Secretary Hillary Clinton gave the following interview in Istanbul, Turkey

Q. [S]peaking of Iran, are you nervous that Israel will, on its own, take some action, but leave it to the United States to finish that action?

Secretary Clinton. Well, I think Israel understands why we think it's important to pursue the diplomatic route as far as we possibly can in a timely way. We're not going to enter into endless talks that never see any kind of outcome. But we do want, with the full backing of the international community—because remember the P-5+1 include China and Russia. And they are on record publicly as saying they don't want to see Iran with a nuclear weapon. So I think Israel understands that there is a necessity for us to pursue the P-5+1, and we have certainly made it clear that—to them that all options are on the table, and we would be pursuing the diplomatic option.

Q. I want to turn the corner to Russia. I was just there covering the election, in fact. And you have these interesting comments coming out from a candidate for president, Mr. Romney, who says that Russia is the biggest—the worst geopolitical foe the United States has. I don't—let's—I know you don't like to talk politics. But what do you think of that?

Secretary Clinton. Well, without getting into the political campaign, because that's for others to comment on, I think if you take a look at the world today, we have a lot of problems that are not leftovers from the past, but are of the moment. We've just been talking about one, namely Iran. And in many of the areas where we are working to solve problems, Russia has been an ally. They're in the P-5+1 talks with us, they have worked with us in Afghanistan and have been very helpful in the Northern Distribution Network and in other ways. So I think it's somewhat dated to be looking backwards instead of being realistic about where we agree, where we don't agree, but looking for ways to bridge the disagreements and then to maximize the cooperation.

Q. Mr. Putin, soon to be President Putin again, accused you personally of sending some type of signal to the Russians to bring them out onto the streets. And now, you have the United States—this Administration—pushing to release, I think, it is $50 million in democracy support funds, which is guaranteed, of course, not to go over well in Moscow. Why shouldn't they look at this money and say that the United States—that maybe Hillary Clinton wants to send another signal? In other words, you're stirring up trouble.

Secretary Clinton. Well, I have to say I was a little perplexed that I would be imputed such power that a mere signal, a mere word, would cause thousands of people to turn out. In fact, I think the demonstrators in the street got it right. They laughed at that. I mean, they knew why there were there. They want democracy, they want freedom, they want a voice in their affairs, and we all support that. And we hope that in the years to come, there will be greater openness in Russia. The Russian people are so smart. You lived there. You know what incredibly talented people, well educated, the ability to really help shape the 21^st century—stop the brain drain. Create an environment in which Russians are made to feel that they can build their own country, make a real stake in the future there. And that has nothing to do with us. It has to do everything with the Russian people themselves.

And we in the United States believe that every country would be better off if there were greater freedom of expression, freedom of religion, freedom of assembly, because I think we represent that. We have had a great run, and I want it always to continue. I want the United States always to represent these values and to live them. And therefore, we're going to continue to promote them around the world.

Q. Quick question on Pakistan. The United States apparently is agreeing to a different way of using drones, a very controversial issue. When that happens, could that be to the detriment of the national security of the United States?

Secretary Clinton. Well, Jill, I'm not going to comment on any intelligence matter. That would not be appropriate. But I can assure you that the Obama Administration will not enter into any agreement that would be to the detriment of the national security of our country. I think this President has demonstrated conclusively that he's ready to take the tough decisions when America's security is at stake.

Q. One last question. You were just in Burma not too long ago, historic elections. What are your thoughts as you look at that?

Secretary Clinton. Well, I'm very hopeful for the people. The early reports are mostly positive. We want to see these elections conducted in a free, fair manner that is validated by the international community, and we want to see continuing progress. I was very touched by the visit that I made and the commitments that I received from members of the government who were quite sincere in their desire to move their country forward.

I know how difficult it is. I know that there are some who don't agree with it, who will try to undermine it. That seems to be human nature everywhere in the world. But if this election goes as well as it is reported to have from the early reports, that will be a significant step. And I promised, when I was there meeting with leaders in Nay Pyi Taw, that the United States would match action for action. And we will do that.

Q. Well, thank you very much Madam Secretary.

Secretary Clinton. Thank you.

Secretary John Bryson gave the following remarks at the Center for American Progress in Washington, DC

Secretary Bryson. Thank you, Neera and Rizanur-Bey. It is great to be with the Center for American Progress. It's also great to be with the Confederation of Businessmen and Industrialists of Turkey. TUSKON has become a close friend of the American business community.

And thanks to everyone here. Your presence shows that you are committed to building an even stronger bridge between our countries.

What is clear is that Turkey is coming into its own as a global economic player. Turkey's time has come. Turkey's moment is now. In the mid-90s, I saw Turkey's potential first hand.

As CEO of Edison International, I went to Turkey when the country was starting to privatize infrastructure development and attract foreign investment.

In 1997, Edison partnered with a Turkey energy firm—Doga Enerji—to build a plant in a greater Istanbul. The plant still operates–it supports the national grid and heats thousands of homes.

Since then, I have seen Turkey grow in dramatic ways. GDP-per-capita in Turkey has more than tripled in the past decade. Turkey is now the world's 17th-largest economy—and an active member of the G-20, the WTO and the OECD. In 2011, Turkey was the world's second-fastest growing economy–with a strong growth rate around percent.

And today, Ankara's goal to push Turkey into the top 10 economies by its Centennial in 2023—the “10 by 23” plan–is an entirely plausible target.

Historically, the U.S. and Turkey have maintained close political and military ties. They date back to the Truman Doctrine and Turkey joining NATO in 1952.

Today, we are allies on a wide range of issues—building what President Obama has called a “model partnership.” Just last week, he met with Prime Minister Erdogan when they were both in Korea. They discussed Syria, Iran and much more.

