Subject: Waiver of Restriction on Providing Funds to the Palestinian Authority

By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 7040(b) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2009 (Division H, Public Law 111-8) (the “Act”), I hereby certify that it is important to the national security interests of the United States to waive the provisions of section 7040(a) of the Act, in order to provide funds appropriated to carry out chapter 4 of part II of the Foreign Assistance Act, as amended, to the Palestinian Authority.

You are directed to transmit this determination to the Congress, with a report pursuant to section 7040(d) of the Act, and to publish the determination in the Federal Register.

Secretary Hillary Clinton and Prime Minister Salam Fayyad delivered these remarks in Washington, DC

Mr. Crowley. Good afternoon from Washington, and good evening to our friends in Ramallah. Here in Washington we are joined by the Secretary of State Hillary Clinton, and in Ramallah by Palestinian Authority Prime Minister Salam Fayyad. We'll begin the program with Secretary Clinton and then follow by remarks by the prime minister.

Secretary Clinton. Thank you very much. Welcome, and I'm delighted to be able to speak via technology on this important issue. I know that Prime Minister Fayyad and our Consul General in Jerusalem, Jake Walles, and others are joining us from Ramallah. I want to thank you for taking the time to meet with us. And I express—especially appreciate, Mr. Prime Minister, that you and your colleagues agreed to do this late on Friday evening, which I know is not convenient, to allow me to participate once I returned to Washington from Asia.

I wanted personally to announce the delivery of budget support to the Palestinian Authority, under the leadership of President Abbas and Prime Minister Fayyad. Because what is at stake for the Palestinian people, for the future of a Palestinian state, for the future security of Israel, and for the region is so critical. This is important also to the United States and the Obama Administration. Finding a peaceful solution to the Israeli-Palestinian conflict and the broader conflict that has plagued the Middle East for decades has been a priority for the President and me from the very beginning of the Administration.

I am pleased that Senator George Mitchell, our Special Envoy for Middle East Peace, is back in the region. And I believe we are making progress in our efforts to create the environment for a successful resumption of negotiations in the near future. As I said at Sharm el-Sheikh, human progress depends on the human spirit. The broader goals we seek to accomplish—a comprehensive Arab-Israeli agreement and a two-state solution—are more likely to grow out of opportunity than futility, out of hope rather than misery.

As I also said, the point of our engagement is to help the parties make the decisions that are in their best interests. And it is our hope that the support of the United States and other nations will help foster conditions in which a Palestinian state can be fully realized, a state that is a responsible partner, is at peace with Israel and its Arab neighbors, accountable to its people, a state that Palestinians everywhere can be proud of and that will be respected worldwide.

This shared goal depends on strengthening the Palestinian Authority and its ability to meet the needs of its people. In just over two years, President Abbas and Prime Minister Fayyad have put in place the foundations of a responsible, transparent, accountable government. Therefore, I am pleased to announce that the United States has transferred $200 million in direct support to the Palestinian Authority. This transfer fulfills a critical portion of the assistance package that I announced in March in Sharm el-Sheikh. The ability of the United States to provide support directly to the Palestinian Authority is an indication of the bipartisan support for the effort to secure the peace in the Middle East, as well as for the fundamental reforms that the Palestinian Authority has undertaken. Members of Congress from both sides of the aisle worked closely with us to make this assistance possible.

An important marker of progress is that the Palestinian Authority now has systems in place to ensure that donor funds are handled transparently and in an accountable manner. We will continue to work with the Palestinian leadership to bolster these safeguards to make sure that the funding ends up exactly where—and for whom—it is intended.

But we are confident, because the Palestinian Authority, under President Abbas and Prime Minister Fayyad, has a very exceptional two-year track record of performance on economic reform and prudent financial management, as noted by the World Bank, the IMF, and our own internal reviews. These fiscal reforms serve a larger purpose. We are seeing the positive impact that responsible government is having on the lives of Palestinians in the West Bank, daily improvements in security, law and order, and economic opportunities.

For these improvements to take root, the capacity of the PA must be both deepened and strengthened. To continue this impressive record of reform, the PA needs financial help, and they need it now. President Abbas and Prime Minister Fayyad have worked hard to lower the burden on donors, but continued progress will depend on donors meeting their commitments. The United States has and will continue to be a partner with the Palestinian people for peace, prosperity, and security.

Now many other nations, including our European partners, have contributed generously to support the PA. I call on all nations that wish to see a strong, viable Palestinian state living in peace and security with its neighbors to join us in supporting the Palestinian Authority. The Palestinian Authority has proven to be a reliable partner for peace. It offers the Palestinian people the option of a peaceful, free, and prosperous future, and an end to the violence and conflict that have deprived so many Palestinians of the opportunity to fulfill their hopes and dreams and for their children to live up to their God-given potential.

So these are the goals we seek to accomplish: a comprehensive Arab-Israel peace agreement and a two-state solution. And it is our hope that this support will further conditions in which a Palestinian state can be realized.

I'm very grateful for the changes and reforms that have been instituted in the Palestinian Authority, and I look forward to continuing to work with President Abbas and Prime Minister Fayyad on moving forward with these extremely important and critical goals. Thank you very much.

Prime Minister Fayyad. Thank you very much. Thank you, Madame Secretary, for taking the time to be with us today to take part in a very important event. Indeed, it is a hugely important event on at least three counts. For one, $200 million assistance package of yours represents the largest amount of external financial assistance to be made available to the Palestinian Authority in a single tranche by any donor toward any purpose since the inception of the PA, Palestinian Authority.

Second, the entire amount assistance is earmarked for budget support—the very type of external assistance we need the most, particularly at this juncture, given the severe financial difficulties that we have been facing for many months now. So your assistance couldn't have been more timely, and it will enhance our capacity to deliver vital and needed services to our people in Gaza and in the West Bank. For all of this, we are grateful to you, Madame Secretary.

In this case, our sense of deep gratitude is matched, if not even surpassed by the by immense pride in what we have accomplished—to be worthy of the confidence of our people and the international community in the legitimacy of our financial management system. Given the very high and indeed exacting standards of accountability and transparency set forth by the U.S. Congress of aid disbursement, the fact that you have chosen to disburse the full $200 million directly to our treasury carries with it a clear signal amount of confidence in our financial systems and our financial management.

It is indeed a huge vote of confidence and one which we deeply cherish. Madame Secretary, any aid receiving country would be proud to qualify for your assistance being delivered directly to its treasury. For us Palestinians, it takes on added significance, given what it implies, in terms of our readiness for statehood and the fulfillment of our ultimate goal of living in freedom and dignity in a country of our own.

So, Madame Secretary, on behalf of President Abbas, the Palestinian National Authority, and the Palestinian people, I thank you personally. I also would like to thank President Obama, the U.S. Congress, and of course, the American people. Thank you so very much.

Secretary Clinton. Thank you very much, Prime Minister Fayyad, and I just want to underscore how much we appreciate all of the steps and changes that your government has undertaken. Thank you very much.

Prime Minister Fayyad. (Inaudible), thank you.

Secretary Clinton. I think we'll take a question or two. Is that okay, Jake?

Staff. Yes.

Secretary Clinton. On this subject. Yes.

Q. Madame Secretary, we've heard from Maliki, and perhaps Prime Minister Fayyad can speak to this as well, that as you're—as you say, you're making progress in creating the conditions for negotiations, that they'd like to see the Obama Administration make some kind of declaration or vision statement in terms of how you see the negotiations taking place, and your vision for a Middle East settlement so that that perhaps could, you know, get the parties onboard in terms of moving forward, that that's what you need, and they want you to do it before Ramadan.

Do you anticipate any statement of this nature? Do you think that the Obama Administration will lay out its vision before the negotiations resume? And—because Senator Mitchell had said that he thought it would be done in weeks, not months, and we're kind of approaching months at this point.

