Secretary Hillary Clinton and President Viktor Yanukoyvch delivered this joint statement in Kyiv Ukraine

Secretary Clinton. Let me begin by thanking the president for his hospitality. And I want to extend on behalf of President Obama and myself congratulations on your upcoming 60^th birthday. I am delighted to be back in Ukraine for my fourth visit. I was privileged to come twice as First Lady, once as a senator from New York, and now as Secretary of State on behalf of the Obama Administration.

Ukraine's journey has been remarkable, and people in many nations, including the United States, are deeply impressed by your progress. The United States is proud of our partnership with Ukraine and the many ties that connect the American and Ukrainian people.

The president and I had a very productive meeting. We discussed ways that Ukraine and the United States can deepen and expand our strategic partnership, moving forward with the work of the U.S.-Ukraine Strategic Partnership Commission that I co-chair along with the foreign minister.

My visit comes at an important moment in Ukraine's history. The recent elections represented a major step in the consolidation of Ukraine's democracy.

As Ukraine moves forward, the country will face questions about its place in the region and the world. Some have tried to force Ukrainians into a choice between aligning your country with Russia or with the West. We believe that is a false choice. Ukraine is an independent nation, and we hope Ukraine will have good relations with its neighbors—including Russia—and that Ukraine will pursue close, constructive relationships with the United States and countries of the European Union. We do not believe in the concept of “spheres of influence.” We believe that it is up to Ukrainians to chart your own course towards your own future. And in doing so, you can count on the support and friendship of the United States.

The president and I also discussed economic reform, which is critical to Ukraine's ability to prosper and attract foreign investment. We discussed energy reform and its potential to transform Ukraine into an energy producer and becoming more energy efficient, which will save money not only for the government, but the people of Ukraine in the long run.

We also discussed the importance of protecting Ukraine's democracy by supporting a strong civil society, media independence, and public sector transparency. And we appreciate the president's recent statements in support of media freedom and we will work with the Ukrainian Government to continue safeguarding these critical liberties.

We are following up on Ukraine's historic decision to get rid of its stocks of highly enriched uranium by 2012, and we greatly appreciate the leadership the president showed in making that announcement at the Nuclear Security Summit in April.

And the United States welcomes Ukrainian parliament's decision to approve foreign military exercises on Ukrainian territory in 2010 and we thank Ukraine and the Ukrainian people for your important contributions to NATO and other international security operations.

Mr. President, your nation's commitment to democracy has inspired the United States and the world, and we will draw upon that inspiration as we work to build the partnership between our nations. I thank you for your hospitality, and both President Obama and I look forward to many years of close cooperation and partnership between our governments and our people.

President Yanukovych. Dear Secretary of State, dear ladies and gentleman, I'm very happy to welcome you in Ukraine today. I'm grateful to you, your Excellency and I'm grateful to President Obama for all the kind words that you have told me today.

Today's meeting with the Secretary of State has reaffirmed the readiness of our both countries to further deepen bilateral relations on the basis of the U.S.-Ukraine Charter on Strategic Partnership.

Today, we had a wonderful opportunity to discuss the most pressing issues of the U.S.-Ukrainian relations and identify the areas where our cooperation can further broaden. This is true in particular about increasing our cooperation in the areas of trade and investments as well as energy.

We paid special attention to discussing some practical aspects of the implementation of the agreements that we reached when I saw President Obama in April of this month in Washington. The State Secretary and myself were quite happy to note the fruitful results of the second meeting of the U.S.-Ukrainian Commission on Strategic Partnership that took place this morning in Kyiv with participation of our high-ranking guest.

During our meeting, we also shared our ideas about a range of important international issues and we noted that our understanding of possible solutions for them is very close. The issues related to Ukraine's domestic situation were also on the agenda today. And I'm very happy to know that the United States assess positively political stabilization in the country, the fact that the public administration system is becoming more effective—basically that means that they positively assess the first steps of Ukraine toward reforms.

It is very important that the United States support the program to overcome the crisis that the Ukrainian government and president are implementing. We highly appreciate the readiness of the United States to provide support to Ukraine in some of the most important areas for the country, such as reestablishing cooperation with the International Monetary Fund, overcoming the consequences of the financial and economic crisis, and conducting systemic reforms in Ukraine.

We highly appreciate the position that—the consistent position of the United States that was reaffirmed today to guarantee Ukraine's sovereignty, independence, territorial integrity, and inviolability of its borders. This is especially important for Ukraine as a European non-bloc nation. I want to emphasize that the United States of America is our reliable, strategic partner, and we on the Ukrainian side are ready to do whatever is necessary to further consolidate our partnership. I am cordially grateful to you, dear Secretary of State, for our today's fruitful work.

Q. The first question is to you, dear Secretary of State. Yesterday, it was very—it was made official that Ukraine is going to try to play an important role in the world as a non-bloc nation, and that it is going to support the initiatives in the area of new European security architecture. And in that respect, how would you see the role and the place of Ukraine within the European, Euro-Atlantic, and perhaps global security systems?

Secretary Clinton. Thank you. First, the United States supports Ukraine's efforts to balance the concerns and interests of not only Russia and the United States and the European Union, but its own view of the future and how it expects to develop economically and politically. We support European Union integration and I was encouraged by the president's report that there is progress toward that goal. We support Euro-Atlantic cooperation. And as I said, we are grateful for Ukraine's contributions to NATO security efforts and other peacekeeping operations around the world. And we look forward to the joint U.S.-Ukraine military exercises. And we also support a relationship with Russia that is in Ukraine's interest that helps to further what President Obama has called the resetting of relations with Russia.

So just, very clearly, let me state, we want to see a strong, democratic Ukraine that is able to produce economic prosperity and opportunity for the Ukrainian people and to play a significant role regionally and globally.

Q. Question to the president of Ukraine: How do both sides assess the implementation of the Washington agreements in the area of nuclear security, whether the commitments are being complied with by both parties?

President Yanukovych. The Washington summit that took place in spring of this year on the initiative of President Obama was very important for Ukraine, primarily in terms of its consistent policy in the area of national and international security and, in particular, nuclear security.

And as we welcome President Obama's initiative, we made a decision to gradually remove highly enriched uranium from Ukrainian territory. It's a process that has already started. We are in the preparatory phase today, the result of which would be a one-time removal of highly enriched uranium from Ukraine while low enriched uranium is to be imported as well as technologies and the proper equipment for Ukrainian research centers. This is very important for Ukraine because Ukraine is a country that exports its nuclear units, so it is important that it can continue its research with the use of low enriched uranium. This meets the interests of the national science of Ukraine and it meets the interests of the world's security. And this also reflects the wish of Ukraine to expand non-nuclear space all over the world.

Let me also add that at that summit in Washington, Ukraine made the—brought up in the initiative to have a conference in Kyiv in 2011 on the occasion of the 25th anniversary of the Chernobyl tragedy, during which—during that conference we could actually follow up on the subject matter of the Washington summit.

Of course, we have to remind the world community about the Chernobyl tragedy, as well as about the commitments of the donor nations to overcome the consequences of the tragedy. Because when we speak about the new challenges, we should not remember—we should not forget the past.

Q. Secretary Clinton, you mentioned in previous remarks the (inaudible). How specifically is this cooperation working, and what kind of signals did you get from the Ukrainian side (inaudible)?

Mr. President (inaudible). What role is there (inaudible)?

Secretary Clinton. Well, we believe there is a great opportunity. And in fact, at the Nuclear Security Summit, President Yanukovych asked President Obama to encourage U.S. energy firms to look seriously at investments here in Ukraine.

We support the reforms being discussed to change the way that the energy sector operates in Ukraine to ensure transparent, credible processes for investing in the opportunities available. We support the recommendations made by the European Union, the World Bank, the European Reconstruction and Development Bank, and other experts who see tremendous potential for economic gain by Ukraine in a reformed functioning energy market that will attract investments from around the world. Specifically, we believe American companies would be interested in the civil nuclear power industry, developing the shale gas and methane gas potential that Ukraine holds, as well as deep-water drilling in the Black Sea. And our Special Envoy for Eurasian energy, Ambassador Richard Morningstar, will be staying to have in-depth discussions with the minister and other experts in the Ukrainian Government.

President Yanukovych. Ukraine just has to be a reliable supplier of natural gas oil to the European Union. So we will do everything we need so that both gas transportation and oil transit systems of Ukraine work effectively and reliably and provide for the necessary supplies of hydrocarbons to go toward Europe.

As regards to the gas transportation system of Ukraine, we have our own concept for its development that we have shared with our colleagues from the European Union and Russia. This concept is based on the idea to establish a joint company with participation of EU nations, Russia, and Ukraine. The idea of which would be to build a new pipeline—gas pipeline—across Ukraine that would make it possible to supply increased volumes of gas to Europe. Our calculations show that this idea can be competitive and attractive.

We're now expecting our partners to provide answers to our questions, and we think that the procedure whereby the decision will be made will be transparent and fair. And as regards the upgrade of the current gas transit system, we're in favor of this upgrade being undertaken together with our foreign partners. This modernization could also lead to a more stable and reliable performance of the system and will increase the amounts of gas that we will transit.

Secretary Hillary Clinton delivered these remarks in Kiev, Ukraine

Secretary Clinton. Over the years, I've been fortunate to visit Ukraine and made many friends, and have had a front-row seat on history as I've watched the latest chapter in Ukraine's centuries-long story unfold. I'm please to be visiting Central and Eastern Europe and the Caucasus on this trip over our Fourth of July holiday. Tomorrow I will be traveling to Poland for a meeting of the Community of Democracies, and then I will visit Azerbaijan, Armenia, and Georgia.

At every stop, I'm talking about the importance of openness, civil society, and the values that support democracy. And I cannot think of a better place to begin this trip than right here in Ukraine. Your country has made a remarkable journey and you are still moving forward toward the future you deserve.

When I first visited Ukraine in 1995, this was a newly independent state still emerging from decades of Soviet rule. Today, Ukraine is a proud democracy. And people not only in my country, but in countries around the world, have found inspiration in your commitment to free and fair elections.

But of course, elections are not the only marker for democracy. Elections are a necessary but insufficient action by the body politic in support of democratic self rule. And tonight, I want to talk briefly to you about our common future, because I believe that the United States and Ukraine are linked—not merely by common history, by Ukrainian-Americans and family connections, but by common values. It was 234 years ago that our country proclaimed its independence in a declaration that one of my very first predecessors, Thomas Jefferson, was the principal author of. And some might say, well, what do the lessons of 234 years ago have to do with the challenges of the 21^st century? I think that there is a common thread that runs through the history of humanity. And it is up to every generation to expand the circle of freedom and opportunity.

Meeting the challenges of the century will require us to face the difficulties that lie ahead and to make tough choices. I know that the global economic downturn has taken a heavy toll on Ukraine, and even though there are signs of progress and recovery, more help is needed to ensure a sustainable economic future. I know there have been disputes over energy and the cost of energy that have literally played out in your daily lives. More needs to be done to make Ukraine energy independent. Ukraine has the resources that can be used to achieve that goal. I know that we face together global issues ranging from climate change to HIV/AIDS, food insecurity, and conflict.

So no matter where one lives in the world today, there is always a temptation to get discouraged, dispirited—give up on the promise of democracy because it is a slow and sometimes messy process. But I'm here to urge you to do the opposite—to work even harder to strengthen your democracy, to build your civil society, to empower your media, to ensure that your future here in Ukraine is as positive as you deserve it to be.

Now, this work is never easy. I remember very well, many years ago, sitting where you're sitting and wondering about the challenges at that time facing my own country. Now that I have been both in civil society, and worked in and led NGOs, then, with my husband in the White House, served as an elected official in the United States Senate from New York, and now working with President Obama, I know how difficult this work is. But it is great work that even if you never think about politics much at all, should be a calling to you as a citizen.

Ukraine matters, not just to Ukrainians—Ukraine matters to the world. Because there are so many opportunities for Ukraine to assume a position of prominence and influence in the region, in Europe, and even beyond. An open, innovative Ukraine has much to offer. When I look at the students who graduate from this institute and know that you are among the best in the world, I see limitless possibilities. And the world is looking to you to secure your democracy, grow your economy, deepen your integration with Europe, and create the conditions that will allow you and every Ukrainian citizen to make the most of you God-given potential.