Here in the U.S., you can see our person-to-person relationships growing stronger each day. You can see it in the 13,000 Turkish students that are studying here in the U.S. You can see it in corporate leaders like Muhtar Kent, the CEO of Coca-Cola, and you can see it in more than one million Turkish-Americans who add to the rich culture and fabric of our country.

America has benefited greatly from the contributions of all these individuals. And with strong bilateral commitments from both of our countries, the future of the U.S.-Turkish economic relationship is indeed bright.

We entered a new phase in April 2009, when President Obama and President Gul agreed to elevate our commercial relationship to the strategic level. We have already begun to see the fruits of this.

For example, Turkey became a key part of the president's National Export Initiative—which aims to double U.S. exports from 2010 to 2014. The Commerce Department helps lead this effort. I'm pleased to say that just two years into this effort—U.S. exports to Turkey have already doubled.

At the same time, Turkish exports to the U.S. are also near record levels. They are growing at a faster rate than Turkey's exports to the rest of the world.

Overall, our trade relationship hit a record $20 billion last year.

This is great news, but we have only scratched the surface. We can continue to increase the trade flows between our two countries.

To help us do that, we launched the Framework for Strategic Economic and Commercial Cooperation, which first met in 2010. I co-chair this with our U.S. Trade Representative Ron Kirk. On the Turkish side is Deputy Prime Minister Babacan and Economy Minister Caglayan.

The Framework is critical to promoting our mutual goals in a number of areas—not just trade. We're asking tough questions like: How can we increase direct investment in each others' economies? How can we cooperate more closely on regulatory issues? How can we spark more entrepreneurship and more innovation in both countries?

I'm personally interested in the answers to those questions. So today, I'm pleased to announce that I plan to attend in-person the next Framework meeting that will be held in late June in Turkey.

Right now, my Assistant Secretary Michael Camuéez is in Turkey helping to lay the groundwork for that meeting.

But it's not enough to have our governments talking to each other. Our business leaders also need to be talking more.

That's why the U.S.-Turkey Business Council is so important. They held their first meeting in Istanbul last September. They recently submitted recommendations on how to improve the business environments in both countries. We are carefully reviewing those now.

We already know that both countries have key strengths. For example, Turkey has strong access to European markets as well as those in North Africa and the Middle East. And here in the U.S., for example we have a strong patent system and deep supply chains.

Today, we can build on our respective strengths, and we can find new ways to ensure mutual prosperity.

In particular, we need more bilateral investment. U.S. direct investment in Turkey has been steady at around $6 billion. We have several high-profile examples of investment, including Dow's major new investment in carbon-fiber production. And, there is room for even more investment from the U.S. to Turkey.

To date, Turkish investment in the U.S. has been relatively modest–though we are seeing examples of progress.

For example, Turkish-based Kermit makes durable and environmentally-friendly roofing tiles. Last year, local leaders from Muncie, Indiana, went to Turkey. They hoped Kermit might put a new manufacturing facility in their city. They worked with the Indiana Economic Development Corporation to win that investment of $12 million. KermitUSA plans to create 70 jobs in Muncie over the next five years. They're the first tenant in Muncie's new Turkish Business Center. We need more stories like that. And my message to Turkey's business leaders is absolutely clear: We welcome your investments in America.

SelectUSA–an initiative strongly supported by President Obama–is the first, coordinated effort by our government to attract new business investments to the U.S.

Through SelectUSA, the Commerce Department's commercial service officers will help Turkey's business leaders invest more in the U.S. We will serve as an information clearinghouse for CEOs and investors. We will help when they face confusion, delays, or obstacles—at federal as well as state and local levels. We will also help after they have already invested in the U.S. And we will provide opportunities to make personal connections—like what happened in Muncie.

On that note, I want to invite you to the First Annual SelectUSA Investment Summit this fall in Washington, D.C. Companies from around the world will come and meet with officials at all levels of government, including local economic development leaders.

Beyond investment, we need more commercial collaboration of all kinds. With over 1,000 U.S. companies registered in Turkey, there are many great examples: the Ford-Otosan partnership, the Airlines-Boeing relationship, and Sikorsky's partnership to build Blackhawk helicopters We have also seen: AES team up with Koc for a new 635-megawatt power plant, and Parsons provide maintenance for 2 Bosphorous bridges—a project that our foreign commercial service helped with.

One of my favorite examples is a GE plant in Pennsylvania that ships locomotive kits to Turkey, where they are assembled. Then, the finished products are exported to the Caucasus and Central Asia, where Turkish firms have a strong reputation and track record.

Looking forward, let me state three areas where we can work together. These are all win-wins.

First, I think we can partner to reach more markets in the Middle East and North Africa—bringing more development and greater economic stability to that region.

I'm also excited about the new Turkey chapter of Partners for New Beginning. Secretary Clinton highlighted this public-private initiative in her trip to Istanbul last year.

TUSKON and companies like Coca-Cola, Intel, and Cisco are all involved in this. They are focused on areas such as women-and-youth entrepreneurship.

In addition, I believe that American technology can help meet the growing demands within Turkey—including sectors like renewable energy, energy efficiency, and infrastructure.

This is important, because we all know that when the Turkish people gain stronger connections—both to each other and to the outside world—they succeed and thrive.

But we do have some challenges in the future of our economic relationship. Again, I'll give three examples.

For example, the regulatory environment in Turkey is not as transparent and predictable as it could be. When new regulations are put in place without notification or opportunity-to-comment, it catches companies off-guard.

In addition, we continue to have market-access concerns, especially in areas like pharmaceuticals and agriculture.

And finally, it is important to grow and strengthen Turkey's intellectual property system to protect all of our companies and to foster more innovation. Some U.S. companies have experienced trademark and copyright infringements as well as software and internet piracy.

