed Australia's contribution of an exchange officer to assist with developing the QDR. The two countries welcomed the progress made on enhanced defense cooperation initiatives agreed to at the 2008 AUSMIN, and noted the efforts made by United States Pacific Command and the Australian Defence Force to better align their doctrine and procedures for responding to humanitarian and disaster relief operations, and welcomed the ongoing examination of options to hasten joint responses to these catastrophic disasters in the Asia Pacific region.

Acknowledging the value of interoperability between the two countries' military forces, the United States and Australia welcomed the conclusion of the Joint Combined Training Capability Memorandum of Understanding, which will increase the value and reduce the cost of combined exercises. The two countries noted the Joint Combined Training Capability would be put to good use by the two countries' forces in Exercise Talisman Saber 2009, their largest combined exercise, which will be held later this year in Australia.

Based on the recommendations of a joint study team, the United States and Australia agreed on principles that will guide greater cooperation on intelligence, surveillance, and reconnaissance. The two countries noted efforts to advance their military satellite communications partnership and discussed proposals to improve mutual capabilities in support of U.S. and Australian deployed forces. They also agreed on principles for enhancing intelligence collaboration and cyber security cooperation.

The United States and Australia endorsed the results of the March 2009 AUSMIN Defense Acquisition Committee report and agreed the next meeting should be held in November 2009 in San Diego. The United States reaffirmed its desire for quick U.S. Senate ratification of the Defense Trade Cooperation Treaty, which will enhance the two countries' interoperability in defense and counterterrorism activities and improve cooperation on joint research and capability development projects.

Next AUSMIN Meeting

Australia agreed to host the next AUSMIN meeting in 2010.

Secretary Hillary Clinton and Minister George Yeo Yong Boon delivered these remarks in Washington, DC

Secretary Clinton. Well, we are very pleased to have Minister Yeo here with us on behalf of Singapore, a nation that we have very close and constructive relationships with, a nation that is right at the core of global commerce, and I think was just named for the 21st year in a row the best port. So we know that it's a critical part of the global economy. And I also want to thank you and your government for your efforts on behalf of the fight against piracy in the Gulf of Aden and the medical and other work that you have provided in Afghanistan.

We have a big agenda before us, and I'm looking forward to our meeting.

Foreign Minister Yeo. Thank you very much, Secretary Clinton, for welcoming me to the State Department. Delighted to be back here and delighted to be calling on you in your capacity as Secretary of State. Bilateral relations between Singapore and the U.S. are excellent. We have a free trade agreement which was negotiated in '03, a strategic framework—a security framework agreement which was concluded in '05. Singapore armed forces work with the U.S. armed services in Iraq and in Afghanistan and the Gulf of Aden.

I am here today to discuss how to take our relations to a higher level. We appreciate it very much, Madame Secretary, your visit to East Asia, your first—on your first overseas visit. Your visit to the ASEAN Secretariat in Jakarta was much appreciated. We look forward to welcoming you back in July for the ASEAN Regional Forum.

Secretary Clinton. Yes, yes.

Foreign Minister Yeo. And we are also looking forward to the visit of President Obama for the ASEAN—for APEC Economic Ministers Meeting in Singapore in November this year.

Secretary Clinton. Yes.

Foreign Minister Yeo. Thank you very much.

Secretary Clinton. We are looking forward to all of that as well. Thank you so much, Minister.

Foreign Minister Yeo. Thank you.

Secretary Clinton. Thank you all very much.

Q. Madame Secretary, how are you advising Americans in terms of travel to Mexico?

Secretary Clinton. We have put up on our website information and urging caution with those who are planning to travel. We are coordinating very closely with the Centers for Disease Control, with the Department of Homeland Security. We are taking this very seriously and working also with the World Health Organization and other countries to try to develop a strategy to prevent the spread of this form of swine flu.

We do believe that our efforts are developed and prepared to confront this wherever it might occur inside our own country, and enhanced cooperation across boundaries will be very important. And we obviously have offered help and assistance to the Government of Mexico to make sure that they have the resources and the technical expertise that they might need if they so request.

Secretary Hillary Clinton and Minister Marat Tazhin delivered these remarks in Washington, DC

Secretary Clinton. Well, I am very pleased to welcome to the State Department the minister for foreign affairs from Kazakhstan. We have a lot of good work going on between the United States and Kazakhstan. I will explore with the minister some additional ways that we can cooperate. And we're very appreciative of the support that has been given to the United States in a number of areas. I had a memorable visit to Kazakhstan some years ago, and I am very, very much looking forward to our discussions. Thank you for being here, Mr. Minister.

Foreign Minister Tazhin. Thank you very much indeed. First of all, it's a great honor and pleasure for me to have possibility to meet with you in State Department. Thanks. I remember one phrase that was said many years ago here in Washington, that foreign relations like human relations; they are endless, and usually the solution of one problem leads to another one. But fortunately, we have not any serious problems in relations between United States and Kazakhstan. And I hope, thanks to your activities, thanks to our joint activity, the relations between Kazakhstan and United States will be even more constructive, more stable, and more fruitful. So thank you very much again.

Secretary Clinton. Thank you, sir.

Foreign Minister Tazhin. Thank you.

Secretary Hillary Clinton and Minister Y.B. Datuk Anifah bin Haji Aman delivered these remarks in Washington, DC

Secretary Clinton. Good afternoon. I want to thank Foreign Minister Anifah for being here today. He has traveled a far distance from Malaysia to participate in meetings both here at the State Department and at the United States Senate. And President Obama and I look forward to working with the new Malaysian Government, and we see many opportunities for engagement between our two countries.

I am especially delighted because I think that the role that Malaysia is playing and can play, regionally and even globally, on a number of important issues is significant, and therefore we want to broaden and deepen our strategic cooperation.

Before providing a readout of our meeting, however, I wanted to speak to the case of Aung San Suu Kyi. I am deeply troubled by the Burmese Government's decision to charge Aung San Suu Kyi for a baseless crime. It comes just before the six-year anniversary of her house arrest, and it is not in keeping with the rule of law, the ASEAN charter, or efforts to promote national reconciliation and progress in Burma.

We oppose the regime's efforts to use this incident as a pretext to place further unjustified restrictions on her, and therefore we call on the Burmese authorities to release her immediately and unconditionally, along with her doctor and the more than 2,100 political prisoners currently being held.

I have a great admiration for Aung San Suu Kyi, for her sacrifices and her love of her country. There are certainly political differences that exist in any society. The minister and I understand that. But we all should be striving to enhance the rule of law. And the ASEAN charter, which the minister and I spoke about in our meeting, sets a very clear direction for all the countries in the region to be headed.

The minister and I concluded a very productive meeting. We discussed a number of issues that matter to the people of Malaysia and the United States, including strengthening regional institutions like ASEAN, combating piracy and terrorism, finding solutions to the global financial crisis, dealing with refugee flows, and so much else. Malaysia is our strong and steady partner on these and other issues. And I want to also welcome the minister's wife, who is here with us today.

Malaysia's efforts to combat piracy in the Gulf of Aden are very effective. Malaysia has had military vessels deployed there since last fall. They have a lot of experience and expertise in combating piracy. And we're very pleased that Malaysia will be hosting a meeting on piracy in about a week and that Malaysia will attend the meeting of the Contact Group for Piracy off the Coast of Somalia. We look forward to Malaysia's membership in this important body and to benefitting from their advice and counsel.

I reiterated to the foreign minister that the United States is solidly committed under the Obama Administration to strengthening our relationship with Southeast Asia. As you know, I visited the region on my first trip overseas as Secretary of State. I will return this summer for the ASEAN Post-Ministerial Conference and the ASEAN Regional Forum meetings.

Malaysia is the United States' 16th largest trading partner, and we are Malaysia's largest. The United States appreciates this strong trade and economic relationship which has created tens of thousands of jobs in Malaysia and the United States, and we do look forward to closer cooperation.

I also told the minister that we will reach out to his government for lessons learned in the Malaysian financial crisis of about 15 years or so ago. We all have to learn from each other as we work through this global economic recession.

And I especially look forward to working on regional and international issues of common concern, such as trafficking in persons and the humane treatment of refugees and stateless persons.

You know, from U.S. Peace Corps volunteers in Malaysia in the 1960s and ‘70s, to the large number of Malaysian students currently studying in the United States, we have a long history of people-to-people ties. So I'm not only here on behalf of our government, Minister Anifah, I am here on behalf of the people of the United States who wish to strengthen these ties for the future.

So, again, welcome.

Foreign Minister Anifah. Thank you. Thank you very much, Secretary Clinton, for welcoming me to the State Department. It is my first visit to Washington, D.C., and I am indeed delighted to be here, and also happy to be calling you in your capacity as the Secretary of State.

And Malaysia and the U.S. has enjoyed excellent relations, covering practically in all areas, including trade and investment, security and defense, and also education and many more areas. And we—our—my visit here today is to hopefully to bring this relation to a higher level. And we believe that there's ample room, as Her Excellency has been saying, the issues they will discuss, including piracy.

And also, we are also very concerned as to what's happening in Burma, in Myanmar, and we hope to use the ASEAN Forum to put forward and to—also to discuss further, and if it's necessary, upon my arrival in Malaysia I will immediately contact the secretary general of ASEAN if it is possible to have a meeting immediately to address the issues which is also of concern to ASEAN members.

And also, Excellency, we are looking forward to your visit in July for the ASEAN Regional Forum in which I think it will be very, very useful and helpful for us to work further in our relationship and therefore the—what have considered that the relationship between United States and Malaysia as mature, friendly.

And also, as I said earlier, we want to bring a new level in this new Administration which we hope that we can positively contribute through our experiences in the financial crisis and also our experiences in tackling piracy in the Straits of Malacca, and I would be very pleased to send our delegates to the Contact Group meeting which will be held very soon. And we appreciate all the efforts that have been made together and I feel that Malaysia could contribute effectively towards that causes and common causes with United States and also Malaysia.

Thank you.

Secretary Clinton. Thank you, sir.

Mr. Kelly. The first question, Mr. Carmichael from AFP.

Q. A quick follow-up first for both of you on the case in Myanmar, or Burma. The Amnesty International says that the only way to really put pressure on the regime is for ASEAN members and China and Japan to act, but so far there's been no reaction, no strong reaction, from either of these countries.

And the other question is on Sri Lanka. Beyond the increasingly tough U.S. and high-level rhetoric, what concrete measures are you planning to take? The IMF is considering a $2 billion loan, and the British have proposed investigating the possibility of war crimes.

Secretary Clinton. Well, first, with respect to Burma, we are reaching out to our ASEAN partners like Malaysia. I hope to be speaking myself to the secretary general. We think that this does rise to the level of the kind of regional statements of concern that we would ask for.

We will also raise this with our other—other nations like China and see if we can't, on a humanitarian basis, seek relief for Aung San Suu Kyi from this latest effort to intimidate and perhaps even incarcerate her.

With respect to Sri Lanka, we have been very clear in our statements, the most recent one by the President, that we have called for a humanitarian cessation of the hostilities and humanitarian relief to be provided to the perhaps as many as 50,000 people—we don't have exact numbers—who are trapped in the fighting. We've called on both sides to cease their hostilities, and we've asked that both sides permit humanitarian relief to be delivered, and at the very least, a high-level humanitarian mission to make an assessment of what relief is necessary.

Obviously, this is a very troubling humanitarian crisis, and we have been focused on it and trying to convince both sides to cease their hostilities.

