Secretary Hillary Clinton delivered these remarks while on a plane en route to London, U.K.

Secretary Clinton. This is on the record, yes. Well, we had a good night in Zurich, watching the signing of the protocols between Turkey and Armenia. And now the process continues. We, obviously, are committed to doing everything we can to build on the milestone that was reached today, but it's challenging. And there is a lot of very difficult, complex issues that have to continually be discussed and worked out. But I am very pleased that we were able to get the protocols signed, and now we move on to the next phase of this.

Q. What was in the protocol that they objected to? What did the Armenians object to in the statement that was to be delivered by the Turks?

Secretary Clinton. There were questions of interpretation as to what should or should not be said. These are issues that Phil and I have been dealing with for months. And we were able to get everybody to understand that it was imperative that we go forward, and so we did.

I was talking to Phil, I was talking to Nalbandian, and I was talking to Davutoglu, and we were—and talking to the Swiss. And so, we were trying to get everything worked out so we could move forward. And that's when I—so when I left the car, I went to ask Minister Nalbandian to drive with me to the university, which he did.

Q. (Inaudible) what is the most difficult diplomatic thing that you have done so far?

Secretary Clinton. Well, I mean, we do diplomatic—

Assistant Secretary Gordon. Things?

Secretary Clinton.—things, yes—of varying degrees of difficulty. Kind of like diving every day. Some of you were with me in Honduras. That was also a very challenging negotiation, which finally worked out very well.

But I think it's just what you sign up for. I mean, this is—when you're trying to help people resolve long-standing problems between themselves, it is a very challenging process. People have a lot of history that they have to contend with. They have all kinds of domestic, political challenges. The Armenians, as we saw with President Sargsian's tour, have people around the world with strong feelings. So, it is—you know, it is a challenge, but that is what we're trying to work out here.

Q. Are there—

Q. (Inaudible) the possibility of ratification (inaudible)?

Secretary Clinton. Well, they're both going to be submitting the protocols to their parliaments, and it's going to be difficult. But that's the next step of the process.

Q. So what was it that got—what was it that allowed them to sign? What was the deal that was reached? (Inaudible.)

Secretary Clinton. I think that—I think there was an agreement that the protocols should speak for themselves. I mean, they have been carefully, painstakingly negotiated over many months. And, at the end of the day, that was what the substance of this was about, what the protocol said.

People are free to say whatever else they want, but let the protocols be the statement. Because, in effect, that's what we were there to sign.

Q. Was there a critical moment where you said to the principals, “Look, guys, this is too important. We can't let this whole thing unravel?” Because—if there is such a moment, could you give us a flavor?

Secretary Clinton. Well, there were several such moments, because we believe strongly that this is in the best interests of both Armenia and Turkey. We recognize how hard it is, and what courage it takes to move forward in the face of very strong opposition in both countries.

So, there were several times when I said to all of the parties involved that this is too important, that this has to be seen through. “You've come too far, all of the work that has gone into the protocols, you know, should not be walked away from. And will there be continuing difficulties in working this out? Of course there will be. But you have agreed on these protocols. So let's sign those, and then we will go on to the next stage.” And eventually, everyone decided that would be—

Q. (Inaudible) said the dispute was over language that would say something about, “We will negotiate”—something about peace in the Caspian region, and that the Turks—the Armenians objected, because it was a reference to the occupied territory in Azerbaijan.

Secretary Clinton. There were concerns from both sides. It's really not accurate to characterize the questions as only coming from one side. There were concerns on both sides.

Secretary Hillary Clinton and Prime Minister Brian Cowen delivered these remarks in Dublin, Ireland

Minister Cowen. Today, the minister of foreign affairs and I look forward to discussing a range of international issues, as well as the close bilateral relationship between Ireland and the United States with the Secretary of State. We will also take the opportunity to review progress in Northern Ireland, a place transformed in no small part due to the efforts of the Clinton Administration and with Secretary Clinton herself in a crucial period at the start of the peace process.

I'm optimistic that we will see definitive progress on the issue of devolution of (inaudible) and justice in the coming days. That will, in turn, lay the platform for a concentration of all of our efforts on the economic and social issues that matter most to the people, including our joint investment in building an all-island economy as an essential component of a common future and an economic recovery for our people both north and south.

I know that Hillary Clinton will continue to work closely with us in support of the peace process and indeed she has found great inspiration from her work here as she works for peace elsewhere in the world.

Secretary Clinton. Taoiseach, thank you so much. And it's wonderful to be back here in Dublin. I wish to congratulate your government on the resounding vote in the Lisbon treaty referendum, and also to thank you for the kind words about President Obama. I know our commitment to working with like-minded friends, such as Ireland, means that we'll be seeing a lot of each other and consulting often about what more we can do to provide the conditions for peace, security, and prosperity.

I just came, of course, from a day yesterday in Geneva where the hard work of diplomacy and multilateral engagement was on display to try to work on another difficult conflict, but I think that's what diplomacy and international relations calls for today. But there is no greater joy than to come back to Ireland to be in Dublin today. I said to Brian, I wish we could just sort of take a day off, wander around this beautiful park and enjoy some of the hospitality that I have experienced before. Bill and I feel such a special connection to Ireland and, of course, we are not alone— millions of Americans feel the same.

But it's not only ties of family and culture and history and heritage. It is because we have built a strong partnership. Our diplomats and our aid workers collaborate together to resolve conflicts, fight hunger, poverty and disease, our businesses invest in trade to create new jobs and wider prosperity, education, innovation, and productivity have made Ireland a great place to do business, and Americans have leapt at the opportunity. At the end of last year, U.S. foreign direct investment in Ireland ran into the tens of billions of dollars per year.

I want to thank the Government of Ireland for your pledge to commit 20 percent of your foreign assistance by 2012 to eradicating hunger around the world, with the aim of cutting that number of hungry in half by 2015. As a people whose history is scarred by famine, the Irish understand that this is an extraordinary global challenge that requires a commitment of that measure.

I was very pleased that Minister Power participated in our hunger summit at the UN during the United Nations General Assembly in New York. Ireland, truly does, punch above its weight on the big issues of the day from climate change to nonproliferation. Irish peacekeepers have saved lives and provided crucial stability in troubled lands from Kosovo to Liberia to East Timor. And we are grateful for their service and their sacrifice.

Here in Phoenix Park, whose name symbolizes renewal, I am absolutely in accord with former President Kennedy, that Irish future is as promising as your past is proud. And it is a future that we will share together. I will leave here to go to Belfast to continue work that our countries have done together, that I have been very committed to for a number of years, in which the people of the north, as well as the entire island, have made so much progress on together.

So thank you again, for welcoming me here.

Q. Secretary of State, Tommy Garlan from RTE. The name Clinton is synonymous with Ireland's peace speech process. Today, we have one parliamentary group saying this war is over, but at the same time, political relationships in Northern Ireland power-sharing administration remains fragile. How would you characterize the state of Ireland's peace process today?

Minister Cowen. Well, our peace process is known to many parts of the world where there is conflict of the great example of what can be achieved through (inaudible) determination, through working not only in terms of the political resolution of conflict, but seeing the support that economic investment and the economic dividend that (inaudible) peace can bring to afflicted communities who have been affected by this conflict for over three decades. And we are very clearly of the view that we move now towards the devolution of (inaudible) and injustice in Northern Ireland is a critical factor in completing the process that (inaudible) agreement and (inaudible) agreement have set out in great detail. And culminating in that process will be the means by which decisions can be taken locally in these matters as they are in other matters. And that itself provides the basis for (inaudible) reconciliation (inaudible).

And the challenge to all of who are working in the peace process is to ensure that both that effort and the spirit of using agreements (inaudible) by which we can resolve our problem.

Secretary Clinton. I agree that the step of devolution for policing and justice is an absolutely essential milestone. Clearly, there are questions and some apprehensions, but I believe that due to the concerted effort of the British Government, the Irish Government, the support of friends like us in the United States, that the parties understand that this is a step they must take together.

I will have the distinct honor of speaking at Stormont tomorrow. I will certainly provide as much encouragement and support as I can. We have appointed another economic envoy to Northern Ireland, Declan Kelly, who is here with me. He is already hard at work. So, as the Taoiseach said, there are so many dividends for peace, and they've already been evidenced in Northern Ireland, but there's more to come. Yet it will take the leaders of both communities working together, not only to continue the devolution, but as the Taoiseach said, then to make day-to-day governing a reality. And I'm confident that that is within reach.

Q. (Inaudible) INN radio news. (Inaudible) about 20—25 years on from one of the biggest outflows of immigrants from this country to this United States, I think about 50,000 or so undocumented in the United States, and they've reached the stage where (inaudible) they can't came home for funerals and so on. Can I ask you, what is the current status of the Irish lobbying of the United States Government in dealing, first of all, with the un-document— there's no documented (inaudible) immigrants of the future?

Minister Cowen. I think it's important to point out that we continue to engage with the Hill, Congress, with the Administration and (inaudible) to this matter. This is a very difficult and sensitive issue and (inaudible) within the United States itself, and we respect and understand that. So therefore, the Irish issue must be dealt with that broader context. And we are, of course, in constant contact through our ambassador and through our staff, that in the United States and New York and Boston and Chicago as well as in Washington, D.C., San Francisco and other parts of the United States, with those groups who are seeking to find a solution here. But that's is something, as I said, that we need to work on. It is a priority for our government. But it is something that we have to address in the context of the wider (inaudible).

Secretary Clinton. Well, I can attest that the lobbying is very effective. It is well organized. As a senator from New York, I was deeply involved in the comprehensive immigration reform on behalf of so many—but I must say that the lobby for immigration reform from the Irish community was always persistent and usually a good time as well as all of the serious work. I can't think of a rally I went to that there wasn't a lot of singing as well as speechmaking.

But the Taoiseach is right. I mean, this is an issue that we have to deal with in the overall need for comprehensive immigration reform, which we are hoping to do. The President has made that very clear.

Q. Hi. Janine Zacharia from Bloomberg News. Taoiseach, Ireland has taken two detainees from Guantanamo Bay, how is the resettlement going? And do you believe European colleagues should assist President Obama with the closure of the facility by taking some of those detainees?

Madame Secretary, the United States faces problems in finding places, especially for a hundred Yemenis at the facility. The Saudis are not willing to accept them. What is the status of those negotiations? Thank you.

Minister Cowen. Yes, well, obviously our government has indicated, as I did, when I met President Obama on St. Patrick's Day, we are obviously prepared to take some of the detainees as agreed and we are proceeding with that. We've had some experience in this area before with respect to the Palestinian personnel on a number of occasions. So our government is capable of arranging (inaudible) takes place. (Inaudible) being pursued (inaudible). We're happy to do so in an effort to assist a friend in dealing with an issue which we very much welcome the fact that the present administration (inaudible) in this area is to close Guantanamo in due course.

Secretary Clinton. And we're very grateful to Taoiseach, to the government and to the people of Ireland for accepting the detainees. Obviously, we have worked closely with the Irish Government to effectuate this transfer. And we're not only appreciative, but quite admiring of the approach that this government has taken. We are working every day to find placements for those detainees who can be appropriately transferred, as the two coming here have been, but we are also well aware that it will be difficult with certain populations. And we're looking at a variety of options. There are three categories of detainees. There are those who are going to be tried for crimes that we believe they've committed and we believe that we can put the evidence forward without, in any way, endangering national security or sources and methods of intelligence.

We also believe that there are some who cannot be tried and cannot be freed, and we are seeking a different placement for them. You know the debate back home about where they will go, under what circumstances. And then there are those who we believe can be appropriately and safely transferred, and we've been very pleased at the response that we've gotten from around the world. And we're going to continue to work out that important task.

Minister Cowen. Thank you very much.

Secretary Hillary Clinton delivered this address to a Full Session of Northern Ireland Assembly in Belfast, Northern Ireland, United Kingdom

Secretary Clinton. Thank you very much, Mr. Speaker, for your very warm welcome. But, indeed, it is I who is honored today to be here in this assembly, in this beautiful land that represents so much, not only to my country, but indeed, to the world, a place where bullets have been traded for ballots, where ancient hatreds have yielded to new hopes, and the promise of a lasting peace has given people permission, after years of uncertainty and despair, not just to dream again of a better future for yourselves and your children, but to act on those dreams.

So, let me first pay tribute to leadership of Peter Robinson and Martin McGuinness, your first minister and your deputy first minister, and also to the other party leaders, Mark Durkan and Reg Empey, David Ford, Dawn Purvis, and Gerry Adams. Thank you for all that you are doing.

And I am told, as well, that here we have two other men who have instrumental in the history of Northern Ireland, Dr. Ian Paisley and John Hume. And I welcome and thank them for what they have done, as well.

We meet at an important time in the history of Northern Ireland. In the 11 years since the Good Friday Agreement was signed, you have traveled a long way together on the road to peace. Groups have laid down their weapons. Empty streets are now bustling with activity. And here, in this chamber, men and women who were once sworn enemies work side by side to secure the achievements of recent years, and to deliver a stable, prosperous future for the people you represent.

These accomplishments are remarkable, and a credit to you and to all those who have worked for peace, not only the leaders here at Stormont, but also Westminster and Leinster House. But most importantly, to the thousands of ordinary citizens, mothers and fathers, whose determination to end the Troubles made them fervent activists for peace.

At this time, we can recognize you have traveled a great distance. But you do not need me to tell you that your journey is not yet over. The promise of the Good Friday Agreement and the St. Andrews Agreement is not yet fully realized. And Northern Ireland is now facing a new challenge with the global economic downturn, which threatens some of the gains that you have made in the past decade.

The value of peace is not only the absence of violence. It is also the presence of new opportunities for investment and jobs, for education and health care, and political participation.

So it is critical, in this moment of economic turmoil, to protect the progress you have already achieved, and to build upon it, to ensure that your people continue to enjoy the rewards of peace, and to embrace it for the long term.

Since this assembly was restored two-and-a-half years ago, this devolution has enabled you to work together to enact sensible, necessary reforms on everything from health to housing to environmental safety. No one ever said it was going to be easy. Of course it is difficult. It is the nature of democracy. It is not easy in any legislature, as I know from experience, under the best of circumstances. But in these circumstances, the work you have done is all the more extraordinary.

So, please know that the Obama administration and the United States is committed to helping you finish your journey to put far behind you the long years of division and conflict, to build confidence and trust across all communities and political parties, and to honor the hopes and sacrifices of your people by making whole and permanent Northern Ireland's emerging peace.

Now, we know what it means to be supportive. And we also know what it means to meddle.

And I want to be clear that when it comes to the important issue of devolution, of policing and justice, that is a decision for this assembly to make. But as a true friend—and I thank the Speaker for his kind comments—my hope is that you will achieve what you have set out to do, to complete the process of devolution. And I am confident that, together, you can go forward and harness the exciting, human, and economic potential that Northern Ireland has to offer.

I know there has been considerable effort in recent weeks to address concerns, and work toward a resolution during this important period. There have been many moments in Northern Ireland's peace journey when progress seemed difficult, when every route forward was blocked, and there seemed to be nowhere to go. But you have always found a way to do what you believed was right for the people of Northern Ireland. As Scripture urges us, “Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up.”

And today, Northern Ireland stands as an example to the world of how even the staunchest adversaries can overcome differences to work together for the common and greater good. So, I encourage you to move forward now with that same spirit of unstoppable grit and resolve. And I pledge that the United States will be behind you all the way, as you work toward peace and stability that lasts.

In recent months, more paramilitary groups have made the decision to decommission their weapons—a necessary act that is critical for peace. But the killings this March, of Police Constable Stephen Carroll and soldiers Mark Quinsey and Patrick Azimkar remind us that there are still those looking to seize any opportunity to undermine the process, and to destabilize this government.

Now they are watching this assembly for signs of uncertainty or internal agreement. They want to derail your confidence. And though they are small in number, their thuggish tactics and destructive ambitions threaten the security of every family in Northern Ireland. Moving ahead together with the process will leave them stranded on the wrong side of history.

Of course, the best guard against those bent on dragging Northern Ireland back to the past is not an edict from the top, but the day-to-day faith and fortitude of the people of Northern Ireland.

In the days after the killings, the world watched and prayed that a new period of violence would not erupt. In fact, the murders had the opposite effect. Ordinary people, Catholics and Protestants alike, marched together in vigils, attended interfaith services, and declared with one voice their refusal to go back to the old ways, and their insistence on looking to a brighter future. The killings could have been the start of a backward slide. Instead, they proved to the world and to each of you how far you have come.

I know the divisions within Northern Ireland are not fully healed. Even today, many Catholics and Protestants live segregated lives: separate schools, separate neighborhoods, some still divided by walls. But given time, and given the leadership that each of you can provide, the torn fabric of society will be woven together, stitch by stitch, choice by choice.

The people of Northern Ireland have given this assembly a powerful mandate. And you, in turn, have accepted the responsibility to summon the highest qualities of leadership, and to repay the faith that the people have vested in you with lasting results. That means not just completing devolution, but using your authority wisely, as you have been, to build a thriving society, where people can live free from fear, where parents can raise healthy families, where ever child can receive a high-quality education, and all people, no matter their religion or their political beliefs, have the chance to make the most of their God-given potential.

We have already seen, firsthand, how peace helps promote economic growth and opportunity. After the Good Friday Agreement, Northern Ireland's economy took off: unemployment fell, house prices rose, new businesses flourished. International investment increased, as well. Since the cease fires of the 1990s, the number of U.S. companies in Northern Ireland has increased by 150 percent. And U.S. investment alone has increased employment by creating 20,000 jobs here since 1994. Now, our businesses have long been interested in investing, but it was your commitment to peace that finally made it possible.

Across the world, as the Speaker referenced, Northern Ireland is seen as a model of how resolving conflict can lead to genuine progress, and material improvement in people's lives. So, in the face of the economic downturn, it is essential to protect and strengthen the progress you have made by enacting smart reforms, investing in your people in health and education and job training services, encouraging entre-preneurship, and continuing to attract foreign investment.

Here again, your commitment to a permanent peace based on the principles and agreements you've adopted must be unequivocal and unwavering. Northern Ireland's success in the competitive global economy depends on investors believing that you will do all you can to maintain political stability and public safety, just as your success in keeping the trust of your people relies on your ability to prove that peace leads to meaningful improvements in their lives.

Peace and economic progress should go hand in hand.

The United States will continue to strongly support your efforts to provide greater opportunities. We intend to increase our economic engagement. Later today, our new economic envoy, Declan Kelly, and I will meet with business leaders from the United States and Northern Ireland, who have agreed to increase business-to-business collaboration between our people.