Secretary Clinton. Well, this is one step at a time. And as you know, Senator Mitchell is back in the region having further consultations and exploring, in depth, some of the actions that are being considered. He will be in Israel in a few days, and we're going to let the parties continue to drive this process because we want to get back to the negotiations between the two of them. The final status issues, which are obviously very important, can only be resolved by agreement between the Palestinian Authority and the Israelis. So at this point, we're working very hard to get to that step and then we'll see where we go from there.

Yeah.

Q. Could you be a bit more specific, though, as to when you think these negotiations could begin? Are you making any progress, for example, on the settlement issues? That seems to be the key issue that's holding this up. Are you expecting Senator Mitchell to come back with something special, something resolved there?

Secretary Clinton. Well, I'm not going to preempt Senator Mitchell. He is the person conducting these consultations on behalf of the President and myself. Obviously, this is very complicated work. There are lots of moving parts. So I think we'll wait until there is some announcement to be made, and then once that happens, it will be, obviously, right to ask questions about it. But let's let Senator Mitchell continue the important work that he's doing.

Mr. Crowley. Perhaps one or two more and then—

Secretary Clinton. Okay. Okay, yeah.

Q. Okay. Madame Secretary, a large number of senior American officials are going to Israel next week to talk with senior Israeli officials. I wonder if the Administration has decided maybe this is a good time to try to ratchet down some of the tensions with the Israelis over the issues that are being discussed, led by the settlements.

Secretary Clinton. Well, when we talk with the Israelis, they are conversations between friends. I mean, we have a deep and durable relationship with Israel. It has been our commitment, no matter who is in the White House and no matter who is the prime minister in Israel. So I think that the conversations that we're engaged in with our Israeli counterparts are very forthright, very clear that we have to work through a lot of the concerns that are expressed. Our goal is to ensure a peaceful and secure future for the Israeli people and future generations of Israelis.

So I think that there is a great deal of positive communication that is taking place. And it's not only on the issues that Senator Mitchell is driving, but we have many interests and concerns with the Israelis that will be explored and discussed when General Jones and his delegation arrive there.

Yeah.

Q. Madame Secretary, Senator Mitchell is going to Syria. Do you expect that you can make progress on the Syrian-Israeli track before the Palestinian-Israeli track?

Secretary Clinton. Again, I think this is one of the issues that is being explored. As you know, we began a policy of reengaging Syria when I became Secretary of State, and working with our teams here, Jeff Feltman and others from the State Department and the White House. And we think that it's a fruitful engagement that we intend to pursue. We have notified the Syrians that we are returning an ambassador to Damascus.

But it is just the beginning. I mean, I don't want to leapfrog over the hard work that has to be done in working through many of the issues that are of great concern to the United States that Syria has to be willing to discuss with us and, hopefully, make some changes going forward.

So as we move through this process, we obviously will be informing you as to where we are. But I think the question of either/or track—Senator Mitchell is exploring deeply with the Syrians how they would respond to renewed negotiations with the Israelis. The timing on that, the simultaneity of it; that's all to be determined. Yeah, go ahead.

Mr. Crowley. One more?

Secretary Clinton. Yeah.

Q. Thank you. Following up on this track, on the Syrian track and also Senator Mitchell's visit, importantly, for a solution to be viable, other Palestinian actors will have be to involved. Syria has important sway with Hamas and other Palestinian factions. So what do you expect from the Syrians on that track, and how important is it for national unity between the Palestinians? Thank you.

Secretary Clinton. Well, of course, the Palestinians themselves have been, as you know, meeting in Cairo over a number of months to discuss some of the challenges to unity, and I leave that to them to describe, because there are internal dynamics that have nothing to do with any other party. It's between them.

But with respect to Hamas being a part of any negotiations, we've set forth the conditions that would be necessary for Hamas to meet. And they're conditions that not only do we support, but the Quartet—the UN, EU, United States, and Russia—support, and the Palestinian Authority supports. I mean, the Palestinian Authority is working very hard, as evidenced by their reform efforts, the changes that they've instituted, to try to be a responsible and effective partner with Israel in any peace negotiations going forward.

So they don't want someone at the table who doesn't even agree with the purpose of the negotiations. So the conditions are clear—Hamas has to renounce violence, recognize Israel, and agree to the enforcement of prior agreements that have been entered into by the Palestinian Authority.

That hasn't yet come to pass. But I think the path forward for Hamas is very clear. If the Syrians or anyone else can persuade them to take a positive path forward, well, clearly, I think the Palestinian Authority and others would welcome that. But at this moment, that is not yet their position.

Secretary Robert Gates delivered these remarks in Amman, Jordan

Secretary Gates. First of all, let me thank His Majesty King Abdullah for his warm welcome today. This visit and my meetings with His Majesty and Chief of Defense Sarayra highlight the strong friendship and long-standing strategic partnership between Jordan and the United States.

During our discussions, I congratulated His Majesty for his principle leadership in the region on a number of issues. Just recently General Petraeus, the U.S. commander of Central Command, was here for the opening ceremony of the King Abdullah special operations training center.

That state-of-the-art facility will be a foundation, upon which other nations in the region will build their counterterrorism forces. Of course, the King Abdullah center is just one example of a broader pattern of regional leadership.

Jordan has been instrumental in building momentum for Arab contributions to a comprehensive Middle East peace, including two-state solution. And it's taken a leading role in supporting the development of Palestinian Authority institutions and security forces. I also commend Jordan for leading the way in assisting Iraq, as it seeks renewed engagement with its neighbors. His Majesty was the first Arab head of state to visit the new Iraq. And the deepening economic and diplomatic ties between Iraq and Jordan offer an example of the type of support needed, from other countries, to fully reintegrate Iraq into the region.

This is the only way to forge a stable and prosperous Iraq, a goal that is in the interest of all the nations of the Middle East. There are many difficult and daunting challenges facing us, from the continued threat of extremism to Iran's destabilizing behavior. But I'm confident that the relationship between Jordan and the United States has a very bright future, one in which we will continue to build on our past long record of cooperation and accomplishment.

I'll be happy to take a few questions.

Q. Secretary Gates, your talks in Israel with Israeli officials tackled mostly Iran and its threats.

What guarantees do you have that Israel will not take any military action, against Iran, until the U.S. is engaged maybe in dialogue, until there is a breakthrough, when in fact you never got guarantees with regards—Israel is not listening to your administration, with regards to halting settlements in— on occupied land?

Secretary Gates. I think that the—I certainly had the sense from my meetings with the prime minister and defense minister in Israel today that they are perfectly willing to allow this process of attempted engagement to go forward. They know, as President Obama has said, that this is not an open-ended process. But I had every sense that—that the Israeli government is prepared to let our strategy play out, in terms of trying to use a combination of diplomatic pressures, economic sanctions and—and other peaceful means to try and get the Iranian government to change its mind in terms of its nuclear ambitions.

One of the paths that we are following, obviously, is to try and persuade the Iranians that their security will be diminished by trying to acquire nuclear weapons, rather than enhanced. And our bilateral and multilateral cooperation with nations all through the region is—is one facet of the effort to lead them to that conclusion. But I had the sense that as long as the process is not completely open-ended, that the Israelis were prepared to let it go forward.

Q. Could you tell us what the king's concerns and perspective was on this same subject, on the threat posed by Iran, and also, his perspective and concerns on the political situation in Iraq, as the U.S. presence is drawn down there?

Secretary Gates. I would—I don't think it's appropriate for me to characterize what his majesty said. I would characterize our discussion more as focused on the bilateral relationship between the United States and Jordan, and Jordan's leadership role in the peace process and a two-state solution between Israel and the Palestinians.

We talked about what they were doing in terms of trying to help Iraq and some of the other areas in which the king is exercising leadership here in the region.

We talked very briefly about Iran, and it basically was to—to share our, I think, agreement about the destabilizing nature of—of Iranian activities.