We have also raised questions about the IMF loan. At this time, we think that it is not an appropriate time to consider that until there is a resolution of this conflict. And that's what we're focused on trying to help bring about.

Foreign Minister Anifah. Thank you. And as I said earlier, you know, it is—I just got a report early this morning of what's happening in Myanmar. And therefore, this is why we use a process of engagement, and we do not want to leave Myanmar in isolation. And we will use the good office of the ASEAN Secretariat to immediately engage in and to finding solutions to this matter, and if it is possible, this—the ASEAN+3, which includes China—we would also be, if it's necessary to engage in, to seek their views and assistance in trying to solve the problem.

And insofar as Sri Lanka is concerned, I will be attending a (inaudible) meeting in London, where we're going to discuss the issues on Fiji, and also to possibly include Sri Lanka issues. And I think it will be very, very useful and helpful in trying to see and assess the situations and to find solutions to what is happening there. Thank you.

Mr. Kelly. Next question from this lady, (inaudible) in Malaysia.

Q. Madame Secretary, Foreign Minister, with the new leadership in Malaysia and the U.S., what can be—what changes can be expected in bilateral relations?

Secretary Clinton. Well, we are going to start a consultative process of engagement to determine how we can move our relationship forward. We think there are many opportunities for us to cooperate on regional and international problems more closely. We also think we have things to learn from Malaysia, for example, how they handled the economic crisis. The minister offered assistance in Afghanistan and Pakistan, if the U.S. can work with Malaysia to figure out how best to deliver that.

We are both concerned about refugees fleeing from Burma and other displaced persons. We need a system to work with that. We want to do more on preventing the trafficking of persons through Malaysia, or to or from Malaysia. Education exchanges, scientific and technical exchanges, greater trade opportunities. I think that there's a very long list of an agenda that can be comprehensive that we are going to be looking to build up and then act upon with Malaysia.

Foreign Minister Anifah. As Secretary Clinton was saying, we have covered quite a wide range of subjects where Malaysia can also assist and through our experiences, especially in the financial crisis and also the piracy. And as I've informed just now, that we will be having international conference on piracy on the 18th of this month where 46 international speakers will be involved, including from the United States. And we feel that it is very, very important, and we place this high priority in order to solve the piracy in the Gulf of Aden, because it affects—it does affect the economy of the region and maybe the whole world.

And therefore, we want to share our experiences that we have gone through in the Straits of Malacca, as I said earlier. And there are instances whereby we have to seek the U.S. assistance in providing some assistance to Pakistan and Taliban in capacity building, especially our expertise in Islamic banking, and also to offer places of educations to Malaysia. And I think with the assistance from the United States and the cooperations that we have together, I think we'll be able to contribute effectively towards this cause.

Mr. Kelly. The next question, Mr. Mohammed from Reuters.

Q. Secretary Clinton, just a quick one on North Korea. North Korea today said that it plans to try the two American journalists who have been held since March on June 4th. Any comment on that? And Ambassador Bosworth, before leaving Tokyo, said to the press that he thought everybody, meaning the other five, was quite relaxed or fairly relaxed with where the process is right now. I was a little surprised by that statement. It was almost as if you aren't looking to find ways to entice the North Koreans back to the table.

And then one on Malaysia.

Secretary Clinton. I can't keep track of all these questions.

Q. You can do it. Opposition leader—or opposition figure Anwar Ibrahim faces charges again, and I believe a trial later this summer, on charges that the State Department itself in the annual human rights report said are politically motivated. Did you raise his case specifically in your meeting today?

And, Mr. Minister, if you would care to comment on that case and specifically on the American position that the charges against Mr. Ibrahim are politically motivated.

Secretary Clinton. Well, with respect to the latter question, we raised rule of law issues and the larger questions concerning the institutional reforms that Malaysia has been pursuing. We're on record as to our opinion as to that particular case, and I think that speaks for itself.

With respect to North Korea, actually, the trial date being set we view as a welcome timeframe. We believe that the charges are baseless and should not have been brought and that these two young women should be released immediately. But the fact that they are now going to have some process we believe is a signal that there can be, and I hope will be, a resolution as soon as possible.

I met with Ambassador Bosworth upon his return from the region. I think what he was conveying is the consensus among the five parties—Russia, China, Japan, South Korea and ourselves—that North Korea knows what we expect of them. There was a process that they agreed to with obligations they were committed to fulfilling. We intend to continue with the Six-Party process. We are all in agreement on that. And I think that, in and of itself, is quite an accomplishment because, obviously, each of these countries has a different experience and perspective of North Korea. But we are united in our belief that we have to be patient. We have to be very clear as to what our expectations regarding North Korea are. And we intend to have an open door for a return to the Six-Party Talks. And China, which is the chair, has made it clear as well to the North Koreans that they wish to see this begin again.

So we are—the ball is in the North Korean court. And we are not concerned about chasing after North Korea, about offering concessions to North Korea. They know what their obligations are. They know what the process is. And we are all urging that they return and begin once again to act with us to move the agenda forward.

Foreign Minister Anifah. I'd like to address the comment on Anwar Ibrahim. You know, we have utmost faith in our judicial system. And recently, as late as a few days ago, the court has declared that the chief minister of a particular state which comes from the opposition as election of a chief minister which is a rulings against the government. And insofar as Anwar Ibrahim is concerned, (inaudible) he—we know him very, very well. And he has—more or less, what he has said, especially overseas, most of the things are untrue; for example, like the involvement of our honorable prime minister and the murder of a Mongolian citizen. And he has repeatedly said before the elections that he will provide evidence and yet, until today, he has not given anything.

And also just for the information of the audience here that, you know, he also said that he will form a government on 16 September and he has changed the dates many time. And he was trying to entice the members of parliament. And I was personally offered to jump into the oppositions and offered a very lucrative position, and also to be told it's like a deputy prime minister. And these are not known to the world at large. And he has started, you know, trying to buy into other, you know, legislative members. And I think what he is doing—he has not accepted the result of what—the last elections. And we have lost five states and we willingly and accept the people's verdict. And all the time we leave it to the people to decide, and which, on the other hand has not been able to accept.

And it's also my concern and that of our government that it is what he has been doing overseas to tarnish the image of Malaysia, which impinge trade and indirectly and directly, you know, bring hardship to the people of Malaysia, which he said he's very, very concerned about. And therefore, it is our wish and hope that he will respect the democratic system in Malaysia, which is very open and which, I think, we have conformed to the wish of the people. And we have repeatedly told him that if he believes that he is the rightful prime minister, or his party has been sidetracked, then it is—wait for the next election. And he has continuously gave wrong impressions and accused all the government officials of being corrupted, which is part and parcel of the system (inaudible). And the people have rejected him in Malaysia, and is a proof that he has not been able to accept.

Thank you.

Mr. Kelly. The last question goes to (inaudible) news.

Q. Thank you. Hello, Madame Secretary and Dr. Anifah. Malaysia has a strong presence in the Organization of Islamic Conference. And I'm just wondering what role Malaysia can play in improving U.S. relations with Islamic countries.

Secretary Clinton. That's an excellent question. And we intend to engage with the Organization of [the] Islamic Co[nference.] I think it's clear from President Obama's early months in office that the Obama Administration is reaching out to the Islamic world. Obviously, there's a lot of diversity, and we understand that and accept and respect it. But we do want to work through organizations such as the OIC, and so we intend to do so, and both on a bilateral basis and then multilateral.

We would very much like to have the advice and the assistance of countries like Malaysia in how we can work more effectively with nations around the world. We're interested in doing that with all nations. It's not based on any kind of ethnic or religious or racial or any other characteristic. We won't agree with everyone; no nation does. But we want to try to find as many areas of agreement as possible and narrow the areas of disagreement.

And where we have the opportunity, as I think we do through the OIC, we will be seeking out partners like Malaysia to guide and counsel us in the best way to make it clear that the United States wishes all countries well. We care deeply about building a world of peace and security, of prosperity. We would like to see the entire world improving and having the chance for many, many millions more people to live under democratically elected governments, to live under the rule of law, to have a chance to see their children fulfill their God-given potential. That is what the United States wants to promote. And we are looking for ways to make that clear and to have our values understood, to defend our interests and our security where we must, especially against extremism who threaten all countries and all faiths. So we think that there is a lot of opportunity ahead of us.

Thank you. Thank you all very much.

Foreign Minister Anifah. Thank you.

President Barack Obama and Governor Jon Huntsman delivered these remarks in Washington, DC

President Obama. Good morning, everybody. I am here to announce today the distinguished public servant I'm appointing as our nation's new ambassador to the People's Republic of China. I'm making this appointment mindful of its extraordinary significance. Given the breadth of issues at stake in our relationship with China, this ambassadorship is as important as any in the world—because the United States will best be able to deal effectively with global challenges in the 21st century by working in concert with China.

There are few countries in the world with a past so rich or a future so full of possibility as China. With a vast population, a growing economy, and far-reaching influence, China will have a crucial role in confronting all the major challenges that face Asia and the world in the years ahead.

And that's why we're working with the government of China to stem the financial crisis that's devastated economies around the world and help lay a foundation for sustainable growth and lasting prosperity on both sides of the Pacific. That's why I've spoken with Chinese President Hu Jintao about a number of regional threats, including the situations in North Korea and Pakistan. And that's why we will continue working together with China on a whole host of global challenges—ranging from energy and climate change to public health; from nuclear non-proliferation to terrorism and violent extremism.

I believe there's much to be gained from a closer, working relationship with China. But improved relations with China will require candor and open discussion about those issues where we don't always agree, such as human rights and democracy and free speech. And it will require that each of our nations play by the rules in open and honest competition.

And that's why this ambassadorship takes on such importance. I can think of no one better suited to take on this assignment than the Governor of the great state of Utah, Jon Huntsman.

When I asked Jon to accept this critical post, I knew it would require a sacrifice on the part of his family, and I want to thank Mary Kaye and all of their children for making this possible. I knew it would require a sacrifice from Jon—who will be giving up a seat as a popular governor, having just been reelected to a second term. And I hope the good people of Utah will forgive me and understand how proud they should be of their governor for his willingness to answer his nation's call.

Finally, I knew that because Jon is not only a Republican, but a Republican who co-chaired my opponent's campaign for the presidency, this wouldn't be the easiest decision to explain to some members of his party.

But here's what I also know. I know that Jon is the kind of leader who always puts country ahead of party and is always willing to sacrifice on behalf of our nation. That's what Jon has always done. Throughout his career, Jon has shown a willingness to move beyond the old ideologies and stale debates that all too often bring progress to a standstill. Time and again, he's brought people together across party lines to overcome our common challenges and to move our nation forward.

What Jon brings to this post isn't just a steadfast commitment to advancing the interests of the American people; it's a lifetime of knowledge and experience that will help advance this important partnership. Jon brings to this post experience as a former ambassador to Singapore, who's intimately familiar with many of the most pressing challenges confronting Asia. He brings experience both in the private sector and as Deputy United States Trade Representative to Asia and Africa, where he stood up for America's economic interests abroad. And Jon is well prepared to build a partnership that reflects a new understanding between our two countries because he's lived in Asia three times and is fluent in Mandarin Chinese.

That's the kind of ambassador we need in China—an ambassador who has a respect for China's proud traditions, who understands what it will take to make America more competitive in the 21st century, and who will be an unstinting advocate for America's interests and ideals. With Jon Huntsman representing the United States in China, I'm confident that we will launch a new era of partnership between our two nations that will advance our shared dreams of opportunity and security in America, in Asia, and around the world.