Establishing a last peace, building a strong economy, creating the conditions for a healthy, flourishing society, none of this is easy. And the work is never done. Indeed, none of these goals are final destinations. You have to keep working at them day by day. That certainly is a lesson we have learned over the 230 years in our own country. And we keep relearning them all of the time. We, too, have struggled to achieve unity.

But my country has long felt a special connection with Northern Ireland. Many Americans, as you know so well, have ancestral ties to this land. They have family and friends who still live here. So, helping to bring peace is a point of national pride. And, for many of us, it also has great personal meaning.

For me, this is very personal. My husband and I came here in 1995. Bill was deeply invested in forging the Good Friday Agreement before, and in the years since. I came here as First Lady, and then as a senator from New York. And I joined with every American in celebrating of the signing of the St. Andrews Agreement. And, by the way, every [time] I was in the Senate, I had an intern from Northern Ireland, and one of whom came back and ran for office herself.

So, over the years, Bill and I have had the privilege of meeting many of you. And I learned that peace is not only made in the halls of government, but at kitchen tables, and in local pubs, and school yards, workplaces, and in the hearts of people in every neighborhood.

Changing hearts is the hardest work of all. It is hard for an individual, harder still for a community, where every loss or injustice, pain or resentment is magnified. But leaders like all of you are elected to offer a choice between allegiance to a past that cannot be changed, and commitment to a different future that you shape.

When Bill and I first came to Belfast, we stayed at the Europa Hotel, as I have again this time, even though then there were sections boarded up because of damage from bombs. We went to City Hall, as I will later today, for the lighting of the Christmas tree. There were people stretched in all directions, as far as I could see: mothers clutching babies, fathers with children on their shoulders, all with upraised faces. I have carried that image in my mind over the last 14 years. I have wondered about the children whose lives were changed, and maybe even saved, because many of you took risks for peace.

This peace is yours. People in this hall have the power to secure and sustain it for generations to come. I pray that you succeed. And I pledge that we will stand with you as you do the hard work of building a future of peace and prosperity for people who so richly deserve it.

May God bless you and sustain you in this important work. Thank you all very much.

Secretary Hillary Clinton delivered these remarks at The Queen's University Belfast, Northern Ireland, United Kingdom

Secretary Clinton. Thank you. Thank you very much, Vice Chancellor Peter Gregson. It is such a delight for me to be back here at Queen's University Belfast and to have this opportunity to spend some time talking about the future of Northern Ireland and the potential for the prosperity that is so well-deserved for all of those who have labored along.

I want to thank everyone assembled behind me, most particularly Minister Arlene Foster, Minister Reg Empey, our Ambassador Lou Susman, our Consul General Kamala Lakhdhir. This has been a very successful event, and not so long ago this discussion would not have been as likely as it is today. But today, the situation in Northern Ireland, the peace that has been achieved, is translating into greater opportunities for companies and workers on both sides of the Atlantic. It has been very encouraging to hear the positive and optimistic outlook of business leaders from the United States and Northern Ireland who are meeting to address bilateral trade and investment.

And I'm pleased to have been accompanied by more than a dozen American businessmen and women who have pledged to work with a business delegation from Northern Ireland and with our Special Economic Envoy Declan Kelly to foster even more business activity between us. They will be meeting regularly. They will help Declan develop strategies that can be pursued that will be mutually beneficial and will contribute to the recovery of the global economy.

In the past 18 months, Northern Ireland's economy has proven sturdier than many others. The people of Northern Ireland have remained competitive, in part because of their skills and their education and their work ethic. This has been particularly true in financial services, health systems, information and communications technology. Even during the economic downturn, there's been more than $1 billion of inward investment by 40 companies in Belfast and beyond, and several leading American companies have demonstrated their confidence in Northern Ireland by making significant investments in recent years.

Today, NaviNet, a leading U.S. healthcare communications network based in Boston, is announcing plans for a software research and design center in Belfast. Later this month, the Irish Technology Leadership Group will host a forum in Belfast with leading technology firms from Silicon Valley to promote greater trade and cooperation.

We can also be encouraged by recent news that the Titanic Signature Building, the centerpiece of the Titanic Signature Project, will move ahead—full speed ahead, navigating carefully. This is one of the largest real estate projects in Northern Ireland, another reflection of the tangible economic progress underway.

Now, these efforts to promote greater partnership are win-win. We often talk about the investment in Northern Ireland, but there's also been thousands of jobs created in the United States because of Northern Ireland-led investments. And that greater prosperity, that sense of economic security, will enhance and make more durable the peace that Northern Ireland has worked so hard to achieve.

The opportunities that we discussed today and that were discussed in greater detail at a dinner amongst everyone last night would not have been possible without the heroic and courageous efforts of many leaders in government, the private sector, and in the communities at the grassroots who have steadfastly pushed this land and one another along the path to peace.

The vitality and dynamism of the business sector in Northern Ireland represents a great opportunity, first and foremost for the people themselves. But it also sends a strong signal far beyond Belfast or the shores of Northern Ireland. It sends a signal that there is a path toward peace, there is a way forward despite the difficulties, there is the potential for prosperity to accompany and to help catalyze peace, and vice versa.

So we are looking forward to the work of this distinguished group, and I am very grateful for the opportunity that I have had to play a small role in encouraging the extraordinary progress that I have witnessed with my own eyes over the last 14 years. So again, thanks to all of you in government and in business and in academia and every other sector of society in Northern Ireland for making such a commitment and seeing it through, and then realizing the benefits that flow because of that. Thank you all very much.

Vice Chancellor Gregson. The Secretary will take a few questions. The first question is to Mark Davenport, BBC Northern Ireland.

Q. Thank you very much. Welcome to Belfast, Madame Secretary. First of all on the key question of devolution of justice, you met with key players today. How do you think they might be prepared to make a decisive move forward?

And also given your role at the State Department, can I ask you about (inaudible) Northern Ireland (inaudible) international aspect. You may know that some victims of IRA violence here have been lobbying Libya for compensation. Do you think they should get parity of treatment with those U.S. citizens who've already managed to secure compensation over the (inaudible) of the airliner (inaudible) Lockerbie's government?

Secretary Clinton. Well, Mark, as to the first question, this is clearly a decision that is up to the leaders of Northern Ireland and to the people of Northern Ireland. Obviously, this is not just a decision for leaders to make; it is a decision for people to address and speak out about and decide among themselves.

I think as was clear from my remarks this morning, this remarkable journey that Northern Ireland has been on is not yet complete. But ultimately, the decisions about moving forward rest with those who live here day by day and bear responsibility for making them. But I am encouraged, and certainly, as a friend, would hope to see the progress that has come so far make it possible for even greater positive consequences for the people here and even greater responsibility by the people here for charting their own course.

With respect to your second question, I think that—I grieve for the victims of any violence. I've had the honor over the last years to meet with many victims, to meet with the loved ones of those who were killed, to hear the stories of loss and pain that are not confined to any one community or any one neighborhood. And one of the great accomplishments is that so many of those stories and the pain that they bear are part of the past, not the future. But they are also clearly losses that have to be respected, recognized, and honored.

I do not have an opinion about the question you asked specifically, but I think it is important, as we find in any conflict situation, as we move forward to make a better future for the next generation, not to forget the price that was paid by those in the past, and to do what we can to make sure that their loss, their injury, is not forgotten, but that it is honored as we make the tough decisions and take the risks to try to create conditions where no one else will have to face that kind of pain.

Vice Chancellor Gregson. Next question, Mark Landler, New York Times.

Q. Madame Secretary, you alluded in your speech to a couple of difficult moments along the path—the shooting of the security officers, the debate over devolution. Are either of these an impediment to American businesses investing in Northern Ireland? What incentives beyond moral support, which you've noted is important, is the U.S. Government giving to businesses to encourage them to invest here versus anywhere else?

Secretary Clinton. Well, first, Mark, with respect to investment and economic growth and prosperity in Northern Ireland, I think it goes hand in hand. The announcement of the ceasefires in the 1990s sparked a great deal of interest in the United States and elsewhere in, for the first time, looking seriously at Northern Ireland as a place to invest in and do business in. And because the results for many businesses were positive, the word spread. And because the political leadership kept moving forward, the conditions solidified. So for me, it's a hand-in-hand kind of analysis, and I'm very optimistic about both the political and the economic future of Northern Ireland.

I think too that the United States Government has had a commitment to the peace and prosperity of Northern Ireland now through three administrations—two Democratic, one Republican. One of the two agreements, the Good Friday Agreement, happened when my husband was president. The second agreement, the St. Andrew Agreement, happened when George Bush was president. So the United States sees it in our interest, and it's not just a matter of personal connections, family, heritage, ancestry, and the like. We see it in our national interest to support those who take risks for peace, whoever and wherever they are. The world needs more people who are willing to step out and do the hard work of negotiating, of hearing the other side, of being able to get out of one's comfort zone to recognize what it takes to bring people together, to compromise a little to get so much more.

So we have often said that we support the Northern Ireland process on its merits because of our concern and our commitment to doing so, but we also see it as a story that needs to be told more broadly. And as I mentioned in my speech this morning, I have talked about it in many places throughout the world where conflict still causes the pain and suffering that, unfortunately, we see. And so the United States, in addition to helping to be a convener and a supporter of the decisions that the people themselves must make, we'll do things like appoint a special economic envoy, we'll facilitate the kind of participation in groups that we see behind us, because we believe that it's a very important process with outcomes that have already proven the value of this kind of engagement.

Vice Chancellor Gregson. And the final question for Ken Reid, Ulster Television.

Q. Madame Secretary, again welcome to (inaudible).

Secretary Clinton. Thank you.

Q. Considering the economic problems in your own country, will your interest in Northern Ireland continue, and more specifically (inaudible) other trouble spots in the world?

Secretary Clinton. Well, certainly my interest will continue, as will that of the Obama Administration, for the reasons that I have already referenced. But you see, we do see the economic prosperity as a two-way street. I have forgotten how many thousands of jobs have been created by Northern Ireland investment in the United States. That would not be possible if the economy and the conditions for investment in a stable, peaceful Northern Ireland were not present. So we have Americans working today because of both political and economic decisions that were made in Northern Ireland. And of course, the contrary is true as well with all of the investments that are coming this way.

We also believe that the interdependent, interconnected global economy that we have witnessed firsthand with the economic recession requires that we think carefully about where we do make investments. And a place like Northern Ireland, with the work ethic, with the educational attainment, with the support of the government, is a particularly attractive environment so long as conditions remain positive. But it's also a place where we have a lot of common values and shared interests, where we feel very comfortable doing business, and where people from Northern Ireland feel comfortable doing business. We think that's a win-win.

And certainly, the purpose I have in being here today is to meet with my counterparts in government, meet with these business leaders, and to reaffirm the commitment that I myself have and that this Administration and President Obama have to the people of Northern Ireland. If there were ever any doubts, I hope it's been put to rest, because as I said earlier, we will stand with you, we will make this journey with you, we will support you as you make the tough decisions that only you can make, because we believe the payoff for you is so considerable, but we also believe it's in our interest for this to occur and it is a story to tell the rest of the world when the world desperately needs to know there is an alternative. And if you don't believe it, come to Northern Ireland.

Thank you all very much.

President Barack Obama and President José Luis Rodríguez Zapatero delivered these remarks in Washington, DC

President Obama. Well, let me first of all say welcome to Prime Minister Zapatero and his delegation. The United States and Spain are NATO allies and our countries have a relationship that dates back centuries. So on behalf of the American people I want to welcome you and deliver a strong message of friendship.

Spain and the United States are working together on some of the most difficult security issues that we face in the world. And during the course of our lunch we discussed the situation in Afghanistan, and I thanked Prime Minister Zapatero for the partnership with Spanish forces in helping to bring security and stability to Afghanistan and to help train Afghans so that they can provide for their own security.

We discussed the Middle East, where the Prime Minister will be traveling after his visit to Washington. And we both agreed that the time is right for a resumption of negotiations between the Palestinians and the Israelis in order to create two states that are living side by side in peace and security.

We discussed the issue of Iran, specifically, and nuclear proliferation more generally. And we pledged cooperation in trying to encourage Iran to take a path that allows for peaceful nuclear energy, but also rejects a path of nuclear weapons that could lead to a arms race in the region.

And I congratulated Prime Minister Zapatero on his assumption in 2010 of the E.U. presidency and pledged that the United States is going to be working closely with the E.U. on a whole range of issues—from counterterrorism to Kosovo to dealing with improving relations with Russia—even as we continue to move forward on further integration in Europe.

Finally, we discussed the economy and noted that obviously the United States and Spain are both working diligently to put our people back to work and recover from what has been the worst recession in decades.

We noted that Spain is the third largest investor in the United States this past quarter, and the United States is the largest investor in Spain. And so we have enormous commercial ties between our two countries and we pledged to work diligently to strengthen them, particularly around key issues like renewable energy and transportation, where Spain has been a worldwide leader and the United States I think has enormous potential to move forward.

So in conclusion I want to thank you for taking the time to be here. And I am absolutely confident that your government and ours will continue to strengthen our relationship in the years to come, and that with Spain's leadership in Europe and around the world that we can make enormous progress together that serves both the Spanish people well, as well as the American people. So thank you so much.

President Zapatero. Thank you. Thank you very much. Well, this is the first day of our work together and I would very much like to thank President Obama for his hospitality and join him in his words—when President Obama said that Spain and the United States have a great possibility for developing our relations and our common work in the economy and in all these different fields, in security, so much we can do together.

In addition, the Spanish people are most satisfied about this very positive relationship and the good atmosphere between our two countries. We've always looked with great attention and appreciation, the political developments and evolution of North America, ever since the founding fathers up to the present time. There we have always seen great lessons for history and democracy.

There are two major fields, two great fields that have occupied most of our time in our workday today, that's the economy and security. We are, as regards the economy, coming out of a very difficult economic crisis and we have to do so in a way that is more rational and more sustainable. And a more sustainable growth in which we attach much more importance to innovation and not greed; in which the new technologies, the new energy, the biotechnology occupy an essential and pivotal role.

In addition, Spain and the United States have a very intense economic relationship. Great American companies have invested and created employment in Spain. And we have shared the technology and therefore we hope that in the future we'll continue to bear witness to the investment of American companies also in Spain.

And today Spanish companies are also investing in the United States. They're leaders in renewable energy and high speed and also in the biotech industry. And my wish is that in this coming out of the crisis that we're working on that there may be more American companies investing in Spain, creating employment and that also the reverse, that we may continue in Spain, also in the United States, so that we can do this together (inaudible).

We are going to be working in order for there to be a forum on bilateral investments so that it may be celebrated; also on economic cooperation, something to be done by our two governments, together with the great companies that are working bilaterally in our two countries, American and Spanish, in America and Spain respectively.

And now allow me to talk about world security. I fully respect President Obama's peace efforts for the international world order. And I especially support him in his call for the reduction of nuclear weapons. And we will be cooperating for the conference in April on the reduction of nuclear weapons from our position as presidency of the European Union at the beginning of next year.

We've spoken in depth about the Middle East, and we agree that there is a moment of opportunity for us right now. And the key to the peace in the Middle East— sorry, the peace in the Middle East is the key to settling problems with security, with peace, in other parts of the world. And we've agreed to strengthen the actions of the United States and the European Union in the Middle East.

Our engagement in Afghanistan is firm, is solid. And we're guaranteeing the stability, the security, reducing radicalism and Taliban is essential in order to make it possible for their people to have a future. And we will continue working together in our cooperation in Afghanistan with our training in security matters and also with economic support.

Iran has to respect the rules of the international community. And we certainly wish and hope and trust that this small window in the reduction of nuclear weapons may consolidate and strengthen. But there will always be a demanding and firm stance on behalf of both the European Union and the United States.

And finally, we've also talked about Latin America, about cooperation there, about this continent that is so close to us both and so essential in terms of its stability and its prosperity. And also, we've committed to a new transatlantic agenda of the United States and the European Union to work together in counterterrorism, and also to improve security worldwide; in addition, also, to increase our scientific cooperation.

Thank you very much, President Obama. As you see, we've had a very intensive working session, but I certainly think that it has been most productive both for the United States and Spain and for the two countries jointly.

Vice President Joe Biden delivered these remarks in Bucharest, Romania

Vice President Biden. Thank you, Mr. Ambassador. Director, Mr. Mayor, former Presidents who I've had the honor to meet in the past, it's good to be back in Romania. And, Mr. Mayor, as we say in America, thank you for the passport to come into your city. I appreciate it very much. What a magnificent forum, what a magnificent forum. And I say to all the students, thank you. I'm honored that you are here.

Ladies and gentlemen, it's an honor to be back in Romania. This is not my first trip, nor God-willing, will it be my last. And it's great to be back in Central Europe to help mark an extraordinary season of change. Twenty years ago, the world watched in awe and admiration as the men and women throughout this region broke the shackles of oppression and emerged a free people.

It's literally hard to imagine that this beautiful library was the scene of such heavy fighting in 1989. I was reviewing pictures of what it looked like with tanks stationed outside. Ladies and gentlemen, when the firing stopped and the smoke cleared, the façade of this building was scarred by shells and bullets. Five hundred thousand books were burned, part of your history and your legacy. And just blocks away, in University Square, some of freedom's young defenders were struck down. But their courage and conviction prevailed, and I hope and know set an example to all of you who followed.

When the Iron Curtain was lifted, the wall fell in Berlin, in their places grew democracy, a democracy that you've deserved for a long time. Across Europe, a new sense of possibility took hold, galvanizing the region, uplifting a continent, and literally inspiring the world. The story of freedom—your story—is one of the greatest achievements in modern history. And it's important that we celebrate that remarkable—that remarkable moment. It's also important that we remember how far Central Europe has come in the last 20 years.

We Americans are incredibly proud to have been your partners in the peaceful reunification of Europe. As President Obama said on the eve of NATO Summit last spring, and I quote him, “This shared history gives us hope—but it must not give us rest. This generation cannot stand still.” We cannot stand still because we now face another season of change, another season of challenge—an economic crisis that has hurt too many people and eroded their confidence, a war in Afghanistan now in its eighth year, and new forces shaping this young century. Those new forces, among other things, include the spread of weapons of mass destruction and dangerous disease; the expanding chasm between the rich and poor; ethnic animosities and failed states; a rapidly warming planet and an uncertain supply of energy, food, water; the challenge to freedom and security posed by radical fundamentalism.

I come here today with a straightforward, simple message: The United States and Europe, a Europe whole and united, will meet these challenges together, for that's the only way they can be met. No amount of idle talk, no distortion of the facts, can chip away at this unassailable truth: The United States of America remains committed to our alliance with Europe, which we Americans believe, and continue to believe, is the cornerstone of American foreign policy, as it has been, for the last 60 years. We are all the more committed, because our European partners have grown broader and stronger. We, the United States, cannot succeed without you. And if you will forgive my presumption, I do not believe you can fully succeed without us.