The United States wants to be your partner. The Foreign Minister and I are chairing a Strategic Partnership Commission, and we held our second meeting today, and later this year we'll have the third meeting in Washington. We are deepening our collaboration on a range of issues, from economic reform and the promotion of trade and investment to the modernization of Ukraine's energy sector to expanding opportunities for education, for health, for women, even to defense cooperation.

And we're working together on an issue where Ukraine is already a leader, nuclear nonproliferation. And we're looking for ways to harness the experience and expertise of Ukrainians to help solve global challenges like hunger and food insecurity.

Our cooperation with Ukraine is very important to the United States and to the Obama Administration. And we look for ideas that come not just from the government-to-government interaction, but the people-to-people contacts that this town hall represents. Because we know that it is not, in the end, our governments that discover the solutions to the problems we face, but it is within an open society the work of individual citizens who challenge conventional thinking, who work through the solutions that are necessary for progress. For example, we look forward to working with Ukraine to develop an investment climate that will encourage the kind of cutting-edge energy projects that will give Ukraine energy independence.

That's why it's particularly important that in democracies, where they be 234-years-old or 19-years-old, that we never lose sight of the values and core freedoms that protect and promote democracy and reform: Freedom of speech, freedom of press, freedom to petition governments, to assemble, to participate in the political sphere. These are not just afterthoughts, these are not just enshrined in our Declaration of Independence or the Human Rights Declaration, these are absolutely the right and the property of each individual.

I discussed the importance of defending these rights with your president, and he has made a commitment to uphold Ukraine's democracy, to strengthen the rule of law, to maintain a strong respect for human rights. During his visit to the Council of Europe on April 27th, President Yanukovych said very clearly that the rule of law cannot exist in Ukraine unless corruption is eradicated and comprehensive judicial reform is implemented. He also spoke out against the intimidation of journalists.

Now the United States applauds these statements and we welcome these commitments. But we recognize that rhetoric alone does not change behavior. These statements need to be followed up with concrete actions. And we have said, very clearly, to the Ukrainian government that we will help to make sure these values and freedoms are protected.

It's important, too, that we look at how to promote broadly-based prosperity. One of the problems in societies around the world today is that too much of the productivity of the economies are going to too few. Too few people, the political and economic elite, are realizing the vast majority of benefits from economic activity. It's true in my own country where, unfortunately, economic inequality is increasing. And it's true in Ukraine. It's true in Europe and Asia and Africa and South America. So part of the challenge of economic growth and prosperity is to make sure it gets down and equally spread among people. And we have to work towards spurring investment and long-term growth in Ukraine. And we have to work together to end corruption in both the public and the private sectors.

I know that having been elected to office and having run for President, that when it comes to motivating democratically elected officials, there is no force more powerful than citizens who refuse to accept the status quo, who insist that measurable progress be made. Here in Ukraine, you have a powerful asset: A strong, courageous civil society, women who have banded together to rescue victims of human trafficking, people fighting for the rights of the disabled, students and grandparents, men and women who have devoted so much of their lives to protecting human rights, to fighting diseases like HIV/AIDS, to protecting the environment, to creating a more open and accountable society.

I just met with a group of representatives of civil society groups that are working here in Ukraine. And I will say to you what I said to them. Do not get discouraged. Do not lose heart. Do not stop now. Because building a strong democracy is not a job for other people; it is really a job for each of us. And even though it is difficult, the challenges of our age are great, but they are not greater than the challenges Ukraine faced in the past. Ukraine has overcome so much.

I think often about my parents and grandparents who had to struggle so hard to give me the opportunities that I had to get a great education, to be able to make decisions that my mother could never even have dreamed of. So I feel that I owe a lot to my country. Those of you at this great institute of learning owe a lot to your country because you have been given a first-class, world-class education. And so therefore, a lot is expected of you.

I'm very optimistic as is my nature. I believe that we face a great threat from extremism around the world, from those who would turn the clock back on education, on women, on the modern advances that we take advantage of. I, for one, will do everything I can to bring together European civilization, Americans, and like-minded people around the world who will work for a better future and against the forces of disintegration.

Ukraine has a very important role to play in that because of your history, because of your geography, you are uniquely positioned to play that role. And I know that as you go forward in making whatever choices are best for you and your own families, that whatever contribution you can make to Ukraine's future will come back to benefit you and future generations. And as you make those choices, I want you to know that the United States, the Obama Administration, and the American people are cheering you on and standing with you. Thank you very much.

Q. Good evening, Mrs. Clinton. Thank you very much. It's a really great pleasure and honor to meet with you. Thank you very much for such an opportunity. My name is (inaudible) and I'm a student of the (inaudible) University. I have a question for you. The process of perezagruzka has recently begun in the relations of the United States of America and Russian Federation. And I just wanted to ask, what is the role and place of Ukraine in this process? Thank you very much.

Secretary Clinton. Thank you very much. When President Obama came into office, he wanted to explore ways that the United States and Russia could create a better relationship, find areas of common agreement, and work together. We called it the reset of U.S.-Russian relations. And I am very pleased that President Medvedev has been not only supportive, but very enthusiastic about pursuing this better relationship. So the United States and Russia have worked very hard together over the last 16 months and I think the results are commendable.

First, a new treaty to limit the number of nuclear weapons in both of our arsenals. The United States and Russia, together, have more than 90 percent of the nuclear weapons in the world. If we are to move toward nonproliferation and disarmament, Russia and the United States must act.

Secondly, Russia worked with us in our efforts to impose new sanctions on Iran, which we believe, unfortunately, represents a very serious threat to the Middle East, to the Gulf, and to Europe. Russia looked at the evidence, worked with us, and supported the sanctions that were passed at the United Nations Security Council. Russia has also worked to assist us in our efforts in Afghanistan. The Russian leaders understand that if Afghanistan becomes a failed state again and a haven for terrorism, Russia, like the United States and many other countries, will be likely targets.

We created a strategic partnership commission and we've been working on it now for more than a year. So we are increasing exchanges between business people, between academics, between young people. We had a group of young Russians who play basketball come to the United States and they actually played basketball with President Obama who's a pretty good basketball player. So we've been looking for ways to build more confidence and trust. Now, does that mean we agree with everything that Russia says or does or that they agree with us? Of course, not. We are still very opposed to their actions in Georgia. We are very concerned about the imprisonment and even the killing of journalists and human rights activists. So we express our disagreements, but we keep looking for areas of cooperation because we want to have a broad, comprehensive relationship with Russia because we think it's in both of our interests and it's in the interests, particularly, of Europe and I would argue, especially of Ukraine.

I think what Ukraine is doing in trying to balance its relationships between the United States, the European Union and Russia makes a lot of sense. Because what you want is to protect your territorial integrity, your sovereignty, and your independence, but to cooperate where you can with not only your neighbors, but the European Union members as well as in a Euro-Atlantic context.

So the United States has supported Ukraine's desire to achieve that balance and we are very pleased that Ukraine has agreed to joint U.S.-Ukraine military exercises at the end of this month and that Ukraine continues to send peacekeepers on NATO missions including into Afghanistan because we think this balance that Ukraine is constructing with its very strategic location is in Ukraine's long-term interests and will assist in creating a better atmosphere for relations between and among Russia, Europe, and the United States.

Let's see. This young man right there. Yes?

Q. I'm (inaudible) Polytechnic University. Dear Hillary, your country supported Ukraine for a long time in becoming a NATO member. And so yesterday just before your visit, our Ukrainian Parliament, Verkhovna Rada, voted for a new law, something like main principles of internal and external policy of Ukraine. And NATO was just excluded from that law. So could you tell the direction of your country for such decision of our country because you supported us for a long time? And the next question—we have [] information that today you had a meeting with journalist and you told (inaudible) about freedom of press. And in press today information appears that you propose to tell President—(in Ukrainian). Is it true or not?

Participant. Firing the SBU chief.

Secretary Clinton. First, with regard to NATO, NATO is a membership organization that people apply to join. Countries apply to join. It's always been the United States’ position that NATO is open to countries that wish to make an application. Ukraine, at this time, has apparently decided that it is not going to pursue an application to NATO and is not going to join the Collective Security Treaty Organization either, that it is going to, as it says, remain non-bloc or independent. That's Ukraine's decision. The doors to NATO remain open, but our point regarding Ukraine was that it should be up to Ukrainians to decide that no other country should have the right to veto the Ukrainian decision. And so if Ukraine decides, at this time, it's not interested in joining, we respect that. If it decides later that it wishes to, it would be welcome to submit an application. So I think the important point is that it should be Ukraine's decision and I respect that.

With regard to your second question, I had a very long conversation with the president and the foreign minister about press freedoms, about civil society. I certainly did not make any recommendations about any personnel. That's not something that is my responsibility. But we did make very clear that we look to this government to protect the rights of citizens, of journalists, of NGOs, of civil society and, as I said in my short speech, to translate into concrete action the commitments that have been made by this government to protecting those rights.

All right. Let's see here. Let's see. This young woman right there, if you can get a microphone in to her.

Q. Good evening. My name is Zola Kondur and I'm representing the International Roma Women (inaudible). So I will not have any particular question, but I just sort of like to thank you for your speech dedicated to International Roma Day. It was a really big event for international Roma organizations and European Roma (inaudible). They're very excited about it. But also, we would like to ask you support and help in improving Roma situation in Europe and Ukraine. Because as you know, we're still facing lots of discrimination, lots of problems in access to quality education, to medical services.

And recently, in the beginning of this year, my organization provided the report to UN (inaudible) committee about Roma women situation in Ukraine. The recommendations were submitted to Ukrainian Government, but we don't know how they will be implemented. But still we have lots of problems over with trafficking. And I was asking about the European Roma Rights Center to provide the information about trafficking among Roma, especially children and young girls. But it was sent to me too late and it's a pity that I cannot provide it to you, but I would like to send later if possible.

Secretary Clinton. Of course. If you will take it to our Embassy and give it to our ambassador's office for me, he will get it to me.

I just want to say that I agree with you that one of the unfinished human rights issues in Europe is the treatment of Roma. The Roma people in many countries in Europe continue to be discriminated against, continue to be marginalized, continue to be denied a lot of the opportunities that they deserve. And this has been something I've worked on and talked about for more than 15 years. And I do hope governments will do more on working with the Government of Hungary and other countries, because it's not always just a question of changing laws—it's a question of changing attitudes.

And in my own country, we've gone through waves where different groups of people were discriminated against and mistreated. And, frankly, it was like they were not fully human beings—to just be very blunt about this. And we're in the 21st century. People should rise or fall on their own merits, which means everybody should get education. If they work hard and they're smart enough, then they should be rewarded. But no group of people, whether it be Roma or the LGBT community or people with disabilities or any ethnic, racial minority, no group of people should be stereotyped and discriminated against.

So I hope that your recommendations to improve the lives of Roma people will be followed here and elsewhere in Europe. Thank you.

Secretary Hillary Clinton and Foreign Minister Radosław Sikorski delivered this joint statement in Krakow, Poland

Secretary Clinton. Well, it's a great pleasure for me to be back in Poland and in the beautiful city of Krakow. And I thank the Foreign Minister for his gracious welcome and a very substantive, productive meeting.

We are very committed to the bonds between our two nations. The United States and Poland have so many connections of history and culture, of family, of values, and that brings us closer together as we chart a new course in the 21st century. We're also NATO allies, and the United States is deeply committed to Poland's security and sovereignty. Today, by signing an amendment to the ballistic missile defense agreement, we are reinforcing this commitment. The amendment will allow us to move forward with Polish participation in hosting elements of the phased adaptive approach to missile defense in Europe. It will help protect the Polish people and all of Europe, our allies, and others from evolving threats like that posed by Iran.

Americans are proud to stand with Poland. Poland's success is a testament to the power of democracy to transform lives, unleash human potential, and drive positive change. I'm especially pleased to be here to commemorate the 10th anniversary of the founding of the Community of Democracies, an American-Polish initiative. And this weekend, Poland will renew its democracy by holding a second round of presidential elections. The United States applauds the commitment to democracy by the people of Poland. Whichever candidate is chosen, the United States will continue to be your friend and partner.

The strength of Poland's democratic institutions has never been clearer. I know the sorrow is still fresh for all those lost in April's terrible plane crash. Over the years, Poland has shed more than her share of tears. But once again, the resilience, the resolve, the recommitment by Poland has been an inspiration to the United States and the American people. We have so much to work on together.

And I am pleased we are deepening our cooperation on clean energy and energy security. Polish and American experts from both the public and the private sectors recently participated in a round table in Washington on a range of issues including clean coal technologies, renewable energy, nuclear power, shale gas, and smart grid applications.