So I'm extraordinarily pleased to announce that Jon Huntsman will be our ambassador to China, and I can think of no more important assignment than creating the kinds of bridges between our two countries that will determine the well-being not just of Americans and Chinese, but also the future of the world.

So, with that, I'd like to have Jon say a few words. Thank you, Jon.

Governor Huntsman. Thanks, Mr. President.

President Obama. Thank you.

Governor Huntsman. Well, Mr. President, thank you for those very kind and gracious words. I never expected to be standing here under the inquisitive gaze of George Washington, and equally inquisitive gaze of my wife. Nor did I expect, as national co-chair of Senator McCain's presidential campaign, to be called into action by the person who beat us.

But I grew up understanding that the most basic responsibility one has is service to country. When the President of the United States asks you to step up and serve in a capacity like this, that, to me, is the end of the conversation and the beginning of the obligation to rise to the challenge.

I stand here in my final term as governor with plenty to do. I wasn't looking for a new job in life, but a call from the President changed that.

So, Mr. President, I humbly accept your call to service, and I understand that doing so will carry with it some unique challenges.

So, first and foremost, I want to recognize my wife and best friend, Mary Kaye, and my family, many of whom are here today, who have always been willing to heed the call of public service. I am here today solely as a result of their love and support.

Second, I owe a tremendous debt of gratitude to the people of the greatest state in America. Life's greatest honor has been to serve the people of Utah as their 16th governor.

Finally, I must thank you, Mr. President, for your trust and confidence in me and my family's ability to contribute meaningfully to one of America's most important strategic bilateral relationships. You have my commitment that we will take the U.S.-China relationship to new heights, focused not just on that which divides us, but more importantly, on that which unites us, knowing that this will be critical for lasting peace and prosperity for citizens on both sides of the Pacific.

I'm reminded of my favorite Chinese aphorism. It goes something like this: (speaks in Mandarin Chinese) “together we work, together we progress.” This, more than anything else, I think captures the spirit of our journey going forward.

Thank you so very much.

Secretary Robert Gates delivered these remarks in Singapore

Secretary Gates. Thank you for that kind introduction, John. And, as always, let me thank the International Institute for Strategic Studies, our Singaporean hosts, and everyone else who has helped put together this event. As with all IISS forums I attend—whether in Manama or here in Singapore—the opportunity to speak about global issues in settings like these is unparalleled.

Last year when I spoke here, I emphasized that the United States has enduring interests in Asia as a resident power—and thus everyone could expect continuity in our engagement with the region, even if a new administration brought changes in specific policies, or new initiatives and areas of emphasis. Little did I know that the “continuity” I spoke of would end up being quite so personal. I have now failed retirement from government service for the second—and hopefully final—time.

It is an honor to stand here before you once again, this time as part of the administration of President Obama. President Obama is the eighth president I have worked for, and in all my years in government—beginning some 43 years ago—U.S. engagement with Asia has been a mainstay of our foreign policy.

This is the first time, however, we've had a president with such a personal connection to the region. As you know, the president spent some of the early years of his childhood in Indonesia, and he has written about how it impacted him—how it demonstrated that citizens of a vibrant, pluralistic society could live together in harmony. I believe this is part of the reason the president has shown such energy and optimism when discussing his policies toward Asia.

And it is no accident that Secretary of State Clinton's first trip abroad was to this region. As she said just before her trip, “America cannot solve the problems of the world alone, and the world cannot solve them without America.” Surveying the international landscape, it is hard to avoid the conclusion that few, if any, of the world's problems can be resolved without the support and ideas of the nations of the Pacific Rim. And so, with that in mind, I want to use my remarks today to discuss three main points:

• • First, the strategic reality of Asia and America's role in this order;

• • Second, the kinds of challenges we face in an interconnected world and how our dependence on one another yields unprecedented opportunities for cooperation; and

• • Finally, the type of leadership you can expect to see from the Obama administration.

Since the end of the Cold War, Asia's security environment has undergone remarkable change—spurred in part by globalization and the technological revolution of the last two decades and inspired by the dynamism of the peoples of Asia. In recent years, the nations of Asia have, for the most part, achieved unprecedented wealth and stature as they have forged more mature political, economic, and military institutions. All of this has demonstrated the correlation between economic prosperity and stability, and the need to ensure that Asia is appropriately represented in the global economic order.

All the while, the strategic landscape of Asia continues to evolve:

• • New and re-emerging centers of power—from China and Russia, to India and Indonesia—combined with other shifts, give impetus to the search for a new security architecture in the region;

• • When it comes to freedom, or standards of living, or security, the peoples of Asia are expecting more from themselves—and from their governments. Civil societies and democratic reforms have taken root, and, with them, we have seen a profound effect on domestic politics and national-security policies;

• • Military modernization has continued apace—with rising states seeking forces commensurate with their economic power, and smaller states trying to preserve their position in the regional order; and

• • The emergence of multiple transnational challenges—some new, some old, which I will discuss shortly—calls for greater cooperation between all of our nations.

The United States has welcomed Asia's rise over the last few decades, and, indeed, our continued presence in this part of the world has been an essential element enabling that rise. America has paid a significant price in blood and treasure to fight aggression, deter potential adversaries, extend freedom, and maintain peace and prosperity in this part of the world. We have done so over many generations and across many presidential administrations. Our commitment to the region is just as strong today as it has ever been—if not stronger since our own prosperity is increasingly linked with yours.

The challenge for the United States has been to fashion defense policies that adapt to the new realities—but do so in a way that preserves and protects our fundamental, and enduring, interests and values on the Pacific Rim, which includes the security and stability of the region as a whole.

Consider our relationships with long-standing treaty allies Japan and South Korea—cornerstones of our foreign policy. We entered into these alliances in the early years of the Cold War when both nations were impoverished and virtually destroyed.

The Republic of Korea and Japan have since become economic powerhouses with modern, well-trained and equipped military forces. They are more willing and able to take responsibility for their own defense and assume responsibility for security beyond their shores. As a result, we are making adjustments in each country to maintain a posture that is more appropriate to that of a partner, as opposed to a patron. Still, though, a partner fully prepared and able to carry out all—and I repeat, all—of our alliance obligations.

On the Korean Peninsula, we will transition wartime operational control in 2012, a historic moment when the Republic of Korea will take the lead role in its own defense. The United States will continue to maintain its firm commitment to security on the peninsula, even as we seek to broaden the alliance to address other security challenges in the region and beyond. Similarly, our relationship with Japan is evolving. Just a couple weeks ago, Japan's Diet ratified the Guam International Agreement that Secretary Clinton signed during her trip. This agreement is a significant step in the implementation of our plan to strengthen our alliance, modernize our posture, and maintain our engagement in Asia over the long term.

So, in the central and western Pacific, we are actually increasing our military presence, with new air, naval, and marine assets based over the horizon in Guam and throughout the region—prepared as always to respond to a number of contingencies, natural or man-made.

At the same time, we are seeing developments with other nations and other friends:

• • Australia remains a steadfast ally whose cooperation is critical on a broad array of issues. We welcome Australia's new Defense White Paper reaffirming its role regionally and globally, and continue to seek ways to advance common interests together.

• • Last year we celebrated the 175th anniversary of U.S.-Thailand relations. And we look to expand our cooperation in coming years.

• • Our alliance with the Philippines has deepened as we tackle challenges ranging from terrorism to disaster relief to defense reform. And I look forward to visiting Manila soon.

• • Earlier this year, the administration announced that we are seeking to build a new comprehensive partnership with Indonesia. We congratulate Indonesia on the significant steps it has taken to strengthen its democracy—and its role in the region.

• • Our partnership with Singapore remains strong and we are working to increase cooperation with Malaysia, Vietnam, and others.

• • We are also looking to forge new partnerships in places long disregarded. This includes our emerging dialogue with Cambodia, as well as developments with Laos.

When it comes to India, we have seen a watershed in our relations—cooperation that would have been unthinkable in the recent past. As Admiral Keating, commander of United States Pacific Command, recently wrote, it is a “genuine convergence of national interests.” In coming years, we look to India to be a partner and net provider of security in the Indian Ocean and beyond.

And we are working with China on common challenges—from economic matters to security issues such as regional areas of tension, counter-terrorism, non-proliferation, energy security, piracy, and disaster relief. It is essential for the United States and China to find opportunities to cooperate wherever possible. This includes maintaining a defense relationship marked by consistent and open channels of communication and contact. The United States, for its part, will remain committed to this goal. Likewise, it is essential that we are transparent—both to each other and to the rest of the world—about our strategic goals, political intentions, and military development.

What we have seen in the U.S. approach to Asia in recent years—and what I believe we will see in the future—is a very real shift that reflects new thinking in U.S. defense strategy overall. A shift that, while continuing to fulfill our commitments to the permanent presence of, and direct action by, U.S. forces in the region—places ever greater emphasis on building the capacity of partners better to defend themselves. A shift away from solely conventional military deterrence as traditionally understood—think of mechanized divisions poised along the Korean demilitarized zone or the central plains of Germany. A shift toward a re-balanced mix of the so-called “hard” and “soft” elements of national power—where military, diplomatic, economic, cultural, and humanitarian elements are integrated seamlessly.

It is an approach that brings together various parts of the United States government to work more closely with diverse partners with a range of shared interests—from old allies such as Australia to former adversaries like Vietnam. It is an approach intended to further strengthen and deepen security in the Pacific Rim through maintaining our robust military presence but also through strengthened and deepened partnerships.

These new strategic realities will play a central role as the United States undergoes a number of policy reviews this year, including the Quadrennial Defense Review and the Nuclear Posture Review. These documents will lay out our view of the threats and challenges to our nation, and how that will be reflected in our future defense procurement and spending strategies. While it is at times a messy process, it will be an open and transparent exercise—so that no one will get the wrong idea about our intentions. We will consult with key allies and partners. And we will articulate our strategy clearly. It is our hope that this effort can be an example of the power of openness and its ability to reduce miscommunication and the risk of competitive arms spending.

I believe these documents will help us pursue whole-of-government approaches that offer the only solution to the vexing security challenges of the modern era. Which brings me to my second point: the nature of the threats we face.

As in the rest of the world, in Asia the traditional dilemmas posed by rising, resurgent, or rogue nation states coexist with a range of diverse, unconventional threats that transcend national borders. Some are ancient—such as piracy, ethnic strife, and poverty. Others are of more recent vintage: terrorist networks harnessing new technologies; weapons proliferation; environmental degradation; drug and human trafficking; cyber security; climate change; economic turmoil in the global markets; and the emergence of deadly and contagious diseases that can spread more rapidly than ever before in human history.

It has become clear in just the last two decades that “security” encompasses far more than just military considerations. An economic crisis can become a security crisis. A lack of good governance can undermine order and stability. Under pressure from criminals or disease, weak states can become failed states.

What these challenges all have in common is that they cannot simply be overcome by one, or even two countries, no matter how wealthy or powerful. While the United States has unparalleled capabilities, we also recognize that the best solutions require multiple nations acting with uncommon unity.

I have been heartened in recent months by the global response to the economic crisis, the threat of a pandemic flu, and piracy in the Gulf of Aden and off the Horn of Africa. While there have been some differences of opinion, overall our nations have shown the willpower to come together and develop unified responses.