I know that some in Central Europe look at the problems and responsibilities the United States has assumed around the world, and conclude that we have no longer focused—we no longer are focused on this region of the world. In fact, it's precisely because of our global responsibilities and your growing and capacity and willingness to meet them with us that we value our partnership with Central Europe and Europe now more than we ever had. It's quite to the contrary.

Together, we have responsibilities to shoulder, and we have promises to keep. Those responsibilities are larger now, and the promises more significant. We see Central Europeans rising to this moment, heeding the call to leadership of major regional and international institutions. Twenty years ago, imagine the Presidency of the European Parliament, head of UNESCO, Chair of the Council in Europe, Justices on the European Court of Justice, Commissioners in the European Commission. The time for Central Europe has come. You have shown yourselves ready for our common challenges, willing to tackle them, and able to overcome them. That's why in America, we no longer think in terms of what we can do for Central Europe, but rather in terms of what we can do with Central Europe.

First and foremost, we are bound together by shared values, and a common commitment to protect those values, whenever and wherever they are challenged. NATO is the bedrock of that commitment. One of the high points of my career was leading the effort as a United States Senator to expand NATO to Central Europe. As a matter of fact, Mr. President, you'll remember, I suggested that Romania should be in the first tranche. I was the one who fought until the very end to see it included in the first tranche. Thank you for making me look so prescient, you've done so well.

As President Obama has said, there are no old members, there are no new members of NATO; there are just members. Under Article 5, an attack on one is an attack against all. Our countries are bound together by America's dedication to European security—and by Europe's dedication to America's security, which you demonstrated quickly and powerfully in the wake of 9/11, the first time Article 5 was invoked, without us asking.

Today, we carry heavy responsibilities—we, all of us. Our sons and daughters, like my son, are serving side by side in Afghanistan, in Iraq, and in the Balkans. For this—for the courage of our friends and for their losses—the American people are grateful.

Our alliance was built around consultation and collaboration for collective defense. That's what it is about. But faced with new threats, we need a new vision on how to meet them, and new capabilities to succeed.

That's why the decision to develop what we call a new strategic concept for NATO is so very important—and that's why it is so vital that Central European voices make themselves heard in this process.

One powerful example of how this can work is our partnership on—our new approach to missile defense.

In the 20th century, NATO successfully prepared to defend Allied territory against what was then a very real Soviet challenge on what we all used to call the “central front” that divided Europe. Today, a new major threat is growing that could reach all of our European allies well before it reaches the United States. It comes from ballistic missiles—short-range and intermediate-range ballistic missiles—a technology that has spread to many new countries, and less stable countries, since the end of the Cold War. This technology, coupled with the spread of nuclear know-how, poses a great threat to all of us.

And we are determined—we are determined to ensure that our NATO allies have the protection they need when they need it, because that's our solemn obligation under Article 5. Taking into account how the threat has evolved, and how our technology has improved significantly, the United States believes there is a better way to defend against ballistic missiles than the approach we had been pursuing up until several years ago.

This phased adaptive approach the United States is proposing, it has adapted its design to meet the growing threat to Europe, with a proven technology that will cover more of Europe—including Central Europe—more effectively than the previous approach.

It meets the missile threats of today, and allows us to improve our defenses against that threat well into the future. Its flexibility will enable us to adapt if the threat changes. Its very existence will deter those who might think about coercing or attacking our forces, or our allies in Europe—and it will defend them, our friends in Europe, against that threat should deterrence fail. Simply put, our missile defense plan means greater security for Europe, and greater security for America.

Some—maybe even understandably— jump to the conclusion that this new missile defense approach was meant to appease Russia at the expense of Central Europe. Nothing could be further from the truth. That is absolutely wrong. Missile defense is not about Russia. Our approach is driven by security requirements of the United States and our NATO allies, period. Period.

What is true is that we are working to strengthen our relationship with Russia. We believe that a more constructive relationship with Russia will benefit all. But we're not naïve. The truth is we share some common interests: cutting the arsenals of nuclear weapons; securing vulnerable nuclear materials; stabilizing Afghanistan; preventing Iran from acquiring nuclear weapons.

And we also continue to have disagreements with Russia on matters of basic principle. In February, in Munich, Germany, in the very first major foreign policy speech of our administration, I enunciated our administration's outline for foreign policy, and I made clear our core principles. The United States stands against the 19th century notion of “spheres of influence.” We will not tolerate it, nor will we be co-opted by it.

We stand for the right of sovereign democracies to make their own decisions, to choose their own alliances, without the right of any country to veto those decisions. We will never make a deal about anything with anyone above your heads or behind your backs. The maxim we live by is clear: nothing about you without you, nothing about you without you. And I would argue, look at our track record, look at our track record.

We've all learned over the past two years that as the globe around us shrinks, the bonds between us grow. We are partners in today's global economy. That's why we worked with our European partners—the IMF and the World Bank—to make sure international support for your economies was there when you needed it most.

That's why it's heartening to see how many of you have successfully braved this worldwide recession and put your nations on the road to recovery. And working together, we can all learn lessons from this crisis that will help us lay the foundation for a renewed century of growth and to rebuild prosperity.

One lesson we need to work together toward is a more secure energy future. We need sustainable energy security that includes diversification of supplies and transit routes, smart investments to deal with climate change. The connections between European countries should exist not just through European countries. Here, in this region—by history, geography and necessity—the countries of Central Europe are well placed to lead all of Europe.

Ladies and gentlemen, finally, let me say a word about leadership in an area that Central Europeans are uniquely qualified to provide—the advocacy of democracy. Americans, I believe, are rightly proud that people around the world occasionally look to our example, and look for our leadership. But the truth of the matter is you are the model for millions—not us, you—Romania and other Central European countries. The example you set 20 years ago inspired the world. The leadership you exert over the next 20 years can change that world, encouraging, supporting, and consolidating young democracies in Central and Eastern Europe.

In Eastern Europe, countries still struggle to fulfill the promise of a strong democracy, or a vibrant market economy. Who to look to better than you? Who to look to better than Central European countries that 20 years ago acted with such courage and resolve, and over the last 20 years, have made such sustainable progress? You can help guide Moldova, Georgia, Ukraine along the path of lasting stability and prosperity. It's your time to lead. Armenia, Azerbaijan, Belarus can benefit from your personal experiences. The E.U. Eastern Partnership Initiative is a good example of how you can energize the effort. And we will partner with you in working to fulfill the promise of 1989. But your leadership needs to be bold and your voices loud.

There's an old Romanian proverb: “The cheapest article is advice. The most valuable is a good example.” You are the “good example.” Twenty years ago, the people of Central Europe took the world history that they inherited, and willed it in a new direction toward greater freedom, justice, and fairness. The odds were stacked against you. We know from history that destroying old oppressive regimes is a great deal easier than building new flourishing democracies. But you've delivered on the promise of your revolution. You are now in the position to help others do the same.

Speaking to our Congress 20 winters ago, Vaclav Havel pointed to a special sense of empathy and imagination the people of Central Europe share. Years of subjugation, he said, “have given us, however unintentionally, something positive: a special capacity to look somewhat further than someone who has not undergone this bitter experience.” He went on to say: “A person who cannot move and live a normal life because he is pinned under a boulder has more time to think about hopes than someone who is not trapped in this way.” He was right.

Now you have the freedom to act on those hopes, and you are. And I believe together we can turn that hope that we shared into a history we can be proud of. This is the moment. You students, if we are smart, brave, and lucky will be able to tell your grandchildren you were present at the creation of a new Europe, a new security, a new era of peace, because you were bold enough to seize that moment. Be like those in ‘89. Be bold. Exercise your leadership. You have a history, and you have a tradition. You can make a gigantic difference. And we'll stand with you.

Ladies and gentlemen, thank you for listening. And may God bless America and all of our allies. And may God protect all of our troops who are in harm's way. Thank you very, very much. It's been an honor to be here.

Readout of the President's meeting with the Ecumenical Patriarch

President Obama warmly welcomed the Ecumenical Patriarch to the White House this morning. The President reinforced our support for the mission of the Ecumenical Patriarch, a leader of global standing, and for the reopening of the Halki Seminary in Istanbul. He also took the opportunity to reiterate the U.S. commitment to confronting global climate change and to applaud the Ecumenical Patriarch for his work on global interfaith dialogue.

U.S.-EU Joint Declaration and Annexes

We, the leaders of the United States and the European Union, met in Washington to renew our global partnership, and to set a course for enhanced cooperation that will address bilateral, regional and global challenges based on our shared values of freedom, democracy, respect for international law, human rights and the rule of law. Our goal is to ensure a more prosperous, healthy and secure future for our 800 million citizens, and for the world. We will build upon our strong partnership and work together to strengthen multilateral cooperation. As the EU strengthens as a global actor, we welcome the opportunity to broaden our work together, particularly in the areas of freedom, security and justice.

The United States and European Union economies make up over half of global GDP, account for over one third of world trade and are the leading providers of development assistance. The direct impact of our economic policies on the global economy has never been more apparent than over the past year, making the imperative of collaboration even greater. We recognize the importance of expanding our cooperation on issues of global concern, notably climate change, development, energy, cyber security and health. We therefore agree:

*To promote an ambitious and comprehensive international climate change agreement in Copenhagen. Together, we will work towards an agreement that will set the world on a path of low-carbon growth and development, aspires to a global goal of a 50% reduction of global emissions by 2050, and reflects the respective mid-term mitigation efforts of all major economies, both developed and emerging. We recognize the scientific view that the increase in average global temperature ought not to exceed 2 degrees Celsius above pre-industrial levels, as stated by the Leaders of the Major Economies Forum on Energy and Climate. All contributions to the global mitigation effort should be robust, recognizing that their specific features will need to be designed in the light of science and our respective capabilities. In the context of an ambitious agreement in Copenhagen, we are prepared to work to mobilize substantial financial resources to support adaptation for the most vulnerable and to support enhanced mitigation actions of developing countries.

*To strengthen efforts to develop strong and well-functioning carbon markets, which are essential to maximize climate finance and to engage emerging and developing countries in ambitious emissions reduction actions. We will therefore work together to expand carbon markets as we design and implement our cap and trade systems.

*To follow up on our Pittsburgh Summit commitment to implement the G-20 Framework for Strong, Sustainable and Balanced Growth. We commit to remain vigilant to take actions to assure a strong recovery and to plan for cooperative and coordinated exit strategies to be implemented once recovery is ensured. We further commit to undertake financial regulatory reforms to improve the resilience of our financial system to prevent future financial crises, create a 21st century international economic architecture, and address pressing global challenges including energy security and climate, unemployment and decent work. We will

*continue to fulfill commitments from the Pittsburgh, London and Washington Summits, including the creation of more resilient financial regulatory structures with an enhanced and expanded scope of regulation and oversight.

*To fight protectionism together, as the world's largest economies. We will lead by example by respecting our G-20 commitments to refrain from raising or imposing new barriers to trade and investment. We are committed to supporting efforts by the WTO and other international institutions to monitor new trade barriers with a view to increasing transparency in global trade.

*To make determined efforts to seek in 2010 the conclusion of a Doha Development Agenda agreement. We affirm our commitment to reach an ambitious, comprehensive and balanced agreement, based on the progress already made, including with regard to modalities.

*To intensify our work under the Framework for Advancing Transatlantic Economic Integration and the Transatlantic Economic Council, including through the formation of a high-level innovation dialogue, strengthened regulatory cooperation in key sectors leading to reduced barriers to trade, investment and economic activity. We aim to reach a second-stage air transport agreement in 2010 which includes benefits for both sides.

*To re-launch our dialogue on development [ref Annex 1: Statement on Development Dialogue and Cooperation] with an initial emphasis on sustainable global food security, including investing development assistance through country-led plans and processes, donor coordination and multilateral institutions, as well as to guide our cooperation at policy level. We will also support climate change mitigation and adaptation and will work together in preparation for the Millennium Development Goals Review in 2010. We will also renew our efforts to improve the quality and effectiveness of aid in accordance with the Paris Declaration on Aid Effectiveness and its implementation agreement, the Accra Agenda for Action. We intend to hold the first meeting of this renewed dialogue at ministerial level as soon as possible after the Summit.

*To establish a Ministerial-level U.S.-EU Energy Council [ref Annex 2: The U.S. EU Energy Council] that will improve energy security and contribute to achieving our ambitious climate change goals. The Council will promote new and ongoing cooperation on energy security and markets, energy policy, energy technologies research, and the deployment of clean and sustainable energy technologies which we agree are critical to sustainable economic growth and development.

*To strengthen our cybersecurity dialogue to identify and prioritize areas where we can work together to help build a reliable, resilient, trustworthy digital infrastructure for the future.

*To establish a transatlantic task force on urgent antimicrobial resistance issues focused on appropriate therapeutic use of antimicrobial drugs in the medical and veterinary communities, prevention of both healthcare- and community-associated drug-resistant infections, and strategies for improving the pipeline of new antimicrobial drugs, which could be better addressed by intensified cooperation between us.

We welcome the joint statement adopted by our Justice and Home Affairs Ministers on 28 October 2009, in which we commit to enhancing our policy and operational cooperation on Justice and Home Affairs matters. Our partnership will benefit our people and address our common challenges of maintaining security and individual rights while facilitating travel, business and communication. We face common threats from those who seek to commit acts of terrorism and transnational crime, including the challenge of terrorist travel. With this in mind, we:

*Welcome the ratification of the U.S.-EU Extradition and Mutual Legal Assistance Agreements and look forward soon to their entry into force.

*Welcome the completion of the High Level Contact Group's work to foster mutual understanding and identify a core set of common principles that unite our approaches to protecting personal data while processing and exchanging information. We have important commonalities and a deeply rooted commitment to the protection of personal data and privacy albeit there are differences in our approaches. The negotiation of a binding international agreement should serve as a solid basis for our law enforcement authorities to enhance cooperation, while ensuring full protection for our citizens.

*Will develop our working relationship on mobility and security matters, including border, readmission and travel document security policies. We welcome the signature of the working arrangement between the U.S. Department of Homeland Security and the EU border security agency Frontex and we will work closely to implement it.

*We acknowledge the social and economic benefits to our citizens from visa-free travel in a secure environment between our two continents. We will work together to complete visa-free travel between the U.S. and EU as soon as possible and increase security for travelers.

Reaffirming the necessity of working together on important regional and international issues, we:

*Agree to a joint declaration on nonproliferation and disarmament [ref Annex 3: Declaration on Non-proliferation and Disarmament] highlighting the need to preserve and strengthen the relevant multilateral measures and in particular the Nuclear Non-proliferation Treaty, expressing support for the entry into force of the Comprehensive Test Ban Treaty, and calling for the start of negotiations on the Fissile Material Cut-Off Treaty in January 2010. The statement reiterates the necessity for Iran and the DPRK to fulfill their international nuclear obligations.

*Reiterate our commitment to seek a comprehensive, long-term and appropriate solution to the Iranian nuclear issue through dialogue and negotiation. This continues to be the objective of our dualtrack approach and implies that Iran must fulfill its international obligations on its nuclear program. Iran has rights, but it also has responsibilities. In addition, we express our deep concern about the current human rights situation in the country.

*Declare our determination to achieve a comprehensive and lasting peace in the Middle East, including a two-state solution with Israel and Palestine living side-by-side in peace and security. We are working to remove obstacles and create the context for a prompt resumption of negotiations between the parties.

*Renew our commitments in Afghanistan and the region to initiatives that will increase the capacity of the Afghan government to take responsibility for delivering better security, stability and development for the Afghan people. We welcome in this context the recently adopted Plan for Strengthening EU Action in Afghanistan and Pakistan. We look forward to working with the new Afghan administration and renewing efforts to promote good governance, respect for human rights, gender equality and democratic development. These could be supported at an international conference, possibly in Kabul. We support the strengthening of the assistance and coordination role of the United Nations Assistance Mission in Afghanistan (UNAMA). We welcome the conclusion of the electoral process, and we congratulate President Hamid Karzai on his reelection. We look forward to the formation of a new government, representing the will of the Afghan people. We encourage the new government to swiftly develop an agenda focused on the serious challenges facing Afghanistan.

*Commit to continue to work, including through the Friends of Democratic Pakistan, to assist Pakistan's efforts to promote socio-economic development and respect for human rights and democratic values, to combat violent extremism and to address that country's energy crisis. We will support rehabilitation and reconstruction in Malakand, and target assistance to Pakistan's border regions through the World Bank-administered Multi-Donor Trust Fund agreed by the Friends.

*Will support the countries of Eastern Europe and the Southern Caucasus as they fulfill their great promise by working with them to build strong democracies and prosperous economies. We undertake to strengthen coordination and build on the work of our bilateral initiatives and the European Union's Eastern Partnership as we work to strengthen these countries' ties to the EU and Euro-Atlantic institutions.

*Support the countries of Southeastern Europe as they advance on the path towards European and Euro-Atlantic integration and welcome progress made in implementing the necessary reforms, including in meeting the criteria set out in the visa liberalization roadmaps of the EU for the Western Balkan countries. We remain committed to the sovereignty and territorial integrity of Bosnia and Herzegovina; we are concerned about the current political situation and strongly urge its leaders to seize the opportunity afforded by the Butmir talks now to adopt the reforms needed to meet the conditions for an application of EU membership and conditions for the NATO Membership Action Plan. We remain committed to a stable, democratic, integrated and multiethnic Kosovo and commend the EU rule of Law Mission (EULEX) and KFOR for their role in promoting stability and the rule of law in Kosovo.

Annex 1

Statement on Development Dialogue and Cooperation

The United States and the European Union have agreed to reinvigorate our development dialogue and cooperation in order to improve the quality and effectiveness of our development assistance. In the face of growing challenges to efforts to achieve the Millennium Development Goals (MDGs), sustainable economic growth and poverty eradication, it is more important than ever for the U.S. and the EU, the leading providers of development assistance, to work together on some of the world's most pressing development issues.

We have therefore agreed to re-launch the High Level Consultative Group on Development and to hold annual meetings at ministerial level to advance and guide our cooperation at policy level as well as the achievement of results in the field. The High Level Consultative Group will convene as soon as possible following the Summit to identify and agree outputs under each of the three initial priority topics.

We want to intensify our development policy dialogue and increase cooperation in practical ways to achieve lasting results. In order to improve aid effectiveness, we will accelerate implementation of our commitments under the Paris Declaration and Accra Agenda for Action, with a strong focus on in-country implementation. We will focus our initial cooperative efforts on three common priorities: food security and agricultural development, climate change and the Millennium Development Goals.