And, Mr. Minister, I am very pleased that Poland has agreed to participate in the global shale gas initiative which is focused on tapping into unconventional gas resources to drive economic growth and lower emissions. So let me thank you once again not only for our partnership, but for the commitment that you represent to the Polish-American relationship. And I thank the people of Poland for their continuing inspiration to my country and the world.

Q. Thank you. I am Bob Burns from Associated Press. Minister Sikorski, I unfortunately couldn't hear your—the translation of your remarks and I don't speak Polish, but I'll just forge ahead anyway.

On the missile defense question, does your government feel this system, this new system as proposed by the Obama Administration, is really adequate for Poland, in light of the fact that the new missiles that are envisioned for Poland will not be here and operational for several years?

And if I may ask a question of Secretary Clinton as well on the same subject, do you—is there some reason for concern that this agreement and moving ahead on this system will reinvigorate Russian opposition to U.S. missile defense in Europe in general as well as, in particular, the presence of U.S. military forces in Poland? Thanks.

Foreign Minister Sikorski When President Obama announced the new configuration of the system, we did say that we liked the new configuration better, but I think you didn't believe us. But I hope now that we have signed the annex, I hope you do believe us, because it's based on existing technology and, therefore, is more likely to be built and to be effective. And it is capable of protecting NATO and Poland and the United States, of course, from a bigger range of threats. And we uphold declarations from the time of signing the original agreement that we want the facility to as transparent as possible. We would like the Russian Federation, in particular, to have confidence that the facility is built for the declared ends and, therefore, on a reciprocal basis, we would be happy for it to be inspected.

Secretary Clinton. I couldn't say it any better myself. I think that the phased adaptive approach has so many advantages over the plan that it replaced. And the United States is very committed to going forward. The signing of the agreement today is one more indicator of that. We believe that the phased adaptive approach will effectively defend our friends, allies, and our deployed forces in Europe from evolving missile threats, primarily from Iran.

Now, the first elements of this approach will be available on the time table set forth to defend portions of Europe years earlier than the original plan could have met. And this approach provides opportunities for allied participation. So instead of it being a unilateral U.S. commitment, it is now a commitment of the alliance. And it is very important for us that we get that kind of ownership and buy-in—which we are—from NATO.

With respect to Russia, this is purely a defensive system. It is not directed at Russia. It does not threaten Russia. It is a defensive system to protect our friends and allies and our deployed forces. And part of the reason that the Obama Administration made the change toward the phased adaptive approach is that we did an intensive analysis of what the real threats were. And the real threats come from the development of short-and medium-term missiles on a faster time table from Iran. We continue to look to cooperate with Russia on missile defense, because we think that is in our mutual interest.

Q. And I have question for—to Secretary Clinton. You said that you're going to—it's not going to threaten Russia and that it's going be in cooperation. Will Russia be included in any way in this project? Will it be a part of missile defense that you're building? And what are the chances that in eight years it will actually be realized? President Obama and your Administration will be gone by then.

Secretary Clinton. Well, NATO has encouraged Russia to cooperate and even participate in the missile defense efforts that NATO is undertaking against what we view as common threats. Russia has not accepted that offer, but the offer stands. And the United States is beginning discussions with Russia to explore whether there are any circumstances under which the United States and Russia could work together on radar development and deployment or any other aspect of missile defense. We welcome that. We've encouraged that.

Thus far, there has not been a willingness by Russia to respond positively, but the door is open. And we have consistently made the case to Russia that we want a whole and free Europe. We want good relations between Europe, the United States, the Euro-Atlantic Alliance, and Russia. And we believe the threats that we all face are common ones and, therefore, we hope that Russia will orient itself more toward working with all of us in meeting those common threats.

Q. What about the time table?

Secretary Clinton. Oh, the time table—we are committed to the time table. It's a commitment of the United States Government.

Q. Arshad Mohammed of Reuters. Secretary Clinton, if I might ask you to look ahead to Azerbaijan, Armenia, and Georgia where you'll be over the next couple of days, can you shed any light on what thoughts you have on how to try to promote resolution of the Nagorno-Karabakh dispute, and also of the South Ossetia and Abkhazia disputes. These have been frozen conflicts for many years and seem likely to stay that way. What are your ideas?

Secretary Clinton. Well, there will be more time to discuss this on the rest of the trip, but let me just briefly say the United States is very supportive of the Minsk process which consists of the United States, Russia, and France working together to try to bridge the divide between Armenia and Azerbaijan over Nagorno-Karabakh. We are working on an intensive basis with respect to that longstanding dispute. We have a full-time, American, experienced ambassador assigned to the Minsk group and I will certainly be discussing this with both the leaders in Armenia and Azerbaijan.

With respect to Georgia, we have consistently opposed the occupation by Russian troops of Abkhazia and South Ossetia and have pushed for a resolution that would restore the full territorial integrity of Georgia. I will certainly be discussing that with the leadership in Georgia. We have raised these issues consistently with Russia and certainly have not seen a lot of the progress in the Geneva process which was established to try to create observers and peacekeeping missions and border security as a stop-gap measure on the way to, hopefully, seeing the end of the Russian occupation. But that is a subject high on my list when I get to Georgia.

Foreign Minister Sikorsi. Perhaps I should say it in English. Poland also strongly supports the territorial integrity of Georgia and the need to resolve frozen conflicts because we now know how quickly they can unfreeze. And just a few days ago in Paris, we held a meeting of the Weimar Triangle, which is to say Poland, France, and Germany, which we invited Sergei Lavrov of Russia. And we made the argument to him that Russia needs to show its credibility on these issues, for example, by helping to resolve the Transnistria issue.

Q. Secretary of State, Polish Press Agency. Have you—you have invited Poland to the global initiative for shale gas. How the cooperation will look like, exactly? And some details, please. Thank you.

Secretary Clinton. The Global Shale Gas Initiative will bring together interested countries that have both the potential for shale gas development, as well as the will to develop the expertise in order to create the conditions that this resource can be exploited in a safe, environmentally sustainable manner.

We think that Poland, in particular, has a very good opportunity to be a leader in a full range of energy issues, including shale gas. And I was delighted that Minister Sikorsky adopted our invitation to join this initiative. This will be mostly at the technical experts level, because this is a difficult and demanding area to make sure that it is done appropriately. But at the political and national level, this is a very good sign of Polish leadership in the energy sector, because energy security and independence is one of the most important aspects of national security in today's world.

Secretary Hillary Clinton delivered these remarks in Krakow, Poland

Secretary Clinton. Well, I am delighted to be here with all of you. And I thank my friend, Foreign Minister Sikorski, for hosting us here in this absolutely magnificent setting, and for an excellent speech that so well summarized what the agenda for all of us who are members of the Community of Democracies should be.

The idea of bringing together free nations to strengthen democratic norms and institutions began as a joint venture between one of Radek's predecessors and one of mine: Minister Geremek and Madeleine Albright. And they were visionaries 10 years ago. And it was initially a joint American-Polish enterprise. And I cannot think of a better place for us to mark this occasion than right here in Krakow. Thank you, Madeleine, and thanks to the memory of Minister Geremek.

I think you heard from Foreign Minister Sikorski some of the reasons why Poland is an example of what democracies can accomplish. After four decades of privation, stagnation, and fear under Communism, freedom dawned. And it was not only the personal freedoms that people were once again able to claim for their own, but Poland's per capital GDP today is nine times what it was in 1990. And in the middle of a deep, global recession, the Polish economy has continued to expand.

By any measure, Poland is stronger politically, as well. We all mourned with Poland in April when a plane crash claimed the lives of Poland's president, the first lady, and many other national officials. It was one of the greatest single losses of leadership suffered by any country in modern history. But it is a tribute to Poland's political evolution that, in the aftermath of that accident, the country's institutions never faltered. And tomorrow polls will move forward with selecting a president through free and fair elections.

Now, I would argue that this progress was neither accidental nor inevitable. It came about through a generation of work to improve governance, grow the private sector, and strengthen civil society. These three essential elements of a free nation — representative government, a well-functioning market, and civil society — work like three legs of a stool. They lift and support nations as they reach for higher standards of progress and prosperity.

Now, I would be the first to admit that no democracy is perfect. In fact, our founders were smart enough to enshrine in our founding documents the idea that we had to keep moving toward a more perfect union. Because, after all, democracies rely on the wisdom and judgment of flawed human beings. But real democracies recognize the necessity of each side of that three-legged stool. And democracies that strengthen these three segments of society can deliver extraordinary results for their people.

Today I would like to focus on one leg of that stool: civil society. Now, markets and politics usually receive more attention. But civil society is every bit as important. And it undergirds both democratic governance and broad-based prosperity. Poland actually is a case study in how a vibrant civil society can produce progress. The heroes of the solidarity movement, people like Geremek and Lech Walesa and Adam Michnik, and millions of others laid the foundation for the Poland we see today. They knew that the Polish people desired and deserved more from their country. And they transformed that knowledge into one of history's greatest movements for positive change.

Now, not every nation has a civil society movement on the scale of Solidarity. But most countries do have a collection of activists, organizations, congregations, writers, and reporters that work through peaceful means to encourage governments to do better, to do better by their own people. Not all of these organizations or individuals are equally effective, of course. And they do represent a broad range of opinions. And, having been both in an NGO and led NGOs and been in government, I know that it's sometimes tough to deal with NGOs when you are in the government.

But it doesn't matter whether the goal is better laws or lower crime or cleaner air or social justice or consumer protection or entrepreneurship and innovation, societies move forward when the citizens that make up these groups are empowered to transform common interests into common actions that serve the common good.

As we meet here on the eve of our American Fourth of July celebration, the day when we commemorate our independence, I want to say a word about why the issue of civil society is so important to Americans. Our independence was a product of our civil society. Our civil society was pre-political. And it was only through debate, discussion, and civic activism that the United States of America came into being. We were a people before we were a nation. And civil society not only helped create our nation, it helped sustain and power our nation into the future. It was representatives of civil society who were the first to recognize that the American colonies could not continue without democratic governance. And after we won our independence, it was activists who helped establish our democracy. And they quickly recognized that they were a part of a broader struggle for human rights, human dignity, human progress.

Civil society has played an essential role in identifying and eradicating the injustices that have, throughout our history, separated our nation from the principles on which it was founded. It was civil society, after all, that gave us the abolitionists who fought the evils of slavery, the suffragettes who campaigned for women's rights, the freedom marchers who demanded racial equality, the unions that championed the rights of labor, the conservationists who worked to protect our planet and climate.

I did begin my professional life in civil society. The NGO I worked for, the Children's Defense Fund, helped expand educational opportunities for poor children and children with disabilities, and tried to address the challenges faced by young people in prison.

Now, I would be the first to say that our work did not transform our nation or remake our government overnight. But when that kind of activism is multiplied across an entire country through the work of hundreds, even thousands of NGOs, it does produce real and lasting positive change. So a commitment to strengthening civil society has been one of my constants throughout my public career as First Lady, Senator, and now Secretary of State. I was able to work with Slovakian NGOs that stood up to and ultimately helped bring down an authoritarian government. I have seen civil society groups in India bring the benefits of economic empowerment to the most marginalized women in that society. I have watched in wonder as a small group of women activists in South Africa begin with nothing and went on to build a community of 50,000 homes.

President Obama shares this commitment. In his case, it led him to become a community organizer in Chicago. Both of us joined in the work of civil society because we believe that when citizens nudge leaders in the right direction, our country grows stronger. The greatness of the United States depends on our willingness to seek out and set right the areas where we fall short. For us and for every country, civil society is essential to political and economic progress. Even in the most challenging environments, civil society can help improve lives and empower citizens.

In fact, I want to recognize two women activists who are with us today from Afghanistan and Iran. If Faiza Babakan and Afifa Azim would stand up, I would just like to thank you for your courage and your willingness to be here.

Now, it may seem to some of us like a very nice, but perhaps not essential presence to have just one woman from each country be here. But I can speak from personal experience that, just as civil society is essential to democracy, women are essential to civil society. And these women speak for so many who have never had a chance to have their voices heard.

So, along with well-functioning markets and responsible, accountable government, progress in the 21st century depends on the ability of individuals to coalesce around shared goals, and harness the power of their convictions. But when governments crack down on the right of citizens to work together, as they have throughout history, societies fall into stagnation and decay.