The good news is that Turkey is engaging more on this issue. For example, I know that the International Chamber of Commerce held a conference on “Maximizing the Value of IP in Turkey” last September. It drew top officials and business leaders from both our countries.

Above all, we want to work with our Turkish counterparts to help make the Turkish business environment more stable, predictable, and investor friendly. It's clear that this will benefit both of our countries and all of our citizens.

In closing, truly, we have come a long way since our first political ties were established 60 years ago with NATO.

To circle back to the beginning of my remarks, after I did business in Turkey, I went back with my wife and four daughters. I have vivid memories of shopping with them under the tents, in the bazaars, and buying things from the merchants.

Today, we are finding common ground in foreign policy and global issues. We are finding common ground in economic growth strategies such as the National Export Initiative and Turkey's 10 by 23.

And we are also finding common ground by sharing the rich history of each of our countries with our daughters and sons.

They are the people who will build our partnership in the years to come.

So, let's do everything possible to usher in a long and prosperous era—as the bonds between our two nations continue to grow in the 21^st century.

Ambassador Susan Rice gave the following remarks at the UN Security Council

Ambassador Rice. Good afternoon. I will first read out the discussion we had this morning in consultations on Iraq and then turn to the topic of Syria.

The Security Council met today to discuss the situation in Iraq and heard briefings from SRSG Kobler and, of course, in the open chamber, from Iraqi Perm Rep al-Bayati. The briefings underscored the notable regional achievements that have occurred in Iraq, in particular the significance of Iraq hosting the recent Arab League Summit for the first time in two decades, and its continuing political and security challenges. The briefings and subsequent Council discussion highlighted the recent steps taken to foster better relations between Iraq and Kuwait, such as a settlement on the Kuwaiti Airlines issue, Iraq's payment to the UN Iraq-Kuwaiti boundary maintenance project, and the announcement that the Joint Ministerial meetings will take place in Baghdad at the end of April. Council members expressed strong support for the increasingly positive relations between Iraq and Kuwait, including for SRSG Kobler's sustained efforts in this area.

SRSG Kobler and Council members noted the importance for Iraq to resolve political differences and to address the concerns of all political blocs in an inclusive forum. SRSG Kobler commended the Government of Iraq's efforts, with UN support, to find a peaceful and durable solution to the situation in Camp Ashraf and emphasized the need for member states to accept eligible candidates for resettlement.

In conclusion, Council members will continue to closely monitor the political situation in Iraq with the hope that there will be a solution representing the interests of all Iraqis, consistent with Iraq's constitution and laws.

Ambassador Susan Rice gave the following remarks at the UN Security Council

Ambassador Rice. Thank you, Mr. President. I would like to thank the Prosecutor for his briefing on the work of his office and actions taken pursuant to Resolution 1970.

As we have consistently noted, Resolution 1970 and its referral of the situation in Libya to the International Criminal Court represented an historic milestone in the fight against impunity. The Security Council's unanimous decision to refer the situation underscores the importance of the role of justice and accountability in the resolution of conflicts and the maintenance of international peace and security. The referral has served to keep accountability and rule of law as key elements of Libya's transition to a peaceful and democratic future.

We are pleased with the Prosecutor's report that his Office has received a high degree of cooperation from a variety of States and other actors in response to requests for assistance from the ICC.

As the Prosecutor described in his report, Libya recently filed an admissibility challenge with the Court on the grounds that it is actively investigating Saif al-Islam Qadhafi for the same and different crimes as the ICC. Libya also detailed the steps it has taken to conduct that investigation and its stated commitment to adhere to international standards in the process.

This is an important moment both for Libya and for the Court. The Rome Statute of the ICC is predicated on a system of complementary justice, and it contains provisions to deal with situations in which a State with jurisdiction wishes to pursue charges itself. In this regard, we are encouraged by the Prosecutor's report of the ongoing cooperation his office has received from Libya. That said, as the Prosecutor notes, ultimately it will be for the judges to decide whether to defer to Libyan proceedings.

As the ICC proceedings move forward, we will continue to encourage the government of Libya to maintain its cooperation with the Court and to adhere to its international obligations, including under Resolution 1970. In addition, we continue to emphasize that it is critical that Libya take all necessary steps to ensure the detention and any further domestic proceedings against Saif al-Islam fully comply with Libya's international obligations.

Moreover, there is much work to be done domestically in Libya not only to account for the grave crimes committed in the past but also to ensure a functioning justice system for the future.

It is vital that Libya build a fair and credible criminal justice system that guarantees humane treatment and due process and conforms to Libya's international human rights obligations. We agree with the Prosecutor that the Government of Libya faces critical challenges in assuming custody over the thousands of detainees that continue to be held by militias or local authorities and in arranging for the expeditious release or adjudication of their cases. The international community should respond to the needs of the Libyan government as it approaches this significant administrative, logistical, and judicial task.

We are deeply concerned by the patterns of rape documented by the International Commission of Inquiry, as highlighted in the Prosecutor's report. For the sake of the individual victims and in order to achieve a lasting and inclusive peace in Libya, sexual and gender-based violent crimes must not go unpunished.

It will be important to ensure that there is accountability for violations and abuses of applicable laws committed in Libya on all sides, including for alleged attacks committed against civilians for their perceived loyalties to the Qadhafi regime. Impunity for such crimes cannot be reconciled with respect for human rights and the rule of law. Independent and impartial investigations of all alleged crimes will be a critical part of the effort to create an inclusive, democratic state in which all Libyans, of all backgrounds, have a future and an opportunity to participate in the rebuilding of their country.