Food Security & Agricultural Development: The initial focus of our joint efforts will be to improve global food security and revitalize agricultural development, with an initial focus on Africa. We will agree on a coordinated approach to identify and resource credible, country-owned food security plans through sustained commitments that advance the L'Aquila principles. In line with the Joint Statement on Food Security made by more than 25 countries and organizations at the July 2009 G-8 Summit in L'Aquila and the proposal from the UN Secretary-General and U.S. Secretary of State Clinton on September 26 in New York, and recognizing the importance of national, regional and global partnerships to advance the food security agenda, we agree to join our efforts and expertise in a Global Partnership for Agriculture, Food Security and Nutrition (GPAFSN). The immediate action is to organize key actors to work with host-country governments to support policy reforms, build public and private sector operational capacity, mobilize additional resources and align resources with country-based strategies. In the context of agricultural development in Africa, we will support country ownership in the framework of the Comprehensive African Agricultural Development Program (CAADP) and comparable consensus-building institutions. We will also work together to improve cooperation at regional and global levels in line with L'Aquila principles.

Climate Change: We will work to promote enhanced cooperation at the country level in developing countries of mutual interest to ensure effective and efficient actions to combat climate change. We will concentrate our efforts on the development aspects of climate change with particular focus on adaptation through an enhanced exchange of information on adaptation experiences and identifying opportunities for joint work in priority areas such as capacity building, financing of urgent adaptation needs, building on National Adaptation Plans of Action and other country-driven adaptation strategies and supporting the strategic integration of climate resilience in development policies. Furthermore, we will work together to assist developing countries to develop and implement effective low-carbon strategies and take ambitious actions to mitigate the effects of climate change, taking into account outcomes from the Fifteenth Conference of the Parties to the UN Framework Convention on Climate Change in Copenhagen.

Millennium Development Goals: Over the past nine years significant strides have been made towards most of the MDGs, especially the poverty goal, although progress has been uneven and Sub-Saharan Africa in particular is lagging behind. The economic and financial crisis is now not only threatening the achievement of the MDGs by 2015, but also risks undermining past progress. With only six years remaining before 2015, we recognize that a coordinated international effort is needed to assist developing countries accelerate progress towards the MDGs. Our initial focus will be to agree on a harmonized approach to the September 2010 UN High Level MDG Review. Alongside developing countries, we will focus our joint efforts on actions contributing to the achievement of the MDGs by 2015. On top of delivering on our official development assistance (ODA) commitments, we will concentrate on policy coherence for development and aid effectiveness as well as explore the potential of new innovative financing mechanisms, including new forms of voluntary contributions by citizens and corporations.

Annex 2

The U.S.-EU Energy Council

The United States and the European Union agree to establish the U.S.-EU Energy Council at ministers' level, in order to deepen the dialogue on strategic energy issues of mutual interest, foster cooperation on energy policies and further strengthen research collaboration on sustainable and clean energy technologies.

Members of the Council on the U.S. side are the Secretaries of State and of Energy, and on the EU side the Commissioners for External Relations, for Energy and for Science and Research, as well as the EU Presidency, assisted by the Secretary General/High Representative. It should meet annually, alternately in the U.S. and EU, and report to the U.S.-EU Summit. The Energy Council may decide to delegate preparatory work and follow-up to working groups at senior officials' level.

The Energy Council will study diversification of energy sources, such as through increased use of liquefied natural gas (LNG), solar power, wind power and bio-fuels, and the use of nuclear power. It will discuss how to effectively promote global energy security on the basis of transparent, stable and non-discriminatory global energy markets and diversified energy sources. Diverse supplies and sources, as well as enhanced energy efficiency and transparent markets, are the surest route to energy security. The Council will foster energy policy cooperation, bilaterally and with third countries, aimed at improving energy security, enhancing energy efficiency, and deepening research, development, demonstration and deployment of sustainable and clean energy technologies.

In particular, the Energy Council will:

*Support action to make energy markets stable, reliable and transparent, particularly in oil and gas and electricity supply.

*Promote the modernization of existing infrastructures wherever necessary and the diversification of energy routes and sources, including the Euro-Mediterranean Gas and Electricity Ring and a Southern Corridor to Europe, in order to achieve enhanced global energy security.

*Work towards increasing energy efficiency, study expansion of the Energy Star agreement.

*Promote strengthened power grids to facilitate the deployment of renewable and low carbon sources of energy.

*Promote security of transit and key energy infrastructures that could improve energy security at a regional and global level

*Continue to deepen ongoing joint work on new and renewable technologies, and reinforce cooperation in new areas, in particular on smart grids, energy efficient building technologies and new materials for energy applications.

*Deepen collaboration on nuclear energy, both fusion and fission on safety, geological waste disposal and plant lifetime management.

*Support sustainable development of biofuels and biomass.

*Cooperate to develop and demonstrate technologies for carbon capture and storage

*Strengthen cooperation on international energy policy, and consult on an ad hoc basis on approaches to bilateral energy relations with third countries; encourage energy efficiency and low-carbon energy use in developing countries.

*Examine ways to promote partnering between U.S. and European companies and investors in green and sustainable technologies.

Annex 3

Declaration on Non-proliferation and Disarmament

We express our full support for action in the field of non-proliferation, disarmament, and arms control, including through various treaties and other multilateral instruments.

We reaffirm our commitment to seeking a safer world for all and to creating the conditions for a world without nuclear weapons, in accordance with the goals of the Nuclear Non-Proliferation Treaty (NPT). We are convinced that intermediate steps on our path towards this objective can also represent significant increases in security for all.

We welcome the outcome of the UN Security Council Summit on nuclear non-proliferation and nuclear disarmament, express support for UN Security Council Resolution 1887, and recognize the role of the Council in addressing threats to international peace and security arising from non-compliance with non-proliferation obligations.

We are committed to preserve and strengthen the authority and integrity of the NPT. The NPT, based on its three mutually reinforcing pillars of non-proliferation, disarmament, and peaceful uses of nuclear energy, represents a unique and irreplaceable framework for maintaining and strengthening international peace, security, and stability. We will work actively for the successful outcome of the 2010 Review Conference. We welcome the proposals on all three pillars of the NPT presented by the EU, which can inform our efforts to develop a forward looking action plan at the Review Conference. We call upon all States that are not Parties to the NPT to accede as non-nuclear-weapon States to achieve universality. We will also work with regional states to advance the objectives of the 1995 Middle East Resolution.

We welcome the commitment of the United States and the Russian Federation to the further reduction and limitation of their strategic offensive arms and to concluding, at an early date, a new legally binding agreement to replace the current Strategic Arms Reduction Treaty (START).

We express our support for entry into force of the Comprehensive Nuclear-Test-Ban Treaty (CTBT) at an early date, and in the meantime continued observance of moratoria on nuclear test explosions. We call for the immediate start of negotiations of a Fissile Material Cut-off Treaty (FMCT), including verification provisions, when the Conference on Disarmament (CD) reconvenes in January 2010, on the basis of the consensus agreement on a program of work in the CD in May 2009. In the meantime, we call on all states concerned to declare and uphold an immediate moratorium on the production of fissile materials for nuclear weapons or other nuclear explosive devices.

We support UNSCR 1540, welcome its recent comprehensive review, and will continue our consultations to better coordinate third country assistance that promotes adherence to the obligations imposed by 1540 as we work together towards full implementation of the Resolution, including in such areas as export controls and regional centers to promote cooperative efforts. We call on all states to implement the measures included in the Resolution and urge all states and regional and international organizations to cooperate with the Committee established by that Resolution.

We express our full support for the International Atomic Energy Agency (IAEA) and its important work in the field of nuclear safeguards, nuclear safety, and nuclear security. We endorse the Additional Protocol and comprehensive safeguards as the standard for NPT verification. We will work to ensure that the IAEA has the resources and authority to carry out its essential mandate. We remain committed to ensuring responsible development of peaceful uses of nuclear energy, in the best safety, security, and non-proliferation conditions, by countries wishing to develop their capacities in this field. We encourage the work of the IAEA on multilateral approaches to the nuclear fuel cycle and appreciate ongoing initiatives in this regard. We also welcome research into technologies that will improve proliferation resistance in the nuclear fuel cycle. We also note with interest the initiative by France to convene an international conference on the peaceful uses of nuclear energy, in coordination with the IAEA.

We express our support for the convening of the April 2010 Nuclear Security Summit, recognizing that the unauthorized trade in and use of nuclear materials is an immediate and serious threat to global security. We look forward to concrete proposals to increase the security of vulnerable nuclear materials, which could include measures to effectively investigate and prosecute instances where material has been unlawfully diverted.

We remain fully committed to the fight against nuclear terrorism and support all measures designed to prevent terrorists from acquiring WMD, their means of delivery or related materials. We reiterate our support for the Global Initiative to Combat Nuclear Terrorism (GICNT) and the Proliferation Security Initiative (PSI). We will work together constructively on the possibilities for an expansion of the Global Partnership to new participants and new fields of cooperation and are ready to discuss the role the Global Partnership could play beyond 2012.

We recognize the importance of the IAEA Code of Conduct on the Safety and Security of Radioactive Sources and the associated Guidance on the Import and Export of Radioactive Sources in preventing a radiological attack and will work toward their global implementation.

We stress the importance of the full implementation of the provisions of the NPT. We emphasize that measures are needed to demonstrate that there will be real and immediate consequences for non-compliance with the Treaty or for abuse of its withdrawal provision, such as withdrawing while in violation of the Treaty. The proliferation of weapons of mass destruction and their means of delivery continues to represent a threat to international peace and security. The international non-proliferation regime faces major challenges. We are committed to continue to address them resolutely.

Iran's nuclear activities, in particular the recent revelation of Iran's construction of an undisclosed facility near Qom intended for enrichment, have reinforced the international community's concerns regarding the nature of its nuclear program. We stress that Iran has the responsibility to restore international confidence in this regard and must fulfill its international obligations in order to demonstrate the exclusively peaceful nature of its nuclear program. We urge Iran to engage seriously and constructively with China, France, Germany, the Russian Federation, the United Kingdom, and the United States with the support of the High Representative of the European Union (P-5+1) to advance the dialogue on the nuclear issue begun in Geneva on October 1. We reiterate our commitment to seek a comprehensive, long-term and appropriate solution to the Iranian nuclear issue through dialogue and negotiation based on Iran's compliance with UN Security Council resolutions. This continues to be the objective of our dual-track approach. Iran has rights, but it also has responsibilities. We remain unified in our support for the IAEA's draft agreement that responds to Iran's request for assistance in refueling the Tehran Research Reactor, which represents a confidence-building step, addresses Iran's need for medical isotopes, and creates an opportunity for further progress.

We support the IAEA's efforts to implement verification activities related to the Dair Alzour site in Syria. We call upon Syria to adopt promptly an Additional Protocol and provide, without further delay, access to additional information and sites as requested by the Agency to complete its ongoing assessment.

We call on the Democratic People's Republic of Korea (DPRK) to live up to its obligations as called for in the September 2005 Joint Statement, and to take steps toward irreversible verifiable denuclearization. We reiterate the importance of full and transparent implementation of UNSCRs 1718 and 1874 as tools to constrain the DPRK's proliferation activities and to convince the DPRK to return to the Six-Party Talks and denuclearization.

We will continue to work toward universalisation and full implementation of the Chemical Weapons Convention and we support, to this end, the work of the Organization for the Prohibition of Chemical Weapons.

We will also work for the universalisation and full implementation of the Biological and Toxin Weapons Convention (BTWC) and we encourage, in this regard, the work of the Implementation Support Unit. We continue to support the intersessional Program of Work, including efforts to improve the ability of all nations to recognize and respond to outbreaks of infectious disease. We will continue to work together to find ways to address the evolution of the biological weapon threat, and to promote compliance with the BTWC by greater transparency and effective implementation.

We appreciate our continued productive dialogue on verification and compliance, established at the EU-U.S. 2005 Summit.

We support the Hague Code of Conduct (HCoC) and other efforts to curb the proliferation of missile technology and will aim at universality and better implementation of HCoC provisions.

We recognize the importance of effective export controls, and we will work together to strengthen all multilateral export control regimes and to provide assistance to third countries in improving their export controls to international standards, as required by UNSCR 1540 obligations. We endorse efforts to reach agreement within the Nuclear Suppliers Group this year on strengthened export controls on enrichment and reprocessing technologies and on making the Additional Protocol a standard for nuclear supply.

We recognize the importance of using appropriate financial tools to strengthen the international framework to combat proliferation finance and will continue to work together on this issue in the Financial Action Task Force.

We support efforts to overcome the current issue with the Russian Federation with respect to the Treaty on Conventional Armed Forces in Europe in order to preserve its long term viability.

We welcome agreement to negotiate an Arms Trade Treaty (ATT) and urge that transfers of all conventional weapons be subject to the highest possible standards, so that they do not contribute to regional instability or support violations of human rights. We support the UN Program of Action to prevent, combat, and eradicate the illicit trade in Small Arms and Light Weapons in all its aspects.

We are convinced that working together in the area of non-proliferation, disarmament and arms control, and cooperating with all our partners, will significantly contribute to a safer world.

Secretary Hillary Clinton and Foreign Minister Guido Westerwelle delivered these remarks in Washington, DC

Secretary Clinton. This time is a reminder of the values that we share and that we will use to chart a new future together: democracy, tolerance, human rights, the pursuit of a peaceful and prosperous future for our people and for all people.

This is the foundation of such a strong partnership, and we will, through our own efforts, try to deepen and broaden that partnership, because the challenges that we face today are not the challenges that our parents and grandfathers faced and that we will celebrate the end of in Berlin on Monday. They are new challenges which come to every generation, from rebuilding the global economy, combating climate change, understanding and combating violent extremism, curbing nuclear proliferation. This all demands the kind of international cooperation that the United States and Germany must provide, not only for each of us in our bilateral relationship, but within Europe and globally as well.

So we discussed a very broad array of issues. And I want to express publicly our appreciation and the honor that we show toward the German soldiers who are working to bring peace and stability in Afghanistan. Their sacrifice is deeply respected and honored by Americans. And we appreciate also the generous support that Germany has provided Pakistan to help the Pakistanis improve health and education, encourage energy efficiency and responsible governance, and assist people who are displaced by the current conflict.

The United States is also grateful for Germany's participation and leadership in the P-5+1 and the E-3+3 processes to ensure Iran's full compliance with UN Security Council resolutions and IAEA directives on its nuclear program. We are speaking with one voice on this critical issue, and it is a voice that is amplified by our friends from Britain and France, from Russia, China and the European Union. We are pressing Iran together in our support of the recent proposal to provide new fuel for the Tehran research reactor in exchange for Iran shipping out its low-enriched uranium. We both support the IAEA's efforts to inspect the recently disclosed uranium enrichment facility near Qom. And we both remain ready, along with our partners, to meet with Iranian representatives to discuss further steps to build confidence and transparency in its nuclear program. As I have said, this is a pivotal moment for Iran, and we urge Iran to accept the agreement as proposed. We will not alter it, and we will not wait forever.

The United States and Germany are also working together to forge a strong international agreement to combat climate change. We applaud Germany's efforts in transitioning toward a clean energy future, and we appreciate and admire its leadership. With one month to go before the United Nations Framework Convention on Climate Change conference in Copenhagen, it is absolutely imperative that we work together. And as Chancellor Merkel said in her important address to Congress last week, the only way we are going to meet the challenges of the 21^st century, the only way we are going to tear down the walls of today, is by working together as partners.

So I am looking forward to continuing these discussions. It is wonderful to welcome you, Guido, here to Washington, and—

Foreign Minister Westerwelle. Thank you.

Secretary Clinton.—I am delighted that I will see you again very soon in Berlin.

Foreign Minister Westerwelle. Ladies and gentlemen, I was delighted about the very warm welcome I received on my introductory visit here to Washington and my counterpart. The fact that I traveled to Washington, to the United States right after taking on my tenure as foreign minister, is meant to underline the great friendship existing between the peoples of both our countries, and the fact that we intend to continue that partnership and cordial relationship and friendship between both our countries.

These days, especially, we think back with gratitude as Germans for what the Americans did to ensure our freedom, our reunification, and the unity of Europe. In many of the international issues that we discussed during our meeting today, we noticed a high degree of agreement.

On the Afghanistan issue, the policy that we pursue towards Afghanistan, we noticed high agreement. We both believe that, on the one hand, our commitment goes towards the freedom and peace in the country and the region; but at the same time, we also have certain expectations from the reconfirmed Government of Afghanistan with respect to good governance. And here again, we want them to pursue a policy that not only accepts and acknowledges certain irregularities in the country but does its best to do away with them. And in order to be successful in that endeavor of ours, our intention is to cooperate and consult very closely.

I again strongly underline the point that the peace policy and the disarmament policy pursued by the American Administration, from the German viewpoint, is not only a very good path to pursue, but that we want to do whatever we can not only to accompany it with words but also with deeds. But it's, of course, quite clear, very clear indeed, that we intend to do so in close consultation together with our allies and partners.

And of course, today in our exchanges we also talked about an issue that affects both our countries, and that is being intensively debated in Germany right now. And again, the American Secretary of State made it very clear and strongly underlined the fact that the decision taken by General Motors was a decision taken without any political influence having been exerted beforehand by the American Administration, and that is—indeed it's very good news to receive.

But for the German Government, it's equally clear that, on the one hand, we have to make sure that as few jobs in Germany are being lost as possible; and at the same time, we place great value on the fact that the funds that we've provided to General Motors are being paid back, because we are talking about funds here that have been provided by the German taxpayer and thus the German taxpayer wants that money to be paid back. And I thank you very much for the understanding that you showed on that issue.

And generally speaking, we got off on a very good start not only politically speaking but also on a personal note. Thus, I am looking forward to receiving you very soon, Madame Secretary, Sunday evening, that is, and then again on Monday in Berlin. I will have the honor and the pleasure of being your host then and returning your hospitality, and we will have a chance to continue the discussions of today. Thus, our cooperation has got off on a very good start. We intend to make sure that it continues in that very same vein. We will focus very much on continuing to cooperate very closely between both our governments and both our people. I am looking forward to that.

Q. Madame Secretary, I wanted to ask you for updates on two issues that have to do with Iran. The first one is the hikers with whose families you just met today. If you can tell us what you heard, what you told them, and what's the course from here.