North Korea, a country that cannot even feed its own people, has banned all civil society. In Cuba and Belarus, as Radek said, civil society operates under extreme pressure. The Government of Iran has turned its back on a rich tradition of civil society, perpetrating human rights abuses against many activists and ordinary citizens who just wanted the right to be heard.

There is also a broader group of countries where the walls are closing in on civic organizations. Over the last 6 years, 50 governments have issued new restrictions against NGOs, and the list of countries where civil society faces resistance is growing longer. In Zimbabwe, the Democratic Republic of Congo, physical violence directed against individual activists has been used to intimidate and silence entire sectors of civil society. Last year, Ethiopia imposed a series of strict new rules on NGOs. Very few groups have been able to re-register under this new framework, particularly organizations working on sensitive issues like human rights. The Middle East and North Africa are home to a diverse collection of civil society groups. But too many governments in the region still resort to intimidation, questionable legal practices, restrictions on NGO registration, efforts to silence bloggers.

I hope we will see progress on this issue, and especially in Egypt, where that country's vibrant civil society has often been subjected to government pressure in the form of canceled conferences, harassing phone calls, frequent reminders that the government can close organizations down, even detention and long-term imprisonment and exile.

In Central Asian countries, constitutions actually guarantee the right of association. But governments still place onerous restrictions on NGO activity, often through legislation or stringent registration requirements. Venezuela's leaders have tried to silence independent voices that seek to hold that government accountable. In Russia, while we welcome President Medvedev's statements in support of the rule of law, human rights activities and journalists have been targeted for assassination, and virtually none of these crimes have been solved.

And we continue to engage on civil society issues with China, where writer Liu Xiaobo is serving an 11-year prison sentence because he co-authored a document calling for respect for human rights and democratic reform. Too many governments are seeing civic activists as opponents, rather than partners. And as democracies, we must recognize that this trend is taking place against a broader backdrop.

In the 20th century, crackdowns against civil society frequently occurred under the guise of ideology. Since the demise of Communism, most crackdowns seem to be motivated instead by sheer power politics. But behind these actions, there is an idea, an alternative conception of how societies should be organized. And it is an idea that democracies must challenge. It is a belief that people are subservient to their government, rather than government being subservient to their people.

Now, this idea does not necessarily preclude citizens from forming groups that help their communities or promote their culture, or even support political causes. But it requires these private organizations to seek the state's approval, and to serve the states and the states’ leaderships’ larger agenda.

Think for a moment about the civil society activists around the world who have recently been harassed, censored, cut off from funding, arrested, prosecuted, even killed. Why did they provoke such persecution?

Some weren't engaged in political work at all. Some were not trying to change how their countries were governed. Most were simply getting help to people in need, like the Burmese activists imprisoned for organizing relief for victims of Cyclone Nargis. Some of them were exposing problems like corruption that their own governments claim they want to root out. Their offense was not just what they did, but the fact that they did it independently of their government. They were out doing what we would call good deeds, but doing them without permission. That refusal to allow people the chance to organize in support of a cause larger than themselves, but separate from the state, represents an assault on one of our fundamental democratic values.

The idea of pluralism is integral to our understanding of what it means to be a democracy. Democracies recognize that no one entity — no state, no political party, no leader — will ever have all the answers to the challenges we face. And, depending on their circumstances and traditions, people need the latitude to work toward and select their own solutions. Our democracies do not and should not look the same. Governments by the people, for the people, and of the people will look like the people they represent. But we all recognize the reality and importance of these differences. Pluralism flows from these differences. And because crackdowns on NGOs are a direct threat to pluralism, they also endanger democracy.

More than 60 years ago, Winston Churchill came to the United States to warn the world's democracies of an iron curtain descending across Europe. Today, thankfully, thanks to some of you in this room, that iron curtain has fallen. But we must be wary of the steel vise in which many governments around the world are slowly crushing civil society and the human spirit.

Today, meeting together as a community of democracies, it is our responsibility to address this crisis. Some of the countries engaging in these behaviors still claim to be democracies because they have elections. But, as I have said before, democracy requires far more than an election. It has to be a 365-day-a-year commitment, by government and citizens alike, to live up to the fundamental values of democracy, and accept the responsibilities of self government.

Democracies don't fear their own people. They recognize that citizens must be free to come together to advocate and agitate, to remind those entrusted with governance that they derive their authority from the governed. Restrictions on these rights only demonstrate the fear of illegitimate rulers, the cowardice of those who deny their citizens the protections they deserve. An attack on civic activism and civil society is an attack on democracy.

Now, sometimes I think that the leaders who are engaging in these actions truly believe they are acting in the best interests of their country. But they begin to inflate their own political interests, the interests of that country, and they begin to believe that they must stay in office by any means necessary, because only they can protect their country from all manner of danger.

Part of what it requires to be a true democracy is to understand that political power must be passed on, and that despite the intensity of elections, once the elections are over, whoever is elected fairly and freely must then try to unify the country, despite the political division.

I ran a very hard race against President Obama. I tried with all my might to beat him. I was not successful. And when he won, much to my surprise, he asked me to join his Administration to serve as Secretary of State. Well, in many countries, I learned as I began traveling, that was a matter of great curiosity. How could I work with someone whom I had tried to deprive of the office that he currently holds? But the answer for both President Obama and I was very simple. We both love our country. Politics is an important part of the lifeblood of a democracy. But governing, changing people's lives for the better, is the purpose one runs for office.

In the Community of Democracies, we have to begin asking the hard questions, whether countries that follow the example of authoritarian states and participate in this assault on civil society can truly call themselves democracies. And to address this challenge, civil society groups and democratic governments must come together around some common goals. The Community of Democracies is already bringing together governments and civil society organizations, some of whom are represented here. And it is well suited to lead these efforts. I know that the Community of Democracies working group on enabling and protecting civil society is already working to turn this vision into a reality. The United States pledges to work with this community to develop initiatives that support civil society and strengthen governments committed to democracy.

With the leadership and support of countries like Lithuania, Poland, Canada, and Mongolia, I believe that the Community's 20th anniversary could be a celebration of the expanding strength of civil society, and the true institutionalization of the habits of the heart that undergird democracy. To make that happen, our joint efforts, I believe, should include at least four elements. First, the Community of Democracies should work to establish, as Radek recommended, an objective, independent mechanism for monitoring repressive measures against NGOs.

Second, the United Nations Human Rights Council needs to do more to protect civil society. Freedom of association is the only freedom defined in the United Nations declaration of human rights that does not enjoy specific attention from the UN human rights machinery. That must change.

Third, we will be working with regional and other organizations, such as the OAS, the EU, the OIC, the African Union, the Arab League, others, to do more to defend the freedom of association. Many of these groups are already committed to upholding democratic principles on paper. But we need to make sure words are matched by actions.

And, fourth, we should coordinate our diplomatic pressure. I know that the Community of Democracies working group is focused on developing a rapid response mechanism to address situations where freedom of association comes under attack. Well, that can't happen soon enough. When NGOs come under threat, we should provide protection where we can, and amplify the voices of activists by meeting with them publicly at home and abroad, and citing their work in what we say and do. We can also provide technical training that will help activists make use of new technologies such as social networks. When possible, we should also work together to provide deserving organizations with financial support for their efforts.

Now, there are some misconceptions around this issue, and I would like to address it. In the United States, as in many other democracies, it is legal and acceptable for private organizations to raise money abroad and receive grants from foreign governments, so long as the activities do not involve specifically banned sources, such as terrorist groups. Civic organizations in our country do not need the approval of the United States Government to receive funds from overseas. And foreign NGOs are active inside the United States. We welcome these groups in the belief that they make our nation stronger and deepen relationships between America and the rest of the world. And it is in that same spirit that the United States provides funding to foreign civil society organizations that are engaged in important work in their own countries. And we will continue this practice, and we would like to do more of it in partnership with other democracies.

As part of that commitment, today I am announcing the creation of a new fund to support the work of embattled NGOs. We hope this fund will be used to provide legal representation, communication technology such as cell phone and Internet access, and other forms of quick support to NGOs that are under siege. The United States will be contributing $2 million to this effort, and we welcome participation and contribution from like-minded countries, as well as private, not-for-profit organizations.

The persecution of civil society activists and organizations, whether they are fighting for justice and law, or clean and open government, or public health, or a safe environment, or honest elections, it's not just an attack against people we admire, it's an attack against our own fundamental beliefs. So when we defend these great people, we are defending an idea that has been and will remain essential to the success of every democracy. So the stakes are high for us, not just them.

For the United States, supporting civil society groups is a critical part of our work to advance democracy. But it's not the only part. Our national security strategy reaffirms that democratic values are a cornerstone of our foreign policy. Over time, as President Obama has said, America's values have been our best national security asset. I emphasized this point in December and January, when I delivered speeches on human rights and Internet freedom. And it is a guiding principle in every meeting I hold and every country I visit.

My current trip is a good example. I have just come from Ukraine, where I had the opportunity not only to meet with the foreign minister and the president, but with a wonderful group of young, bright Ukrainian students, where I discussed the importance of media freedom, the importance of freedom of assembly, and of human rights. Tonight I will leave for Azerbaijan, where I will meet with youth activists to discuss Internet freedom, and to raise the issue of the two imprisoned bloggers, and to discuss civil liberties. From there I will go to Armenia and Georgia, where I will be similarly raising these issues, and sitting down with leaders from women's groups and other NGOs. This is what we all have to do, day in and day out around the world.

So, let me return to that three-legged stool. Civil society is important for its own sake. But it also helps prop up and stabilize the other legs of the stool, governments and markets. Without the work of civic activists and pluralistic political discourse, governments grow brittle and may even topple. And without consumer advocates, unions, and social organizations that look out for the needs of societies’ weakest members, markets can run wild and fail to generate broad-based prosperity.

We see all three legs of the stool as vital to progress in the 21st century. So we will continue raising democracy and human rights issues at the highest levels in our contacts with foreign governments, and we will continue promoting economic openness and competition as a means of spreading broad-based prosperity and shoring up representative governments who know they have to deliver results for democracy.

But we also believe that the principles that bring us here together represent humanity's brightest hope for a better future. As Foreign Minister Geremek wrote in his invitation to the inaugural meeting of the Community of Democracies 10 years ago, “Regardless of the problems inseparably associated with democracy, it is a system which best fulfills the aspirations of individuals, societies, and entire peoples, and most fully satisfies their needs of development, empowerment, and creativity.”

So, ultimately, our work on these issues is about the type of future we want to leave to our children and grandchildren. And anyone who doubts this should look at Poland. The world we live in is more open, more secure, and more prosperous because of individuals like Lech Walesa, Adam Michnik, others who worked through the solidarity movement to improve conditions in their own country, and who stand for freedom and democracy.

I think often about the role of journalists. Journalists are under tremendous pressure. But a journalist like Jerzy Turowicz, a son of Krakow, asked tough questions that challenged Poland to do better. And Pope John Paul II, who, as Stalin would have noted, had no battalions, marshaled moral authority that was as strong as any army. We all have inherited that legacy of courage. It is now up to us.

Every Fourth of July Americans affirm their belief that all human beings are created equal, that we are endowed by our creator with unalienable rights: life, liberty, and the pursuit of happiness. Today, as a community of democracies, let us make it our mission to secure those rights. We owe it to our forebears, and we owe it to future generations to continue the fight for these ideals.

Thank you all very much.

Secretary Hillary Clinton and President Ilham Aliyev delivered these remarks in Baku, Azerbaijan

President Aliyev. (In progress) (Inaudible.) And I am sure that (inaudible). So it's very important for (inaudible) and the relationship with United States and Azerbaijan since (inaudible) very successful. We worked closely on (inaudible) we participate in (inaudible). (Inaudible) we worked on issues related to the fight against terrorism. And, in particular, (inaudible) policy. And (inaudible) working closely with us and (inaudible) on the resolution of (inaudible). This is a major problem for us, and a major threat to the (inaudible).

As you know, for many of us, our lands are under occupation. United Nations Security Council policy, European parliament, (inaudible), Islamic (inaudible) organization, all of (inaudible) resolution, which reflects the situation, and which demands the withdrawal of Armenian troops from international (inaudible). We want to find a resolution based on (inaudible), and we want to find a resolution as soon as possible, because our people are suffering.

I am sure that all these issues are not (inaudible) today, and I am sure that (inaudible) relations between our countries (inaudible). Welcome (inaudible).