We are pleased to hear that the Government is working on a comprehensive strategy to address these issues and support the Ministry of Justice's expressed commitment to justice sector reforms. We welcome the government of Libya's statements in its submissions to the ICC that it is receptive to assistance and support from the international community in this important work. We are working with UNSMIL and the international community to assist the Libyan authorities in addressing these justice sector reform goals.

Thank you, Mr. President.

The following ceremony took place in Washington, DC

Secretary Clinton. It's wonderful to welcome Ambassador Tekaya here, along with members of the Embassy of Tunisia to celebrate this important step in our partnership. In the United States, we have an old saying: You've got to put your money where your mouth is. You can't just say you support something; you have to back it up with value. And we have been very supportive of Tunisia's democratic future, and we want to back up those words, Ambassador, with actions.

It was less than two months ago that I announced this cash transfer, and I'd like to thank all of my colleagues at the State Department and USAID for their work to make this happen so quickly. But this transfer is only one of many valuable commitments we are making to the people and the new government of Tunisia. We will soon be finalizing a sovereign loan guarantee agreement, fully backed by the United States, which will provide several hundreds of millions of dollars more in financing for the Tunisian Government.

We are working through USAID to help Tunisia develop its information communications technology sector. And last fall, Tunisia became eligible for the Millennium Challenge Corporation's Threshold Program, which will support sustained, broad-based economic growth throughout the country.

We are also deepening our ties with the Tunisian people, helping to build Tunisia's institutions of democracy and governance, fostering the growth of civil society and the private sector, and expanding educational and cultural exchanges. And as Tunisia's leaders shape the country's new institutions, we are encouraging them and working with them to ensure that core principles of human rights, transparency, and accountability are part of Tunisia's democratic transformation. After years of totalitarian rule, the Tunisian people deserve a government that is responsible to their needs and usefully using their resources.

So the United States stands firmly with Tunisia, as do many others. Tunisia's neighbors are increasing their investment and budget support, and we are delighted to see other nations joining in this important effort. The Tunisian people have friends all over the world, and each investment is a tangible demonstration of commitment to the Tunisian peoples' goals of realizing a Tunisia founded on democratic principles, built on inclusive economic growth, where every man, woman, and child has the opportunity for a better future.

So, Ambassador, we are proud to be your partner in helping to shape that future.

Ambassador Tekaya. Thank you very much. Thank you very much, Honorable Secretary, for your warm welcome and your kind words about Tunisia and the trust that you have in the ability of Tunisia to succeed in this transition.

It is, for me, a distinct honor to be here today, and to sign with Your Excellency, the Memorandum of Acknowledgment of the Cash Transfer that you have just mentioned, which is really to support the stabilization of the Tunisian economy through provision of budgetary support. Indeed, this is a significant measure of support for Tunisia at a critical stage in its transition to democracy, and it's also a critical stage in its history. And on behalf of the Tunisian Government, I would like to extend to you—and through you to the Government of the United States—our deepest gratitude for that support.

Indeed, the cash transfer is one of the various measures that the U.S. administration has granted Tunisia. You have mentioned the loan guarantees, also the Tunisia Enterprise Fund, and the Threshold Program with MCC. So we are really grateful, and we also—I also want to extend a special thanks to the members of Congress for their support for these measures, as well as the various departments and agencies for the work that they have done to materialize these measures.

Tunisia today has made significant progress in this transition to democracy with the organization of free, fair elections and also the election of a president, a speaker of the constituent assembly, and also a head of government. And the constituent assembly is currently engaged in elaborating a new constitution for Tunisia—for a modern Tunisia, for a new Tunisia, which would be respectful of human rights, respectful of the values of the democracy, and which would respond to the aspirations of the Tunisian people for freedom and for dignity. And we count on the support of our friends in the first place, the friends who share these values, the values of democracy, liberty, and dignity, and the United States is certainly in the forefront of those countries with whom—for whom we seek the support.

Tunisia is facing enormous challenges, economic, social, and also financial challenges. It counts, in the first place, on its own resources and its own means, implementing meaningful reforms and also mobilizing national resources to face these challenges. But Tunisia counts also on the valuable support of its friends. And the United States has been steadfast in that regard. In his—we always want to recall that in his State of the Union Address in January last year, President Obama said that the United States will stand with the people of Tunisia. And I think that his support is really highly appreciated by the people of Tunisia. And since then, United States has been delivering on that support, so we are thankful.

We are also thankful for the role that United States—and the active role that United States has been playing, galvanizing international support for Tunisia. And I would like to pay a special tribute to you, Madam Secretary of State. You have been a special supporter of Tunisia, a strong advocate of support for Tunisia, so we owe you a lot of credit for that.

And as the revolution in Tunisia has opened new opportunities for the people of Tunisia, it has also opened—created new opportunities for the relations between our two countries. And these opportunities are really for us to explore, and we invite our friends from the United States to share with us these opportunities in many sectors. Last September, our two countries launched a political and economic partnership, which is setting up a rich, comprehensive agenda of cooperation on many areas of mutual interest. And that partnership is moving forward, and we're happy to continue to work together to further advance it.

Tunisia looks forward to attracting American investment. We invite American companies to come to Tunisia to explore the opportunities that Tunisia offers, a Tunisia that is implementing far-reaching reforms—economic reforms, financial reforms, also strengthening good governance, strengthening transparency and the rule of law. Tunisia will be a very good place for American investors and for American companies.

So with this, also I would like to stress how important our friendship is, and we would like to further promote understanding between our two peoples through student exchanges, through additional exchanges, and through partnership between the private sector in Tunisia and the private sector in the United States of America.

And I thank you, Honorable Secretary, for providing us with this opportunity to celebrate a friendship and a partnership between our two countries.