And the second on the negotiations in the P-5+1 group, you say, on one hand, that you want to work this out diplomatically, you want to keep negotiating; but on the other hand, you are saying that the proposal as it is, it's not up for discussion. So what is to negotiate, and how do you reconcile those two things? And perhaps the minister would like to comment on the Iran question, too.

Thank you.

Secretary Clinton. Well, first let me say that earlier today I met with the families of the three American hikers who are detained in Iran. These three young people are obviously not only on the minds of their family members but on the minds of all of us. It was an emotional meeting, and I described to the families everything that we are doing. I was impressed by their strength and fortitude and their commitment. They are determined, as we are, to see these young people return home.

As a mother, my heart went out to all of them. I cannot imagine what it would feel like to know that your child was imprisoned for now a hundred days with very little contact between you and them. I told them we were doing everything we possibly could to get Shane and Joshua and Sarah home, and we are exploring every angle. Obviously, I would hope that the Government of Iran would free them on a humanitarian and compassionate basis as soon as possible and return them home to their families.

On the second issue, we have a unified position that we have presented to the Iranians. That position is clear. It was agreed to originally in principle by the Iranians. There were, of course, questions that they were asking about the details that stood behind the agreement, which both the IAEA and our experts have been answering. But the terms of the agreement, the heart of the agreement, is not and will not be altered. And that is why we continue to call on the Iranian Government to go ahead and accept this agreement and begin to implement it, which we think is in the best interests of the Iranians as well as the rest of the world.

And finally, the point to make is that this offer has been made in good faith. We have worked hard to make sure that there was no misunderstanding about the offer. And we continue to hope that the Iranians will accept it, but our patience is not unlimited.

Foreign Minister Westerwelle. Allow me to begin by expressing my solidarity with the three young people affected and their families and relatives.

With respect to our Iran policy, I can only strongly underline what was just said by the American Secretary of State. We're pursuing a dual-track approach. On the one hand, we are ready to enter into a dialogue, to pursue that dialogue, to have negotiations, to talk to the Iranians, and the international community has expressed that readiness on several occasions.

On the one hand—on the other hand, it's equally clear that our patience is not endless. We very much hope that our offer to pursue a dialogue is accepted, but we also want to see good results. The federal chancellor has been very clear, unequivocal, in the speech she delivered to the two houses of Congress earlier this week. And I can only underline what she said in that speech, speaking as the federal foreign minister of Germany: This is the position of the Federal Republic of Germany.

Mr. Kelly. Next question for Reinald Becker from ARD.

Q. A question addressed to both secretaries, both ministers, a question with respect to General Motors and Opel, the recent decision taken by General Motors. Did you agree today that you would bring your influence to bear with respect to General Motors; that is to say, take up the issue with those responsible at General Motors and point out the situation that is the consequence of this decision in Germany?

Foreign Minister Westerwelle. The American Secretary of State showed great understanding for the position that I presented and to the clear words that I found earlier today. Now, as to any further steps that might be taken, these will be steps to be taken by those politicians responsible in our government. As far as the German side is concerned, it will be our economics minister who would have to and will be ready to take the respective steps.

Mr. Kelly. And the last question from Peter Carstens from Frankfurter Allgemeine Zeitung.

Q. A question addressed to both of you: What are your expectations of the upcoming Afghanistan conference at the beginning of next year?

Secretary Clinton. Well, we discussed this at length, and we have a very strong sense of agreement about what we would like to see going forward with the newly elected government. We have been both committed to the people of Afghanistan and to the institutions of their government to carry out a constitutional electoral process.

Now that it is over, it is time for us to begin working together and with our other partners in the international community, as well as with the government and people of Afghanistan, to reach understandings of the kinds of commitments that will be made to the people of Afghanistan, to look for ways we can measure those commitments going forward, and then to make explicit what the international community would be expecting.

I think that the minister and I see eye to eye on this, and we will be working together. I am sure we will talk about it again in Berlin because we want to enlist our counterparts as well as others in making it very clear that there is an opportunity now for President Karzai and his government to really engage on all of the issues, from corruption and transparency, to the rule of law, to good governance, to the delivery of services that the people of Afghanistan are looking for.

Foreign Minister Westerwelle. What is important is that we develop our strategy together in close consultation. And this is what we agreed upon today, that we will be in close consultation on the strategic issues. And if I speak of close or when I speak of close consultation, I'm not only thinking of the United States of America and Germany, but I think of the international community as a whole, because I believe that the international community indeed does a very important—have a very important responsibility to bear with respect to freedom and the rule of law in Afghanistan.

And this is why we will continue to talk about and to discuss on the questions that are to do with the expectations that we have of the Afghan Government and the work that they need to do on the domestic front, but I think it is far too early a point in time to give any further details here now. The frame and conditions have already been mentioned earlier in our statement.

Secretary Hillary Clinton and Foreign Minister Guido Westerwelle delivered these remarks Berlin, Germany

Foreign Minister Westerwelle. Madame Secretary, ladies and gentlemen, I extend a very warm, warm welcome to all of you here, and a very warm welcome goes out to the Secretary of State of the United States of America. Dear Hillary Clinton, once again, I'd like to use this opportunity to extend a very warm welcome to you. It is a great pleasure for me to welcome you, the Secretary of State of the United States of America, and the members of her delegation to Berlin.

Today, on a day that is of historic importance, we thank you for your visit (inaudible) very much of the importance of the contribution of the United States of America and the American people to the freedom of the country I represent. Since the foundation of the Federal Republic of Germany, the United States of America has, in a hands-on manner, stood up for our freedom and for our security. This is why the Germans are deeply grateful to the United States of America and its people. Allow me, dear Hillary, to use this opportunity to once again express the gratitude of the Federal Republic of Germany and of its people here in Germany, and speaking on behalf of my people, thank you, and you represent your country, the United States of America.

It's our third (inaudible). Last week, I paid my first introductory visit to the United States of America, to the American Government when I came to Washington. Yesterday, we both enjoyed a dinner at the Atlantic Council and we enjoyed the honor of receiving the Freedom Award from the Atlantic Council. That was a deeply moving moment, a very touching moment.

Today, we focused on a number of political issues and discussed them in detail. We exchanged views on climate policy issues. Both the United States of America and the Federal Republic of Germany want to ensure that Copenhagen becomes a success. We would want to see an improvement in the field of climate protection. What we want to achieve is concrete results at Copenhagen so as to better protect our climate, and we're (inaudible) to believe that if we do so, we stand a chance to achieve good results. Europe and the United States of America have to closely coordinate their policies and have to act together using their strengths and their force to (inaudible) outcome.

We talked in detail about security issues, development of (inaudible), and of course, we also touched on Afghanistan. Afghanistan, we're really focused (inaudible) the exchanges we had last week. Here again, there is agreement on (inaudible) necessary to make the Afghan Government, to make President Karzai realize that good governance has to become (inaudible). We want to see improvement here. We want the Afghan Government to be a government for the people as a (inaudible) who are (inaudible) to make our contribution towards reaching this objective.

We want to ensure that a good and peaceful development can occur within Afghanistan; and in return, we expect of the Afghan Government that it makes its own contribution towards this objective and that it becomes a government of the people as a whole and that it adheres to the (inaudible) that underlie good governance. Last week already, we talked in detail about this issue.

Ladies and gentlemen, dear Hillary, once again (inaudible) welcome to you. I had indeed very interesting exchanges with you. They were more than interesting, though. Some were characterized by the inclusive atmosphere, and I want to thank you for that. Personally, I'd like to thank you for that. It's not (inaudible) something which (inaudible) ultimately (inaudible). Having come to (inaudible) a brief time ago, we can only expect to receive such a friendly welcome and to develop such close contact. I'm looking forward to close cooperation with you, and I'm confident that American-German friendship will continue to deepen and to be developed further. When we talk about Germany and the United States of America, we're talking about more than a friendship and partnership. It's a deep and heartfelt friendship between those peoples and countries.

Secretary Clinton. Thank you so much. I can only echo exactly what the foreign minister had said. We have had three very productive and personally rewarding meetings over the last week. I particularly appreciate the words that I heard from Guido last night about his own personal experience as a young boy of 13, when his father took him to see the wall, and how emotionally that affected him and I'm sure influenced his values in politics and his personal commitment. It was a remarkable story and one that I will long remember.

We had constructive and productive discussions starting in Washington last week, continuing here in Berlin. The United States is eager to work with the new German Government on a full range of shared challenges. We face complex threats that cannot be stopped by borders or oceans. Global recession, violent extremism, nuclear proliferation, climate change, hunger, and disease are only some that are the transnational threats of our time. And only by working together in close partnership can we meet these challenges. So I want to recognize Germany's leadership and applaud Germany's work for peace and prosperity in Europe, in NATO, and around the world.

Germany and the United States are working together to rebuild the global economy, to forge a strong international agreement to combat climate change and chart a clean energy future. Chancellor Merkel made a very important speech to the Congress last week, and called the test of climate change one of the greatest that humanity has faced.

In Afghanistan, German soldiers are working to bring stability to a troubled land and hope to people who have known too much violence for too long. We honor their service and their sacrifice. And we recognize the commitment that it takes, not just from the men and women in uniform, but from their families and indeed the entire German nation.

We also appreciate Germany's generous support for the Pakistani people who are working to turn back violent extremism and try to ensure a more democratic, prosperous future for themselves and their children.

And we are grateful for Germany's leadership and partnership in our efforts to ensure that Iran lives up to its international obligation, that it complies fully with UN Security Council resolutions and IAEA directives on its nuclear program. In her moving address before Congress, Chancellor Merkel urged us to come together as partners to tear down the walls of today. As one of the millions of Germans who grew up in East Germany, she knows what it is like to yearn for freedom long denied. And she knows that there are no walls that cannot be torn down when people stand up and work together.

So here in Berlin on this important anniversary, I am more confident than ever that we are up to the challenges we face. I had an opportunity to discuss these challenges at breakfast with the chancellor, at lunch with the foreign minister—I am certainly well informed and well fed— and to underscore that we are united by core values of democracy, tolerance, respect for human dignity. These are the principles on which Germany and the United States stand today. In fact, they're enshrined in Germany's basic law.

But equally importantly, they are in the hearts of the brave men and women who took control of their destinies 20 years ago and gave the world a new birth and burst of freedom, and they exist in the hearts of men and women around the world today. We are very grateful that this partnership is one of our strongest and most important. I am personally looking forward to working with the foreign minister and this new government, because even though we meet today to honor the past, our eyes are squarely on the future, our minds are focused on the challenges we face, and our hearts are beating faster at the possibility that we will be able to meet the challenges of today, as those who came before us met theirs.

So thank you so much for your commitment to freedom and democracy and the values that we think belong to all people, and which are exemplified by our two nations today.

Q. Madame Secretary, you stressed in your speech that we must continue fighting for freedom (inaudible). Could you be somewhat more concrete as far as the role of NATO is concerned and your expectations regarding Germany?

And Mr. Foreign Minister, could you mention for us what you perhaps have offered on behalf of the federal government and Afghanistan above and beyond what has already been provided?

Secretary Clinton. Well, first, let me say that we have consulted continually with our German partners and our allies in NATO. There was an important defense ministers meeting in Bratislava about 10 days, two weeks ago. As you know, Chancellor Merkel met with President Obama on her trip last week. The foreign minister and I have been discussing the way forward. And I think as the foreign minister rightly said, any commitment by the governments and the people of the United States, Germany, and others who have joined with us through both NATO and the international forces has to be met by an even greater commitment on behalf of the new government of President Karzai to deliver services for the people of Afghanistan, to begin the effort to root out corruption, to have more accountability and transparency in the way that the government operates.

We are very clear that we will be expecting more from the Government of Afghanistan. And it is certainly a mutual commitment that the foreign minister and I feel on behalf of our two countries. The United States would not be in Afghanistan, the President would not be engaging in such a thoughtful, deliberative process if we did not believe that conditions in Afghanistan directly impact and threaten the security of the American people and our friends and allies like Germany.

We are not in Afghanistan because it's a good thing to do or because it's a nice way to show our concern for people around the world, and particularly to try to help with the development of the people of Afghanistan. Those are important and worthy objectives. We are there because we view the syndicate of terrorism directed and led, funded, and inspired by al-Qaida to be a direct security threat to our values, our way of life, and to our interests and our friends and allies.

So any decision that President Obama makes is premised on that fundamental security assessment. And I believe that the German Government and this new government in particular is conducting its own analysis, and we will be continuing to consult. The President will be reaching out to the chancellor and we will be talking as well. But we are going to present to the Government of Afghanistan and President Karzai a clear set of expectations and of accountability measures, so there can be no doubt as to what we expect from this relationship.

Foreign Minister Westerwelle. And I'd like to provide a brief answer to your question. Currently, we are conducting strategic discussions, strategic debate, and from our perspective, it's also important that we also follow procedure in this discussion/debate. First of all, it sets targets, objectives, and then discuss the strategy. And then after that, additional questions will be answered, particularly regarding implementation.

And I am pleased to be able to state that our contributions and achievements regarding the training of the police forces and the schools is something that's kindly appreciated by our American partners and others. And Germany can indeed provide an important contribution in this area. And we do want to make sure that Afghanistan is self-sufficient regarding security. And if we want this, then we have to make sure that Afghanistan has its own security infrastructure, that that system is there, and we want to help build it. This is an important contribution that we can (inaudible) discuss this as well. And this is also fully in line with my personal statements and the policies of the new government.

Secretary Hillary Clinton was interviewed in Berlin, Germany by Tom Brokaw of NBC

Q. Last night, you described Germany as our partner in Afghanistan. But almost everyone who's looked at Germany's performance there believes that both politically and militarily Germany is a reluctant partner at best. Shouldn't we expect more from the Germans in Afghanistan?

Secretary Clinton. Well, I think that the Germans have done a lot in Afghanistan. Everyone can look at everyone else and say, well, you weren't ready for this and you didn't perform to the utmost here. But I think it's in part because this is a very different kind of challenge that we're confronting together, and we're learning as we go. I think we are resolved to handle the threat posed by terrorism and this syndicate of terror that al-Qaida and their extremist allies are part of.

And certainly on many different levels, the Germans have been resolute. They have put in 4,000 troops. They have been willing to take responsibility for large parts of the territory in the north. They have worked to train and prepare the police and the security forces. But I think it's fair to say that it's only been for the last couple of years that the United States has understood how better to confront the challenge that is posed by organized terrorist groups, and we're working closely with our NATO allies and other allies around the world and we're getting better at it. But we didn't start off that well. Right before the first Iraq war, we thought we knew what warfare was, and the first Iraq war turned out to be pretty much in line with what people thought. Well, the second Iraq was a whole different challenge. So I think we've evolved our military and our political strategy and understanding, and it's a learning experience and I think we're getting better at it.

Q. Given all of that, all the military analysts that I talk to across the board say the Canadians are helping us a lot, the British are helping us a lot, the Poles are doing a great job, but the Germans are kind of sitting on their hands. They don't want to leave their bases because there is not much will here in Berlin in the political leadership.

Secretary Clinton. But to be fair, Tom, after World War II nobody wanted to see German troops anywhere. Think about it. And the German people themselves wanted to rein in their military capacity and certainly their military ambitions. Having an out-of-territory conflict like what we're seeing in Afghanistan has really pushed the Germans, and it's been remarkable that they have responded with as much commitment and sacrifice as they've shown.

So I think it's easy to stand back and say, well, the Germans this, the Germans that. I'm very impressed that the Germans have made a political decision that has put them in harm's way, that has moved troops out of Europe to a battlefield far from home, because this has been a very difficult political decision for them given their understandable allergy to being looked at as though they were once again a military power.

Secretary Hillary Clinton was interviewed in Berlin, Germany by Dr. Sebastian Hesse-Kastein of MDR Radio

Q. As you probably know, a vast majority in this country is for pulling out the troops out of Afghanistan, the German troops, as soon as possible. This year the mandate has to be renewed in the German Bundestag. What is your message to the decision makers why should the German army stay?

Secretary Clinton. Well, of course, this is a decision for the German Government and the German people, and I respect that. So let me talk about America. The President has had us going through a very thoughtful, deliberative process, asking all the hard questions. We didn't want to accept any assumptions. We don't believe that enough progress was made in the last eight years under the prior administration. But at the same time, we do think that we have to prevent Afghanistan from becoming, once again, a haven for terrorists who will use it to attack the United States, Germany, other friends and allies and interests around the world.

How do we best approach that? That's what we are studying and working on now. We would hope to have Germany as an active partner, because we really do believe it goes right to our security interests. This is not about whether Afghanistan makes economic or social progress. We think that would be important. We would like to see it happen. But that's not why American troops are there. American troops are there because we face a threat, and the border between Afghanistan and Pakistan, the syndicate of terrorists headed by al-Qaida, including elements of the Taliban, are plotting against us all the time. They are opportunistic. They will seek the opportunity to do harm to the German people, the American people, the British, the French, those who represent the kind of modernity and values that they stand against.

So I hope that whatever President Obama ends up deciding, that we can make a case to the American people, and to Europe and others, that we've got to continue to stand with each other.

Q. Is there any idea out there what the new strategy is going to be like?

Secretary Clinton. Well, we're getting close. I obviously can't preempt the President to talk about his decision. But it will be based on a very careful assessment of what is in the security interests of the United States and our allies around the world.

Q. What can Germany contribute?

Secretary Clinton. Well, Germany has already contributed. Germany has contributed not only troops and had losses and sacrifices among those troops, Germany has contributed civilian assistance and financial assistance. We have a big task to accelerate the training of the Afghan security forces. Germany has expertise and experience doing that. So there will be a number of ways that Germany can participate. But of course, ultimately, it is up to the German people.

Q. Our new Foreign Minister Guido Westerwelle has announced in D.C. last week that he wants to support President Obama's disarmament initiative, not only by words but by acting as well. How could help—what kind of help would you need or would you like Germany to add?

Secretary Clinton. Well, I think that there is a great commitment by President Obama to try to stem nuclear proliferation. And we can certainly use Germany's help in preventing nuclear materials around the world from falling into the wrong hands. The United States is negotiating a reduction in its nuclear arsenal with Russia. We want to have NATO carefully study all the different aspects of the nuclear posture that we have through NATO. I think we want to demonstrate good faith, but we also have to be careful and thoughtful about how we proceed. And that's something we'll be discussing not only with Germany, but with other of our partners in NATO.

Q. I wonder if the disarmament ideas our new government has is disarming another country as well, like getting rid of nuclear weapons. Can you tell us when the U.S. might pull out its nuclear bombs out of Germany?