Q. [I]t's agreed that settlements is the biggest obstacle on reaching a peace agreement. So how far do you think that the United—the U.S. administration will go in putting pressure on Israel to stop illegal settlements on the occupied land?

Secretary Gates. Well, this—the peace negotiations—the negotiations for a settlement—a two-state settlement between Israel and the Palestinians is really the province of the Department of State and Senator Mitchell. My message today was simply that the Department of Defense will do what it can to support those efforts, and particularly with respect to both sides in terms of if there's anything we can do to help enhance their security. But the subject beyond that really was not discussed today.

Q. Mr. Secretary, the Israelis were talking earlier today about binding Chapter 7 sanctions against Iran if the early part of the engagement process does not work. Does the U.S. support the notion of binding Chapter 7 sanctions? And, if so, has the U.S. begun either crafting language—specific language or trying to drum up support among its allies?

Secretary Gates. Well, again, the diplomatic side of that is—I'm not quite sure what may be going on inside the State Department. What is clear is that, if the engagement process is not successful, the United States is prepared to press for significant additional sanctions that would be non-incremental—in other words, we would try and get international support for a much tougher position. Our hope still remains that Iran will respond to the president's outstretched hand in a positive and constructive way, but we'll see.

Q. Secretary Clinton said recently the U.S. would consider establishing a defense umbrella in cooperation with allies in the Arab Gulf.

How much that would affect what Jordan gets in military assistance from the U.S.? Thank you.

Secretary Gates. I'm sorry?

Q. How much that would affect what Jordan gets in military assistance from the United States?

Secretary Gates. Well, I think an important step forward in our bilateral relationship between Jordan and the United States was the memorandum of understanding that was signed last year that put both our economic assistance and security assistance on a—which, I might add, is quite generous—on a longer-range and more predictable path.

One of the concerns that had been expressed to us by the government of Jordan was the unpredictability of what the assistance might be. The agreement that was reached last year provides for the next several years for Jordan to get I think, I think, $360 million a year in economic support funds and about $300 million in security assistance. And I think whatever other bilateral or multilateral engagements the United States has in the region would not have any impact on that.

Q. Did you discuss with the king the plight of Iraqi refugees living in Jordan and things that the United States could do to speed their return and reintegration to Iraq?

Secretary Gates. No, we did not.

Q. Secretary, you mentioned discussions with Israel on Israel's interest in acquiring the F-35.

But I understand that there are significant issues that Israel has raised before it's ready to sign a letter of offer and acceptance; specifically, having to do with Israeli-built electronic warfare suite, technology transfer, cost concerns. Did you make any progress in your discussions in meeting Israeli concerns that will allow for them to move ahead with signing a contract?

Secretary Gates. Other than just noting it in—as part of the bilateral relationship going forward, we really didn't discuss any specifics relating to it. Clearly, our position is that all of the partner nations that are acquiring the F-35 along with us have essentially the same—the same suite and the same maintenance structures.

Q. Sir, one of the questions about the withdrawal of U.S. forces from Iraq is, is the United States genuine or is this just a plan on a piece of paper— (inaudible)?

Secretary Gates. No, the U.S. forces have withdrawn from Iraqi cities, as agreed in the security agreement. They actually withdrew prior to the deadline of June 30th. And I think that you probably saw here in Jordan the celebrations in Iraq, as they celebrated what they call their national sovereignty day.

This is very real. The United States is abiding by the terms of the agreement that we signed with the Iraqis, and we will continue to abide by that agreement. And the reports that I get from General Odierno and others is that the implementation is going very well, as is the partnership between the U.S. forces and the Iraqi security forces.

Moderator. Thank you very much.

Secretary Hillary Clinton and Minister Prince Saud Al-Faisal delivered these remarks in Washington, DC

Secretary Clinton. Well, good afternoon, and thank you very much for being here. It is a pleasure for me to welcome His Royal Highness Prince Saud here back to the State Department, a building he has spent more time in than I have. So it's a delight and an honor.

I think it is so self-evident but bears repeating that Saudi Arabia has been a close friend and ally of the United States for many years. Our partnership is grounded in mutual respect and mutual interest. Our two nations seek to maintain an open and active dialogue on a wide range of bilateral, regional, and global challenges, including achieving a comprehensive peace in the Middle East based on the two-state solution, ending Iran's pursuit of nuclear weapons, confronting violent extremism, and encouraging economic recovery and growth.

Today, Prince Saud and I discussed ways we can broaden and deepen our partnership, including the continuation of the U.S.-Saudi Strategic Dialogue, something that was discussed between His Majesty the King and President Obama.

I thanked the Prince for the leadership that King Abdullah and his government has shown by championing the Arab Peace Initiative. The wide support for the King's plan is very encouraging. But of course, we need to do more to realize the rights of Palestinians and Israelis to live in peace and security in two states, side by side.

And the United States is working very closely and intensely with the Israelis on the issues of settlements and easing living conditions for the Palestinians, and with the Palestinian Authority on improving security and ending incitement on the West Bank and in Gaza.

We have also asked the Arab states, including our friends in Saudi Arabia, to work with us to take steps to improve relations with Israel, to support the Palestinian Authority, and to prepare their people to embrace the eventual peace between the Palestinians and the Israelis. Saudi Arabia's continued leadership is absolutely vital to achieve a comprehensive and lasting peace.

Prince Saud and I also discussed our other efforts to address regional security challenges. I want to underscore publicly what the Prince knows and His Majesty the King knows: The U.S. commitment to Saudi Arabia's security is unwavering. We share concerns about the destabilizing role that Iran has played throughout the region and the continued expansion of its nuclear program and its support for terrorism. At the same time, we are working together to deny terrorists safe haven and access to funding, particularly in Afghanistan and Pakistan.

I also appreciate His Majesty the King's and the Prince's efforts for Saudi Arabia's leadership within the G-20 and our mutual response to the global economic crisis.

I am also personally very pleased by the steps that His Majesty the King is taking to implement reforms, including appointing the Kingdom's first female official as deputy minister of education. The work that the King is doing on educational reform and judicial system reform and championing interfaith dialogue is very important. And I was excited to hear about the upcoming opening of the King Abdullah University in Saudi Arabia for graduate study that will be focusing on the modern sciences.

So, Your Royal Highness, thank you. Thank you for your years of friendship, and thank you for making this visit and our commitment to continuing our dialogue. I look forward to working with you in the future on behalf of our nations and our common goals for the world.

Foreign Minister Saud. Madame Secretary, thank you for your kind invitation and for the wonderful lunch that we just had. Frankly, I thought at one point that our meeting would be at a health facility, instead of the State Department. I am glad to say that we have both recovered enough to face the media, and both know how dangerous that is.

To our friends in the media, I would like to say that our meeting was productive and fruitful. Our two nations have been friends and allies for over seven decades. We have seen the coming and breaking of many storms. Over time, our relationship has grown stronger, broader, and deeper. And our discussion today reflected the maturity of this relationship. It was frank, honest, and open, as discussion between friends must be.

Today, our two nations are working closely to promote peace between Palestinians and Israelis, to encourage reconciliation in Lebanon, to stabilize Pakistan and Afghanistan, to combat terrorism, and to emphasize the need for Iran to adhere to its obligation under the Nuclear Non-proliferation Treaty. And we consult on many more political issues as well, as global economic matters, energy and the environment. We have a large commercial relationship that benefits both our people. As you can see, we have a long list of common challenges and opportunities ahead of us. And I can say that our common interests make it incumbent upon us to closely coordinate our efforts.

Given the large number of issues we deal with, our two nations established a Strategic Dialogue in 2005. The Strategic Dialogue was designed to institutionalize the relationship between our two relevant countries and it served its purpose well. Today, the Secretary and I discussed ways to enhance its productivity and to make it more relevant to the challenges our two nations face.