Secretary Clinton. Thank you very much, Mr. President. I am both honored and delighted to be here for my first visit to Baku, and to your country. And it is especially appropriate that I am here on our Independence Day, because I know that your country has worked very hard during the last few years to establish a strong foundation for economic and social progress.

I am very committed to our relationship. You and I have had several long and very substantive conversations over the last 18 months. And the issues that you mentioned are of importance to us. And I think it is significant that we have this opportunity for a very comprehensive discussion.

And so, again, I thank you for welcoming me here. It's such a beautiful day right here, on the Caspian Sea, in the spirit of friendship and partnership between our two countries.

Secretary Hillary Clinton and Foreign Minister Elmar Mammadyarov delivered this joint statement in Baku, Azerbaijan

Minister Mammadyarov. Dear guests, as you are aware, we have the pleasure and honor to have with us yesterday night and today Secretary of State Madam Hillary Clinton. We had very, very interesting, very frank and open discussion on bilateral issues. Of course, one of the utmost important was the Armenian-Azerbaijan conflict resolution.

The United States has a co-chair of OSCE Minsk Group, playing its own vital role to bring peace and stability into the region, and trying to resolve, as soon as possible, the conflict between Armenia and Azerbaijan.

Besides that, in the agenda was different other issues of mutual interest, including the energy security. And there was open discussion on the regional affairs, what's going on in the region, in our country, and particularly the vision of Azerbaijan for the future, the development of the south Caucasus and the entire region.

So, my understanding that—the very important visit of the U.S. Secretary of State—thank you, Madam Clinton—and it was a very, very interesting and very, very frank discussion.

Secretary Clinton. Well, I want to thank the foreign minister, President Aliyev, and the people of Baku and Azerbaijan for a very warm welcome to me and my delegation.

This is my first visit to your city and your country. And I am leaving very impressed by what I have seen. This is a dynamic city that has long stood at the crossroads of Eurasia. And the bonds between the United States and Azerbaijan are deep, important, and durable. We know that, for centuries, travelers and traders have met and prospered here, learning from one another, forming new connections and networks of cooperation. And I am looking forward to continuing that tradition, and working towards some common interests and aspirations.

We have a lot of business trade between our two countries. We have many vibrant cultural and commercial ties, many exchanges, particularly educational exchanges. I met five young people today who have come on exchanges to study in the United States, and I would like to see that expanded, and I would like to see American students and professionals and academics and others coming here.

Our soldiers have stood shoulder-to-shoulder in Kosovo, Iraq, and Afghanistan. And we deeply appreciate the commitment and sacrifice of the people and government, as we continue these important missions. Today the president and I discussed the ways that we can deepen that partnership. We share a strong interest in regional sovereignty, security, and prosperity, and we are working together on global challenges, such as combating violent extremism, and providing adequate energy supplies that are made available in an environmentally sustainable way.

As the foreign minister said, we discussed at length the conflict in Nagorno-Karabakh, and the Minsk Group process working to resolve it. The United States remains committed to a peaceful resolution based upon the Helsinki principles of non-use of force or threat of force, territorial integrity, and the equal rights and self-determination of peoples. President Obama reaffirmed this commitment in a joint statement with the presidents of Russia and France at the recent G8 summit. And I underscored it in our discussion today. We stand ready to help both Azerbaijan and Armenia achieve and implement a lasting peace settlement.

The final steps toward peace are often the most difficult. But we believe peace is possible and necessary. And it is a prerequisite for building a secure and prosperous future in both nations. All the people of Azerbaijan and the wider region deserve to live in peace and security, and to have the opportunity to fulfill their God-given potential. The United States cannot resolve the conflicts in this region, but we can be a partner and a supporter and an advocate for those resolutions. The future of the Caucasus is in the hands of the people here. And I am confident that the people of Azerbaijan have the opportunity for a very positive future.

We also discussed political reform yesterday at the Community of Democracies meeting in Krakow, Poland. I spoke about the importance of civil society, and I reiterated the importance today. When members of civil society are respected and allowed to work free of intimidation, democracies flourish and societies prosper. I view Azerbaijan as a country of tremendous potential. And we hope that it will be possible to resolve and move beyond some of the difficult cases that have raised concerns about media freedom and the status of civil society.

The United States supports the upcoming parliamentary elections in November, and we stand ready to assist, as a friend and partner, as a people and government continue their journey toward democratic and economic progress.

So, again, let me thank you, Mr. Minister and the president, for your friendship and your hospitality. And I look forward to continuing to work closely together with you.

Minister Mammadyarov. Thank you.

Q. (Inaudible.)

Secretary Clinton Well, first, let me say that I intend to deliver the same message in Armenia that I have delivered here in Azerbaijan. As you know, when Presidents Obama, Medvedev, and Sarkozy made their statements as the presidents of the Minsk Group co-chair countries, they stressed the importance that we attach to finding a peaceful settlement in the Nagorno-Karabakh conflict.

We believe there has been progress. And we believe that both Armenia and Azerbaijan recognize that any lasting settlement must be based on the Helsinki Principles. As you probably also know, both the presidents of Armenia and Azerbaijan have held very intensive talks over the past year, including two weeks ago at St. Petersburg with President Medvedev. But this is a high priority for the United States, and we think it is now time to complete work on the basic principles to enable the drafting of a final peace settlement. And we stand ready to help in any way that we can.

The United States strongly condemns the use of force at the line of contact, and we deeply regret the loss of life, whether it be an Azerbaijani soldier or a civilian or an Armenian soldier or civilian. We think that the 1994 cease fire agreement must be enforced, because while we are working to assist you in resolving this matter, we have to protect the lives of the—of soldiers and civilians who are living on or near the line of contact.

I will certainly do everything I can to try to assist in bringing the parties together to resolve this. And in the meantime, we will continue, in the United States Government, to provide humanitarian assistance that is focused on alleviating the suffering of vulnerable groups in Azerbaijan, especially the large numbers of internally displaced persons. I met two young women who were displaced from Nagorno-Karabakh. And we will provide food, clothing, health, emergency shelter, medical supplies to vulnerable populations, especially the IDPs.

With regard to 907, as you know, presidents continually have waived the restrictions in 907 and have—previous administrations have also tried to repeal it. Speaking personally, for myself, I would like to see it repealed, but that's up to the congress. And until the congress agrees, then we will continue to waive its effects on Azerbaijan as we move forward.

And finally, my party will raise the last issue you mentioned, about the body of the soldier.

Secretary Hillary Clinton and Foreign Minister Eduard Nalbandyan delivered these remarks in Yerevan, Armenia

Foreign Minister Nalbandyan. Dear Madam Secretary of State, dear Hillary dear colleague, I am glad to welcome you on your first visit to Armenia. It is a particular honor that you are in Yerevan on the Fourth of July, the Independence Day of the United States, on which I cordially congratulate you and all the Americans. The founding fathers of your country, adopting the Declaration of Independence 234 years ago, have proven, by establishing the United States, that nothing can deprive people of their right to independence.

We Armenians have proven it as well, by restoring independent statehood only two decades ago. Since the first days of our independence, the Americans have been by our side. The relations between Armenia and the United States have been continuously deepening. High-level contacts between our two countries in recent years are noticeable, due to their frequency and broadness of content. President Sargsian's latest visit to Washington, D.C. and meeting with President Barack Obama became an important milestone, in terms of deepening our mutual understanding and developing relations.

The American-Armenian community (inaudible). It is necessary to exert all efforts in order to obtain exclusively peaceful settlement of the Nagorno-Karabakh conflict based on the principles of international law, particularly non-use of force or threats of force, equal rights of peoples, self-determination of peoples, and territorial integrity. We share the vision that it is necessary to create an atmosphere of tolerance in the region, instead of belligerent behavior. We share the vision that the Armenian-Turkish relations should be normalized without any preconditions. We share the vision of enhancing economic cooperation in the region. We share the vision of a market economy and development of democratic values.

We believe there is great potential, which should be utilized in order to further develop and expand the Armenian-American cooperation. We have agreed on pursuing further strengthening and deepening of our friendly partnership. During the meeting between the President of the Republic and the Secretary of State, the above-mentioned issues, as well as issues concerning further fostering of our cooperation were discussed. International and regional issues of mutual interest were raised. There was discussion of boosting economic cooperation.

Dear Madam Secretary, we too highly commend your personal contribution in qualitatively raising the Armenian-American relations to a new level. We have had several meetings with you in various formats in different platforms. But hosting you here in Yerevan is a particular pleasure for me. I once again welcome you and the members of your delegation accompanying you. Welcome to Armenia.

And I will—it is my pleasure to pass the floor to you. Please.

Secretary Clinton. Thank you very much, Foreign Minister. It is a real pleasure for me to be here in the Republic of Armenia. And I want to thank you and your president and the people of this country for your hospitality and friendship.

When Armenia became independent again in 1991, the United States was cheering you on, and we have been your friend and partner ever since. Today we celebrate the 234th year of the founding of our country and the declaration of our independence. And we know how sacred and precious the gift of independence is.

Armenia is a nation with both a proud history and a promising future. We are grateful in the United States for the many contributions of Armenian Americans to the cultural and economic life of our country. And we believe that a democratic and prosperous Armenia can be a force for progress in the region and beyond. So, the United States is strongly committed to supporting the Armenian people and your aspirations.

Today I discussed with your president how we can work together. We focused on the building blocks of Armenia's long-term development and security, the importance of advancing democracy at home, and peace and reconciliation with your neighbors. We discussed, in depth, the conflict in Nagorno-Karabakh, and the Minsk Group process that is working to resolve it. As I said earlier today in Baku, the United States remains committed to a peaceful resolution based on the Helsinki Principles of non-use of force or threat of force, territorial integrity, and the equal rights and self-determination of people.

President Obama reaffirmed this commitment in a joint statement with President Medvedev and President Sarkozy at the recent G8 summit in Canada. We stand ready to help both Armenia and Azerbaijan achieve and implement a peace settlement. We know this will not be easy. But we think it is the necessary foundation for a secure and prosperous future.

We also discussed the pursuit of normalization between Armenia and Turkey. I expressed my admiration for the president's courageous decision to pursue a vision of peace. The United States believes that normalization promises tremendous benefits for both Armenia and Turkey, as well as the wider region. And we are committed to doing everything we can to help the parties move forward.

We also discussed our commitment to strengthening democracy and the rule of law in Armenia. The United States has worked closely with successive Armenian governments for many years to support the country's democratic development. We have done so openly and honestly, because we see democratization and respect for human rights as vital to Armenia's long-term security, stability, and prosperity. And, as a friend and a partner who believes in Armenia's future, we will continue to support Armenia's civil society and efforts to promote good governance and transparency.

When we look at Armenia, we see a tremendous set of assets residing in the quality, the hard work of the people. And we know that the future of this country, as is the future of every country, is in the hands of the people themselves. And we believe that we can work together to improve the economy, to create greater opportunities, to look to see whether it's possible to develop independent energy resources, such as shale gas, how we can continue to work with the government and people of Armenia on behalf of that common vision of the kind of tomorrow in which every boy and girl has a chance to live up to his or her God-given potential.

So, again, let me thank you. Foreign Minister and I have spent many hours together. And I greatly appreciate his interactions and his expertise and experience. And I wish to thank the president for not only a warm welcome and a candid conversation, but an excellent meal that concluded with a large red, white, and blue July 4th cake. It could not have been a warmer experience. And I look forward to continuing to work closely with you in the future.

Q. (Inaudible) Media Television. My question is for Madam Clinton.

Azerbaijan, with its arbitrary interpretation, is rejecting two of the three important principles of Madrid. The right to self-determination and the principle of non-use of force or threats of force have been denied by Azerbaijan. One should also be much concerned about the arms race initiated by Azerbaijan, the (inaudible) statements, and destabilizing measures, which are clearly aimed at jeopardizing the peace talks.

During your visit to Baku, did you bring up these issues? Thank you, Madam Secretary.

Secretary Clinton. The United States strongly condemns the use of force or the threat to use force. And we regret the loss of life that results as the use of force is used. These are unacceptable violations of the 1994 cease fire agreement. And it is also contrary to the stated commitments of both sides.

So, we have called upon everyone to refrain from the use of force or the threat of force because we, number one, do not want to see loss of life or injury; we do not want to see further dislocation of individuals or families; and we do not want to see the peace process harmed. So, my message is the same to everyone: the United States condemns the use or threat of use of force.

Q. Yes, Lucian Kim from Bloomberg News. Madam Secretary, even as the reset continues to relax relations between Russia and the U.S., Russia isn't giving up on its concept of having a sphere of privileged interests, including in the Caucasus region.