Secretary Clinton. Thank you so much, Ambassador. (The Memorandum of Acknowledgement of the Cash Transfer Agreement between the United States and the Tunisian Republic was signed.)

Assistant Secretary Jose W. Fernandez gave the following remarks in Tunis, Tunisia

Assistant Secretary Fernandez. I would first like to thank the Tunisian Finance Ministry and the International Tax Dialogue (ITD) for sponsoring this impressive conference in cooperation with the U.S. Department of State.

It's ironic that I'm speaking at a tax conference. Tax has not always been my strong suit. In law school, I barely scraped by to pass my tax law course. Ironically, I then went on to become an international tax lawyer.

Nevertheless, I am very happy to be here today. In all seriousness, my perspective has changed greatly as a public servant. The U.S. government and its partners want to work with government officials and private sectors with the goal of boosting the means to pay for programs that promote good governance, and transparency. Only by collecting the necessary funds can governments pay and provide the services, like education, security, and health care, that citizens throughout the world have come to expect.

What brings us together today? The reality is every country—including the United States—is faced with a three-fold challenge: 1) strengthening good governance practices; 2) enhancing citizen confidence in democratic institutions; and 3) generating greater domestic revenues to finance social and economic development programs that promote economic growth and prosperity.

Economic governance programs require transparent, predicable and continuous funding to be effective. Nonetheless, funding is often irregular, jeopardized by poor tax administration or inadequate collections—especially in challenging economic and financial times. In some cases, funds are lost to inefficiencies and graft.

We want to work with newly-elected governments, in North Africa and the Middle East, as they try to meet their developmental objectives. We also want to support governance and development programs to foster government accountability for how public resources are utilized. At the same time, we want to ensure the longevity and success of these government initiatives. So that is a long way of saying that the U.S. wants to help developing countries mobilize their own resources to meet their development needs. Because when a country can fund its own development, it will also own it.

I would like to utilize this closing opportunity to discuss two of the ways that the United States is encouraging better governance and fair tax systems in the region. The first is an initiative called Domestic Finance for Development—or DF4D—and the other is the work that we have done under the Deauville Partnership.

DF4D

While general development assistance from the U.S. to countries around the world in the last few years has actually gone up, there is a growing need for technical assistance to help countries in the region fund their own economic independence. With such economic independence, countries can break free of relying on external assistance and international aid.

There is also a growing demand from developing countries to enhance their own fiscal management capabilities to ensure that public investments are made in an effective, equitable and transparent manner.

At the State Department, Secretary Clinton believes that enhancing the ability of countries to mobilize their own internal resources is critical for sustainable development.

From these needs and demands, Domestic Finances for Development, or, as we fondly call it, DF4D, was born.

DF4D revolves around three critical themes: 1) tax administration, 2) fiscal transparency, and 3) anti-corruption. We just spoke about the theme of tax administration and the need for countries to mobilize their own resources for domestic development. The second issue of transparency is based on the idea that no country can ask its citizens to pay more taxes without having an honest and open conversation about how those funds will be spent. Need to create a partnership between the government and its citizens. And finally, governments around the world who ask their citizens to pay more MUST convince them that those funds won't be siphoned off into private bank accounts or for personal gain.

At the State Department and USAID, we are working with our partners to make this DF4D concept a part of our work in several countries. Through these agencies, DF4D is already implementing tax administration pilot programs in El Salvador, Honduras, and Kyrgyzstan.

We are working to create innovative partnerships with emerging market countries like Brazil which have made considerable progress in improving fiscal transparency and catalyzing greater revenue mobilization.

One of my favorite examples of how better tax administration, improved fiscal transparency, and how a concerted effort to fight bribery and corruption turned a city around, is the example of Medellin, in Colombia. As many of you know, Medellin used to be one of the most dangerous cities in the world and home of Pablo Escobar. Then the citizens of Medellin elected a new mayor, Sergio Fajardo. Mayor Fajardo, in a matter of years, turned the city into one of the best examples anywhere of economic development and innovative urban planning.

When asked how he did this, he was pretty straight forward. He said “We did this through taxes. We improved the city's ability to collect taxes so more people are paying their taxes. We improved transparency in the system and when businesses were convinced we weren't stealing from them, and they knew we would use their money effectively, they paid. And businesses now support us because they see how much it can help them.”

DF4D seeks to foster this kind of transformation in other countries, using a variety of diplomatic, policy, and technical interventions to foster good governance, transparency, and fair taxation.

Encouraging Better Governance and Fairer Tax Systems in Region

DF4D is also working through the Deauville Partnership with Arab Countries in Transition. This includes G-8 countries and regional partners to support transition states, including Egypt, Tunisia, Jordan, Morocco and Libya. The Deauville Partnership seeks to help these countries get their economies back on track and support their democratic transitions.

The Partnership's open governance and participation agenda will focus on a variety of initiatives. These initiatives are designed to foster rule of law, enhance citizen confidence in democratic institutions, and combat impunity. Addressing these factors is crucial to attracting investment, fostering local economic development and job creation, fighting corruption, and increasing revenue mobilization. These factors, in turn, will serve to maximize economic growth.

The Deauville Partnership's open governance action plan builds upon President Obama's leadership in the G-8 Summit. Over the next 12 months, we will partner with Tunisia, Libya, Morocco, Jordan and Egypt in several areas:

First, we will foster civic participation in newly-democratic states. To meet local demands for greater transparency and civic participation, the Partnership will cooperate with the OECD to help transition countries achieve eligibility into the Open Government Partnership (OGP). As you have seen at this conference, the OECD has good expertise in these issues and has been working closely with many countries in the region for several years. The Open Government Partnership (OGP) is a diverse coalition of governments and other stakeholders who have pledged to embrace open government principles.