One of the areas in which we are most engaged is maritime security—and the efforts to combat piracy and proliferation. United States Pacific Command works closely with a number of nations—Indonesia, Malaysia, the Philippines, Bangladesh, Sri Lanka, and more—to provide the training and equipment, from radars to patrol craft, enabling them to assert control over waterways that have been used by drug smugglers, weapons smugglers, and terrorists.

The United States has also provided assistance to help nations work together: Indonesia, Malaysia, Singapore, the Philippines, and others are securing and improving transit routes in the region. And of course, Asian countries have played a major role off the Horn of Africa—with Malaysia, India, Singapore, Korea, Japan, and China all taking part in anti-piracy efforts.

In addition to improving the capabilities of friends, we are encouraging them wherever possible to partner and cooperate more with their neighbors and other nations. Here we are trying to overcome the conventions and habits of the Cold War. For decades after World War II, Asia's security architecture mostly reflected a “hub and spokes” model, with the United States as the “hub” and the “spokes” representing a series of bilateral alliances with other countries that did not necessarily cooperate much with each other. To be sure, Asia already has a number of formal and informal multilateral institutions:

• • ASEAN, for example, has for decades been the foundation for prosperity and stability in Southeast Asia—relying upon the idea that a broader dialogue spreads trust and stability.

• • Similarly, the Asia Pacific Economic Cooperation forum plays an important role in regional development and trade.

• • And there are also ad hoc arrangements, such as ones centered on efforts to combat piracy and illegal trafficking.

Moving forward, we would like to see a good deal more cooperation among our allies and security partners—more multilateral ties in addition to hubs and spokes. Let me be clear: This does not mean any weakening of our bilateral ties, but rather enhancing security by adding to them multilateral cooperation.

These kinds of efforts have faced no shortage of obstacles. Countries have sometimes found it hard to work with us, or with each other. But we believe that the nations of the region must move in a more multilateral direction in order to deal with the most pressing threats in this era.

One of the greatest challenges, and one that cannot be overcome without close cooperation between and among countries, is of course terrorism—as an ideological movement, as a criminal enterprise, as a scourge that transcends borders, peoples, and religions. Working together, we have made substantial progress in suppressing terrorism in Asia and reducing the conditions under which it thrives.

I know some in Asia have concluded that Afghanistan does not represent a strategic threat to their countries, owing in part to Afghanistan's geographic location. But the threat from failed or failing states is international in scope—whether in the security, economic, or ideological realms. Extremists in Asia have engaged in terrorist acts such as in Bali, terrorist activity and guerilla warfare in Mindanao, and they have plotted attacks in several Southeast Asian nations. They are inspired by, and at times received support directly from, groups operating along the Afghan-Pakistani border—the ungoverned space from which this threat ultimately emanates.

Failure in a place like Afghanistan would have international reverberations—and, undoubtedly, many of them would be felt in this part of the world.

The United States has unveiled a new strategy for Afghanistan and Pakistan—with new leadership, new resources, and a new sense of urgency. I am optimistic that we will gain momentum over the next year—but it will require hard work.

I thank the countries here that have contributed to this mission. Among them:

• • Australia continues to be in the thick of some of the toughest fighting;

• • Japan has made great financial contributions;

• • India continues infrastructure projects throughout Afghanistan; and

• • New Zealand and Singapore continue to help man Provincial Reconstruction Teams.

But Afghanistan needs more. To establish a sustainable and effective government in Afghanistan, it needs additional:

• • Aid and expertise to help build infrastructure;

• • Funding to expand and maintain the Afghan National Army and police;

• • Experts in a variety of fields, such as prison reform, civil service, health care, agriculture, engineering, and education; and

• • Assistance to ensure that the presidential and provincial elections this year—and next year's parliamentary and district council elections—are free, fair, and credible.

The challenge in Afghanistan is so complex, and so untraditional, that it can only be met by all of us working in concert. All must contribute what they can to a cause that demands the full attention of the international community—a cause that is worthy of sacrifice and in everyone's national interest.

Other developments pose challenges to the long-term stability, security, and peace of Asia. Whether on the sea, in the air, in space, or cyberspace, the global commons represents a realm where we must cooperate—where we must adhere to the rule of law and the other mechanisms that have helped maintain regional peace. Only by committing to openness and transparency—by adhering to standard operational practices and international law—can we prevent misunderstandings, accidents, and even open conflicts.

We also have to contend with the problem of Burma, one of the isolated, desolate exceptions to the growing prosperity and freedom of the region. We saw Burma's resistance to accept basic humanitarian aid last year following the cyclone—a decision indicative of that country's approach to the rest of the world. We need to see real change in Burma—the release of political prisoners, including Aung San Suu Kyi, and the institution of meaningful dialogue between the junta and the opposition.

And then there's North Korea. Dependent on the charity of the international community to alleviate the hunger and suffering of its people, North Korea's leadership has chosen to focus the North's limited energy and resources on a reckless and ultimately self-destructive quest for nuclear weapons and intercontinental ballistic missiles. These programs have isolated North Korea globally and, quite literally, starved its people.

The policy of the United States has not changed: Our goal is complete and verifiable denuclearization of the Korean peninsula, and we will not accept North Korea as a nuclear weapons state. North Korea's nuclear program and actions constitute a threat to regional peace and security. We unequivocally reaffirm our commitment to the defense of our allies in the region. The transfer of nuclear weapons or material by North Korea to states or non-state entities would be considered a grave threat to the United States and our allies. And we would hold North Korea fully accountable for the consequences of such action.

President Obama has offered an open hand to tyrannies that unclench their fists. He is hopeful, but he is not naïve. Likewise, the United States and our allies are open to dialogue, but we will not bend to pressure or provocation. And on this count, North Korea's latest reply to our overtures isn't exactly something we would characterize as helpful or constructive. We will not stand idly by as North Korea builds the capability to wreak destruction on any target in the region—or on us.

At the end of the day, the choice to continue as a destitute, international pariah, or chart a new course, is North Korea's alone to make. The world is waiting.

There are no easy solutions to the challenges I have outlined this morning. And that brings me to my final point: the type of leadership you can expect from President Obama and the United States in coming years.

When Secretary Clinton visited the region, she said that this administration is committed to listening to the views of friends and partners across the globe. For example, we are now beginning to negotiate accession to the Treaty of Amity and Cooperation—which demonstrates our willingness to take regional norms into account as we consider our relationships across the globe.

The President, similarly, has spoken of a more collaborative and consultative foreign policy—one committed to forging common solutions to common problems. Do not get me wrong: The United States will continue to be assertive on the international stage. We will protect our allies and our interests. We are, as a former secretary of state said, an indispensable power—but we are also one that is aware of our own limitations, aware that the world and nearly all the challenges we face are simply too complex to go it alone.

Let me close with a final thought. Throughout more than two centuries, the United States has been a beacon of freedom. In our efforts to protect our own freedom—and that of others—we have from time to time made mistakes, including at times being arrogant in dealing with others. But we always correct our course, and our willingness to do so is one of our most enduring strengths. In the end we know that our own democracy's strength ultimately depends on adhering to our nation's values and ideals—and on the strength and independence of other democracies and partners around the world. Those remain the guiding principles of our foreign policy today.

Thank you.

Secretary Timothy Geithner delivered these remarks in Beijing, China

Secretary Geithner. It is a pleasure to be back in China and to join you here today at this great university.

I first came to China, and to Peking University, in the summer of 1981 as a college student studying Mandarin. I was here with a small group of graduate and undergraduate students from across the United States. I returned the next summer to Beijing Normal University.

We studied reasonably hard, and had the privilege of working with many talented professors, some of whom are here today. As we explored this city and traveled through Eastern China, we had the chance not just to understand more about your history and your aspirations, but also to begin to see the United States through your eyes.

Over the decades since, we have seen the beginnings of one of the most extraordinary economic transformations in history. China is thriving. Economic reform has brought exceptionally rapid and sustained growth in incomes. China's emergence as a major economic force more fully integrated into the world economy has brought substantial benefits to the United States and to economies around the world.

In recognition of our mutual interest in a positive, cooperative, and comprehensive relationship, President Hu Jintao and President Obama agreed in April to establish the Strategic and Economic Dialogue. Secretary Clinton and I will host Vice Premier Wang and State Councilor Dai in Washington this summer for our first meeting. I have the privilege of beginning the economic discussions with a series of meetings in Beijing today and tomorrow.

These meetings will give us a chance to discuss the risks and challenges on the economic front, to examine some of the longer term challenges we both face in laying the foundation for a more balanced and sustainable recovery, and to explore our common interest in international financial reform.

Current Challenges and Risks

The world economy is going through the most challenging economic and financial stress in generations.

The International Monetary Fund predicts that the world economy will shrink this year for the first time in more than six decades. The collapse of world trade is likely to be the worst since the end of World War II. The lost output, compared to the world economy's potential growth in a normal year, could be between three and four trillion dollars.

In the face of this challenge, China and the United States are working together to help shape a strong global strategy to contain the crisis and to lay the foundation for recovery. And these efforts, the combined effect of forceful policy actions here in China, in the United States, and in other major economies, have helped slow the pace of deterioration in growth, repair the financial system, and improve confidence.

In fact, what distinguishes the current crisis is not just its global scale and its acute severity, but the size and speed of the global response.

At the G-20 Leaders meeting in London in April, we agreed on an unprecedented program of coordinated policy actions to support growth, to stabilize and repair the financial system, to restore the flow of credit essential for trade and investment, to mobilize financial resources for emerging market economies through the international financial institutions, and to keep markets open for trade and investment.

That historic accord on a strategy for recovery was made possible in part by the policy actions already begun in China and the United States.

China moved quickly as the crisis intensified with a very forceful program of investments and financial measures to strengthen domestic demand.

In the United States, in the first weeks of the new Administration, we put in place a comprehensive program of tax incentives and investments ¨C the largest peace time recovery effort since World War II—to help arrest the sharp fall in private demand. Alongside these fiscal measures, we acted to ease the housing crisis. And we have put in place a series of initiatives to bring more capital into the banking system and to restart the credit markets.

These actions have been reinforced by similar actions in countries around the world.

In contrast to the global crisis of the 1930s and to the major economic crises of the postwar period, the leaders of the world acted together. They acted quickly. They took steps to provide assistance to the most vulnerable economies, even as they faced exceptional financial needs at home. They worked to keep their markets open, rather than retreating into self-defeating measures of discrimination and protection.

And they have committed to make sure this program of initiatives is sustained until the foundation for recovery is firmly established, a commitment the IMF will monitor closely, and that we will be able to evaluate together when the G-20 Leaders meet again in the United States this fall.

We are starting to see some initial signs of improvement. The global recession seems to be losing force. In the United States, the pace of decline in economic activity has slowed. Households are saving more, but consumer confidence has improved, and spending is starting to recover. House prices are falling at a slower pace and the inventory of unsold homes has come down significantly. Orders for goods and services are somewhat stronger. The pace of deterioration in the labor market has slowed, and new claims for unemployment insurance have started to come down a bit.

The financial system is starting to heal. The clarity and disclosure provided by our capital assessment of major U.S. banks has helped improve market confidence in them, making it possible for banks that needed capital to raise it from private investors and to borrow without guarantees. The securities markets, including the asset backed securities markets that essentially stopped functioning late last year, have started to come back. The cost of credit has fallen substantially for businesses and for families as spreads and risk premia have narrowed.