You often talk about focusing on areas of mutual concern. But how will you tackle thorny issues like Russia's presence in its so-called (inaudible), and in particular in Georgia, where two years ago we saw how a frozen conflict turned into a war? Inevitably, there are many people in Moscow who don't look very approvingly on this trip in the Caucasus region.

Secretary Clinton. Well, we have made very clear for the last 18 months that we want to improve our relations with Russia, and I think there is evidence that we have done so with the new START treaty, with the new sanctions against Iran's nuclear weapons program, with increasing cooperation in the Minsk process, or in Afghanistan. I think there is a lot of evidence that the United States and Russia are actually looking for ways to find common ground.

But that doesn't mean we're going to agree on everything. No two nations agree on everything. We do not agree on what happened in Georgia, or the current continuing occupation by Russian forces of South Ossetia and Abkhazia. And we have said so, and I have said it everywhere, not just in the Caucasus.

But we think it's possible to pursue a comprehensive common agenda, as we are doing with Russia, without the disagreements freezing our relationship. We think it's not only in the interest of the United States and Russia, we think it's in the interest of the world that Russia and the United States continue to try to build confidence and trust between one another.

Obviously, we saw when we were in Ukraine that the new government in Ukraine is trying to balance, trying to have improved relations with Russia while seeking integration into Europe and deepening the Euro-Atlantic alliance with the United States. That is Ukraine's right to choose. They are a sovereign nation.

I will be in Georgia tomorrow. And Georgia continues to stand up for itself and to make decisions that are in their own interests, as they define it, and we applaud that.

So, it is not at all unusual that we would have common ground, as we do in the Minsk process, where we are co-chairs, trying to resolve Nagorno-Karabakh, and not agree with respect to other concerns like what has happened in Georgia. I think that's a sign of a very mature, candid relationship. And I think the—not only this part of the world, but across the world, people ought to be relieved that the United States and Russia have developed that kind of ability to engage and go on, despite continuing disagreements.

Q. (Inaudible) Agency. My question is for Madam Secretary of State. Madam Secretary of State, although in one of the recent interviews the President of Armenia said that Turkey's policy of zero problems with neighbors is yielding zero results, we have recently witnessed Turkey's swift resolution of Iran's nuclear problem. Then, they managed to duplicate Palestine. They have stabilized Iraq, after all.

In this context, how do you view the fact that Turkey is not living up to its commitment of normalizing relations with Armenia, which Turkey undertook in your presence? Thank you.

Secretary Clinton. Well, the United States commends the Governments of Armenia and Turkey on their signing of the historic protocols on normalization of relations last October in Zurich. I was honored to be there, along with your foreign minister. And it was a visionary and courageous agreement by the leaders of both countries to try to move forward toward full normalization of relations.

We believe—the United States believes—that this kind of rapprochement between Armenia and Turkey will foster increased stability and greater prosperity through more open borders, increasing trade and investment, and will, in the long run, be a great advantage to Armenia.

However, as you know, that has not yet been realized. And there have been problems and obstacles along the way. I was very pleased when President Sargsian announced that, despite the problems that Armenia saw coming from Turkey, that Armenia stood ready to continue normalization, but that it would suspend its efforts until the Turkish side was ready to move forward again. We applauded your president's decision, because that was a decision to continue, despite the obstacles, to work toward peace, stability, and reconciliation.

And we urge Turkey to take the steps that it promised to take, and that both sides continue to try to find the opportunity to open the door to reconciliation and normalization. But Armenia's decision last April was very statesmanlike and very impressive. And now, as they say in sports, the ball is in the other court.

Foreign Minister Nalbandyan. I take this opportunity, having heard your question, to thank the United States and the Secretary of State herself for her personal contribution, for the enormous support rendered throughout the process of Armenian-Turkish normalization. We concur with the United States that the relationship has to be normalized without preconditions. The agreements have to be honored. We will be ready to move forward when Ankara also once again demonstrates readiness to move forward towards normalization without preconditions. Thank you.

Secretary Clinton. Thank you, Eduard.

Secretary Hillary Clinton and President Albert Sargsian delivered these remarks in Yerevan, Armenia

President Sargsian. I am confident that this long-waited-for visit by State Secretary of the United States of America to the Republic of Armenia (inaudible). And I am also confident it will also serve (inaudible) peace and security (inaudible).

I would also like to (inaudible) congratulate the people of the United States of America on the (inaudible) occasion of the Independence Day of the United States of America, and to wish peace, prosperity, and well being for the United States.

I wish to thank the Administration of the United States of America, and you personally, for the long-standing and continuous support (inaudible) politically, economically, and in all (inaudible).

And I would like to emphasize two particular aspects. For a long period of time, the United States of America has been bringing a significant contribution to the search for peace in the Nagorno-Karabakh conflict. The single most important issue that is faced by the people of the Republic of Armenia and by the Armenians is the issue of the settlement of the Nagorno-Karabakh conflict on the basis of principles of (inaudible). The people of Nagorno-Karabakh have a right for free development and (inaudible). And the right for people for self-determination is one of the most fundamental principles of international law which has been at the basis of independence for many—most countries in the world.

And I thank you for your support on the matter of the Nagorno-Karabakh conflict. I would also like to thank you and President Obama for your continued support on the issue of Armenian (inaudible) relations between Armenia and Turkey. And while Turkey was not ready—is still not ready—to establish relations without (inaudible) conditions, it has been very important for us to feel the support of the U.S. Administration.

I would like to once again re-emphasize that the Republic of Armenia (inaudible) relations with the United States of America, in which such high-level relations is an important contribution to the political and economic advancement of our country, as well as to the stability and peace in our region.

Once again, welcome and (inaudible).

Secretary Clinton. Mr. President, it is a particular pleasure and honor for me to be here in the Republic of Armenia. It would be so on any day, but it's especially appropriate to be here on the celebration of our Independence Day. And I understand tomorrow is your Constitution Day. So it's another connection between the United States and Armenia.

I appreciate the very kind words about the efforts of the United States Government and the Obama Administration to work with you and bring about a peaceful, durable solution to the situation in Nagorno-Karabakh, based on the Helsinki Principles.

And I also appreciate the effort that you personally, along with your government, have expended on behalf of normalization of relations with Turkey. As you and I have discussed on previous occasions, the United States hopes to be able to support the eventual successful resolution of that, as well. We continue to believe that resolving these matters is in the best interests of the development and opportunities for greater regional peace and stability for the people of Armenia.

So, I look forward to our meeting today, and I thank you for the very kind invitation for me and my delegation to be here with you on our Fourth of July.

Secretary Hillary Clinton delivered these remarks in Baku, Azerbaijan

Secretary Clinton. Well, thank you so much, Chargé. I am very, very pleased. And thank you for your service here. I know you will be leaving shortly for your next assignment. So, thank you. And thanks to all of you for being here. This is a special occasion, because it is the Fourth of July, our Independence Day, and I am delighted to be spending it here in your country and with all of you. And I especially appreciate this lovely setting.

As the chargé said, one of the parts of my job that I relish is getting a chance not just to talk, but to listen, and having the opportunity, particularly with young people, because I am well aware of the fact that most of the work that I and others in governments around the world will affect, for better or worse, the lives that you lead in the future. And it is exciting to have heard some of what you are doing in moving Azerbaijan forward. And I want to hear more about that.

I have a lot of optimism about the potential of Azerbaijan. I think it is strategically located. It is a country that has an extraordinary story to tell the rest of the world, the resources to be able to develop in a short period of time—18 years—that you have been independent from the former Soviet Union. And the United States is committed to helping you and your fellow citizens build a prosperous, independent, democratic, sovereign Azerbaijan.

And I happen to think that a lot of the success of countries in the 21st century over the long term will be because they are open societies, they have an opportunity for dialogue, and they learn and adjust. And it is certainly my priority, as Secretary of State, to support democracy, to support freedom, to support young people. And that includes social activism, Internet freedom, and the new ways that your generation communicates that are really changing the map of human interactions.

And I think that technology may change, but the United States's commitment to freedom of expression does not. We have had a long journey—234 years—since our declaration of independence. And we have had to overcome a lot of obstacles. We have had to change a lot. When our country came into being, only white property-owning men could vote. And there were many injustices, and many areas that were not living up to our ideals. And so, every country has to be on a journey. And I think it's important for citizens, not just governments, to be part of leading that journey. And I think, too, that making your democracy stronger gives even more people the chance to live up to their own God-given potential, which, to me, is part of what we are supposed to do in life together.

I think that, while considerable progress has been made here, you know better than I there is work to be done. There are still lots of challenges. And, for example, President Obama and I have both received many letters about the two young bloggers who are in prison. Those are the kinds of issues that every society has to deal with, and has to try to come to grips with. And I certainly have raised those in my meetings today.

Democracy is not only about elections. It is about a free press. It's about independent judiciary. It's about transparent and accountable institutions and leaders. And, in today's world, it's about the way new technologies and social media can help the democratic dialogue flourish.

So, with that, let me turn it over to you and hear about your interests, what you are doing, ways that you think the United States can be more helpful.

Secretary Hillary Clinton and President Mikheil Saakashvili delivered these remarks in Tbilisi, Georgia

President Saakashvili. Well, Madam Secretary, dear guests, distinguished members of the media, first let me begin on behalf of the Georgia people by congratulating Secretary Clinton, her delegation, and all American people, for the Fourth of July. Two hundred and thirty-four years ago, America began a bold and transformative experiment, based on a set of fundamental values. These are also the values we share with you. And every time we speak and talk and think about transformation of Georgia—and, Madam Secretary, you could have seen on my bookshelves works by Thomas Jefferson and other founding fathers, framers of the U.S. Constitution—I keep going back and reading them. But it's also not only me, but the whole team which you saw today here that believes and very much thinks in those terms and values.

So it is, therefore, with great pleasure, and it's a great honor as well, to welcome you, Madam Secretary, to a free Georgia. If we are able to welcome you to an independent and democratic country, it is largely thanks to the solidarity of the American people, to our profound and deep partnership, and to the consistent leadership shown by President Obama and Secretary Clinton.

Throughout the years, since the fall of the Soviet Union, American assistance has been decisive in protecting Georgian independence, helping our democracy to grow, and in making our own experiment truly (inaudible). This has been especially true in the recent critical period after the invasion of our country in 2008 in his statements defending our sovereignty by President Obama, the visit of Vice President Biden here last year, and your personal commitment to the end of occupation of our country even a few days ago in Krakow, have been and are essential.

I would like to take this opportunity to once again publicly thank you and the American people for their assistance and partnership provided in support of our democracy, our reforms, and for the $1 billion of assistance that was so critical in our time of need. These are all concrete examples of our lasting and strategic partnership, and they demonstrate (inaudible) a special U.S.-Georgia relationship. Because our relationship was based on shared values and our common aspirations, I know that it can only deepen and grow under our leadership.

Our substantial and friendly discussion today confirms to all of us that the support we receive, the partnership we have built, is growing in substance and form. I am very aware that much remains to be done to ensure security and to continue our reforms, including the modernization of our country. But we want to tell the world that Georgia is a model of political and economic reforms, is a shining example—at least for this region—Georgia, as a full-fledged, optimistic country, is back. And despite the occupation and (inaudible), we have a robust and meaningful economic growth.

Despite these challenges, we are pursuing our integration through the family of Western democracies. And we will never stray away from the path of profound democratic and social transformation. On this path we know that we can count on U.S. assistance, support, and leadership. Our strategic charter unites our two countries and peoples. It has created an ideal framework for continuous cooperation, (inaudible) from security to democracy, people-to-people relations, and economic cooperation. Our charter is based on the common values that make our partnership universal, the strong belief that nations can choose their path, and the firm conviction that individual freedoms are the basis of every accomplishment you can have.

Let me tell you today I feel more certain than ever that these values have found in this American (inaudible) strong and dedicated promoters and leaders. Here in Georgia we will continue our efforts with renewed vigor. Our progress cannot and will not be stopped. I look forward to building up what we discussed today, and to strengthen our common legacy. Thank you, Madam Secretary. You have the floor.

Secretary Clinton. Thank you very much, Mr. President, and thank you for this very kind and warm welcome to Georgia. This is a wonderful opportunity for me, because this is my first visit here, and it will not be my last. And so I thank you for the very productive discussions that we have had.