Second, we are working on a number of anti-corruption initiatives. These include pursuing the adoption or enhancement of systems for disclosure of assets of appropriate officials, whistleblower protection, and conflicts of interest. It also includes ensuring that they are consistent with international best practices, and that they are applied in practice, not just written down on paper.

Financial Services Advisory Corps (FSAC)

Third, under the umbrella of the Deauville Partnership and DF4D, we are working to create a Financial Services Advisory Corps, or FSAC. This group will consist of volunteer experts from the public and private sectors who will provide technical assistance to transition countries in developing public financial management sectors that are strong, transparent and accessible. This volunteer corps will train public servants in two areas: First, to better protect public finances from fraud and tax evasion; and second, to equip reforming countries to better generate and channel domestic revenues towards public investments that facilitate enabling business environments.

The United States commits to a financial contribution in the FSAC program. We will encourage Deauville partner countries, regional partners and other OECD-members to contribute and participate in this new program as well.

This program will be the Middle East and North African Chapter of a larger multinational initiative entitled “Tax Advisors without Borders” Program (TAWP). Pascal will provide more details on the Tax Advisors without Borders Program—so I don't want to steal his thunder. What I do want to say is that the Tax Advisors without Borders Program could not have happened without the insight and ingenuity of our civil society partners—who introduced this idea years ago.

TAWP was the brainchild of leaders from the Tax Justice Network, the African Tax Administration Forum (ATAF) and the Inter-American Center of Tax Administrations (CIAT). Their suggestions planted the seed. And we listened. I commend the OECD for their leadership in turning this idea into a reality.

I would like to ask any representatives from those groups to stand and be recognized at this time.

Conclusion

In closing, I would like to reiterate that we focused this conference on good governance and fair tax systems because we wanted to stress the importance of three things: first, empowering democratic transitions; second, cultivating more enabling business environments; and finally, ensuring economic independence in the Middle East and North Africa.

President Obama and our Deauville Partnership Leaders recognized this conference as a first of many opportunities for us to work together to turn the courage of a fruit vendor in Tunisia into economic reforms that promote a more enabling business environment for all. Mohamed Bouazizi made the ultimate sacrifice in protest of the state-sponsored corruption and economic marginalization that jeopardized his livelihood. With your help, let us honor him by cultivating an environment where Tunisian micro-entrepreneurs like him can thrive, and where transparency and open governance are the norm for all Tunisians. Thank you.

Under Secretary Robert Hormats gave the following remarks in New York

Under Secretary Hormats. Votre Excellence Monsieur le Ministre Bettaieb, mes collegues confereciers, Mesdame et Messieurs, je vouce remercie pour votre chaleureux accueil. Je suis tres content d'etre pami vous ce soir.

I would like to thank our hosts, the Government of Tunisia and the Foreign Investment Promotion Agency of Tunisia, who have all worked very hard to put this event together.

I also want to acknowledge Ambassador Gordon Gray, who is with us here tonight. We have one of our finest Ambassadors in the world stationed in Tunis. This demonstrates the importance we place on this relationship. And I am delighted, Gordon, to join you here in Tunisia.

We are lucky to have a number of other impressive speakers here tonight, who know Tunisia and Tunisia's investment environment very well.

I believe I have some special qualifications to speak with you tonight.

When I was a young graduate student, I traveled to Tunisia. I went to Djerba and then to El Djem. And on the way back to Tunis, I traveled by Louage. It was a meaningful experience. One gets to know Tunisia very well by traveling throughout towns and cities by Louage.

I'd like to thank Ambassador Gray for providing a very different kind of transportation during this return trip.

As we all know, Tunisia was the birthplace of the enormous change that has swept the region over the past year. At the heart of the Tunisian revolution was the desire for sustainable and inclusive economic development and, especially, jobs, particularly for young people.

Indeed, the Tunisia Investment Forum one year ago was the first major international economic event in the post-revolution era.

The past year has been challenging for Tunisia. And there is still much work to do. Tunisia faces significant economic challenges, made worse by the state of the global economy. And it is still rolling back decades of prior corruption and other obstacles to private sector growth.

Nonetheless, the United States has great confidence that Tunisia can fulfill its potential as a dynamic economy and a hub for direct foreign investment.

Tunisia has a great history as an international commercial center. The people of Carthage established the dominant civilization in the Mediterranean for several centuries.

Even under Roman rule, this area became known as the Granary of the Empire and, by some estimates, produced one million tons of cereals each year.

So despite being the smallest country in North Africa, the people of Tunisia, from Punic times on, have proven time and again that they are can and will create an international commercial center that is ripe for investment.

The people of Tunisia can, and I believe they will, do it again. Tunisia's continued progress toward this goal can be energized by a young and vibrant youth, a dynamic business sector, and the reforms being made by the Government to strengthen the economy and energize investment.

Tunisia is fortunate to have two highly precious resources: a population of highly-educated young people and many vibrant businesses.

President Obama said last year, “the greatest untapped resource in the Middle East and North Africa is the talent of its people.”

Over forty percent of Tunisia's population is under twenty-five. This well-educated population is eager for the opportunities promised by the revolution and ready to make their contribution.

Tunisia also is home to a large population of small and medium-sized businesses, or SMEs. Eighty-three percent of businesses in Tunisia are SMEs. SMEs are key drivers to create jobs and generate local revenue and taxes, here as in the United States.

I want to emphasize particularly the importance of the participation of women in SMEs. Ensuring they have significant opportunity to utilize their talents and energy in this sector, and throughout the economy, will boost overall economic growth in the country.

With these essential ingredients for economic growth, the Government of Tunisia has taken and is planning to take a number of steps to ensure Tunisia is a prime destination for foreign direct investment. And we are delighted that Tunisia is doing so in partnership with the United States.