Secretary Clinton. Well, I think that has to be considered in the context of NATO strategy. But I also think we have to be very careful about how we evaluate the different threats, the need for deterrents. So it's a complicated issue. And I think NATO is the appropriate forum to consider all of the ramifications, because we have obligations to states further east. We have obligations to states in the Balkans and further south. So we have to bring everyone's opinion to the table as we consider what to do.

Readout of Vice President Biden's call to Georgian President Saakashvili

Vice President Biden called Georgian President Saakashvili on November 18, 2009, to discuss democratic reform in Georgia and to reiterate the United States' strong support for Georgia's sovereignty and territorial integrity. The Vice President underscored the importance of sustaining the commitment to democratic reform to fulfill the promise of the Rose Revolution. He also emphasized that all parties should live up to their August 12th and September 8th ceasefire commitments and avoid destabilizing actions.

Secretary Hillary Clinton delivered this statement in Washington, DC

Secretary Clinton. Today's appointment of a permanent President of the European Council and a High Representative for Foreign Affairs and Security Policy is a milestone for Europe and for its role in the world.

I warmly congratulate President Van Rompuy and my new counterpart High Representative Ashton. I look forward to working closely with them to strengthen and broaden our partnership—from achieving stability in Afghanistan to securing Iranian compliance with its non-proliferation obligations and promoting a comprehensive peace in the Middle East, among many other shared objectives.

I also want to salute Javier Solana and Benita Ferrero-Waldner for their service as High Representative and External Relations Commissioner. These talented diplomats have been trusted friends and valued partners.

The United States and Europe form a community of values. We are united by our deep commitment to freedom, security, human rights, the rule of law, and open markets. Our 800 million citizens are bound together by enduring links of culture and commerce, by our shared history and our common hopes for the future. We are working together as partners to meet the challenges and seize the opportunities of the 21^st century. With the appointment of these distinguished leaders, I am more confident than ever that together we can build a more peaceful and prosperous world.

Secretary Robert Gates and Minister Karl-Theodor zu Guttenberg delivered these remarks in Arlington, VA

Secretary Gates. Well, it was my pleasure today to welcome to Washington, and to the Pentagon, my new German counterpart, the federal minister of defense, Minister zu Guttenberg. I congratulated him on his new appointment. I know he's a well respected voice in Germany on national security and foreign policy issues. So I look forward to working with him. He's also a great friend of the United States, where he has many friendships.

We agreed to consult on a frequent basis on common challenges we face as close allies, particularly in Afghanistan, where Germany is the second-largest contributor to Afghan national police training, the third largest troop contributor to the ISAF mission and the fourth largest provider of civilian development assistance.

The minister briefed me on his recent trip to Afghanistan, and I took the opportunity to congratulate Germany's continued leadership and steadfast response to increased violence in Regional Command North.

We've also welcomed Chancellor Merkel's initiative with her British and French counterparts to convene an international conference on Afghanistan in January of next year. We exchanged views on several other common issues, including the new NATO strategic concept, Iran, and advancing nuclear nonproliferation. So I look forward to a long and productive relationship with the minister.

Minister Guttenberg. So am I, Mr. Secretary. Thank you very much for the warm welcome I have received here, and some noise above. (Inaudible)—flying over—(inaudible)—get it—get it done.

And it's—first of all, it's a pleasure to be back in Washington in this—in this new position I'm—I'm having at the moment, for this time now. And I sense that we have more than just a good fundament to work together. And we will work together on those topics we have been discussing for years, but we also were— found the point that we will need creativity, that we will need ideas, and that we will need common strategies to tackle the challenges we have on both sides of the Atlantic.

We talked about Afghanistan, about the challenges ahead of us, about the possibility and the necessity of this conference at the beginning of next year. And I described to the secretary the current German position and the discussion we are having in Germany, but also, I told him that our commitment in regarding Afghanistan is firm and stays to be firm; that was one of the points.

Then we also talked about the future of NATO. I think this is also of utmost importance for us as alliance partners, that we should use the momentum next year, when we are not only talking about the new strategic concept but also about all the efforts NATO has to make to stay not—to stay an instrument for international security, and all the other terms related to that.

It's very good to know to have so many friends here to work together with and to build up—to build up a, let's say—or to build on the fundament that we have built together during the last couple of years.

And thank you very much, Mr. Secretary. I think we will keep the close contact we have—we have—we have seen today; we could—we could work with. And thank you for the reception I—I've had today. And we will see each other tomorrow in Halifax. And we will probably have a possibility to continue our talks and to exchange our views very closely.

Thank you very much.

Secretary Gates. I think we're doing one question from each side. Ann.

Q. A question for both of you, please.

The announcement yesterday that Germany would extend its commitment, in Afghanistan, did not come with an announcement of further troop deployments there or an increase in the number that you currently have. Do you anticipate adding troops to your mission, in Afghanistan, next year alongside the expected American increase?

And to Mr. Secretary, would you like to see that happen even before—such a commitment even before the NATO force generation meeting?

Minister Guttenberg. Well, first of all, we will prolong our existing mandate which has—which includes a total number of 4,500 troops. We are still the third largest troop supplier for Afghanistan.

But I told the secretary that we are now eagerly, as you probably all are, waiting for the president's speech and about— we're waiting for the new concept or for the new strategic ideas from our American friends.

And what we also need as a second pillar for any—for the discussion also in Germany is a clear commitment by the— by the Afghan government. And today was an interesting day in Afghanistan. And we will see what will be the result of it.

And we need more than just words. We need action also in Afghanistan by the Afghan government. And I told the secretary that basing on those two pillars and also on the—on the conference at the end of next January, Germany will certainly reassess—will certainly reassess its mandate and make decisions then after the conference.

Secretary Gates. As I've said for three years, and without specific reference to Germany but to all of our—the now 43 troop contributing nations, we can use all the help we can get. But frankly I think at this point, until the president has announced his decisions, going beyond that and being specific, with respect to any particular country, is probably premature.

Secretary Hillary Clinton and Foreign Minister Rumiana Zheleva delivered these remarks in Washington, DC

Secretary Clinton. Good morning. And it's a particular delight for me to welcome the Bulgarian delegation and especially Foreign Minister Zheleva, who has come to this position with a great background in academia and a great commitment to democracy. And it's such a historic time for Europe and for the Euro-Atlantic alliance.

This year we are commemorating the 20^th anniversary of the fall of the Iron Curtain. And that helped put Bulgaria on the path toward democracy and a market economy, both of which were reaffirmed in their recent elections. There was no way to know in 1989 how this would work out. But the transition, which has not always been easy, has made it possible for so many millions of people in Central and Eastern Europe to really have a place in charting their own future and making a claim to a better future, and I am very impressed by the remarkable progress that has been made.

We are also especially pleased that Bulgaria is a member of NATO and part of an alliance that is the most successful in history on behalf of collective security and rooted in mutual respect. We understand how intertwined our futures happen to be.

Today Bulgarian and American troops serve side by side as part of the NATO mission in Afghanistan. We are greatly appreciative of the service of your soldiers and their sacrifice. And we know, too, that our bilateral relationship is one of strategic importance. We are committed to working bilaterally, as well as within NATO, and through the European Union, and with the important emphasis on all of the issues that are significant to both of us.

Today the foreign minister and I discussed how we can broaden and deepen our partnership. I commended Bulgaria's efforts to root out corruption, to hold people accountable, to end impunity for public officials. I also congratulated the foreign minister on Bulgaria's efforts to bring greater transparency to the energy sector. Our special envoy for Eurasian Energy Richard Morningstar will be going back for his second trip to Bulgaria in about 10 days.

We talked about some of the economic challenges and the commercial ties that we wish to deepen. There is just so much that we see for a positive relationship between the United States and Bulgaria. So I want again to thank the foreign minister for her leadership and for her friendship and the friendship of the Bulgarian people, and I look forward to working with you in the future.

Foreign Minister Zheleva. Thank you, Madame Secretary. Today, I had a very constructive meeting with Madame Secretary Clinton. Thank you for that. Once again, I reaffirmed our commitment to our strategic partnership with the United States, and our determination to work together on global and regional security, as well as energy-related issues.

I described the significant commitment we are making to the fight against terrorism, and the role played by our brave troops in Afghanistan. I furthermore informed the Secretary about the efforts and the successes of our new government led by Prime Minister Borissov during the first hundred days in office. In particular, I elaborated on our efforts to overcome the dual challenge of organized crime and corruption.

During the meeting, we furthermore discussed regional challenges and the role played by Bulgaria in NATO and in the European Union. That role, as I pointed out to the Secretary, aims to enhance regional security and cooperation, and is contributing to the further strengthening of our transatlantic alliance. We have a very positive and interesting meeting, and I am very grateful for the support given to Bulgaria by the Madame Secretary. Thank you once again.

Q. Madame Secretary, my question is for you. What are Bulgaria's chances to be included in the U.S. Visa Waiver Program by the end of next year? Thank you.

Secretary Clinton. Well, we discussed that. I must say your foreign minister was extremely strong and even passionate about the issue, and we share the concern. I told her that I would personally support efforts to have Bulgaria enter into the Visa Waiver Program as soon as the standards are met. We value Bulgaria as a close partner. The criteria for the program are established by countries, by—excuse me, the criteria for the program is established by Congress. Every country has to meet the same criteria. There's no greater or lesser burden on Bulgaria than any other country.

And we offered to assist Bulgaria in doing what it must in order to qualify, because we encourage and welcome Bulgarians to come to the United States for business, for pleasure, for family reasons, because we want to not just have a good government-to-government relationship, but a good people-to-people relationship. So we're going to do everything we can to assist Bulgaria in meeting the criteria.

Acting Assistant Secretary Mark Sobel delivered these remarks at the Transatlantic Legislators' Dialogue

Acting Assistant Secretary Sobel. Thank you for inviting me to speak.

The U.S. and EU are the world's two largest economic areas, accounting for 54% of global GDP and 65% of global capital markets. We thus bear a special responsibility for the sound management of the international financial system. Our cooperation has been central to the world's efforts to overcome the crisis. I will highlight two areas where our close collaboration has made a difference and where ongoing efforts will be critical for the future: restoring global growth and strengthening financial regulation and supervision.

Restoring Global Growth

In the last year, we witnessed the deepest economic collapse in decades. Whereas during the Great Depression, the downturn lasted for many years and countries turned inward and resorted to protectionism, the current crisis response has been marked by multilateralism and extraordinary cooperation through the G-20. Now, only a year after the tumultuous events of last autumn, financial markets have stabilized and a modest recovery is underway.

With global GDP contracting at a 6.7 percent annual rate at the turn of the year, the G-20 undertook a massive fiscal stimulus, including discretionary spending and automatic stabilizers, equal to nearly 6 percent of 2009 GDP. The fiscal stimulus is expected to average 6.5 percent of GDP in the U.S. and 5 percent of GDP in the EU in 2009/10. Monetary policy became highly accommodative, countries recapitalized financial institutions, and liquidity support was provided to unclog markets. Financial market spreads came down, and GDP grew at an annualized rate of 2.8 percent in the U.S. and 1 percent in the EU in the last quarter.

In the United States, the strong efforts of the Federal Reserve, the bold financial stabilization initiatives of the current and prior Administrations, including the transparent stress tests under the Supervisory Capital Assistance Program, and the fiscal stimulus pursuant to the American Recovery and Reinvestment Act have restored confidence and begun to revive economic growth. Europe, at the regional and national level, reacted as well with significant macroeconomic accommodation and financial sector support. Together, we combated the contagion risks facing emerging markets.

But as we emerge from the crisis, there is no room for complacency and we must continue our close cooperation. Unemployment remains unacceptably high and financial market stresses abound. Growth remains our dominant policy imperative.

First, G-20 countries need to design strategies to be ready to unwind the extraordinary government support provided during the crisis once recovery is assured. But premature exit must be avoided. As the U.S. and EU are the two largest economic areas in the world, both sides of the Atlantic must stay highly cognizant of and attuned to this reality.

Second, the G-20 countries must cooperate to achieve a durable recovery, avoiding past excesses. As U.S. consumers save more and as our government embarks on a path of fiscal consolidation, economies with large and sustained surpluses must shift growth towards domestic demand and reduce reliance on exports. It would neither be healthy nor realistic for the global economy to rely on a single engine of import demand going forward. Greater contributions to global demand must come from key emerging markets, and also from advanced surplus economies.

One of the key outcomes from the Pittsburgh Summit was the commitment by G-20 members to a Framework for Strong, Sustainable, and Balanced Growth. Last month, G-20 Ministers set out a detailed process and timeframe for achieving the Framework's goals, and launched a new consultative mutual assessment process to evaluate whether individual country policies will collectively deliver our agreed objectives. The United States and European Union must lead in vigorously carrying out this Framework.

Financial Regulatory Reform

The largest financial crisis in generations revealed gaps in our regulatory system that allowed the build-up of excess leverage and risk. The U.S. and EU have been leaders in forging the G-20's extraordinary response to create a stronger and more resilient financial system. However, in doing so, we do not face a European and American challenge. We face a global challenge.

The crisis demonstrated that financial stress can spread easily across national boundaries. Yet, regulation is still set largely in a national context. Without consistent supervision and regulation, financial institutions will tend to move their activities to jurisdictions with looser standards, creating a race to the bottom and increased systemic risk.

National regulation should thus be made more consistent and convergent across the globe, and national regulators, working through standard-setting bodies, have strengthened their cooperation. The Financial Stability Board (FSB) has been at the center of this effort, loosely coordinating the activities of standard setting bodies, while respecting their independence, and putting forward recommendations which have been endorsed by the G-20.

This strategy to strengthen financial regulation is working, in my view, and the U.S. and the European Union have reached many agreements, providing the critical engine for its success. For example, the Pittsburgh Summit focused on four areas.

*Capital. The crisis demonstrated that capital and liquidity requirements were too low. G-20 Leaders agreed to develop rules to improve the quantity and quality of bank capital, to achieve a non-risk based leverage ratio by end-2010, and implement them by 2012. The Leaders' agreement recognizes that strengthening capital standards is at the core of the reform effort.

*Compensation. Compensation practices at some firms created a misalignment of incentives that amplified a culture of risk-taking. In Pittsburgh, G-20 Leaders endorsed FSB implementation standards to help significant financial institutions and regulators better align compensation with long-term value and risk management. In the U.S. and EU, consistent with these implementation standards, national supervisors will review firms' compensation policies and structures and impose stricter measures on firms with unsound practices.

*Over-the-counter (OTC) derivatives. OTC derivatives, while helping to disperse risk, also allowed hidden risk concentrations to build up. G-20 Leaders agreed that all standardized OTC derivative contracts should be traded on exchanges or electronic trading platforms and cleared through central counterparties by end-2012. Further, they affirmed that non-centrally cleared contracts should be subject to higher capital requirements.

*Cross-border banking resolution and crisis management. G-20 Leaders agreed to establish crisis management groups for the major cross-border firms and to improve cross border resolution mechanisms and strengthen national frameworks for resolution of financial firms. Prudential standards for the largest, most interconnected firms should be commensurate with the costs of their failure.

U.S.-EU Cooperation

The United States and European Union—with the world's two largest capital markets—must work to ensure that regulation is sound and consistently implemented across borders, while preserving the dynamism of global markets. To do so, we must intensify our cooperation and implement G-20 priorities in line with the Leaders' vision.

Surely, we cannot and will not be identical. But as we implement legislation, the U.S. and EU cannot carve themselves out from standards or deviate significantly, lest we expose global markets to the risk of fragmentation. Nor can we seek to impose standards on one another. We must also work together to achieve high quality regulatory and supervisory outcomes so that our firms can operate in each others' jurisdictions without encountering needless friction.

But in translating high-level standards into concrete proposals, especially when filtered through our national traditions and cultures, difficulties can emerge with the devil in the details unless we cooperate closely.

Let me briefly mention a few issues on which the U.S. and EU must show leadership and pragmatism in ensuring greater alignment:

*The U.S. and EU fully agree that credit rating agencies (CRAs) must be subjected to a more rigorous supervisory regime, consistent with the IOSCO Code of Conduct. But we should not go so far as to prevent them from operating globally when they adhere to strengthened standards. The U.S. is working on new legislation to strengthen our existing regulatory regime for CRAs. The EU has passed its CRA Regulation, and we must now work together on the process for equivalence and endorsement so as to ensure the smooth functioning of global markets. We are looking forward to the CESR-SEC collaboration on this topic.

*The U.S. and EU fully agree that hedge funds above a certain threshold should be registered, and systemically significant hedge funds should be regulated. In the U.S., we are focusing on putting in place a robust regulatory regime for hedge fund managers while ensuring access for third country firms. This will enable us to minimize any potential threat to financial stability, while allowing funds to operate across global markets on the basis of sound management practices. The EU's proposals raise the potential, however, for a different regime for European-based managers, with the ability to access all of the EU with the so-called “passport” of one set of rules, and for third country firms operating under multiple, national private placement regimes without the ability to use an EU-wide passport. It would subject private equity and venture capital firms to the same prudential requirements envisioned for hedge funds, regardless of differences in business models and systemic relevance.

*The U.S. and EU, in continuing our joint efforts to achieve comprehensive reform of OTC derivatives markets, must respect that global infrastructure is vital to the goal of maintaining efficient, well-integrated markets and clearing and payment settlement systems. To this end, we should work together to advance regulatory cooperation, ensure prudential supervisors have access to the data they need wherever it is located, and coordinate on clearing and exchange-trading requirements and any exemptions for end-users.

*The U.S. and EU have repeatedly backed the G-20 call for a single set of high quality global accounting standards, while respecting the independence of the standard setting process. Achievement of this objective would yield tremendous benefits for the global economy and significantly enhance transparency for investors. Many difficult issues will need to be tackled along the way by the standard setters, in consultation with stakeholders. We should work together to avoid politicization of the process.

I believe that the U.S. and EU can effectively address these challenges. For seven years, the U.S.-EU Financial Markets Regulatory Dialogue has worked through a number of critical issues, such as the third country effects of the Financial Conglomerates Directive, accommodations to Sarbanes-Oxley, a U.S. roadmap to accept public listings by EU firms using International Financial Reporting Standards, European concerns related to de-registration from U.S. markets, and U.S. concerns with the EU Markets in Financial Instruments Directive.

While on the U.S. side, this Dialogue has largely focused on interactions with the European Commission, we have also assiduously reached out to member states, the EU Financial Services Committee, the so-called “Level 3” committees and the European Parliament. Needless to say, working with our own Congress is a critical part of maintaining support for our efforts to reform the U.S. regulatory system and to ensure that our efforts at home move forward in tandem with efforts throughout the world to reform financial systems in line with the agreements among G-20 Leaders. Looking forward, this complex agenda will only benefit from and be strengthened by our discussions with legislators on both sides of the Atlantic.