I would be remiss if I didn't express our thanks and appreciation to President Obama and to Secretary Clinton for their early and robust focus on trying to bring peace to the Middle East. I expressed to the Secretary our view that a bold and historic step is required to end this conflict and divert the resources of the region from war and destruction to peace and development.

It is time for all people in the Middle East to be able to lead normal lives. Incrementalism and a step-by-step approach has not and—we believe—will not achieve peace. Temporary security, confidence-building measures will also not bring peace. What is required is a comprehensive approach that defines the final outcome at the outset and launches into negotiations over final status issues: borders, Jerusalem, water, refugees and security.

The whole world knows what a settlement should look like: withdrawal from all the occupied territories, including Jerusalem; a just settlement for the refugees; and an equitable settlement of issues such as water and security. The Arab world is in accord with such a settlement through the Arab Peace Initiative adopted at the 2002 Arab Summit in Beirut which not only accepted Israel, but also offered full and complete peace and normal relations in exchange for Israeli withdrawal from all Arab territories occupied in '67. This initiative was adopted unanimously by the Islamic countries at Makkah Summit in 2005.

Today, Israel is trying to distract by shifting attention from the core issue- an end to the occupation that began in '67 and the establishment of a Palestinian state to—incidental issues such as academic conferences and civil aviation matters. This is not the way to peace. Israel must decide if it wants real peace, which is at hand, or if it wants to continue obfuscating and, as a result, lead the region into a maelstrom of instability and violence.

The question is not what the Arab world will offer. That has been established. But an end to the conflict, recognition, and full normal relations as exist between countries at peace. The question really is: What will Israel give in exchange for this comprehensive offer? And remember, what Israel is asked to give in exchange for peace, namely the return of the occupied territories, never belonged to it in the first place. Israel hasn't even responded to an American request to halt settlements which President Obama described as illegitimate.

Allow me to conclude by saying that I was pleased to discuss the issues with the Secretary, and I appreciated hearing her views on it. I thank you, Madame Secretary.

Secretary Clinton. Thank you very much.

Mr. Crowley. We'll go to question with David Gollust of VOA.

Q. Madame Secretary, I just—the foreign minister's very strong opposition, obviously, to confidence-building measures before a comprehensive settlement, I wonder if that for you means that it makes it very difficult for success in this process because, of course, Senator Mitchell has made the search for confidence-building measures on each side as an interim step to a comprehensive settlement as something he's seeking. Does this complicate your—the Administration's efforts at peacemaking?

Secretary Clinton. No, I don't think so at all. I think that the efforts we are undertaking are to create a negotiation that will lead to a comprehensive settlement in the interests of both the Palestinian and the Israeli people. There are many aspects to this. Some of them were mentioned— security, water, borders, refugees, Jerusalem. All of these have to be discussed and agreed to by the parties.

Our intention is to try to get agreement from the parties to be part of such a negotiation and to begin it, and to begin it with the intention of finishing it and resolving all of the issues in a comprehensive way. What the Arab Peace Initiative did, very importantly, was to obtain unanimous support, as His Royal Highness said, to the proposition there should be a two-state solution; that as a part of that two-state solution, there should be a recognition of Israel and relations with Israel.

We know that this is all in the process that has to be undertaken, and we are looking forward to seeing the parties sitting down at the negotiating table, supported not only by the United States, but by other nations led by Saudi Arabia and the Arab and Muslim nations that signed on to the Arab Peace Initiative.

Q. You don't see that as a setback?

Secretary Clinton. No, not at all.

Mr. Crowley. Next question from Al Arabiya.

Q. Thank you. Judging by what— judging by what we just heard, it seems that the differences between the United States and Saudi Arabia are fundamental on this issue, and it seems to me that the talks between President Obama and King Abdullah and the talks now are not narrowing the divide between the two—two divergent approaches. I mean, you talk about incremental measures, confidence-building measures, and the prince is talking about comprehensive approach in one fell swoop.

I mean, how—this has been—you have been at it for six months. I mean, this is for both of you: How are you going to reconcile these clearly divergent views?

Secretary Clinton. Well, I don't see it that way, and that's what I just said. There is no substitute for a comprehensive resolution. That is our ultimate objective. In order to get to the negotiating table, we have to persuade both sides that they can trust the other side enough to reach that comprehensive agreement.

We also know that there are a series of issues that have to be resolved. As His Royal Highness said and as I have just repeated, you have to take those issues by issues, but within the negotiation for the comprehensive peace agreement. That's not a contradiction. Senator Mitchell has a lot of experience in negotiations, and he knows that oftentimes the hardest part is getting people to sit down across from the table. When you listen to him and he talks, for example, about his negotiations in Northern Ireland, he finally got them to sit at a table, but it took about a year for them to talk to each other.

So what we're trying to do here is to say, look, everyone knows there are certain issues that have to be agreed upon. We're not starting with a blank slate. There are border issues that must be agreed upon for the Palestinian people to have a viable state. There are security issues that must be agreed upon for the Israeli people to feel that they can live side-by-side. That's all part of the comprehensive agreement, but of course there are specific issues that will go into making up that comprehensive agreement.

Q. Your Highness, if the Obama Administration gets a full settlement freeze, would your country or the Arabs do anything in return?

Foreign Minister Saud. Freeze?

Q. Yeah.

Foreign Minister Saud. Well, of course, a settlement freeze Israel has refused. And this is why we believe that making conditions right for a settlement is not by making gestures. It is by delving into the real issues. As the Secretary has said, that is what will make peace. And remember, giving up settlement is not something that Israel is giving. It is giving right, but it is not theirs. I mean, it is obvious that the withdrawal from these settlements is not something to be (inaudible) for Israel, but an important first step to real negotiations on the real issues which separate the two people, and to make peace with them.

Q. Samir Nader with Radio Sawa. Your Highness, did you hear anything encouraging from the Secretary or Senator Mitchell that will enable the Kingdom to take some steps to help the U.S. in its efforts?

And to the Secretary, Madame Secretary, are you considering lifting Sudan—removing Sudan from the list of state that supports terrorism?

Foreign Minister Saud. Of course (inaudible) is encouraging. I haven't heard any discouraging remark that I could mention. And we are especially impressed by the President and the Secretary taking this issue right now at a time so early in the Administration. This is a positive step that we think is going to lead, hopefully, to a breakthrough in the negotiations. And the role of the United States, it is safe to say, is necessary in order to achieve any breakthrough in the negotiations. And since there is this serious intent and serious application to it, we think there is a chance for success.

Secretary Clinton. With respect to your question, Samir, we have made no decision to lift the listing on the terrorist list of Sudan. As you know, there is a very intensive review going on within the Administration concerning our policy towards Sudan, but no decisions have been made.

Mr. Crowley. Last question, Al Hayat.

Q. Yes, hi. Joyce Karam with Al Hayat newspaper. Madame Secretary, my question to you is: Is the U.S. position still for a complete settlement freeze, or are you willing to take some exceptions here and there in East Jerusalem or some of the reconstruction that's still going on?

And Your Highness, I want to ask you: What's the Saudi position in case comprehensive negotiations resume? Do you want these negotiations to focus on the Palestinian-Israeli track, or do you prefer a multilateral approach that would involve also the Syrian and the Lebanese tracks?

Secretary Clinton. Well, with respect to your question, thank you. We are very deep into the discussions led by Senator Mitchell, and I don't want to preempt or preview what he is doing. But we are working very hard to position the Israeli Government and the Palestinian Authority to be able to sit down.

And we know there has to be some preliminary work done, including a number of issues, not just the one that you mentioned. But we feel like we're making headway, and we are determined to do so in a matter of as short a period of time as possible. I can't put a deadline on that; I don't believe in that. But I think that Senator Mitchell returned from his latest trip with a clear idea of how best to get the negotiations started.