I had the great honor this morning to meet with the every dynamic and wise leader of Tunisia, His Excellency the Head of Government Hamadi Jebali, who described the important and very positive reforms his government is undertaking. These reforms should boost investment in Tunisia and help create jobs.

In November 2011, we hosted a Tunisia Partnerships Forum in Washington, DC to connect Tunisian entrepreneurs and investors

And just a month ago, I participated in a similar event at the U.S. Chamber of Commerce, and witnessed a constructive discussion among the Tunisian diaspora business communities in the United States, Tunisia companies, and American companies.

The Government of Tunisia, under the leadership of Head of Government Jebali, has laid out an ambitious plan to attract foreign investment. I'd like to highlight just a few of these key steps:

First, the government has budgeted a significant sum for public investment into infrastructure projects.

This is a wise decision for many reasons, in part because of the benefits of upgrading Tunisia's infrastructure and fulfilling Tunisia's enormous potential as a true trading hub for the Mediterranean. Many American companies have great experience in this area and should be able to help with these projects.

Second, the government is undertaking a program to reform Tunisia's investment and tax code with the help of the United States' Commercial Law Development Program.

U.S. companies in the region have expressed concern about a lack of predictability and transparency in regulatory decision-making. The Tunisian government's efforts will ensure greater transparency and access for both U.S. and other foreign companies.

Third, Tunisia is on the path toward open governance. Tunisia plans to join the Open Government Partnership next year after qualifying for membership.

Tunisia should be commended for taking the necessary steps for eligibility, including an open budget process, providing access to information, providing disclosures by senior government officials, and promoting citizen participation and engagement in policymaking.

Fourth, Tunisia is adopting many best practices for the treatment of foreign direct investment. The OECD Investment Committee approved Tunisia's application in March to adhere to the OECD Declaration on International Investment and Multilateral Enterprises.

Adherence will help to ensure favorable treatment of foreign investors, minimizing conflicting requirements, and improving cooperation with other countries on promoting international direct investment.

I've been fortunate to experience firsthand the results of these reforms, and believe it is important that they continue. Yesterday, I traveled to Bizerte. I met with a number of business people and entrepreneurs.

They have had a difficult year. However, like many business people in Tunisia, they are benefitting from reforms and several are flourishing. As a result, they are growing their businesses. They are creating new jobs.

In other words they now have the opportunities that Mohamed Bouazizi was denied.

I also have met with American companies that have invested in Tunisia and have very positive stories to tell about their experiences. We encourage other American companies to talk to them and to learn from them.

Because of the Tunisian Government's demonstrated commitment to these efforts, the United States is a strong champion of Tunisia as a country with the potential to grow and succeed as a dynamic, job-creating economy, and as an important destination for foreign direct investment.

And we have demonstrated our belief in Tunisia's potential. I will give you a few recent examples.

The United States is helping stabilize the Tunisian economy by extending a guarantee that will enable the central bank to issue bonds worth several hundred million dollars to international investors. Our two governments signed a bilateral agreement on this guarantee operation just last week in Washington.

The United States provided a $100 million cash transfer to the Government of Tunisia for near-term debt relief. This allowed the Government of Tunisia to use money otherwise intended for debt payments abroad for its priority domestic programs, accelerating economic growth and job creation.

The U.S. government is also keen on promoting small and medium-sized enterprise development through the use of Enterprise Funds.

As chair of the Group of Eight this year, we are working with our partners, regional countries, and international financial institutions to promote better economic governance.

We have done this because of our friendship and partnership with Tunisia, but also because we hope others who share this view will invest in Tunisia's future.

The date of this forum is auspicious for us. For the U.S. State Department, today is Global Economic Statecraft Day. Today the Secretary and each of our Embassies are holding events to highlight America's commitment to putting economics at the center of our foreign policy.

The transitions in Tunisia and the rest of the Middle East and North Africa region, are shaping our world. Increasingly, political transitions hinge on global economic progress, just as economic progress depends on good political reform. Sound economic policies and programs in Washington, Tunis, and other capitals must play a central role in shaping our choices and responses.

Our partnership with Tunisia is an excellent example of our commitment to this approach. We are using our available economic and diplomatic tools to help Tunisia's challenges and unlock the flow of investment to and trade with Tunisia. We look to other governments and companies throughout the world to make similar connections, not just because it is good for Tunisia, but also because in an interdependent world it is good for them as well

Our support includes the bilateral and multilateral support I mentioned earlier. But it also means looking for ways that the U.S. private sector can play a key role in Tunisia's transition and economic development.

And this is why so many of our companies have come here to talk to Tunisian companies and government officials. I am confident that they will see great opportunities and that they also can provide ideas and suggestions that will help Tunisian companies to identify and develop partnerships with American companies and close trade relations as well.

I look forward to hearing from the rest of the speakers as we discuss the opportunities and challenges facing Tunisia. For our part, Tunisia can count on a continued partnership with our Embassy, President Obama, Secretary Clinton, myself and other leaders and officials in Washington. We share a deep friendship with the Tunisian people, great respect for its leaders, confidence in its reform process, and an optimism about its future.

Thank you.

Acting Secretary Rebecca Black gave the following remarks in Istanbul, Turkey

Assistant Administrator Mara Rudman gave the following testimony before the House National Security, Homeland Defense, and Foreign Operations Subcommittee

Assistant Administrator Rudman.

Chairman Chaffetz, Ranking Member Tierney, and members of the Subcommittee, thank you for the opportunity to discuss the United States Agency for International Development (USAID)'s work in the context of the transition from a military-led to a civilian-led mission in Iraq.

Our goal is a stable, self-reliant, unified Iraq. This is critical to U.S. interests in the Middle East. It is a goal made possible through enormous sacrifice by Americans and Iraqis alike.