Conclusion In conclusion, since the outbreak of the crisis, the U.S. and EU have successfully worked together in the G-20 to help restore global growth and steer forward enormous reforms to strengthen the global financial system and address the roots of the crisis. We must strengthen our cooperation going forward in order to continue leading the world's efforts to promote a durable recovery, strengthen regulatory and supervisory practices across the globe, ensure that our measures are consistent and do not fragment markets, and allow our firms to operate without friction in each others' market so as to preserve the dynamism of global financial markets.

Thank you.

President Barack Obama and Prime Minister Recep Tayyip Erdogan delivered these remarks in Washington, DC

President Obama. I want to extend the warmest of welcomes to Prime Minister Erdogan. I'm glad that I, personally, and the American people have a chance to reciprocate the wonderful hospitality that was extended to me when I visited Turkey in April.

As I said when I had the great honor of addressing the Turkish Parliament in Ankara, I am strongly committed to creating the best possible relationship between Turkey and the United States.

Turkey is a NATO ally, which means that we are pledged to defend each other. There are strong ties between our countries as a consequence of the Turkish American community that has been established here. We have had the opportunity to work together during this recent financial crisis, given Turkey's role as a member of the G20. And given Turkey's history as a secular democratic state that respects the rule of law, but is also a majority Muslim nation, it plays a critical role I think in helping to shape mutual understanding and stability and peace not only in its neighborhood but around the world.

During the course of our discussions here, we've had the opportunity to survey a wide range of issues that both the United States and Turkey are concerned about. I thanked Prime Minister Erdogan and the Turkish people for their outstanding contributions to stabilizing Afghanistan. We discussed our joint role in helping Iraq achieve the kind of independence and prosperity that I think has been advanced as a consequence of the election law finally being passed over the weekend.

We discussed issues of regional peace, and I indicated to the Prime Minister how important it is to resolve the issue of Iran's nuclear capacity in a way that allows Iran to pursue peaceful nuclear energy but provides assurances that it will abide by international rules and norms, and I believe that Turkey can be an important player in trying to move Iran in that direction.

And we discussed the continuing role that we can play as NATO allies in strengthening Turkey's profile within NATO and coordinating more effectively on critical issues like missile defense.

I also congratulated the Prime Minister on some courageous steps that he has taken around the issue of normalizing Turkish/Armenian relations, and encouraged him to continue to move forward along this path.

We reaffirmed the shared commitment to defeat terrorist activity regardless of where it occurs. I expressed condolences to the Prime Minister and the Turkish people for the recent terrorist attack that was taken there and pledged U.S. support in trying to bring the perpetrators of this violence to justice.

And finally, I complimented the Prime Minister for the steps that he's taken, often very difficult steps, in reintegrating religious minorities and ethnic minorities within Turkey into the democratic and political process, and indicated to him that we want to be as supportive as possible in further steps that he can take, for example, assuring the continuation of the Halki Seminary and addressing the vital needs of continuing the ecumenical patriarchy within Turkey.

Over all, just to summarize, I am incredibly optimistic about the prospect of stronger and stronger ties between the United States and Turkey that will be based not only on our NATO relationship, our military-to-military relationship, our strategic relationship, but also increasing economic ties.

And one of the concrete outcomes of this trip is to follow through on discussions that I had with both Prime Minister Erdogan and President Gul in Turkey to stand up a strategic working group around economic issues and improving commercial ties. That will be launched with the participation of Secretary of Commerce Locke and our U.S. Trade Representative Ambassador Ron Kirk, along with Turkish counterparts. And we think that there is enormous potential for us to grow trade and commercial ties between the two countries.

Turkey is a great country. It is growing in influence around the world. And I am pleased that America can call Turkey a friend, and I'm pleased that I'm able to call Prime Minister Erdogan personally a friend. I'm grateful for his trip here and look forward to many years of collaboration with him to observe both the prosperity of the American people and the Turkish people.

Thank you.

Prime Minister Erdogan. Thank you very much. I'm very grateful for the hospitality that both myself and my delegation have been shown since our arrival here. And I would like to once again express my thanks for that hospitality.

The fact that the President visited Turkey on his first overseas trip and that he described and characterized Turkish-U.S. relations as a model partnership has been very important for us politically and in the process that we all look forward to in the future as well. And important steps are now being taken in order to continue to build on our bilateral relations so as to give greater meaning to the term “model partnership.”

Of course, there are many sides to the development of this relationship—be it in the economic area, in the areas of science, art, technology, political areas and military areas.

We have also appointed two people from our side to act as counterparts in order to liaise with their American counterparts to continue on this process. Those two people are the Deputy Prime Minister, Mr. Ali Babacan; and the Minister of State responsible for economic affairs, Mr. Zafer Caglayan on the Turkish side. I do believe that this group is going to work to take the Turkish-American relations forward, not just in the economic area, but in all areas in general.

We, of course, have—we take joint steps on regional issues. This is in the Middle East, in Iraq, with respect to the Iranian nuclear program. We continue to have joint activity in Afghanistan, and the Turkish armed forces have taken over the command of the forces there for a third time with the additional support that we have sent to Afghanistan in the last couple of months. And there are steps that we have taken with respect to training activity and other activities in the context of provisional reconstruction teams, and we continue on that. We've had an opportunity to continue discussing those issues during our visit here.

Another important area, of course, is energy. Turkey is a transit country for energy issues. And the agreement has been signed for Nabucco and we are ready to take some important steps with respect to Nabucco.

We continue to talk with Azerbaijan. I do believe that positive progress will be made in this area. In addition to Azerbaijan, of course, there is the importance of companies like Statoil, Total, and British Petroleum and others.

We have also discussed relations between Azerbaijan and Armenia, which is of great importance. This is important in the context of Turkish-Armenian relations. We have discussed the Minsk Group and what the Minsk Group can do—the United States, Russia, and France—to add more impetus to that process. I can say that to have more impetus in the Minsk process is going to have a very positive impact on the overall process, because the normalization process between Turkey and Armenia is very much related to these issues. As the administration in Turkey, we are determined to move forward in this area.

Another important issue with respect for us in Turkey is the fight against terrorism. And there was a statement that was made in this very room on the 5th of November 2007, which was very important in that context, because at the time we had declared the separatist terrorist organization as the common enemy of the United States, Turkey, and Iraq, because terrorism is the enemy of all mankind.

Our sensitivity and response to terrorism is what we have displayed when the twin towers were hit here in the United States. Wherever a terrorist attack takes place our reaction is always the same, because terrorism does not have a religion—a homeland. They have no homeland, no religion whatsoever.

We have also had opportunity to discuss what we can do jointly in the region with regard to nuclear programs. We as Turkey stand ready to do whatever we can to ensure a diplomatic solution to the nuclear issue in our region. And we stand ready as Turkey to do whatever we can do with respect to relations between Israel and the Palestinians, and Israel and Syria, because I do believe that, first and foremost, the United States, too, has important responsibility in trying to achieve global peace.

And we, too, must lend all kinds of support that we can in our regions and—in our respective regions and in the world in general in trying to achieve global peace, because this is not the time to make enemies, it's the time to make friends. And I believe that we must move hand in hand towards a bright future.

Thank you once again.

Q. Mr. President, is there any new and concrete U.S. action plan for disarmament and the elimination of the PKK terror organization in northern Iraq? Thank you, sir.

President Obama. Well, what the Prime Minister and I have discussed is coordinating closely in dealing with the problem of the PKK. We have stated before and I have reaffirmed since I came into office that the United States considers PKK a terrorist organization, and that the threat that it poses not only in Turkey but also in Iraq is one that is of deep concern. And as NATO allies, we are bound to help each other defend our territories. More broadly, I think that it is important for us to have a consistent position with respect to terrorism wherever it takes place.

So we discussed how we can coordinate militarily. I will tell you that with respect to the issue of the PKK, I think that the steps that the Prime Minister has taken in being inclusive towards the Kurdish community in Turkey is very helpful, because one of the things we understand is, is that terrorism cannot just be dealt with militarily; there is also social and political components to it that have to be recognized.

With respect to Iraq, I think the degree to which the Kurdish population within Iraq feels effectively represented within the central government in Baghdad, to the extent that we can resolve some long-term pressing issues like Kirkuk, the more I think that Kurds will recognize that their interests are not in supporting any kind of military activity but rather in working through conflicts politically, in a way that allows everybody to be prosperous. And that's the kind of process that we would encourage.

Okay? Thank you very much, everybody. Happy holidays.

Turkish Deputy Prime Minister Babacan receives USTDA Country of the Year award

The U.S. Trade and Development Agency is proud to announce the Republic of Turkey as the recipient of its 2009 Country of the Year award. This award is a reflection on the success of the Agency's program in Turkey supporting their development priorities. USTDA Acting Director Leocadia I. Zak presented today's award to His Excellency Ali Babacan, Turkey's Deputy Prime Minister and Minister of State. The award ceremony took place at the Office of the Unites States Trade Representative. Also present at the ceremony were the Honorable Gary Locke, U.S. Secretary of Commerce and Ambassador Ron Kirk, U.S. Trade Representative.

“USTDA is delighted to add Turkey to the distinguished list of high-performing partners who have earned the Agency's Country of the Year award,” said Acting Director Zak. “This important award reflects the strong economic relationship between Turkey and the United States and I am very proud that USTDA has been able to contribute to this relationship.”

Turkey has a long history of engaging USTDA in the early project planning stages for many of its infrastructure development needs. This has allowed the Agency to play a vital role in advancing these priority projects. As a result of this cooperation, the Agency has been able to open the door for U.S. industry to play a significant role in Turkey's continued economic development, which has resulted in the export of more than $630 million in U.S.-manufactured goods and services.

For example, in May 2009, the Germincik geothermal power plant began commercial operation. The concept and planning process for the facility originated in a feasibility study funded by USTDA. It is the largest plant of its type in Turkey, providing over 40MW of clean energy. Important in this effort is the role of the U.S. private sector, which exported $22 million in U.S.-manufactured goods and services during construction

Building on this past success, USTDA and Turkey's Ministry of Energy and Natural Resources launched the U.S.—Turkey Clean Energy Partnership in April 2009. This Partnership is designed advance our cooperation in the clean energy sector by supporting energy efficiency, solar energy, and new environmentally-friendly coal gasification projects.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

Secretary Hillary Clinton and Foreign Minister Petro Poroshenko delivered these remarks in Washington, DC

Secretary Clinton. The United States is committed to supporting Ukraine as it continues on the path to democracy and prosperity. We applaud the growth of a free press and a vibrant political culture in Ukraine. We support Ukraine's further integration with NATO and the European Union. And we look forward to the free and fair presidential elections in January, and to working with the leaders chosen by the Ukrainian people as they take the steps necessary for economic recovery and reform.

A strong and independent Ukraine is good for the region and good for the world. Our meeting today built on the inaugural session of the U.S.-Ukraine Strategic Partnership Commission, a body that was created during Vice President Biden's visit in July. Our hope is that this commission will help improve cooperation on security, on the economy, on trade, on energy, and on the rule of law. By working together as partners, I am confident that we can meet the challenges and seize the opportunities of the 21^st century. With the end of the START treaty last week, it is worth recalling the landmark decision that Ukraine made 15 years ago to give up its nuclear weapons and join the Nuclear Nonproliferation Treaty.

These decisions advanced the global cause of nonproliferation and led the United States to join Russia and the United Kingdom in extending security assurances in 1994, assurances that we have reaffirmed last week and again today that remain in force. I'm also pleased to note that the United States and Ukraine recently agreed to restart cooperation on dismantling scud missiles. Ukraine today makes important contributions to global peace and security, including contributions to international peacekeeping missions from Kosovo to Liberia to Sudan.

And the United States appreciates Ukraine's contributions to the important mission in Afghanistan. And I wish to commend the foreign minister for the work that he is doing to work with Moldova to demarcate the border.

So let me thank the foreign minister for his visit and for the friendship between our two countries. I look forward to continuing our work together in the future.

Foreign Minister Poroshenko. Thank you very much, Madame Secretary. Ladies and gentlemen, I'd like to thank Secretary Clinton for her warm hospitality, and we had a very productive negotiation. I greatly appreciate your message that U.S. will stand Ukraine and its continue on the path of freedom, democracy, and prosperity.

It's very important for me to establish the—that we have established direct dialogue. We have a long list of problem we should deal together. And we really want to thank you for the firm support which was declared on our today meeting.

In the meantime, while appreciating that United States has recently reconfirmed the security assurance provided to Ukraine, and it should be—it is already reconfirmed on our meeting. It is crucially important for Ukraine—and we discussed this question on our today meeting—the return of IMF mission and the—to reestablish the work of mission of IMF to Ukraine if it would be possible this year in Ukraine to undertake the certain steps to demonstrate the openness and the effectiveness in cooperation with IMF.

The crucially importance for us is today integration meeting of our Commission for Strategic Partnership, and I think this is absolutely new and very important for us forum for our cooperation and dialogue in the different sphere you mentioned today.

And it is a great honor and I want to reconfirm the invitation to the Secretary Clinton to visit Ukraine on early possible time taking into account the busy schedule, and we think that our current level of cooperation is very high, very acceptable. And I want to thank you very much for— Madame Secretary, to you for that.

Q. The question is about safety, energy safety. In this charter on strategic partnership which was signed last year, it was mentioned that the United States will help to modernize Ukraine's gas transportation system, and all the projects will be discussed with the new Administration, with you. So are there any result, any projects, and so on? Thank you very much to both.

Secretary Clinton. Do you want to start?

Foreign Minister Poroshenko. We pay special attention to the question of the energy security and we discussed the very important events which should take place on the 18th of December in Zagrab when Ukraine should join the Energy Community Treaty and on the expert level we finish all this work. And we think that the question of the energy security, again, should be global. This is—it's impossible to solve on the bilateral level. And I think we demonstrate absolutely good understanding of the current situation, and also in this particular sphere we continue our very effective cooperation with the United States.

Secretary Clinton. Ambassador Morningstar was in our meeting. He is our special envoy on behalf of Eurasian energy. We reiterated, as the minister had said, the importance that we place on Ukraine becoming more energy secure and more energy independent. There is a tremendous opportunity in the future for Ukraine to develop much greater energy sufficiency by attracting investments in the natural gas sector. A lot of it, though, will depend upon the economic and political reforms that Ukraine is addressing. But we reiterated with the minister and his delegation that we will certainly support Ukraine becoming more integrated within the European energy security framework and we will support in any way, through technical expertise and other assistance, the development of the Ukrainian energy sector. We know that there are a number of investors from the United States and elsewhere who are interested in participating, but the most important precondition is that these economic and political reforms take place so that the Ukrainian people can realize the benefits of their own natural resources.

Moderator. And the last question goes to Ruslan Petrychka from the Ukrainian Service of the Voice of America.

Q. Thank you. A question to both of you. Next month in Ukraine, there are going to be very important presidential elections. And have you discussed this issue in your meeting? And is—are there any steps that the United States can take to assure free and open elections next month?

Secretary Clinton. Well, we have reiterated our hope that the election process goes smoothly, that the elections are free and fair and produce an outcome that will be respected, both within Ukraine and around the world. It is for the Ukrainian people to decide who their elected leaders should be. But the promise of the Orange Revolution, which was so moving to so many of us, is that the people of Ukraine have the right to choose their leaders without interference, without any kind of electoral abuse. And we are doing all we can to support Ukraine. And of course, we will work with whoever the Ukrainian people elect in a fair and free election.

Foreign Minister Poroshenko. I can only confirm that we now—when the election campaign is already in the peak of their time, we can guarantee and we can demonstrate that the election and the election campaign is free and fair. Me, as a minister of foreign affairs of Ukraine, invite more than 1,000 observers to guarantee the character of the election. We now demonstrate the—one of the greatest achievement of the Ukraine, this is the freedom of speech, freedom of mass media, the equal access of all the candidates to all these resources.

And from my point of view, even the fact that nobody knows—this is the first presidential election in the Ukraine where nobody knows who will be the next president. This is also the symbol of democracy. And from my point of view, I think that the Ukraine successfully pass these exams for democracy, for the members of this civilized society. And we feel the support from all of our partners, including the United States. And we want to thank the United States for that.

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

Secretary Hillary Clinton and Foreign Minister Gordan Jandrokovic delivered these remarks in Washington, DC

Secretary Clinton. It is a pleasure to welcome the foreign minister and to have this opportunity for an extended discussion about a number of issues. Croatia is a valued friend and ally of the United States, and this is a very welcome opportunity for us to reaffirm our partnership. Before I turn to the issues that the minister and I discussed, I would like to say a few words about Sudan.

The United States condemns the disruption of peaceful protest and acts of political violence committed by any party. Freedom of assembly, freedom of speech, and protection from arbitrary arrest and detention are instrumental to allow for credible elections in April 2010. We recognize that the next few months will be tense as we get closer to the election and the referenda. It is critical that all parties redouble their efforts to resolve problems through political dialogue and without violence. Special Envoy Scott Gration will return to Sudan this weekend to help restart dialogue and resolve outstanding issues that are contributing to these rising tensions. Sudan is an important priority for President Obama and myself, and we are committed to seeing a peaceful democratic transformation as envisioned in the Comprehensive Peace Agreement, and a peaceful resolution of the conflict in Darfur. I urge all parties to demonstrate the political will necessary to achieve these objectives.

And now let me turn to the subject of the day: our partnership with Croatia and the visit of the minister.

This is a historic time for Croatia and our Euro-Atlantic alliance. In April, we welcomed Croatia into NATO, an achievement that was the result of years of hard work and tough-minded reforms. As Croatia has strengthened its democracy, our countries have worked together in close partnership based on mutual respect and mutual interests. Now we are bound together in the greatest and most successful military alliance in history.

Today I thanked the minister for Croatia's contribution to the NATO mission in Afghanistan and for its participation in peacekeeping operations around the world. The violent extremism we are fighting in Afghanistan is a threat to peace-loving people everywhere. And Croatia's efforts to help train Afghan forces are crucial to our mission. It will help to speed the day when the Afghans themselves can take responsibility for their own security.

I also want to recognize Croatia's regional leadership. Through the Adriatic Charter, Croatia is helping to support the NATO aspirations of its Balkan neighbors. It was one of the first countries to recognize Kosovo and joined the U.S. and others in oral arguments this week in The Hague in support of Kosovo's legal right to declare independence. And I know how hard the foreign minister himself is working to improve relations between Croatia and Serbia.