Foreign Minister Saud. And for the last part of your question, of course, you know the Arab peace plan talks about full peace in the Middle East, total peace on all aspects of—whether between Syria and Israel, Lebanon and Israel, or Syria (inaudible), and above and beyond that, peace with all the Arab country. And now, after it was accepted by the Islamic countries, with all the Islamic countries. That is what is offered (inaudible).

Secretary Clinton. Thank you.

Mr. Crowley. Thank you very much.

Secretary Clinton. Thank you all very much.

President Barack Obama and His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah delivered these remarks in Washington, DC

President Obama. I want to extend my welcome to the Amir of Kuwait. We are grateful for his visit. When I was traveling in the region, the Amir showed me great hospitality, so I'm glad to be able to return the gesture. Although, I have to confess that I think the meal that we're preparing is much smaller than the one he prepared for me.

Kuwait and the United States enjoy very strong bilateral relations. We are looking to make those relations even stronger. Kuwait has been an outstanding host for the United States Armed Forces during its operations in Iraq. And as we transition our operations in Iraq, it's important for us to emphasize not only our gratitude to Kuwait, but also our ongoing commitment to Kuwait's security.

We're also discussing important regional issues ranging from the importance of moving the Arab-Israeli peace process forward, to the situation in Afghanistan, our joint counterterrorism efforts, and our need to emphasize Iran meeting its international obligations. And I'm confident that, based on this conversation and ongoing work between our two countries, that we can strengthen not only Kuwaiti-U.S. relationships, but also to create a more stable region of peace and security in the region.

His Highness Sheikh Sabah. Thank you very much, Mr. President, His Excellency, for this kind welcome. And I would like to affirm to the American people that Kuwait shall remain a partner of the United States. Kuwait shall remain an ally and a partner of the United States.

At the same time, I'm very delighted to be here with my colleagues during this visit. I also am very delighted to congratulate President Obama on his birthday tomorrow. And I also would like to congratulate him on the finding of the remains of the pilot, the U.S. pilot Speicher, that was lost back during the first war of Iraq.

I also would like to congratulate President Obama on his presidency. We have also discussed various issues of Afghanistan, the issue of Iran, and the issue of the Israeli-Arab relations. I affirmed to President Obama that we are interested in bringing about peace in the Middle East. It is in our interest that peace be brought about. And the indicator is that the recent Arab peace initiative that was agreed upon by all of the Arab parties and states, and we would implement this peace initiative when Israel implements and fulfills its obligations.

President Obama. Okay. Thank you, everybody.

Secretary Hillary Clinton and Minister Nassar Judeh delivered these remarks in Washington, DC

Secretary Clinton. Well, hello, and let me start by expressing how delighted I am to welcome once again Foreign Minister Judeh to the State Department. We are celebrating 60 years of relations between the United States and Jordan, and our partnership is based on mutual respect and mutual interest, and our work together enhances the security and prosperity of both our nations and, we hope, the larger region and the world.

Today, the foreign minister and I discussed a wide range of issues. I thanked the foreign minister for Jordan's leadership in the effort to achieve a comprehensive peace for all the people of the Middle East. The vision and courage of the late King Hussein continues to provide inspiration to all of us who knew him and who are still on the path towards seeking peace. And now, under the courageous leadership of His Majesty King Abdullah, Jordan has continued to play a strong and vital role.

The United States is committed to a comprehensive peace based on the two-state solution. We are working with the Israelis, the Palestinian Authority, and Arab states to take the steps needed to make that possible. The foreign minister and I discussed this effort, and I expressed our deep appreciation for Jordan's leadership in working with other Arab states to support peace with deeds as well as words.

I also thanked the foreign minister for the efforts that Jordan has made to build a stable, sovereign, and self-reliant Iraq, and especially the assistance that Jordan has given to Iraqi refugees. We are working to assist the Iraqi Government with the return of Iraqis who left their country but now wish to return home and to be part of a new Iraq, and we are grateful for Jordan's hospitality and leadership.

After six years—or six decades of relations, our partnership has proved both durable and dynamic. We will continue to work together in areas ranging from assistance with education, healthcare, and water programs, to border security, good governance, and regional security. And I look forward particularly to continuing to work closely with Foreign Minister Judeh as our two nations deepen and strengthen our partnership and that partnership then continues to demonstrate the way forward on a comprehensive, two-state solution for the Israelis and the Palestinians.

Foreign Minister Judeh. Thank you very much, Madame Secretary, for your gracious welcome and for your kind words. It is truly a pleasure to be here. And speaking of being here in the State Department, I notice that in welcoming other guests at the State Department a couple of days ago, there was reference made by your good self as to how much time they spent in this building. Well, may I please belatedly join this discussion and say that I, too, spent a long time admiring this building, albeit from outside—when I was a young student at the School of Foreign Service at Georgetown here, and I was wondering if one day I'd be standing here and who I'd be standing next to. It is truly an honor to be standing next to Mrs. Clinton today, a dedicated public servant and a committed Secretary of State.

Madame Secretary, when I was here with His Majesty the King in April, we had excellent discussions, but that was not the first time I met you. I met you on the 26th of October 1994 in Wadi Araba on a hot day that was full of promise and hope. That was the signing of the Jordanian-Israeli peace treaty. Needless to say, there have been raised hopes and shattered aspirations and many ups and downs since that day, and this brings me around to our discussion today. And as you said, the relationship between Jordan and the U.S. is one that can be described as beyond friendship, but rather, a true partnership in the search for peace and in our commonality of vision and interests. And this relationship has been put to the test many times, but we have sailed through it, and it gets stronger and more solid by the day.

So, Madame Secretary, if you'll allow me, and as you said, we discussed a whole range of issues today, at the heart of which is the U.S.-led effort to re-launch peace negotiations between Israel and the Palestinians within a comprehensive regional context. Ending the Arab-Israeli conflict is, as correctly put by President Obama, a U.S. international interest as well as an Arab and Israeli one. In our view, this is the only gateway through which we can collectively address and meet other challenges on problems in the broader region.

His Majesty King Abdullah II and Jordan have tirelessly worked for the realization of comprehensive peace in the Middle East, a peace that would guarantee Palestinian statehood, ensure the return of all Arab territories occupied in 1967, and guarantee Israel's security. This will bring about normal relations between Israel and 57 Arab and Muslim states, in accordance with the Arab Peace Initiative.

We are very, very grateful, Madame Secretary, to President Obama, to you, to Senator Mitchell, and to all our friends in the United States for your serious, focused, and intensive early engagement from day one. We in Jordan fully support these efforts and we are committed to doing everything we can towards this noble objective. The U.S.'s leadership and demonstrated commitment present a real, true, and rare opportunity to cross the finish line once and for all. We all have a responsibility to assist in word, in action, and indeed, in demonstrating leadership this effort, and to ensure its success.

Our mission, Madame Secretary, should not be to move forward to get to where we were. And our goal must rather be, this time around, to move forward to where we should have been in the late 1990s as envisioned by the Madrid process and even beyond. The shape of the future Palestinian state and the parameters for comprehensive peace are quite clear: The adoption of all the Arab countries and the Muslim world of the Arab Peace Initiative in 2002 and every Arab summit thereafter emanated from collective Arab recognition of those parameters and collective commitment to them too. Now in 2009, many would say it is time for Israel to reciprocate.

In the Middle East, there has been in the past an over investment perhaps by the parties in pursuing confidence building measures, conflict management techniques, including transitional arrangements, and an over emphasis on gestures, perhaps at the expense of reaching the actual end game. As His Majesty the King puts it, Madame Secretary, there has been too much process and too little peace, a situation that most certainly is no longer sustainable. And what is required now and needed more than ever is to achieve peace. What we need is confidence-building measures—confidence-rebuilding measures, I should say, that resurrect people's faith in negotiations and that create a conductive environment for launching negotiations. We need to focus on ensuring stopping detrimental actions, more than just bold gestures, equally and importantly.