And I want to say publicly what I have said privately. I came to Georgia with a clear message from President Obama and myself. The United States is steadfast in its commitment to Georgia's sovereignty and territorial integrity. The United States does not recognize spheres of influence. President Obama and I have also communicated this message directly to our Russian counterparts, most recently during our meetings in Washington on June 24th.

We continue to call for Russia to abide by the August 2008 cease fire commitment signed by President Saakashvili and President Medvedev, including ending the occupation and withdrawing Russian troops from South Ossetia and Abkhazia to their pre-conflict positions. We also stressed the need for humanitarian access to the territories. And we will continue to work toward a peaceful resolution of the conflict through established international mechanisms and constructive non-violent channels.

The United States and Georgia share a deep friendship. And we very much value the partnership between our countries. We are committed to the success of Georgia's democracy and economy, and we are continuing to build on the framework for cooperation that was institutionalized in the U.S.-Georgia charter on strategic partnership last year.

We very much appreciate Georgia's significant contributions to the international security assistance force in Afghanistan, and honor its commitment to fighting terrorism around the world. As we stand here today, Georgian soldiers are fighting alongside U.S. Marines in Helmand Province, and helping Afghans build a more peaceful future for their own country. And I thank the Georgian people, and particularly the Georgian military, for their service, sacrifice, and bravery. These contributions provide strong evidence of Georgia's diligent movement toward meeting the requirements for membership in NATO.

We are also committed to supporting Georgia's political and economic reforms. We are pleased to see Georgia's steady economic growth in the wake of the global financial crisis. And we were encouraged by the steps made toward meeting the OSCE and the Council of Europe standards for democratic elections seen in the recent municipal elections.

Earlier today I met with women leaders who are helping build a culture of democracy and confidence in the electoral process. Georgia has made real progress in the past few years, improving living standards, reducing corruption, and building one of the fastest reforming economies in the world, all while facing some very difficult circumstances. But, as you know better than I, there are still shortcomings. We want to urge Georgia to continue the work of the Rose Revolution. And the United States will do everything we can to assist our partners inside and outside the Georgian Government, as they strive to strengthen democratic institutions and processes.

We are committed to supporting Georgians, Georgians who are working to build a future that is freer, more democratic, more prosperous, and more secure. And I personally am looking forward to watching Georgia's continuing progress. And I thank you, Mr. President, for these very constructive discussions.

Thank you, Madam Secretary.

Q. Georgian (inaudible). Mr. President, Madam Secretary, my question is today, during the meeting with family leaders, you said that in Georgia many peoples live in condition of occupation. And so you mentioned that USA never accepts occupation of Georgia. And my question is, do you want to discuss with Russian leadership during—between your (inaudible)—(inaudible) during meetings with the national leadership?

President Saakashvili. So did they discuss or not? That's the—

Secretary Clinton. The answer is yes. As I told the president, President Obama and I and other American officials raise our concerns about the invasion and occupation with Russian counterparts on a consistent basis. And it is very important for us that we do so, because we are very frank in asserting our concerns and our ongoing support for Georgia's sovereignty and territorial integrity.

Now, we are engaging with Russia bilaterally, in talking to Russian leaders about our concerns. But we also are engaging multilaterally through the Geneva process and in OSCE. We have expressed our concerns about the Russian Government's construction of permanent military bases. We have made clear that we consider such construction to be in contradiction to Russia's 2008 cease fire commitments. And we continue to call on Russia to fully comply with the cease fire agreement that they signed, including the withdrawal of their troops to the pre-conflict positions, and humanitarian access to the separatist regions.

President Saakashvili. Any American journalists? Yes.

Q. Ahmed of Reuters. Secretary Clinton, in your remarks at the town hall this morning, you said that the United States wants to revive and intensify the Geneva diplomatic process. What exactly do you have in mind in that regard, given that the process, as your language suggests, is somewhat moribund?

And, secondly, at the same event, you talked about how making Georgia a vibrant and economically and politically vibrant society was, in a way, the best rebuke to the Russian presence in South Ossetia and Abkhazia. And it seemed almost as if you felt that there was little or no hope of any kind of a short-term solution here, and that this is perhaps a medium or a long-term objective, at best.

Is that how you see it, that this is something that simply won't happen any time in the foreseeable future, and therefore, one needs to think very long-term about a resolution?

Secretary Clinton. Well, we would, of course, like to see action immediately. And that is one of the reasons why, as I responded to the young woman's question, we engage with Russia in many different settings, one of which is in Geneva. We believe that the Geneva discussions are an important international forum to try to enhance transparency, to help decrease tensions, to promote regional stability. And we welcome the openness of various parties toward using the incident prevention and response mechanism, the so-called IPRM. And we strongly urged South Ossetia to immediately resume use of the IPRM. Similarly, we have asked Russia to encourage South Ossetia to return to that mechanism.

Now, for several rounds, the Geneva discussions have focused on a non-use of force agreement. And during the June 8th discussions, the most recent ones, we underscored and emphasized the fact that the August 12, 2008 cease fire agreement signed by the Georgian and Russian leadership, mediated by French President Sarkozy, already establishes both sides’ commitment to the non-use of force. Full implementation of that agreement by Russia renders an additional non-use of force agreement unnecessary.

So, we are calling on the Russians to enforce the agreement that they signed back in August of 2008. The United States believes that another such agreement is something that may perhaps be positive, but only if it includes the Russian Federation and meets the concerns of all the parties, and includes meaningful implementation measures, and does not politicize the status issue.

And the United States reminded the Russian delegation this past June 8th again that any unilateral steps that Russia has taken, such as its recognition of these regions as independent, do not relieve Russia of the commitments President Medvedev made in the August 12th cease fire agreement.

So, our position concerning the Geneva process is to intensify, as much as we can, our involvement and to keep raising the issues that are important to resolving this matter. We strongly, for example, urged the Abkhaz de facto authorities to participate constructively in the peace process discussions in Geneva. And there is a constant diplomatic effort going on around this.

Now, I cannot predict the time by which this matter will be settled. I am very hopeful that it will be something that can be resolved in the near future. But whether it's in months or years, it's important for Georgia to continue its modernization reform efforts. Because, as I said in the town hall, that sends a very strong message to the Georgian people, first and foremost, and to the people in South Ossetia and Abkhazia, as well as to the Russians and other parties, that Georgia's democracy, Georgia's economy, are still moving forward, that this occupation has not undermined the Georgian Government and the Georgian people's commitment to their own internal efforts to build the strongest possible state for the best future.

President Saakashvili. Yes.

Q. (Inaudible.) Madam Secretary, Mr. President, you have touched on (inaudible) issues. But let me ask you (inaudible) claims that Georgia is in a very special sphere of interest. These are the words of Dmitri Medvedev, as well. And they claim that Georgia will never accept NATO membership, and they will contradict it in (inaudible). And how do you think—what kind of reaction could have Washington toward this issue? And how could you contribute (inaudible) of Russia about this question?

And secondly, let me ask you as well, in general U.S. is Georgia's major partner and supporter and, in the past years, demonstrated that U.S. Government always give its helpful hand to Georgia. And, Madam Secretary, let me ask you. How could you specify why is Georgia so important for U.S. Government? Thank you.

Secretary Clinton. Well, first, with respect to Russia's claims to any sphere of influence, the United States flatly rejects that. We are living in a time when independent sovereign states have the right to make their own decisions about organizations they wish to join, to make determinations that are in the best interests of their own people and how they see their own future. And it is an important part of the ongoing historical movement that Georgia's independence is part of to reinforce that fundamental human right to one's own destiny.

And, therefore, no country should be told what they can or cannot do by any other country. And that is just the world we live in today. And, therefore, any claim otherwise has to be rejected out of hand. And it should be rejected not only by Georgians and Americans, but by all independent freedom-loving people around the world.

Why does the United States care about Georgia? Because, number one, we respect and honor the sacrifices that the Georgian people have made throughout a very long history of a lot of very difficult challenges. The resilience and resolve of the Georgian people has come through time and time again. The Rose Revolution inspired Americans. It was an uprising that was very much in keeping with our own founding ideals. We just celebrated the 234th anniversary of our declaration of independence. We had to conduct a revolutionary war against then our colonial power. You did it much more peacefully, all things said and done, and we admire that.

But we also believe that you have a right to your own destiny. You have a right to your own freedom. We take seriously our founding ideals. Now, like any country, we sometimes fall short of our own values. But that doesn't mean we care about them any less, that we don't hold them up and stand for them any less. It means that we, too, have work to do.

So, we admire what Georgia has accomplished, and we are Georgia's friend. We are Georgia's partner. We are Georgia's supporter in both word and deed, because we want to see Georgia's independence and territorial integrity, democracy, and prosperity succeed.

Q. Mary Beth Sheridan from the Washington Post. I had a question for both leaders. Georgian officials, on many occasions, have raised their concerns about what they say is great difficulty, or a de facto restriction on buying arms from the United States. So I just wondered if both of you could describe what is the situation now, in terms of selling arms to Georgia.

And a second question for President Saakashvili. What, in your opinion, has been the impact of the reset of relations between the U.S. and Russia? Do you believe that reset compromises Georgian security? Did you get any fresh assurances today? Thank you.

President Saakashvili. Well, on—related to the first issue, I mean, we have very good security cooperation with the United States. As you know, we are cooperating in Afghanistan. We cooperate in Iraq. But we also cooperate on the ground here. And that has (inaudible). I myself spoke to General Petraeus, who told me that Georgia soldiers are among the best ones he had on the ground in Iraq and Afghanistan. And not only he told it to me, but he wrote about it to the U.S. President. So we have quite influential allies among the U.S. military, and good example of cooperation.

Now, it's a process. It's a process, and it's a step-by-step approach. And so far, we have been going through that process. It has been productive. We have been happy. And, obviously, the—it requires time. We are talking about a very comprehensive process. But, you know, there was no—nothing to complain about, in terms of policy, on the U.S. side. And that I can clearly (inaudible) any speculations over that issue.

Now, with regard to reset, obviously it's a clear issue that, you know, we—there were questions asked in the beginning, when reset was mentioned. There is no secret about it. Of course some people got worried what it might mean, what it may mean. But what we see now is that—exactly the right way. What I see the right way is that, you know, it's not just changing relations with Russia at the expense of the others. On the contrary, it's exactly things based on values. It's value-based policy.

And that's why we all love America. That's why my people love America. That's why people in the world—democratic people all around the world and their leaders love America, because this is the—almost the only country in the world—there are many other friends we have—but where no political—nobody from political class—I'm not talking about leadership—any administration, at least since the time I have been watching politics, have ever compromised basic values in expense of so-called political expedience and pragmatic politics. And for small countries, it's absolutely essential.

When Secretary Clinton mentions occupation words, it resonates with almost 500,000 people that cannot go back to their houses, not because they are taken by somebody else, but because they are held by occupying troops. But, you know, America was the first one to mention this word. And now the others are following. President Obama was the first one to call a spade a spade, basically, to say it was an invasion. Because before, as you remember, the term “disproportionate use of force” was used, as if there is a proportionate use to, you know, occupy other countries’ territory. President Obama was the first one to use the term.

And I think the statements coming from Washington, they're better—the higher (inaudible) agenda gets, the higher the Georgian issue got on the agenda. I was very pleased by that. The visit of Secretary is good testimony to that. And, you know, ultimately, if it leads to more modern, more open Russia, that's only good for all of us around it. We will benefit from more liberal, more open, more modernized Russia, as well as we certainly suffered a lot from Russian (inaudible), that this has all these domestic issues, and that's having (inaudible) trouble with its own people, but also with its own laborers.

And, from that point of view, if ultimate goal is (inaudible), as I believe it is, then we can only benefit from it. And, you know, I congratulate you there very strongly, Secretary. We support the policy. We believe it is already producing the results—maybe not immediate one for people like, you know, we have my press secretary here, who is (inaudible), he can no longer go back to, like, 80 percent of (inaudible). Most of the refugees from (inaudible). We have minister of economy here, who has (inaudible) together with her family from (inaudible). She was 11 years old, long time ago. And, you know, the point—these people cannot go back. They would like to. Houses are empty. And only because there are troops they can't go back.

(Inaudible?) Of course it will take time. On the other hand, results (inaudible). Yes, I think the result is bringing at least minimum sense of security and (inaudible) for my country. And that is very essential for us to get time to develop, to do all these construction projects, to grow the economy, to make people better educated, get better chances in life. And, ultimately, basically, solve the other issues. Hopefully much sooner than that, but you know any good direction (inaudible). And I think I see no alternative to that.