These are important signs of stability, and assurance that we will succeed in averting financial collapse and global deflation, but they represent only the first steps in laying the foundation for recovery. The process of repair and adjustment is going to take time.

China, despite your own manifest challenges as a developing country, you are in an enviably strong position. But in most economies, the recession is still powerful and dangerous. Business and households in the United States, as in many countries, are still experiencing the most challenging economic and financial pressures in decades.

The plant closures, and company restructurings that the recession is causing are painful, and this process is not yet over. The fallout from these events has been brutally indiscriminant, affecting those with little or no responsibility for the events that now buffet them, as well as on some who played key roles in bringing about our troubles.

The extent of the damage to financial systems entails significant risk that the supply of credit will be constrained for some time. The constraints on banks in many major economies will make it hard for them to compensate fully for the damage done to the basic machinery of the securitization markets, including the loss of confidence in credit ratings. After a long period where financial institutions took on too much risk, we still face the possibility that banks and investors may take too little risk, even as the underlying economic conditions start to improve.

And, after a long period of falling saving and substantial growth in household borrowing relative to GDP, consumer spending in the United States will be restrained for some time relative to what is typically the case in recoveries.

These are necessary adjustments. They will entail a longer, slower process of recovery, with a very different pattern of future growth across countries than we have seen in the past several recoveries.

Laying the Foundation for Future Growth

As we address this immediate financial and economic crisis, it is important that we also lay the foundations for more balanced, sustained growth of the global economy once this recovery is firmly established.

A successful transition to a more balanced and stable global economy will require very substantial changes to economic policy and financial regulation around the world. But some of the most important of those changes will have to come in the United States and China. How successful we are in Washington and Beijing will be critically important to the economic fortunes of the rest of the world. The effectiveness of U.S. policies will depend in part on China's, and the effectiveness of yours on ours.

Although the United States and China start from very different positions, many of our domestic challenges are similar. In the United States, we are working to reform our health care system, to improve the quality of education, to rebuild our infrastructure, and to improve energy efficiency. These reforms are essential to boosting the productive capacity of our economy. These challenges are at the center of your reform priorities, too.

We are both working to reform our financial systems. In the United States, our challenge is to create a more stable and more resilient financial system, with stronger protections for consumer and investors. As we work to strengthen and redesign regulation to achieve these objectives, our challenge is to preserve the core strengths of our financial system, which are its exceptional capacity to adapt and innovate and to channel capital for investment in new technologies and innovative companies. You have the benefit of being able to learn from our shortcomings, which have proved so damaging in the present crisis, as well as from our strengths.

Our common challenge is to recognize that a more balanced and sustainable global recovery will require changes in the composition of growth in our two economies. Because of this, our policies have to be directed at very different outcomes.

In the United States, saving rates will have to increase, and the purchases of U.S. consumers cannot be as dominant a driver of growth as they have been in the past.

In China, as your leadership has recognized, growth that is sustainable growth will require a very substantial shift from external to domestic demand, from an investment and export intensive driven growth, to growth led by consumption. Strengthening domestic demand will also strengthen China's ability to weather fluctuations in global supply and demand.

If we are successful on these respective paths, public and private saving in the United States will increase as recovery strengthens, and as this happens, our current account deficit will come down. And in China, domestic demand will rise at a faster rate than overall GDP, led by a gradual shift to higher rates of consumption.

Globally, recovery will have come more from a shift by high saving economies to stronger domestic demand and less from the American consumer.

The policy framework for a successful transition to this outcome is starting to take shape.

In the United States, we are putting in place the foundations for restoring fiscal sustainability.

The President in his initial budget to Congress made it clear that, as soon as recovery is firmly established, we are going to have to bring our fiscal deficit down to a level that is sustainable over the medium term. This will mean bringing the imbalance between our fiscal resources and expenditures down to the point—roughly three percent of GDP—where the overall level of public debt to GDP is definitively on a downward path. The temporary investments and tax incentives we put in place in the Recovery Act to strengthen private demand will have to expire, discretionary spending will have to fall back to a more modest level relative to GDP, and we will have to be very disciplined in limiting future commitments through the reintroduction of budget disciplines, such as pay-as-you go rules.

The President also looks forward to working with Congress to further reduce our long-run fiscal deficit.

And, critical to our long-term fiscal health, we have to put in place comprehensive health care reform that will bring down the growth in health care costs, costs that are the principal driver of our long run fiscal deficit.

The President has also proposed steps to encourage private saving, including through automatic enrollment in retirement savings accounts.

Alongside these fiscal actions, we have designed our policies to address the financial crisis to carefully minimize risk to the taxpayer and to allow for an orderly exit or unwinding as soon as conditions permit. Across the various financial facilities put in place by the Treasury, the Federal Reserve, and the FDIC, we have been careful to set the economic terms at a level so that demand for these facilities will fade as conditions normalize and risk premia recede. Banks have a strong incentive to replace public capital with private capital as soon as conditions permit.

Let me be clear—the United States is committed to a strong and stable international financial system. The Obama Administration fully recognizes that the United States has a special responsibility to play in this regard, and we fully appreciate that exercising this special responsibility begins at home. As we recover from this unprecedented crisis, we will cut our fiscal deficit, we will eliminate the extraordinary governmental support that we have put in place to overcome the crisis, we will continue to preserve the openness of our economy, and we will resolutely maintain the policy framework necessary for durable and lasting sustained non-inflationary growth.

In China, the challenge is fundamentally different, and at least as complex.

Critical to the success of your efforts to shift future growth to domestic demand are measures to raise household incomes and to reduce the need that households feel to save large amounts for precautionary reasons or to pay for major expenditures like education. This involves strengthening the social safety net with health care reform and more complete public retirement systems, enacting financial reforms to help expand access to credit for households, and providing products that allow households to insure against risk. These efforts can be funded through the increased collection of dividends from state-owned enterprises.

The structure of the Chinese economy will shift as domestic demand grows in importance, with a larger service sector, more emphasis on light industry, and less emphasis on heavy, capital intensive export and import-competing industries. The resulting growth will generate greater employment, and be less energy-intensive than the current structure of Chinese industry. Allowing the market, interest rates, and other prices to function to encourage the shift in production will be particularly important.

An important part of this strategy is the government's commitment to continue progress toward a more flexible exchange rate regime. Greater exchange rate flexibility will help reinforce the shift in the composition of growth, encourage resource shifts to support domestic demand, and provide greater ability for monetary policy to achieve sustained growth with low inflation in the future.

International Financial Reform

These are some of the most important domestic economic challenge we face, and these issues will be at the core of our agenda for economic cooperation.

But I think it is important to underscore that we also have a very strong interest in working together to strengthen the framework for international economic and financial cooperation.

Let me highlight three important areas.

At the G-20 Leaders meeting, we committed to a series of actions to help reform and strengthen the international financial architecture.

As part of this, we agreed to put in place a stronger framework of standards for supervision and regulation of the financial system. We expanded and strengthened the Financial Stability Forum, now renamed the Financial Stability Board. China and other major emerging economies are now full participants, alongside the major financial centers, in this critical institution for cooperation. We will have the chance together to help redesign global standards for capital requirements, stronger oversight of global markets like derivatives, better tools for resolving future financial crises, and measures to reduce the opportunities for regulatory arbitrage.

We also committed to an ambitious program of reform of the IMF and other international financial institutions. Our common objective is to reform the governance of these institutions to make them more representative of the shifting balance of economic and financial activity in the world, to strengthen their capacity to prevent future crisis, with stronger surveillance of macroeconomic, exchange rate, and financial policies, and to equip them with a stronger financial capacity to respond to future crises. We also committed to mobilize $500 billion in additional finance through the enlargement and membership expansion of the IMF's New Arrangements to Borrow in order to provide an insurance policy for the global financial system.

As part of this process of reform, the United States will fully support having China play a role in the principal cooperative arrangements that help shape the international system, a role that is commensurate with China's importance in the global economy.

I believe that a greater role for China is necessary for China, for the effectiveness of the international financial institutions themselves, and for the world economy.

China is already too important to the global economy not to have a full seat at the international table, helping to define the policies that are critical to the effective functioning of the international financial system.

Second, we must cooperate to assure that the global trade and investment environment remains open, and that opportunities continue to expand. As economies have become more open and more closely integrated, global economic growth has been stronger and more broad-based, bringing increasing numbers out of poverty, and turning developing nations into major emerging markets. The global commitment to trade liberalization and increasingly open investment played a critical role in this process ¨C in the industrialized world, in East Asia, and, since 1978, in China. As we go through the severe stresses of this crisis, we must not turn our backs on open trade and investment—for ourselves and for those who have yet to experience the fruits of growth and development. The United States, China, and the other members of the G20 have committed to not resort to protectionist measures by raising trade and investment barriers and to work toward a successful conclusion to the Doha Development Round.

And third, one of the most critical long-term challenges that we both face is climate change. Individually and collectively, there is an urgent need to ensure that each and every country takes meaningful action to deal with this threat. Reducing land and forest degradation, conserving energy, and using clean technology are important objectives that complement both our efforts to achieve a new, sustainable pattern of growth and our goal of reducing greenhouse gas emissions. China and the United States already are working closely through the Strategic and Economic Dialogue in areas such as clean transportation, clean and efficient production of electricity, and the reduction of air and water pollution. We must continue these efforts for the sake of our nations and the planet.

Conclusion

In the last few years the frequency, intensity, and importance of U.S.-China economic engagements have multiplied. The U.S.-China Strategic and Economic Dialogue that President Obama and President Hu initiated in April is the next stage in that process. I look forward to welcoming Vice Premier Wang, State Councilor Dai and their colleagues to Washington to participate in the first meeting of the U.S.-China Strategic and Economic Dialogue.

Our engagement should be conducted with mutual respect for the traditions, values, and interests of China and the United States. We will make a joint effort in a concerted way. (Chinese phrase.) We should understand that we each have a very strong stake in the health and the success of each other's economy.

China and the United States individually, and together, are so important in the global economy and financial system that what we do has a direct impact on the stability and strength of the international economic system. Other nations have a legitimate interest in our policies and the ways in which we work together, and we each have an obligation to ensure that our policies and actions promote the health and stability of the global economy and financial system.

We come together because we have shared interests and responsibilities. We also have our own national interests. I will be a strong advocate for U.S. interests, just as I expect my counterparts to represent China's. China has benefited hugely from open trade and investment, and the ability to greatly increase its exports to the rest of the world. In turn, we expect increased opportunities to export to and invest in the Chinese economy.

We want China to succeed and prosper. Chinese growth and expanding Chinese demand is a tremendous opportunity for U.S. firms and workers, just as it is in China and the rest of the world.

Global problems will not be solved without U.S.-China cooperation. That goes for the entire range of issues that face our world from economic recovery and financial repair to climate change and energy policy.

I look forward to working with you cooperatively, and in a spirit of mutual respect.

Secretary Robert Gates and Secretary Gilberto Teodoro delivered these remarks in Manila, Philippines

Secretary Teodoro. Good afternoon, ladies and gentlemen. (Inaudible.) We warmly welcome and are honored by the visit of the Honorable Robert Gates. Dr. Gates's visit today signals another milestone—(inaudible)—strong cooperation between and amongst our countries, particularly the defense and military leaders. (Inaudible.)

From helping us in fighting terrorism to helping us—(inaudible)—natural disasters—(inaudible)—the relationship between and amongst our countries has been strong and should be stronger. The visit of the honorable secretary today is one step further towards that goal.