In this context, the continuation of settlement activity in the occupied territories is not only illegal and illegitimate, but also does not help restore faith or generate this needed environment. Equally, other unilateral measures in occupied West Bank in general, and in East Jerusalem in particular, such as home demolitions, evictions, excavations around and under the most revered Muslim and Christian holy sites is not acceptable. By the same token, inflammatory rhetoric on both sides of the divide is equally counterproductive. All such action must stop.

Tried, tested, failed formats, as have been discussed here during His Majesty the King's visit in April, should also be avoided, including piecemeal approaches that never lead to peace, and that have proven repeatedly to be confidence eroding rather than confidence building. This time, the restoration of faith and the creation of the appropriate environment can only be achieved through clearly highlighting the end game and skillfully guiding the parties to expeditiously crossing the finish line.

President Obama's statements, Madame Secretary, regarding peace in our region in general and his speech in Cairo University last June, in particular, your unequivocal support and your principle statements regarding the need to stop all settlement activity are resonating very well and restoring faith to the Arabs and the Muslims in the impartiality of the U.S. and the great good that its value system represents.

The principled approach taken by President Obama and his Administration marks the kind of needed change that we can all believe in, reflect on, and build upon. Serious and committed benchmarked and timeline peace negotiations must be launched promptly on all tracks from the point at what they had stopped and in which all parties would be willing and encouraged to take the necessary concurrent steps towards each other to expedite the achievement of the desired progress.

Madame Secretary, I wish to express gratitude for the invaluable U.S. support and assistance provided to Jordan. This assistance has facilitated our drive forward in expediting the implementation of the ambitious homegrown transformational reform agenda of His Majesty King Abdullah II. Thank you very much for giving me this opportunity, Madame Secretary, to have this rich and extensive discussion with you. And once again, in concluding, I assure you that you will find in Jordan, as always, a reliable, sincere, and steadfast partner, ally, and friend.

Secretary Clinton. Thank you so much, Minister.

Q. Thank you, Madame Secretary. A couple of questions on Iran, if I could. The first one would be: Do you have an update on the situation of the Americans being held in Iran? And is it still correct that it's not officially confirmed by the Iranian Government? And then the other question would be: What is your opinion on this idea of having very strong sanctions which would include sanctions on gasoline and other refined petroleum products?

Secretary Clinton. Well, Jill, as of a few hours ago, we did not yet have official confirmation that the Iranian Government, or an instrument of the Iranian Government, was holding the three missing Americans. And we asked our Swiss partners, who represent our interests in Iran, to please pursue our inquiry to determine the status of the three missing Americans. Obviously, we are concerned. We want this matter brought to a resolution as soon as possible. And we call on the Iranian Government to help us determine the whereabouts of the three missing Americans and return them as quickly as possible.

With respect to the potential actions that might be undertaken by the international community, we're not going to be commenting on what might or might not be done. We've made it very clear that we wish to engage with the Iranians in accordance with President Obama's policy to discuss a broad range of issues. That would be a bilateral channel, which we have communicated to the Iranians. And we continue to engage in multilateral channels, most importantly, the P-5+1 discussions. And as you know, the P-5+1 representative, Javier Solana, put forth a proposal some months ago that we still have not yet received a response to.

So we are looking closely at developments in Iran. I held a videoconference this morning with a number of our diplomats around the world who have expertise with respect to Iran. And we discussed what they saw happening, what they thought would be the responses coming from the Iranian Government, what was going on inside Iran. So we're not prepared to talk about any specific steps, but I have said repeatedly that in the absence of some positive response from the Iranian Government, the international community will consult about next steps, and certainly next steps can include certain sanctions.

Q. Thank you. Mina al-Oraibi, Al-Sharq Al-Awsat newspaper. I'd like to ask you both, if I may, about the issue of evictions from East Jerusalem. These are steps that are taken almost to force a status quo in the territories that are disputed and, you know, the occupation continues to move so many Arabs and makes them very angry and emotional. At a time when Arabs are being asked to take confidence-building measures and trying to move towards Israel, how much do actions like that disrupt what the U.S. is doing?

And also, if I can ask Mr. Judeh regarding how that leaves Arab nations and Arab politicians trying to push forward to peace, what can be done beyond just condemnation? Thank you.

Secretary Clinton. Well, I think these actions are deeply regrettable. I have said before that the eviction of families and demolition of homes in East Jerusalem is not in keeping with Israeli obligations, and I urge the Government of Israel and municipal officials to refrain from such provocative actions. Both sides have responsibilities to refrain from provocative actions that can block the path toward a comprehensive peace agreement. Unilateral actions taken by either party cannot be used to prejudge the outcome of negotiations, and they will not be recognized as changing the status quo.

Foreign Minister Judeh. Thank you very much. First of all, let me thank Secretary Clinton for the clear position that the Administration has taken on this issue, particularly when we're talking about Jerusalem and, as the Secretary pointed out, eviction, demolitions of home, excavations, anything to change the current status quo in the city, again, with emphasis on changing the demographics, thus prejudicing the outcome of the efforts that are currently undertaken to re-launch negotiations.

Let me just say that the position is very clear. East Jerusalem is occupied territory. It is part of the territory that was occupied militarily in 1965—1967, and it is very, very important that people bear in mind that this is part and parcel of the discussions that will take place when negotiations are re-launched. And any action on the ground that presents obstacles in this endeavor are not only unwelcome and condemned, but we hope that they will stop and stop immediately.

Q. Michel Ghandour with Al-Hurra Television. Mr. Judeh, Prince Saud al-Faisal said on Friday that the question is not what the Arab world will offer Israel. The question is: what will Israel give in exchange to the Arab initiative? How do you view his comments? And is Jordan planning to take some steps towards Israel to push the peace process?

Foreign Minister Judeh. Let me start from the second part of your question. Jordan and Israel have a peace treaty, and this was signed in 1994. And like any relations between countries, it's had its ups and downs. And in order for that peace treaty and the relations between Jordan and Israel to make regional and international sense, what we need is a comprehensive solution to the Arab-Israeli conflict based on the two-state solution being the core of the Arab-Israeli conflict and the establishment of an independent, viable, and geographically contiguous Palestinian state on Palestinian soil.

I think His Royal Highness Prince Saud clearly articulated the Arab Peace Initiative which Saudi Arabia played the key role in launching in 2002 and which subsequent Arab summits have reaffirmed as recently as the last summit in March. The Arab Peace Initiative is very clear: it is an end of occupation, establishment of an independent Palestinian state, and after which there will be normal relations—full normal relations between Israel and not only the Arab world but also the Muslim world.

So I think Prince Saud was very clear in articulating what the Arab Peace Initiative stands for, which is normal relations at the end of the game. But we all agree that we have to create a conducive environment to launch negotiations to arrive at a solution to the Arab-Israeli conflict through direct negotiation, and the role of the United States is essential in this.

Mr. Crowley. Last question goes to Al Jazeera.

Q. Madame Secretary, do you think that—how much damage do you think it does to your efforts to build confidence among states like Jordan to have the Israeli prime minister reject U.S. calls to stop the development of new settlements in East Jerusalem? I mean, isn't this something that is seriously damaging to your efforts to instill that confidence?

Secretary Clinton. Well, I think everyone understands that there has to be sequential actions taken, and we are working very hard under Senator Mitchell's leadership and guidance to get to the negotiating table. And once there, everything concerning a comprehensive peace agreement is on that table; nothing is off the table. And we've been down this road before. We came close in 2000. There were renewed efforts in the last several years between then-Prime Minister Olmert and Palestinian Authority President Abbas.