USAID is adjusting its footprint in Iraq in line with its development strategy and programmatic needs. We are focused on Iraq's sustainable development under the terms of the U.S.- Iraq Strategic Framework Agreement. Over the past ten years, USAID's role in Iraq progressed through three distinct stages:

Immediately after the invasion, USAID's emphasis was on restoring essential infrastructure and services and supporting transitional democratic processes.

Then, as part of the military and civilian counterinsurgency campaign, we concentrated on stabilizing Iraqi communities, and strengthening government institutions. Now, with the completion of the transition to civilian leadership of the U.S. effort in Iraq, USAID's focus is on helping Iraqis improve how they manage their own resources for development.

Our ability to adapt and work closely with the Iraqi government and people has provided critical continuity to our work. Our current efforts reflect lessons learned over these years, particularly in the need for greater oversight and prioritization of sustainability.

Today, USAID provides technical assistance to the Iraqis to improve their abilities to finance and implement their own development projects. We are also working with the Iraqis to strengthen civil society and increase civic participation; implement reforms that will encourage private sector-led economic growth; support the development of good governance and democratic institutions; support ethnic and religious minorities; and provide durable solutions for the reintegration of internally displaced persons.

All of our efforts are designed with sustainability in mind, so that—as an end-goal—Iraqis will manage every one of these projects without U.S. assistance. In addition to the considerable human capital of the Iraqi people themselves, Iraq has great oil wealth. Revenues from the oil industry, which has yet to reach its full potential, supply nearly all of the Iraqi government's budget. Sadly, the country's institutions and ability to deliver services have been degraded by decades of war, misrule, and other factors. Rebuilding the structure, resiliency, and effectiveness of the state, the private sector, and civil society is where Iraq still needs help. Thus, our current programs are focused primarily on improving the capacity of Iraqi government institutions and consist largely of technical assistance that requires the Iraqis to match USAID contributions on a dollar-for-dollar basis. These efforts stand in stark contrast to the much larger relief, infrastructure, or stabilization projects in which we were engaged earlier.

We work with the Government of Iraq (GOI) to first establish common objectives for new activities. We then come to an agreement with the GOI on its required matching contributions and plans for transitioning ultimate responsibility for the projects to the government. Throughout implementation, USAID monitors and measures the GOI's progress on required cost-sharing contributions. These steps help ensure long-term Iraqi investment and commitment to the sustainability of USAID activities that specifically benefit their governing institutions.

This focus on sustainability is not simply good development practice; it also reflects Congressional guidance. In early 2009, the State Department and USAID, in consultation with Congress, adopted a set of policy guidelines on Iraqi government matching for U.S. assistance funds, which require financial or in-kind Iraqi government counterpart contributions for most U.S.-funded foreign assistance programs and projects that directly benefit or involve the Iraqi central government. Congress subsequently required compliance with those guidelines. Accordingly, USAID has applied this requirement to the budget planning process for Iraq.

For instance, last month I met with the Iraqi Minister of Education, with whom we are currently working on our Education Surveys project on a cost-share basis. We will be working on a new project with his ministry to improve primary education in Iraq. Iraq's literacy rate is among the lowest in the region and ranks next to Yemen, the poorest country in the Middle East. This USAID project incorporates both the Ministry's and our own development strategies. Through it, the Ministry will match our contributions in cash or in-kind on a dollar-for-dollar basis.

Ensuring that the resources provided by American taxpayers are used effectively, and that our contributions to Iraq's progress yield sustainable results, requires both careful and consistent monitoring on our part and the engagement of the Iraqi government and our other partners. Thus, in addition to standard USAID protections against waste, fraud, and abuse, including checks on terrorist financing, we have designed an extensive and effective oversight system that is tailored for the unique operating environment in Iraq.

For example, although the security situation in Iraq has improved, the security environment nevertheless limits the ability of U.S. direct-hire employees to visit project sites, beneficiaries, and counterparts. To address these challenges, USAID employs Iraqi field monitors who speak Arabic and have greater access to projects and familiarity with local communities and issues. Our projects are inspected and evaluated by these monitors on a regular basis, with findings reported to the USAID mission for review and adaptation as necessary. Using Iraqis for this work—each of whom has been carefully screened, and many of whom previously worked with the U.S. military—has the added benefit of building local oversight capacity, another example of how sustainability is now incorporated into our work.

USAID also contracts with a third-party monitoring and evaluation implementer that conducts independent evaluations of all of our projects.

There are multiple, independent oversight bodies that also review our programs, including the Special Inspector General for Iraq Reconstruction (SIGIR) and the USAID Inspector General, as well as the Government Accountability Office. Collectively these entities have conducted more than 300 financial and performance audits since 2003 éV about 33 a year. These reviews complement and reinforce our own efforts to ensure that U.S. tax dollars are used effectively and efficiently. USAID welcomes the oversight and discipline imposed by these assessments, including those initiated at our request.

Finally, our focus on sustainability extends to the very staffing of our effort in Iraq. In FY2012 and beyond, we will reduce the number of foreign service officers at our mission, and will hire and train more locally employed Iraqis to perform the functions that have previously been handled by third country nationals. Furthermore, nearly 90 percent of our more than 1,100 implementing partners' personnel are now locally employed Iraqis. As with the field monitors, employing local Iraqis in the delivery of assistance in Iraq will help build local capacity, so that Iraq will eventually be able to manage these efforts on its own.

In summary, USAID's programs in Iraq are designed to help Iraqis use their own resources to foster their self-reliance, maintain stability and increase their well-being. Our continued commitment to Iraq demonstrates the importance we place on the mutual interests and benefits of this long-term partnership.

I appreciate the opportunity to appear before you today and am happy to answer your questions.