That goal is increasing enduring cooperation, between and amongst our armed forces and defense departments and our governments, from the common threats of international terrorism—(inaudible)—when natural calamities strike.

We also talked today about other areas of cooperation, particularly in building up our capacities, at the department level and in the armed forces level. The most important thing, at least that our armed forces said, and the department said, we thank the secretary. (Inaudible.)

He talked to our troops. He talked to our men and women, who have been deployed unceasingly since January of last year, under adverse conditions. (Inaudible.)

We welcome Secretary Gates and we thank him for his visit today.

Secretary Gates. Secretary Teodoro, thank you for hosting us today.

It is a great pleasure to be back in the Philippines; my first visit to Manila in almost 20 years and the first visit by a United States secretary of Defense in almost 10 years. Frankly it's been too long on both counts. And I'm honored to be the first representative of President Obama, Cabinet officer, to visit the Philippines.

We had a good conversation about a number of issues, from United States assistance, to the armed forces of the Philippines, to broader regional security measures.

Over the last decade, the Philippines has faced a number of security challenges and has met them squarely. This is testimony to Secretary Teodoro's strong leadership, his efforts to reform the armed forces and the courage and adaptability of the Filipino military.

I look forward to meeting a few Filipino troops after this meeting. I will tell them, as I told Secretary Teodoro, that we are partners. We will continue to strongly support their efforts to defeat terrorists and extremists threatening their country and the region.

Together we will not relent until this threat has been eliminated. Looking forward, I believe, our relationship needs to evolve into a broader strategic one.

The Philippines can play an important role in regional peace and stability and in fact just hosted the ASEAN regional forum's first ever field exercise.

I also thank the Philippines for its contributions to eight United Nations missions. It is clear that the Philippines is taking on a larger role on the world stage. And as it does, this relationship, one of our oldest alliance partnerships in Asia, is one that I believe will endure and deepen in the years to come.

Moderator. We will now proceed to the open forum. We would like to recognize Mr. Rene Acosta, the president of the Defense Press Corps of the Philippines, for his question.

Q. Good afternoon, Secretary Teodoro. Good afternoon, Secretary Gates.

Secretary Gates, how do you assess the regional security environment in Southeast Asia and—(inaudible)? Given the competing claims—(inaudible)—threats from Islamic militants with ties to the al Qaeda, and humanitarian (inaudible) concerns in—(inaudible)—around Indonesia, Malaysia and the Philippines, in light of this (current scenario?), is there a chance for the U.S.-Philippines security partnership—(inaudible)—like the VFA? How long will U.S. forces stay in southern Philippines? And your assessment of (inaudible) U.S. counterterrorism cooperation and—(inaudible)?

Secretary Gates. Do we have about an hour?

First of all, I would just say that the United States is quite comfortable with the VA—VFA. We are both nations of laws. This agreement provides us with the legal basis for having our people here in partnership with the Armed Forces of the Philippines. We think it works, and we are satisfied.

There are a number of security challenges, and obviously concerns and conflicting claims in the South China Sea. The United States takes no position on those claims. We only urge all the parties involved to try and resolve these issues clearly and peacefully.

The reality is, as I've just come from the Shangri-La conference in Singapore, there are a range of security challenges here in Asia. I must say, though, that I think that the progress that Indonesia, Malaysia, Thailand, Singapore have made in recent years in dealing with the piracy problem in the Straits of Malacca in many respects is a model of what we would like to see happen in the bulk of Asia and off of—off the Horn of Africa.

The truth is, there has been significant progress. We have been pleased to help these countries in terms of maritime surveillance and equipment as we are trying to work with other nations off the Horn of Africa. And so I think, frankly, that's an area where there has been some real progress.

Obviously, one of the greatest concerns here in Asia really does not have to do with Southeast Asia, but rather recent developments in North Korea. And we spent a good bit of time on that in Singapore at the Shangri-La conference. And I think this is another one of those areas where the best outcome is for all of the states that are concerned by these activities to partner and work together in trying to resolve them peacefully.

Moderator. The next question will be asked by Lise Buellad Inger of—(inaudible).

Q. Thanks. Secretary Gates, I'd like to ask you about—sorry—Secretary Gates, I'd like to ask you about North Korea, considering the team of U.S. officials that is going through the capitals in Asia this week to confer on what to do in response. What kind of bilateral or unilateral measures is the United States preparing in case the five nations other than North Korea in the six-party talks don't reach agreement on a more effective strategy to deal with North Korea? And also, what evidence do you see and how concerned are you related to the potential for a second long-range ballistic-missile test on the part of North Korea?

And Secretary Teodoro, what do you—sorry—what more would you like to see the U.S. do in relation to assistance to the Philippine military?

Secretary Gates. I think, with respect to the team that is visiting Tokyo, Seoul, Moscow and Beijing, I think it's important for us to take the step—(inaudible). And I would rather not presume that we will not be successful in gaining a broad agreement on a way forward. I think we ought to wait and see how those conversations go and how our partners in the six-party talks, other than Pyongyang, react to the developments of the last few weeks, and see where we go from here diplomatically.

I think I'd rather not sort of speculate on what we might do after that. Let's wait and see, and hope that these conversations are productive.

With respect to, I guess, the—we have seen some signs that there is—that they may be doing something with another Taepo Dong II missile. But at this point it's not clear what they're (inaudible).

Secretary Teodoro. In response to your question as to what more we are going to see regarding U.S. assistance, I would answer this way.

What more can we do together? What other abilities can we do together in order for us to discover from each other what the capacities or lack thereof on each side are? And then it flows from there.

For me, it is the range and scope of our relationship which is fundamentally more important than any offer of assistance given by one government or the other. And such was the focus of Secretary Gates's saying that we need a strategic dialogue about it so that the relationship is one built on principles, on forward-looking things, where both countries can join hand in hand to solve common problems for regional or area-wide problems, and not one being a recipient of aid or those grants from the other.

Because both governments, in terms of assistance—(inaudible)—government should also rebuild its own capacities for that. So in that—on that score I'd answer your question as to what can we both do together, and then fill in the gaps as they come.

Moderator. We would like to recognize Mr. Jaime Luis of ABS-CBN.

Q. Good afternoon, sir. Secretary Gates, will the Obama administration allow extra constitutional changes if the elections in the Philippines fail next year? And second, what key policy initiatives and changes would the Philippines expect from the U.S. government?

Secretary Gates. I'm sorry, what was the first question?

Q. First question is, will the Obama administration allow extra constitutional changes in case—should the elections in the Philippines fail next year?

Secretary Gates. Well, I think, to—that is a very hypothetical question on two counts. And I think the only way I can answer that is, we assume that the elections will go forward successfully. We assume that the people of the Republic of the Philippines will democratically choose the next leader, and such choices will never face us

Q. On the second question?

(Inaudible.)

Secretary Gates. Well, I think in a way, my answer to that question is the same as Secretary Teodoro's answer to the last question. There are a number of areas in which we have the potential to be more effective partners together, not only in terms of bilateral issues, but also with respect to regional issues.

And so I think that what you can expect from the Obama administration is that, looking at the Philippines as a large Asian democracy that is an old friend of the United States, there is a lot we can do together. And I think we will be looking for those kinds of opportunities to continue, as I indicated in my opening statement, to broaden and deepen the relationship.

Moderator. We will now hear the last question from Mr. Peter Spiegel of The Wall Street Journal.

Q. Thank you.

Mr. Secretary, the joint training and assistance operation here is largely seen as a success. (Inaudible.) Are there lessons to be learned here from other places, particularly when it comes to the issue of host-country sensitivities? The Filipinos were originally very sensitive and resisted the U.S. bringing special forces here to do training. We've seen similar resistance to that in Pakistan, for example. Are there lessons we can learn from the Philippines experience that we can import elsewhere?

Secretary Gates. I think one of the fundamental tenents of America foreign policy under the Obama administration, as well as of the Department of Defense itself, is the growing importance of partnering around the world and building partner capacity. I put a significant additional amount of money, hundreds of millions of dollars, in our fiscal year 2010 budget for this purpose, to advance this kind of partnering, where we can build partner capacity. And as I said in response to many questions—for example with respect to Pakistan—we have to be very sensitive to their sovereignty and to their domestic politics.

And so we will move with these various countries at a pace that is comfortable for them and in a way that is comfortable for them to build a relationship with us. We have to look at this, I think, in the long term. And the stronger the foundation we can build under these partner relationships, the longer they're likely to last and the more effective (inaudible).

Moderator. Thank you, sir.

That ends our press conference.

Joint Statement by Secretary of the Treasury Geithner and Secretary of State Clinton

U.S. Treasury Secretary Timothy F. Geithner and U.S. Secretary of State Hillary Rodham Clinton today released the following joint statement on the U.S.-China Strategic and Economic Dialogue:

“As President Obama's Special Representatives for the United States to the U.S.-China Strategic and Economic Dialogue, we are pleased to announce that the first meeting of the U.S.-China Strategic and Economic Dialogue will be held in Washington, D.C. during the last week of July 2009.

“The Dialogue will focus on addressing the challenges and opportunities that both countries face on a wide range of bilateral, regional and global areas of immediate and long-term strategic interest. Through the two days of meetings, we look forward to in-depth discussions with our Chinese counterparts to enhance the welfare of the citizens of both countries.

“We look forward to working closely with our respective Chinese Co-Chairs, Vice Premier Wang Qishan and State Councilor Dai Bingguo, along with the members of their delegation and our colleagues in President Obama's Cabinet to promote U.S.-China cooperation.”

Secretary Hillary Clinton and Minister Nur Hassan Wirajuda delivered these remarks in Washington, DC

Secretary Clinton. Well, good afternoon. And it is a pleasure to welcome Indonesia's foreign minister. Mr. Wirajuda and I have already met in Jakarta, we've talked on the phone on important matters, and it's a very wonderful part of my position to be able to have him here to continue the productive conversation we started in February.

Today, we renewed our commitment to build a comprehensive partnership based on mutual respect and mutual interests. We are working together on a number of common concerns for our two countries, the region, and the world. Indonesia and the United States share a vision for a peaceful and prosperous Southeast Asia. We also share a commitment to democratic values, human rights, and a vibrant civil society. The American people have the greatest respect for what the Indonesian people have accomplished in the last decade.

Indonesia is now the world's third largest democracy, and it is taking the lead on a broad range of regional and international issues, including the promotion of democracy. Through their commitment to democracy, religious freedom, and women's rights, Indonesians uphold the values that President Obama described in his speech last week in Cairo, values that are fundamental—fundamental to Indonesia and the United States: justice, progress, tolerance.

Earlier today, I met with activists working to support democracy and human rights across the Middle East and North Africa, as well as with leaders who are advocating for religious freedom across the world. And for all who work hard and risk a great deal to stand up for these universal values, the example of Indonesia gives hope and confidence of a brighter future.

Today, I am pleased to announce that we are deepening our cooperation and committing $10 million in higher education funding for Indonesia this fiscal year, including projects for English language teaching and encouraging U.S.-Indonesia educational linkages. Also a group of American educators will travel to Indonesia this summer to explore additional opportunities for collaboration between our universities. Just as it is in the United States, education is the key to expanding economic opportunity in Indonesia and allowing people to live up to their full potential. And these people-to-people connections will further bind our countries together.