So the parties well know what the outlines of this comprehensive two-state solution are. What is different in two ways now is, I think, the United States beginning from the first day of our Administration to say this is among our very highest priorities, and the commitment through the Arab Peace Initiative, which did not exist in the '90s and has been reaffirmed, as the minister said, several times, so that the Arab countries are at the table, in effect, as well.

So, look, we want both sides to refrain from any actions that might make it more difficult to negotiate our way through all of the issues that have to be resolved. There are, what are called final status issues. Everybody knows what they are and everybody knows that neither side is going to get everything it wants. Negotiations don't work that way. But working in good faith and being committed to the two-state solution, and with the support of the Arab leaders as well as the United States and other interested actors, I think holds out great promise. And that's why we're working so hard and why we believe that this time we have a very strong chance of achieving a goal that has long been sought.

Thank you.

Q. But, Madame Secretary, is that a gesture of good faith, though? I mean, you've talked—you say many times that this is an issue of good faith. So, I mean, is this an example of something that's not working in good faith?

Secretary Clinton. Everyone needs to refrain from provocative actions that might interfere with the path forward. And that's on all sides, and that's what we expect. But we also know that—and I was a lawyer in a prior life—very often, people try to stake out even more strong and difficult positions going into negotiations. We understand all of that. And we intend to continue on the path that we are on, and we have a lot of support in achieving what will be a two-state solution.

Thank you very much.

President Barack Obama and President Hosni Mubarak delivered these remarks in Washington, DC

President Obama. Well, let me, on behalf of the American people and my administration, welcome President Mubarak for his first visit since I've taken office. I want to publicly thank him for the extraordinary hospitality that he showed us when I traveled to Egypt and delivered my speech at Cairo University. It was an extraordinary visit, not only because of the great welcome that I received from the President and the college students who were in attendance, but also having an opportunity to visit the pyramids was a once-in-a-lifetime experience for me.

The United States and Egypt have worked together closely for many years, and for many of those years President Mubarak has been a leader and a counselor and a friend to the United States. We obviously have a lot of great challenges that have to be dealt with and we are continuing to work together to find those areas where we can find common ground and to work in concert to bring peace and security to the region.

The Arab-Israeli situation is something that has been of ongoing interest and we had an extensive conversation about how we could help to jumpstart an effective process on all sides to move away from a status quo that is not working for the Israeli people, the Palestinian people, or, I think, the region as a whole.

We discussed our common concerns about the potential proliferation of nuclear weapons in the region, including the development of nuclear weapons by Iran, and how we could work together on those fronts. We discussed Iraq—and I want to thank the government of Egypt for being an Arab country that has moved forward to try to strengthen Iraq as it emerges from a wartime footing and a transition to a more stable democracy.

And we continued to talk about how we can work together on economic development issues, education issues, health issues, that can promote the interests of both the American people as well as the Egyptian people. Just to take one example, we have agreed to work together with the Organization of Islamic States to eradicate polio, something that we've been able to successfully deal with here in the United States but still has impact on populations throughout the Muslim communities around the world.

And so these are the kinds of partnerships that we want to continue to build. There are some areas where we still have disagreements, and where we do have disagreements we have a frank and honest exchange.

So I just want to say once again that I am grateful to President Mubarak for his visit, for his willingness to work with us on these critical issues, and to help advance the interest of peace and prosperity around the world.

Thank you very much. Welcome.

President Mubarak. First of all, this is the third time that I meet with President Obama. The first time was in Cairo, when he came to give his address. It was a very strong address and it removed all doubts about the United States and the Muslim world. The importance of the Cairo visit was very appreciated by the Muslim and Islamic world because the Islamic world had thought that the U.S. was against Islam, but his great, fantastic address there has removed all those doubts.

That was the first time. Now, the second time where we met was in Italy during the G15 summit. We didn't have much time to go in depth into discussions, but we did have some quick discussion.

The third time I meet with President Obama is here today at the White House. We have discussed an array of issues from our bilateral relations to the issues of the Middle East, the region, to the Palestinian issue, to the issue of Iran, Somalia, and the Africa Horn. Also, several other issues—even we discussed the issue of reform inside Egypt. And I told to President Obama very frankly and very friendly that I have entered into the elections based on a platform that included reforms, and therefore we have started to implement some of it and we still have two more years to implement it.

Our relations between us and the United States are very good relations and strategic relations. And despite some of the hoops that we had with previous administrations, this did not change the nature of our bilateral relations.

We have perhaps focused greatly on the Palestinian issue because it's the pivotal issue. And the Palestinian issue has impact on the world, on the region, whether for the West or also for the United States.

We have also discussed the issue of Iran and the issue of nuclear Iran, and we talked about these issues very frankly.

And in conclusion of my remarks, I would like to thank President Obama for his welcome to me here at the White House and I also salute him as I did—and this is since five years—I also salute President Obama for all his efforts with regard to the Palestinian issue. Since his first day at the White House he started working on it. And I assured him that we will cooperate with him and we will be very strong in these efforts, whether with regard to the Palestinian issue or the other regional issues.

And I thank him again.

President Obama. Okay, we've got one question each.

Q. Both Presidents, if I may. Reports from Jerusalem today that the Israeli government has not given permission for any new settlements to be built, although ones that were in process are still in process—and I'm wondering if you have talked about that issue and if that's the sort of thing that goes at least partway to meeting what you're asking the Israelis to do. And also what's in the West Bank and in Jerusalem.

President Obama. There has been movement in the right direction and I came in from the start saying that all parties concerned had to take some concrete steps to restart serious negotiations to resolve what has been a longstanding conflict that is not good for the Israeli people and is not good for its neighbors. And I think that the Israeli government has taken discussions with us very seriously. George Mitchell has been back and forth repeatedly; he will be heading back out there next week. And my hope is that we are going to see not just movement from the Israelis, but also from the Palestinians around issues of incitement and security, from Arab states that show their willingness to engage Israel.

If all sides are willing to move off of the rut that we're in currently, then I think there is a extraordinary opportunity to make real progress. But we're not there yet. I'm encouraged by some of the things I'm seeing on the ground. We've been seeing reports in the West Bank in particular that checkpoints have been removed in some situations. The security forces of the Palestinian Authority have greatly improved and have been able to deal with the security situation on the West Bank in a way that has inspired not just confidence among the Israeli people, but also among the Palestinian people.

There's been some increased economic activity on the West Bank. All of this is creating a climate in which it's possible for us to see some positive steps and hopefully negotiate towards a final resolution of these longstanding issues. But everybody is going to have to take steps; everybody is going to have to take some risks. It's going to require a lot of hard work, and the United States is committed to being a partner in this process.

And Egypt will be as important as any other party in helping to move the process forward because Egypt is uniquely positioned in some ways having very strong relationships with Israel, with the Palestinians, and with other Arab states, and President Mubarak has as much experience in the region as anybody.

President Mubarak. I would like to add on what President Obama has just said, and I say that we are trying and working on this goal to bring the two parties to sit together and to get something from the Israeli party and to get something from the Palestinian party. If we perhaps can get them to sit together, we will help.

And also, I have contacts with the Israeli party. I have received calls and contacts with the Prime Minister of Israel, with the head of the state, and also with the Minister of Defense. We are speaking in a good manner and we are moving into the right direction. But the two parties need to sit together, and this then will give hope that there is a possibility of finding a solution to the Palestinian issue, because it has been ongoing since 60 years. And with this issue ongoing, we lose a lot, and also this will increase violence. So we support the efforts of the United States to move towards finding a solution.

If this is the issue of Jerusalem that you are asking about, I tell you this is a complicated issue. Then—back then, a time ago, when we—at former President Clinton's era, we almost neared finding an equation to find a solution for this issue. But afterwards, eight years afterwards, there was nothing and this issue moved very slowly. However, if we can find some solution to this, this would be helpful.