The United States supports these efforts. We are very pleased by the progress that is taking place in the concerns between Slovenia and Croatia, and I thank Croatia for its leadership on that as well. We are committed to the full integration of all of the Western Balkan nations into European and Trans-Atlantic institutions. We made progress last week at the NATO Ministerial by welcoming Montenegro into the Membership Action Plan and recognizing Bosnia's progress toward that goal.

Croatia's success offers a model for the region on what can be accomplished when a nation commits to reform and progress. And I particularly applaud the prime minister for her excellent leadership in anti-corruption efforts and other important reform measures. I am confident that by working together, as well as through NATO and other multilateral institutions, the United States and Croatia can ensure an even brighter future for our people, a more stable and peaceful Europe, and indeed a better and safer world.

So thank you again, Minister, for your visit and for your friendship.

Foreign Minister Jandrokovic. Thank you, Madame Secretary. I am very pleased to be in United States and I would like to thank Secretary Clinton for her invitation and warm hospitality. Secretary Clinton and I confirmed the excellent relationship between our countries, a relationship that can be defined as one of allies, partners, and friends. I express gracious appreciation for the U.S. support and assistance on issue of vital importance to our country particularly—NATO, EU accession, and regional cooperation in Southeast Europe.

We, of course, spoke about the positive resolution of the Slovenian blockade of Croatia's accession negotiations and the fact that our parliament ratified the arbitration agreement on November 20, 2009. I also informed the Secretary of the remaining tasks facing Croatia as we proceed along our EU accession path and our intention to conclude negotiations by mid-2010. I especially emphasized reform of judiciary, reform of public administration, fight against corruption, and cooperation with ICTY.

I reiterated to Secretary Clinton the Croatian Government's strong support for President Obama's new Afghanistan strategy. Croatia is committed to strengthening its presence in Afghanistan and is seeking ways to further contribute to NATO's key efforts.

We believe that training Afghan security and police forces to assume ownership for security in their country is the most important task. That is why we will be making a concrete contribution to that task with two additional police mentoring teams in addition to already operating three OMLTs.

We also discussed the situation in Southeast Europe, and I expressed to the Secretary that Croatia welcomed the active reengagement of USA in our region, and particularly in Bosnia and Herzegovina. Croatia considers it imperative that (inaudible) negotiations on constitutional amendments continue until consensus is reached. We concur that keeping the Euro-Atlantic perspective open for all countries in the region of Southeast Europe is crucial for the future stability of this region.

We also discussed Croatia's ongoing interest in joining the U.S. Visa Waiver Program, and I advised the Secretary of the criteria that Croatia has fulfilled today.

Thank you, Madame Secretary.

Secretary Clinton. Thank you so much, Minister Jandrokovic.

Foreign Minister Jandrokovic. Thank you, thank you.

Q. Madame Secretary, have you discussed possibility of sending U.S. expert to help Croatia investigate the missing documents from Operation Storm? And if so, Mr. Jandrokovic, would Croatia accept that kind of help? Thank you.

Secretary Clinton. Well, we expressed our appreciation for the steps that Croatia is taking. The recent actions which recovered 10,000 pages of documents is a positive step. We would be willing to offer any technical assistance that Croatia would request.

The important matter is for Croatia to do what it is now doing, which is using its own resources, its own law enforcement personnel to track down these missing documents, and to fulfill the requirements that it knows it has to meet in order to move forward in the EU accession process.

Foreign Minister Jandrokovic. Thank you. Very quickly, I'm sure that we can solve this problem alone, and we are ready also to cooperate with others. But this is our documents, this is proof that Croatia is a country which respect rule of law, and we will continue with our investigation. I'm sure that we will solve this problem.

Q. Madame Secretary, (inaudible) correspondent in Washington. Croatia has recently emerged from 10 months Slovenian blockade of its membership talks with European Union, thanks to efforts of the United States and European presidency. Now another blockade is looming from Great Britain and other countries related with missing documents that require from the prosecutor of The Hague tribunal. Would you consider justified to another blockade of membership talks despite all the efforts the Croatian Government undertook, especially yesterday, vast operation of search and arrest of—in searching for documents? And this blockade—the last blockade of 10 months was very damaging also to the United States and the European policy in the region because it block—it's stopping all the process of Euro-Atlantic enlargement, so would you consider justified another blockade? Thank you.

Secretary Clinton. Well, first let me say how strongly the United States supports Croatia's EU membership. We supported Croatia's NATO membership. We think that Croatia has an important role to play in the region, and therefore we hope that they will be on the road to EU membership sooner instead of later. Obviously, we don't have a vote in the EU, but we have made it clear to a number of our counterparts how valuable we think it will be when Croatia is a member.

Regarding the demands by the British and the Dutch, I think the foreign minister should address those.

Foreign Minister Jandrokovic. First of all, we must continue with our investigation. And I'm sure that we will prove during this investigation that Croatia fully cooperated with ICTY. This cooperation is important not only because of the negotiation process. It is also important for Croatian society that we must prove that we are rule of law and the institution functioning in Croatia. I will, of course, discuss this issue with my partners, with my colleagues from some Europeans countries. And I'm sure very soon when they analyze the situation, they will change his position and Croatia will finish negotiations in first half of 2010.

Mr. Crowley. Thank you very much.

Secretary Clinton. Thank you all very much.

Secretary Hillary Clinton and Foreign Minister Miguel Ángel Moratinos delivered these remarks in Washington, DC

Secretary Clinton. Well, good morning. And it's a particular pleasure for me to welcome the foreign minister to Washington. After my first year as Secretary of State nearly completed, he has been a wonderful counterpart. And of course, Spain is such a valued friend and ally. We are united in a broad partnership based on our many common values, as well as our mutual interests. And I want to express gratitude to the Government of Spain for the many positive actions that they have taken over the course of this past year. Our two presidents have developed a close working relationship, and I think it is reflective of the view about the way forward to achieve more peace, more prosperity, security, and stability around the world.

We, of course, discussed our mission in Afghanistan. And as NATO allies, we have shared a deep concern about the extremist threat that has struck both of our countries and created a very grave awareness of the dangers that we face. And I am very appreciative to Spain's continuing support of this difficult mission. As Spain assumes the presidency of the EU, they will be certainly involved in a leadership role with the EU's new action plan for civilian assistance in Afghanistan and Pakistan. And we are very appreciative of their leadership and participation also in the Friends of Democratic Pakistan group.

We discussed wide range of other shared concerns. We're working together to bring the situation in Honduras closer to resolution. We appreciate the constructive role that Spain has played in that difficult matter. Certainly, our delegations are at this moment in Copenhagen, working to come up with a framework agreement to deal with climate change. And Spain has been a leader in clean energy. Spain has also been very involved in meeting the challenges of hunger, poverty, and disease.

We work together and will continue to do so to stabilize the Western Balkans, and it will be a particular concern of the minister during the EU presidency. There are so many areas that we discussed that we kept you waiting out here. So I just want again to thank the minister and to reaffirm the strong partnership between our two countries.

This is a historic time for Europe with the 60^th anniversary of NATO, the ratification of the Lisbon Treaty, the naming of the first permanent president of the European Council. And it goes to underscore the importance of our transatlantic alliance and the strong foundation that both our bilateral relationship and our alliance relationship present as we work on many of the difficult issues ahead.

Thank you so much.

Foreign Minister Moratinos. Thank you, Hillary. Let me start by thanking you and all your people for an extremely warm welcome, and extremely positive and friendly discussion. As the Secretary of State has already pointed out, we had a very positive example of the main issues that both, of course, the United States, Spain, and Spain in the coming presidency of European Union have done to respond in not only now, but in the next year. And of course, we addressed first the tremendous challenge we all—the Western world and the international community has in front of Afghanistan.

I, of course, informed the full support of Spain to the U.S. strategy towards Afghanistan, how President Obama—his speech and commitment, discussion we have in Brussels in NATO Council, and that Spain is going to contribute in a significant manner in all the components of this new strategy. I think that showed a clear commitment of Spain towards this very specific core issue we have to address. And of course, we all continue to work hand by hand in order to prepare the London conference in January to make it a real success.

Of course, we discussed extremely good development in different areas. We have started to prepare the EU presidency, how we are going to work for the new (inaudible) agenda, and the traditional areas of common concern: the Middle East, the North Africa, Western Sahara, also Latin America with Honduras. And that, of course, make us to make this strong appeal to all parties in Honduras to really find a national reconciliation. That's what always United States and Spain has been working for in a very coordinated manner. And I hope that in the next days we can find this new momentum created in Honduras.

Of course, we also talk about Western Balkans. I just come from Belgrade myself. And I assure Secretary of State and U.S. Administration that we will have a constructive approach and positive engagement in order to bring stability in this European perspective to the whole Western Balkan region. And I think while together, we can make the difference.

And only to thank Secretary of State for what has been an extremely productive discussion. And of course, waiting for the next year for Spain with the new Lisbon Treaty and the new representative, president of the council and high representative, we will work together with the United States in order to bring much better hope and much better, I will say, happy world in 2010. So thank you.

Secretary Clinton. Thank you so much, Miguel.

Foreign Minister Moratinos. Thank you. Thank you.

Secretary Clinton. Thank you very much. Thank you.

Q. Hello, good morning.

Secretary Clinton. Good morning.

Q. I've got one question for you both. First, Mr. Moratinos. (In Spanish).

And for you, Madame Secretary, what are you expecting from Spain for your new strategy for Afghanistan? Thanks.

Foreign Minister Moratinos. (In Spanish.)

Secretary Clinton. Well, I'd like to hear the translation. Because I may only have to say ditto.

Interpreter. The original question, which was in Spanish, was—the question for the foreign minister was: Mr. Foreign Minister, what exactly was on the table regarding Afghanistan? Did the Spanish Government go over any concrete numbers and offers?

And the foreign minister's response was: Well, we worked on a series of concrete offers, but I would like to say that the government should respect the process in Spain. We must wait to make that announcement public after there is an adequate political discussion within the policy framework, a discussion about cooperation, development, aid. All of that has to be done within the Spanish parliament framework first—but I would like to underscore, however, that the Spanish are seriously committed in its support to President Obama's strategy and approach, as we said in Brussels.

And today, we simply discussed a variety of offers that we are working on in preparation for the conference in London. So when the Spanish Government decides to go public with a decision, we will certainly let you know. But we worked in order to be prepared for the success of the London conference that—where we will look at the offers made by the international community and Spain in particular.

Secretary Clinton. And we are very grateful for Spain's support and very tangible offers of assistance with which—as the minister said, are really the prerogative of the Spanish Government to discuss.

Moderator. (Inaudible.)

Q. Good morning. (In Spanish.)

Secretary Clinton. Do you want to do the question first?

Interpreter. Sure. Mr. Minister, if we understood correctly, you discussed the issue of Sahara. Right now, there is a problem with a Western Sahara citizen that you were aware of. What type of cooperation did you ask from the United States over that issue? Also, last week, it was said that there is no intervention necessary right now from the king. At what point would the king's intervention be necessary?

Foreign Minister Moratinos. First of all, thank you for the question. I was expecting it. So yes, the Secretary of State and I did speak about the issue. We did speak about Mrs. Haidar's situation concretely, as well as the problem overall in Western Sahara. And obviously, as two allies and two partners with interests in the regions, we must collaborate, we must cooperate, and we need to find a solution to the Haidar case, not through pressure of any kind that we're applying, but by suggesting to her that her cause, which is a legitimate cause, does not require her to go on a hunger strike.

We are all looking for a solution to the situation that has arisen from her expulsion from Laayoune, and we will continue to work in that direction and we will continue to work, moreover, to find a definitive solution to the situation in Western Sahara, where what we need is a new dynamic, a new engagement, not just there, but in North Africa as a whole. As you know, North Africa—events in North Africa have bearing throughout the international community. We have seen the example of the Sahel. We have seen al-Qaida operating in Maghreb.

So the U.S. and Spain—it's in their interest to work toward the betterment of the integration of that region. We would like to see a better relationship, a better understanding, between Algeria and Morocco. And we will continue, as I said, to work with the—also work toward an understanding with the Polisario Front so that the people of Western Sahara can have self-determination.

But as far as Ms. Haidar, we think that we need to find a solution. She should abandon the hunger strike, but she should continue to strongly and firmly defend her cause so that we can better and improve the situation in Western Sahara.

However, as far as your second question regarding the king, I would like to say that I feel that this is primarily the government's responsibility. The king may or may not intervene, but I feel that it is, first of all, the government's responsibility to act.

Treasury announces income tax treaty with Italy

The U.S. Department of the Treasury today announced the long awaited entry into force of an income tax treaty with Italy. Originally approved by the U.S. Senate in 1999, the treaty officially entered into force this morning when representatives of the two governments exchanged ratification documents at an event in Rome, Italy.

Provisions of the new tax treaty with Italy include:

*A limit of 5 percent on source-country withholding tax on certain direct dividends and a limit of 15 percent on source-country withholding tax all other dividends.

*Elimination of source-country withholding tax on certain interest paid to, guaranteed or insured by qualified governmental entities; interest paid with respect to a sale on credit of goods, merchandise, services or industrial, commercial or scientific equipment; and a limit of 10 percent source-country on withholding tax on all other interest.

*Elimination of source-country withholding tax on royalties for certain literary, artistic or scientific works; a limit of 5 percent source-country withholding tax on royalties for the use of, or the right to use, computer software or industrial, commercial or scientific equipment; and a limit of 8 percent source-country withholding tax on all other royalties.

*A comprehensive limitation on benefits provision.

With respect to taxes withheld at source, the new treaty shall have effect for amounts paid or credited on or after February 1, 2010. For all other taxes, the new treaty will cover taxable years starting January 1, 2010.

U.S. Treasury Department announces joint $536 million settlement with Credit Suisse AG

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), alongside the U.S. Department of Justice and the New York County District Attorney's Office, today announced a $536 million global settlement with Credit Suisse AG (Credit Suisse)—the largest penalty settlement in OFAC's history. The settlement stems from Credit Suisse's structuring of thousands of wire transfers executed through U.S. banks and securities transactions executed through its U.S. office to ensure that the involvement of sanctioned parties was not apparent. Today's action is the largest penalty settlement in OFAC's history. The Board of Governors of the Federal Reserve System has issued a consent Cease and Desist Order against Credit Suisse in connection with the case and is requiring the bank to implement an enhanced global regulatory compliance program. The Swiss Financial Market Supervisory Authority, as the home country supervisor of Credit Suisse, has agreed to assist the Board of Governors in the implementation and supervision of that Order.

This case arises out of Credit Suisse's processing of thousands of transactions over a 20-year period that concealed the involvement of sanctioned parties and the routing of wire transfers and securities transactions to and through the United States. The great majority of the transactions involved Iran, although there were also transactions that appear to have violated U.S. sanctions on Sudan, Libya, Burma, Cuba, and the former Liberian regime of Charles Taylor.

This matter represents an egregious case under OFAC's enforcement guidelines due to a number of aggravating factors, including the substantial economic benefit to sanctioned parties, the scope and severity of the apparent violations, and the awareness of the conduct within the bank.

“The efficacy of our sanctions depends upon vigorous compliance and enforcement,” said Director of OFAC, Adam J. Szubin. “Credit Suisse routed transactions through the United States surreptitiously, while knowing that those payments would be blocked or rejected if their true nature had been clear. These practices were not reasonable or authorized under U.S. law.”

Credit Suisse developed and deployed elaborate procedures for altering payments to ensure that the involvement of sanctioned parties was not apparent to the U.S. banks involved in the transactions, including stripping out the names of sanctioned parties from payment instructions and forwarding payment messages to U.S. financial institutions that falsely identified Credit Suisse as the ordering institution. In its securities unit, Credit Suisse's London affiliate processed trades through Credit Suisse's U.S. branch on behalf of a then-designated Libyan state-owned investment company and a Sudanese bank. The London affiliate utilized code names to disguise the identities of the sanctioned entities and maintained sub-accounts in these code names in its omnibus accounts maintained in the United States.

Credit Suisse ignored numerous red flags that were raised over its long course of conduct. As early as 1998, a Credit Suisse employee noted that the bank had used the cover payment method to process sanctions-related transactions through the United States because, “[h]ad such data been transmitted to [Credit Suisse First Boston] New York, then the assets would have had to been frozen and submitted to OFAC.”

An additional red flag was ignored when, in 2003, Credit Suisse learned that another international bank had ceased to handle Iranian banks' U.S. dollar clearing business. Instead of perceiving legal risk, Credit Suisse saw a business opportunity and sought to take over the Iranian U.S. dollar clearing business. As a result, the number of apparently illicit payments involving Iran that passed through the United States dramatically increased from 2002 to 2005.

In July 2004, a Swiss money laundering regulatory requirement entered into force requiring the disclosure of the remitter in payment orders. This prompted Credit Suisse to issue an internal directive prohibiting the use of the “Order of a Customer” method when making international wire transfers. Instead, Credit Suisse provided information to its Iranian clients about how to use other methods to route U.S. dollar payments through the United States. Additionally, between 2005 and 2006, Credit Suisse employees continued to remove or alter information about Iranian bank clients in customer payment orders sent to U.S. correspondent banks.

Today's settlement is the most significant in OFAC's history. Were it not for the bank's remediation and cooperation with the government's investigations during the past two years, the resulting penalty could have been substantially higher.

Credit Suisse phased out its business with sanctioned parties and has terminated the alleged illegal activities and cooperated with OFAC. The bank conducted a comprehensive investigation of the conduct described above and performed a transaction analysis of activity between 2002 and 2007. Results of the investigation were promptly provided to OFAC. The bank's sanctions compliance will be monitored by the Board of Governors of the Federal Reserve System and the Swiss Financial Market Supervisory Authority.

Treasury wishes to thank the New York District Attorney, the U.S. Justice Department, and the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York for their outstanding assistance and cooperation.

Secretary Hillary Clinton delivered this statement in Washington, DC on the 20th anniversary of the fall of communism in Romania

Secretary Clinton. Twenty years ago, on December 17, 1989, the people of Romania carried forward the wave of freedom that was sweeping through Central Europe. First in Timisoara and then across Romania, men and women dared to stand up to tyranny. They risked their own safety, and in the process liberated a nation.

Today is an opportunity to celebrate the great progress Romania has achieved in the years since those fateful December days. Twenty years ago, no one knew what would emerge from the ruins of Communism. But because of the determination and courage of the Romanian people, today their country stands as a strong democracy, a vibrant new member of the European Union, and a valued member of NATO.

The United States is proud to call Romania a trusted friend and ally. On behalf of President Obama and the people of the United States, I congratulate the people of Romania on twenty years of democracy. On this historic occasion, let us recommit ourselves to the values championed by the brave men and women of 1989—democracy, human rights, the rule of law—and to working together to meet the challenges of the 21st century.