We also discussed the importance of ASEAN for regional stability and prosperity, our countries' mutual interests in combating the proliferation of weapons of mass destruction, and I thank the foreign minister for Indonesia's leadership in supporting democratic values, and underscored our commitment to the Bali Democracy Forum.

We also discussed the trial of Aung San Suu Kyi. Let me again reiterate that the charges against her are baseless, and we call for her immediate release. Indonesia, like other ASEAN countries, have also spoken out about her plight and urged her immediate release, and we greatly appreciate that.

I look forward to continuing to work with the foreign minister and the Indonesian Government on all of these issues. And I am confident that our relationship will grow stronger and deeper in the future.

Thank you so much, Minister.

Foreign Minister Wirajuda. Thank you very much, Secretary Hillary Clinton, for your kind remarks, including on the progress that we've made in Indonesia during the past ten years of reformasi we call it. The purpose of my working visit to Washington is to follow up our discussions during the visit of Secretary Clinton to Jakarta last February during which we agreed to develop comprehensive partnerships between Indonesia and the United States. By the comprehensive partnerships, we mean agreement to expand and deepens the bilateral relation between Indonesia and the United States.

Indonesia strongly believes, as we do share the fundamental values of democracy, human rights, and (inaudible), we have more reasons to be able to develop stronger relations with the United States. In fact, as we are continuing our discussions on the format as well as the substantive coverage of the partnerships, we agreed to start working on the promotions in areas that we thought we could start to develop a productive cooperations (inaudible) in the promotions of people-to-people exchange on educations, and I am grateful that the United States has extended assistance of $10 million U.S. to support the program.

I would—likewise—we are very encouraged that as immediate translations of President Obama's message and call made in Cairo that the U.S. Government is intending to develop a bilateral dialogue, an interfaith dialogue and cooperation, something that we are in Indonesia proud of our various initiative in promoting both bilateral, regional, all regional dialogues with many countries and regions. And I think this is a noble effort to have—we have better understanding among peoples around the world.

We follow attentively and I personally read the statement made by President Obama. We welcome the statement. And I thought it might—I may claim that the message is also ours. And I thought that Indonesia could be a good partner in the U.S. efforts to reach out to the Muslim world, after all the call for democracy, respect for human rights, including the rights of women and to promote democracy and Islam to go hand in hand is something that we have been doing in Indonesia. This adds to more reasons why we should develop a—partnerships with the United States.

As Secretary of State has just mentioned, that we discussed other issues of concern, including the unfortunate development in Myanmar, in particular, the decisions of the military junta to bring Daw Aung San Suu Kyi to trial. Of course, this unfortunate development, because actually we were expecting that the case of the (inaudible) detentions of Daw Aung San Suu Kyi, should have been reviewed last month with the view to release her. So that's why we strong—we issued a very strong statement on the current case of Daw Aung San Suu Kyi, and we remind Myanmar of its obligation under the new ASEAN charter, and likewise through the previous calls by made by our leaders to immediately release Daw Aung San Suu Kyi.

We thank Secretary of State's statements on the U.S. to support our Bali Democracy Forum. I think it's important and very strategic that Indonesia and the United States works closely together in sharing our experience and best practices in the countries and, in particular, in the regions of Asia. I thank you very much.

Secretary Clinton. Thank you so much.

Q. Thank you. Madame Secretary, can you come up with any explanation for the harsh sentence that Laura Ling and Euna Lee have been given by the North Koreans? And do you think that there is anything that a special envoy such as the Former Vice President Al Gore might be able to accomplish in negotiating their release? And more broadly, is U.S. policy at cross purposes? You're trying to get these women out, at the same time that you're ratcheting up pressure on Pyongyang for other military reasons? So how do you coordinate and synchronize those policies? Thank you.

Secretary Clinton. Well, Andrea, we continue to seek the release of the two detained journalists on humanitarian grounds. Our protecting power in the DPRK is the Swedish Embassy and Pyongyang, and they confirmed the sentencing of both Laura Ling and Euna Lee. And our thoughts are with these two young women and their families. I have spoken with family members and expressed our concern, as well as our commitment to securing the release of our citizens. Obviously, we are deeply concerned about the length of the sentences and the fact that this trial was conducted totally in secret with no observers. And we're engaged in all possible ways through every possible channel to secure their release. And we, once again, urge North Korea to grant their immediate release on humanitarian grounds.

Q. Can you—can you say whether an envoy might be helpful and whether you've sent a letter that has been suggested, explaining the circumstances of their being on the border, and whether you have a concern that our efforts at the UN to get sanctions right now and put more pressure on North Korea for other reasons could slow down this negotiation?

Secretary Clinton. Well, I think for understandable reasons, I'm not going to go into our private diplomatic efforts. We are pursuing every possible approach that we can consider in order to persuade the North Koreans to release them and send these young women home. We view these as entirely separate matters. We think the imprisonment trial and sentencing of Laura, Euna, should be viewed as a humanitarian matter. We hope that the North Koreans will grant clemency and deport them. There are other concerns that we and the international community have with North Korea, but those are separate and apart from what's happening to the two journalists.

Q. Thank you. I was wondering whether you both discussed about military assistance to Indonesia, and whether it is included in the comprehensive partnership? And apart from that, is there any new scheme made by the U.S. to make sure that the military assistance to Indonesia is extended, especially in terms of arms supply? Thank you.

Secretary Clinton. As part of our comprehensive partnership, we are going to be discussing military and defense matters. We want to have closer connections with Indonesia and a military-to-military relationship. And that will be discussed and resolved in the course of our partnership. But clearly, the Obama Administration sees the progress in Indonesia in very positive terms, and we want to cooperate across every issue—health, education, cultural exchanges, military, economic—so that will be a part of our overall

Q. Thank you. Madame Secretary, can you tell us, how does the outcome of the election in Lebanon yesterday change the dynamic that you've got with Syria and in the broader Middle East? And if I may, how is the State Department going to be involved in the investigation of the former State Department employee accused of spying for Cuba? Thank you.

Secretary Clinton. Well, Nick, first of all, I congratulate the people of Lebanon for holding a peaceful election yesterday. The turnout was high. Obviously, the very positive involvement by the Lebanese people in their elections demonstrates once again their commitment to peace and security and the strength of their democracy. So we will continue to support a sovereign and independent Lebanon, and we are hopeful that the Lebanese themselves will be able to resolve some of their internal concerns without outside interference.

With respect to the investigation that is ongoing, I have directed our security personnel to review every possible security program we have, every form of vetting and clearance that we employ in the State Department, to determine what more we can do to guard against this kind of outrageous violation of the oaths that people take to serve our country here in the State Department. We are concerned by the announcement of the arrests and the charges against these two individuals, one of whom, as you know, was a former State Department employee, along with his wife. And we will work with the Department of Justice and others within our government to make sure that any information that is needed is provided for the investigation and prosecution, but equally importantly, that we look forward to make sure that we try to prevent something like this from ever happening again.

Q. Thank you, I have two questions. The first one is Indonesia will hold a presidential election next month, so what does U.S. hope (inaudible) in this election? And do you expect any changes to be brought or should be brought by the next president in terms of Indonesian foreign policy towards United States?

Secretary Clinton. Well, of course, the elections are an internal Indonesian matter. We applaud the continuing growth and dynamism of the democracy in Indonesia. We look forward to working with the Indonesian Government. We have very much appreciated our relationship with the existing administration. It has been very positive and constructive, and we look forward to working with the government that the people of Indonesia choose.

But what is so significant about this election is the further example it sets. As the minister was saying, Indonesia represents the fact that Islam and democracy are not in contradiction. Indonesia is building a modern secular democracy that respects Islam and respects women's rights. We are so impressed with the steps that have been taken in Indonesia, and we applaud the Bali Democracy Forum because we think that is a way for other countries that are just beginning their transition to democracy or are thinking about whether to begin to see it in action. And this election next month is a great testament to the commitment of the Indonesian people to democracy.

Thank you all very much.

Secretary Hillary Clinton and Minister Sukhbaatar Batbold delivered these remarks in Washington, DC

Secretary Clinton. Good morning. Minister Batbold is here on behalf of his country of Mongolia. There has just been a peaceful transition of power with a new president. We are very committed to supporting the government and people of Mongolia as they seek assistance to develop, as they continue their democratization, and as they reach out to the rest of the world.

As I was telling the minister, I had a memorable trip to Mongolia. I have a great deal of personal interest in the progress that your country is making, and it's an honor to welcome you here.

Foreign Minister Batbold. Thank you, Madame Secretary. I am delighted to be here in D.C. and to have the opportunity to meet you and other senior officials of your new Administration. And I'm looking forward to our meeting, which I hope will be a good occasion to discuss our bilateral issues and also international issues of our common interest.

Mongolia is determined to deepen and expand our relations with the United States on the basis of comprehensive partnership, based on our shared values and common strategic interests. Indeed, our two countries have excellent relations, and the people of Mongolia, and Mongolia has been always grateful to the continued support of United States to our democratic reforms. Mongolia is—also strives to continue this process, and to promoting and maintaining peace and security in Northeast Asia and Central Asia, and we will continue to work with U.S. and other countries in the region closely.

And thank you, Madame Secretary, for your friendship and continued support to Mongolia, and welcome you to Mongolia and look forward to our fruitful discussions. Thank you.

Secretary Clinton. Thank you. Thank you so much, Minister.

Q. Secretary Clinton—

Secretary Clinton. Thank you very much.

Q.—is there any progress on freeing the two American journalists from North Korea? Are you any closer to the possibility of sending an envoy?

Secretary Clinton. We are working, as I said yesterday, in every way open to us to persuade the North Korean Government to release the two journalists on a humanitarian basis. And we're going to continue to pursue every possible avenue. Thank you.

President Barack Obama and President Lee Myung-bak delivered these remarks in Washington, DC

President Obama. Good morning, everybody. President Lee, on behalf of the American people, it is my pleasure to welcome you to Washington—”Hwang Yong Hamnida.”

President Lee. Thank you.

President Obama. I'm looking forward to continuing our conversation over lunch, and I know that First Lady Michelle Obama is very much delighted to host your wife today, as well.

The Republic of Korea is one of America's closest allies. Our friendship has been forged through a history of shared sacrifice, and it is anchored in our shared democratic values. And, Mr. President, I'm pleased that the friendship between our countries has only grown stronger under your leadership.

We meet at a time of great challenges. On the Korean peninsula, North Korea has abandoned its own commitments and violated international law. Its nuclear and ballistic missile programs pose a grave threat to peace and security of Asia and to the world. In the face of these threats and provocations, the people of the Republic of Korea have shown a steadiness and a resolve that has earned the respect of the United States and of the world.

Today, President Lee and I reiterated our shared commitment to the complete denuclearization of the Korean peninsula. We have reaffirmed the endurance of our alliance, and America's commitment to the defense of the Republic of Korea. And we discussed the measures that we are taking with our partners in the region—including Russia, China and Japan—to make it clear to North Korea that it will not find security or respect through threats and illegal weapons.

That united international front has been on full display since North Korea's ballistic missile test in April, and was further galvanized by its recent nuclear test. On Friday, the United Nations Security Council unanimously adopted a resolution that called for strong steps to block North Korea's nuclear and ballistic missile programs. Now we must pursue a sustained and robust effort to implement this resolution together with our international partners. And in addition to the Korean peninsula, we are committed to a global effort to pursue the goal of a world without nuclear weapons—an effort that I will be discussing later this summer in Moscow and at the G8.