Q. President Mubarak, you just mentioned about the 60 years conflict. You have been in that conflict as a warrior and as a peacemaker together for a long time. What's different this time? It has been ups and downs, disappointments and achievements. What's different this time? And are we going into another peace process, or are we going again heading for a final status kind of negotiations that finish that business?

And for President Obama, if you care to comment—President Mubarak said we cannot afford failure this time. What stands between us now and success?

President Mubarak. As I said before, this is a complicated issue. I have worked a long time ago when I was in the army, and afterwards during my access of presidency. This issue has been ongoing 60 years. And we cannot afford wasting more time, because violence will increase, and violence has increased. The level of violence is now much more than it was 10 years ago. Therefore, we need to find—to move to the final status solution and level.

And I have contacted the Israelis, and they said perhaps you can talk about a temporary solution or perhaps the final status. But I told them, no, forget about the temporary solution and forget about temporary borders. That's why I came today to talk to President Obama and to see that if we move forward on this issue, it will give more hope and more confidence to the people about this issue.

The negotiations of the final status will not be easy and it will be fraught of complications. This issue contains the issue of Jerusalem, the issue of refugees, the issue of the borders. But I believe that, in cooperation with the United States and through our relations with Israel, I believe that we can reach a solution, because the Arab people want peace and want a better life, and the Israeli people also want peace and stability in their lives.

President Obama. Well, I think President Mubarak said it well. It's going to be difficult. I do believe that what may have changed—and this is what we have to test—is a growing realization on the part of the Palestinians that Israel is not going anywhere and is a fact, a reality that has to be dealt with; and a recognition on the part of the Israelis that their long-term security interests require finding an accommodation with the Palestinians and ultimately with their Arab neighbors. So the interests on both sides are towards peace.

Now, one of the things that you discover in studying history and being a part of politics is just because something makes sense doesn't mean it happens. And we are going to have to work very hard. And ultimately there is going to have to be some courageous leadership not only from the Palestinians and the Israelis but also from the other Arab states to support this effort. And the United States is going to devote time and energy and resources to try to make this happen.

And what I can say as different from the United States' perspective is that even in the midst of the worst financial crisis since the Great Depression, we started dealing with this issue on day one. We didn't wait until year six or year seven, after I had been reelected before we started taking this on. We started dealing with this issue immediately, precisely because it's a difficult issue that requires a lot of groundwork to be laid and sometimes proceeds in fits and starts. But with the partnership of countries like Egypt, we think we can make progress.

Okay, thank you, everybody.

Go ahead, please.

President Mubarak. I believe that President Obama is talking about support from the Arab states to this issue. I would say here that if negotiations start, this will lead to the Arab state to support the peace process and to move it forward, because I can tell you that the Arab people are fed up with the length that this issue has taken, and the issue of the displaced people. So I believe if the two parties sit down, this will lead to have Arab state support moving the peace process forward.

President Obama. Thank you, everybody.

On Israeli Settlements

We regret the reports of Israel's plans to approve additional settlement construction. Continued settlement activity is inconsistent with Israel's commitment under the Roadmap.

As the President has said before, the United States does not accept the legitimacy of continued settlement expansion and we urge that it stop. We are working to create a climate in which negotiations can take place, and such actions make it harder to create such a climate.

We do appreciate Israel's stated intent to place limits on settlement activity and will continue to discuss this with the Israelis as these limitations are defined.

The U.S. commitment to Israel's security is and will remain unshakeable. We believe it can best be achieved through comprehensive peace in the region, including a two-state solution with a Palestinian state living side by side in peace with Israel.

That is the ultimate goal to which the President is deeply and personally committed.

Our objective remains to resume meaningful negotiations as soon as possible in pursuit of this goal. We are working with all parties—Israelis, Palestinians, and Arab states—on the steps they must take to achieve that objective.

President Barack Obama delivered these remarks in New York, NY

President Obama. Please be seated, members of the delegations.

I have just concluded frank and productive bilateral meetings with both [Israeli] Prime Minister Netanyahu and [Palestinian] President Abbas. And I want to thank them both for appearing here today. I am now looking forward to this opportunity to hold the first meeting among the three of us since we took office.

As I said throughout my campaign and at the beginning of my administration, the United States is committed to a just, lasting and comprehensive peace in the Middle East. That includes a settlement of the Israeli-Palestinian conflict that results in two states, Israel and Palestine, in which both the Israeli people and the Palestinian people can live in peace and security and realize their aspirations for a better life for their children.

That is why my Secretary of State Hillary Clinton and my Special Envoy George Mitchell have worked tirelessly to create the context for permanent status negotiations. And we have made progress since I took office in January and since Israelis—Israel's government took office in April. But we still have much further to go.

Palestinians have strengthened their efforts on security, but they need to do more to stop incitement and to move forward with negotiations. Israelis have facilitated greater freedom of movement for the Palestinians and have discussed important steps to restrain settlement activity. But they need to translate these discussions into real action on this and other issues. And it remains important for the Arab states to take concrete steps to promote peace.

Simply put it is past time to talk about starting negotiations—it is time to move forward. It is time to show the flexibility and common sense and sense of compromise that's necessary to achieve our goals. Permanent status negotiations must begin and begin soon. And more importantly, we must give those negotiations the opportunity to succeed.

And so my message to these two leaders is clear. Despite all the obstacles, despite all the history, despite all the mistrust, we have to find a way forward. We have to summon the will to break the deadlock that has trapped generations of Israelis and Palestinians in an endless cycle of conflict and suffering. We cannot continue the same pattern of taking tentative steps forward and then stepping back. Success depends on all sides acting with a sense of urgency. And that is why I have asked Secretary Clinton and Senator Mitchell to carry forward the work that we do here today.

Senator Mitchell will meet with the Israeli and Palestinian negotiators next week. I've asked the Prime Minister and the President to continue these intensive discussions by sending their teams back to Washington next week. And I've asked the Secretary of State to report to me on the status of these negotiations in mid-October.

All of us know this will not be easy. But we are here today because it is the right thing to do. I look forward to speaking with my colleagues. I'm committed to pressing ahead in the weeks and months and years to come, because it is absolutely critical that we get this issue resolved. It's not just critical for the Israelis and the Palestinians, it's critical for the world, it is in the interests of the United State. And we are going to work as hard as necessary to accomplish our goals.

Thanks.

Secretary Hillary Clinton delivered these remarks in Washington, DC

Secretary Clinton. On behalf of the people of the United States and President Obama, I would like to congratulate the Custodian of the two Holy Mosques, King Abdullah bin Abdulaziz al Saud, and the people of Saudi Arabia on the occasion of your national day.

The United States values Saudi Arabia as a close friend and ally. Ever since King Abdulaziz and President Franklin Roosevelt first met aboard the U.S.S. Quincy in 1945, our two nations have been united in a durable and dynamic partnership that is based on mutual respect and mutual interest. Over the years, our friendship has deepened and enhanced the security and prosperity of both our countries.

On this historic occasion, I want to salute King Abdullah for his leadership on key regional and global challenges, from championing the Arab Peace Initiative to working to respond to the international economic crisis. King Abdullah has extended the hand of friendship to people of other faiths. He has provided leadership in developing and strengthening the Kingdom's institutions, working to diversify the economy, support knowledge-based education, and expand opportunity for women. And he has established a powerful dialogue that seeks to promote the principles of moderation, tolerance, and mutual respect—core values that we all share. These bold steps put Saudi Arabia on a path towards a stronger, more prosperous, and more secure future.

The inauguration of the King Abdullah University of Science and Technology, which promises to become a world class center of excellence, research, and learning, is a testament to the King's far-sighted leadership. The commitment to learning and research that this new university represents will serve Saudi Arabia well in the future.

And the stronger our partnership, the brighter that future will be for all our people. So let me reaffirm the commitment of the United States to work together to broaden and deepen our friendship with Saudi Arabia, and offer our warmest wishes on this National Day.