So I want to be clear that there is another path available to North Korea—a path that leads to peace and economic opportunity for the people of North Korea, including full integration into the community of nations. That destination can only be reached through peaceful negotiations that achieve the full and verifiable denuclearization of the Korean peninsula. That is the opportunity that exists for North Korea, and President Lee and I join with the international community in urging the North Koreans to take it.

President Lee and I also discussed our efforts to confront the global economic crisis. Earlier this year in London, we agreed upon bold and sustained action to jumpstart growth and to prevent a crisis like this from never happening again. Today, we reaffirmed this effort, as well as our commitment to resist protectionism and to continue our close collaboration in the run-up to the next meeting of the G20 in Pittsburgh.

In addition to taking immediate action to put our economies on the path to recovery, both President Lee and I want to build a foundation for new prosperity. In particular, we believe that the United States and the Republic of Korea can partner together on behalf of clean energy and sustainable growth, so that we're working together to build the jobs and the industries of the future.

Finally, I think it's important to note that we are releasing a joint statement laying out a shared vision for our alliance in the 21st century. Our friendship has often, understandably, focused on security issues, particularly in Northeast Asia. But we're also committed to a sustained strategic partnership with the Republic of Korea on the full range of global challenges that we're facing—from economic development to our support for democracy and human rights; from nonproliferation to counterterrorism and peacekeeping.

The challenges of our young century can only be met through partnership, and the United States is honored to partner with the Korean people. We will be resolute in the defense of our security. We will collaborate on behalf of innovation and opportunity. And we will strengthen and deepen the friendship among our people. That's our commitment as friends and allies, and I look forward to working with President Lee on behalf of a more peaceful and prosperous future in Asia and around the world.

Thank you so much.

President Lee. Thank you.

Today, President Obama and I and—the people of the United States have extended to us their warmest welcome, and I would like to thank them sincerely. President Obama and I met last time in April in London, during the sidelines of the G20, and today is our second meeting.

During my talks with President Obama, we had very substantive talks. We, of course, talked about the security situation surrounding the Korean peninsula, but also about the future of our Korea-U.S. alliance and our joint vision for this future. And of course we have agreed on the joint vision for the future, and I think this is a testament of our common commitment, because for the last 60 years since the Korean War, our relationship has been one of a strong security alliance and a partnership. Now, the future in this new era is about not only strengthening our mutual partnership but also working together side by side to tackle issues of global concern.

And on that regard, I am extremely pleased to note that today is a meaningful and very significant day for Korea-U.S. alliance of really upgrading to a new plateau of our relationship and partnership. I take this opportunity to sincerely thank the great people of America for their selfless sacrifice in defending my country and its people, and on behalf of the Korean people, thank you.

As reiterated by President Obama, we agreed that under no circumstance are we going to allow North Korea to possess nuclear weapons. We also agreed to robustly implement U.N. Security Council Resolution 1874, and of course all parties will faithfully take part in implementing this resolution.

Also, we agreed that based on the firm cooperation between the U.S. and Korea, the five countries taking part in the six-party talks will discuss new measures and policies that will effectively persuade North Korea to irrevocably dismantle all their nuclear weapons programs. President Obama reaffirmed this firm commitment to ensuring the security of South Korea through extended deterrence, which includes the nuclear umbrella, and this has given the South Korean people a greater sense of security.

President Obama and I also talked about the KORUS FTA and welcomed the initiation of working-level consultations to make progress on the issues surrounding the KORUS FTA and agreed to make joint efforts to chart our way forward on the agreement.

I also took time to invite President Obama to visit South Korea. And I also conveyed to him our warmest gratitude on behalf of the Korean people to the people of America. Once again, I'm very pleased to note that he and I engaged in very constructive discussions, and I'm very pleased with the results.

Once again, I thank President Obama and the people of the United States. Thank you.

President Obama. Okay, we've got time for a couple of questions. Scott Wilson at the Post.

Q. Thank you, Mr. President. North Korea has said it should be recognized as a nuclear power and has set that as a precondition for normal relations with the United States and with other nations. Given its belligerent response to the recent sanctions and the ambitious nature of its nuclear program, does your administration—is it coming to the realization that recognizing North Korea as a country that's going to have nuclear weapons for a long time is one way to go? And if so, what influences does that have on your policy options?

And to President Lee, do you believe your country is currently under threat of attack from the North given its recent rhetoric? Thank you.

President Obama. We have continually insisted that North Korea denuclearize. The Republic of Korea agrees with this position. Other allies like Japan agree with this position. China and Russia agree with this position. The United Nations Security Council reflects this view. We will pursue denuclearization on the Korean Peninsula vigorously.

So we have not come to a conclusion that North Korea will or should be a nuclear power. Given their past behavior, given the belligerent manner in which they are constantly threatening their neighbors, I don't think there's any question that that would be a destabilizing situation that would be a profound threat to not only the United States' security but world security.

North Korea also has a track record of proliferation that makes it unacceptable for them to be accepted as a nuclear power. They have not shown in the past any restraint in terms of exporting weapons to not only state actors but also non-state actors.

So what we've said is, is that there is a path for North Korea to take in which they are joining the world community, becoming integrated into the world economy, able to feed their own people, able to provide prosperity for their people. I know that the Republic of Korea welcomes that kind of neighbor. And obviously there's a strong historic bond between the Korean peoples that should be affirmed. But in order to take that path, North Korea has to make a decision and understand that prestige and security and prosperity are not going to come through the path of threatening neighbors and engaging in violations of international law.

President Lee. Right now, North Korea, there was a question about whether we fear an imminent attack by North Korea. Sixty years ago, North Korea invaded South Korea and they began a war. After that, there were numerous amount of threats leveled against South Korea ever since. However, South Korea, we have always been very firm in our response and always prepared. And of course this is based firmly on the firm cooperation and partnership and alliance between Korea and the United States. And North Koreans, when they look at the firm partnership and alliance that we have between our two countries, they will think twice about taking any measures that they will regret.

And again, this firm alliance that we have between the United States and Korea is going to prevent anything from happening. And of course North Korea may have—may wish to do so, but of course they will not be able to do so.

Q. A question going out to President Lee. North Korea recently said that they will not return to the six-party talks. They have denounced the U.N. Security Council resolution and said they will not give up their nuclear weapons program. Can you, sir, talk about whether you talked about how you plan to proceed forward, and did you talk about this with President Obama?

And of course the continuing threat emanating from North Korea—a South Korean worker has been and is still detained by the North Koreans. What are your thoughts about the maintenance of the Kaesong industrial complex, and did you talk about—President Obama, or were there any concerns from the Americans about the Kaesong industrial complex?

President Lee. North Korea has been resisting and they've reacted aggressively to the new U.N. Security Council resolution, which is quite expected. And of course the North Koreans may react by firing another round of missiles or taking actions. We can also expect that from them, as well. However, North Koreans must understand that they will not be able to gain compensation by provoking a crisis. This has been a pattern in the past, but this will no longer be. The firm U.S.-Korea cooperation and alliance will not allow that. And the recent Security Council resolution is not simply about words; it is about taking follow-up action and vigorously implementing the U.N. Security Council resolution. And we'll make sure that we fully implement the U.N. Security Council resolution.

Like I said, the North Koreans must understand that their past behavior will not stand. And of course not only the U.S.-Korea close partnership, but Japan, China, and the rest of the international community will take part in this effort. And now the North Koreans will come to understand that this is different, that they will not be able to repeat the past or their past tactics and strategies. I urge the North Koreans to fully give up their nuclear weapons programs and ambitions, and to become a responsible member of the international community.

With regards to the Kaesong industrial complex, the North Korean authorities are demanding unacceptable demands, and we will not accept such demands being laid out by the North Koreans. Of course the South Korean government is very much for maintaining the Kaesong complex because the Kaesong industrial complex is a channel of dialogue between the two Koreas. And also, another fact that we must not overlook is the fact that there are 40,000 North Korean workers currently working in Kaesong industrial complex. If the Kaesong industrial complex were to close, these 40,000 North Korean workers will lose their jobs.

And therefore I ask that—I urge the North Koreans not to make any unacceptable demands because we cannot really know what will happen if they continue on this path.

And also the North Koreans have been detaining a South Korean worker. They haven't been giving us any explanation, and also we know that there are two American journalists being currently held by the North Koreans. I urge the North Koreans to release not only the two American journalists but also the South Korean worker—without any conditions, to release them as soon as possible. The international community is asking the North Koreans to take that path. And once again, I urge in the strongest terms that they release these two American journalists, as well as the Korean worker being held.

Q. Thank you, Mr. President. Since it's such a pleasant day, I was hoping you'd consent to let me ask two questions. The first one, on reports that there's a new policy on intercepting North Korean ships at sea, if you could say anything about that. And are you concerned that that could provoke North Korea to new levels, higher levels of hostility?

President Obama. Well, this is not simply a U.S. policy; this is a international policy. This was part of what the Security Council resolution calls for, is the interdiction of arms shipments. How that's going to be implemented, how we approach cooperation between various countries to enforce this, is something that the United States, South Korea, China, Russia, all relevant actors—Japan—all relevant actors will be discussing in the months to come.

But I want to emphasize something that President Lee said. There's been a pattern in the past where North Korea behaves in a belligerent fashion, and if it waits long enough is then rewarded with foodstuffs and fuel and concessionary loans and a whole range of benefits. And I think that's the pattern that they've come to expect.

The message we're sending—and when I say “we,” not simply the United States and the Republic of Korea, but I think the international community—is we are going to break that pattern. We are more than willing to engage in negotiations to get North Korea on a path of peaceful coexistence with its neighbors, and we want to encourage their prosperity. But belligerent, provocative behavior that threatens neighbors will be met with significant, serious enforcement of sanctions that are in place.

And I think it may not have been fully acknowledged the degree to which we have seen much tougher sanctions voted out unanimously in fairly rapid order over the last several weeks. And I expect that that signals the degree to which we're serious about enforcement.

Q. Question going out to President Obama. You spoke about how the two leaders, you agreed to move forward the KORUS FTA. However, in certain segments of—here in the United States, there are calls that are resistant to the KORUS FTA because of automobile issues and others. And of course there are calls for proponents of the KORUS FTA. When do you expect to submit the KORUS FTA? Are you willing to submit it sometime this year?

President Obama. One of the things that President Lee and I discussed in London, not just bilaterally but with other world leaders, is the importance at a time when the global economy has been devastated by recession that we do not resort to protectionist measures; that we continue to affirm the importance of free trade between countries in order to increase everyone's prosperity.

Now, as you know, trade negotiations are always difficult between any country because, although over time trade can increase prosperity for all, in the short term, various industries want to know how is this going to affect them.

In Korea there are issues of beef imports. In the United States there are questions about whether there's sufficient reciprocity with respect to cars. These are all understandable, legitimate issues for negotiation. What I've done is to affirm to President Lee that we want to work constructively with the Republic of Korea in a systematic way to clear some of these barriers that are preventing free trade from occurring between our two countries.

Once we have resolved some of the substantive issues, then there's going to be the issue of political timing and when that should be presented to Congress. But I don't want to put the cart before the horse—I don't know if that's an expression in Korean. But we want to make sure that we have the—a agreement that I feel confident is good for the American people, that President Lee feels confident is good for the Korean people, before we start trying to time when we would present it. But I am committed to moving forward on a path that will increase commercial ties that are already very strong between our two countries.

Okay. Thank you very much, everybody.