Secretary Clinton. I can't add anything to that. That was extremely well said, as the president often is. Thank you.

President Saakashvili. Thank you so much. I am very flattered, that Secretary Clinton would say that. Thank you. Next time you need speaker on other (inaudible) issues, I am there as well.

Secretary Clinton. We're going to go to the bridge. Good, good.

Under Secretary Stuart Levey delivered these remarks in Brussels, Belgium

Under Secretary Levey. The U.S. Department of the Treasury today released the following statement from Under Secretary for Terrorism and Financial Intelligence Stuart Levey on the U.S.-European Union Agreement on the Terrorist Finance Tracking Program:

“We welcome the European Parliament's consent today, by a wide margin, to the revised U.S.-EU agreement on the processing and transfer of financial messaging data for the purposes of the Treasury Department's Terrorist Finance Tracking Program (TFTP).

“A great deal of hard work has been put in to achieving this new agreement. We worked with our European partners over the past several months to preserve the effectiveness of this unique program and, at the same time, ensure that we will enforce the unprecedented data-privacy safeguards that were built into the program from the beginning. This new agreement does that without compromising the operation of the TFTP.

“With the resumption of the full functioning of the TFTP, the U.S. and the EU will have restored this highly valuable counter-terrorism tool, which over the past decade has repeatedly provided valuable lead information that has aided in the prevention of terrorist attacks and in the investigation of many of the most visible and violent terrorist attacks around the globe.”

Secretary Hillary Clinton delivered these remarks in Washington, DC

Today we remember the tragic events in Srebrenica 15 years ago. I join President Obama and the people of the United States in offering our deepest condolences on this most solemn occasion. We honor the memories of the victims and mourn with their families.

The United States stands with Bosnia and Herzegovina, and all countries in the region who wish to foster peace and reconciliation. We remain committed to ensuring that those responsible for these crimes face justice. We recognize that there can be no lasting peace without justice. It is only by bringing all responsible parties to account for their crimes that we will truly honor Srebrenica's victims.

We are duty-bound—to the victims, to their surviving family members, and to future generations—to prevent such atrocities from happening again. Our common faith in the value of freedom and peace unifies us and drives us to act. That is why we are committed to working with all the communities that make up Bosnia and Herzegovina to move forward and build a pluralistic, democratic state that can take its rightful place in the Euro-Atlantic community. A prosperous, free, and unified Bosnia and Herzegovina is the most worthy monument to those who lost their lives at Srebrenica and the best guarantee against such a tragedy ever repeating itself.

Secretary Hillary Clinton and Foreign Minister Samuel Zbogar delivered these remarks in Washington, DC

Secretary Clinton. Well, it's a pleasure to welcome back the foreign minister from Slovenia, someone with whom I have already had the privilege of working with over the last 16 months. And I'm very grateful for the close partnership that we are developing and the very substantive work that we are undertaking. So again, I look forward to our meeting.

Foreign Minister Zbogar. Thank you very much. Thank you very much, Secretary Clinton. I'm very happy to be in—back in Washington. There was a year back when we had our first meeting here in Washington. It was different situation then, different issue that we discussed, but some remain the same. I think that one of the big topics that is now coming to our agenda will be (inaudible) the Balkans, and I am looking forward to our discussion.

Secretary Clinton. Thank you so much.

Foreign Minister Zbogar. Thank you.

Secretary Clinton. Thank you.

Q. Secretary Clinton, do you think the allegations that BP had a hand in Megrahi's release deserve to be investigated—

Secretary Clinton. Thank you all. Nice to see you, Arshad.

Q.—as your former colleagues have asked?

Secretary Clinton. Always good to see you. No, but seriously, I have received the letter and we will obviously look into it.

Q. Thank you.

Secretary Hillary Clinton delivered this statement in Washington, DC

Secretary Clinton. The International Court of Justice today issued its advisory opinion and decisively agreed with the longstanding view of the United States that Kosovo's declaration of independence is in accordance with international law. This is the view we set forth in the briefs we submitted to the Court and in the oral proceedings that it held last December. Kosovo is an independent state and its territory is inviolable.

We call on all states to move beyond the issue of Kosovo's status and engage constructively in support of peace and stability in the Balkans, and we call on those states that have not yet done so to recognize Kosovo.

Serbia and Kosovo are both friends and partners of the United States. Now is the time for them to put aside their differences and move forward, working together constructively to resolve practical issues and improve the lives of the people of Kosovo, Serbia, and the region. This is the path toward their future, as part of a Europe, whole, free, and at peace, and we welcome the European Union's efforts to assist both countries in realizing their European aspirations.

Secretary Timothy Geithner delivered this statement in Washington, DC

Secretary Geithner. “We welcome the release of bank-level stress test results in Europe. With this undertaking, the EU has made a significant effort to increase disclosure on the conditions of individual European financial institutions and enhance market stability.”

Secretary Hillary Clinton and Assistant Secretary Richard Verma delivered this statement in Washington, DC

Secretary Clinton. Next month, the Senate Foreign Relations Committee will bring the new START treaty one step closer to ratification. Last week, I was pleased to meet with Chairman John Kerry to discuss the committee's schedule for consideration of the treaty on September 15^th or 16^th and in the full Senate soon after. The Chairman and Ranking Member Senator Lugar have constructed a good plan, and I am confident about the prospects for ratification.

In the weeks and months since the treaty was submitted to the Senate, it has earned bipartisan support from senators on both sides of the aisle as well as statesmen in and out of government from both parties. They understand that once the new START treaty is ratified and enters into force, it will advance our national security and provide stability and predictability between the world's two leading nuclear powers.

We have worked closely with the Senate throughout this process. We welcomed senators to Geneva to observe the negotiations. The Senate has held 18 hearings, along with three classified briefings on the treaty. And in the wake of the hearings, we are providing answers to nearly 800 questions submitted for the record. There's a lot of material for senators to review during this break, and we are working to resolve any outstanding questions they might have. We've already addressed several key issues, reassuring those who had had questions on such issues as missile defense or investment in our nuclear complex or verification.

This treaty will verifiably limit the strategic nuclear forces of Russia and the United States and will establish equal limits on both countries’ strategic warheads, delivery vehicles, and launchers.

This treaty will provide for inspections that the United States would not otherwise be able to hold. For 15 years, START provided us access to monitor and inspect Russia's nuclear arsenal. START, as you know, expired last December. It, therefore, has been more than eight months since we have had inspectors on the ground in Russia. This is a critical point. Opposing ratification means opposing the inspections that provide us a vital window into Russia's arsenal. This treaty in no way does or will constrain our ability to modernize our nuclear enterprise or develop and deploy the most effective missile defenses for the sake of our security and for our allies, friends, and partners.

With respect to our nation's nuclear complex, Secretary of Energy Chu, the head of the National Nuclear Security Administration, Tom D’Agostino, and the directors of our nation's three national laboratories have all testified that nothing in the treaty will affect our ability to modernize our nuclear complex and maintain a safe, secure, and effective nuclear deterrent.

In fact, President Obama's budget request for the next fiscal year represents a 13 percent increase for weapons activities and infrastructure. Over the next decade we are asking for an $80 billion investment in our nuclear security complex. Linton Brooks, the head of President Bush's national security complex, has applauded our budget and our commitment to nuclear modernization. Seven former commanders of the U.S. nuclear strategic planning effort have endorsed the new START treaty and recommended early approval by the U.S. Senate.

President Bush actually began this process more than two years ago with broad, bipartisan agreement that a new Strategic Arms Reduction Treaty was imperative for the peace and security of our world. The Obama Administration has followed through with painstaking negotiations to finalize an agreement that lives up to this high standard and makes concrete steps to reduce the threat of strategic arms.

This treaty is another step in the process of bilateral nuclear reductions initiated by President Reagan and supported overwhelmingly by both Republican and Democratic presidents and congresses alike. In every instance, the Senate has ratified such treaties with overwhelming bipartisan support.

The Chairman's decision to give members of both sides of the aisle additional time to review the underlying materials, but set a committee vote for the middle of September, is a gesture of good faith and underscores the tradition of bipartisan support.

But when the Senate returns, they must act, because our national security is at risk. There is an urgency to ratify this treaty because we currently lack verification measures with Russia which only hurts our national security interests. Our ability to know and understand changes in Russia's nuclear arsenal will erode without the treaty. As time passes, uncertainty will increase. With uncertainty comes unpredictability, which, when you're dealing with nuclear weapons, is absolutely a problem that must be addressed. Ratifying the new START treaty will prevent that outcome.

So this month and next, I look forward to working with members of the Senate, especially Senators Kerry and Lugar, to move the treaty out of committee and on to consideration by the full Senate. We'd be happy to take your questions and I'll have Rose and Rich respond to most of them.

Bob.

Q. Thank you. Bob Burns from AP. Madam Secretary, you mentioned there's bipartisan support for the treaty. Senator Lugar, as far as I know, is the only Republican who has publicly said he supports the treaty. I may be wrong; if you could correct that if I'm wrong? And secondly, do you believe that the holdouts thus far are basing their position on election politics rather than the merits of the treaty?

Secretary Clinton. Well, Bob, I'll let Rich respond to the first because we have indications of much more bipartisan support than that, but we're very grateful for Senator Lugar's public leadership. As you know, he's an expert in this area and has really been the lodestar by which we all judge our effectiveness when it comes to dismantling nuclear weapons complexes in the former Soviet Union.

I believe that this treaty is too important and it will merit the most thoughtful and substantive response from members of the Senate. It should not be in any way caught up in election year politics. When I look back at the record of overwhelming support—95 to nothing, 98 to 3—I mean, just an enormous bipartisan commitment to continue arms reduction as a policy that is embraced by both sides of the aisle, I believe that the vast majority of senators will judge this treaty on the merits.

But Rich, do you want to respond?

Assistant Secretary Verma. Sure. We've had excellent communications with, I'd say, all hundred members of the Senate thus far and really constructive discussions with staff, with senators on both sides of the aisle. The hearings have been very thorough, very thoughtful. The questions have not had a partisan edge to them. They've been very probing. And frankly, we've been very pleased with the process. It gives us hope for not only the committee vote, but for action on the floor in the fall.

Q. (Inaudible.) Michele Kelemen with NPR. I'm wondering about the reset with Russia. I mean, has this delay at all affected the reset with Russia? And has it also affected your overall strategy on nuclear policy? I mean, are you worried about the nuclear test ban treaty now, other bigger parts of the agenda?

Secretary Clinton. No. Actually, I think we've had a remarkable year not only in the reset of our relations with Russia, but in furthering the President's policy towards nonproliferation and setting a very ambitious goal of moving toward a world without nuclear weapons, one that has been endorsed by leaders in our country on both sides of the aisle.

I think that the reset that we have pursued which has produced significant progress on major issues, most particularly the new START treaty, is moving forward. Our Strategic Dialogue, the binational commission that we created that Foreign Minister Lavrov and I chair, is working across our respective governments. And the Russians understand that we have a process we go through that they also now go through with their duma. We've stayed in close touch in sharing schedules and what we've been doing. And so I don't see any affect whatsoever from our pursuit of ratification on the reset of our relations.

Q. Thank you.

Secretary Clinton. Thank you all.

Secretary Robert Gates delivered these remarks in an interview with the Interfax News Agency

Q. Thank you for the opportunity to talk to you. I've been waiting for a long time, and I know there is a big competition among Russian journalists to interview you. So it's a rare opportunity and thank you very much for that.

My first question would be, how do you—why do you see this visit of Minister Serdyukov as important? And what documents do you plan to sign with him at the visit?

Secretary Gates. As I have watched the minister undertake his reform efforts in Russia, I've been impressed by their breadth and the degree to which some of the efforts he's undertaking parallel those that I'm trying to undertake here in the United States in terms of dealing with more stringent economic circumstances and the likelihood of at least no significant increases in money in the years—in the years ahead. And so, how to make better use of the resources that we've been given. And I think that there's a robust agenda that we can talk about in terms of they're relevant to both of our efforts. I know that he has an interest in professional military education, in figuring out how to recruit and keep high quality soldiers and how to administer these programs in ways that advance our respective national security, but at the same time take into account the economic challenges that both of our countries face.

We will—we will sign two documents. One will be a memorandum of understanding that updates an earlier agreement signed in 1993 that basically is an umbrella in terms of ways in which we can cooperate, interact with one another. The other is a defense relations working group that is actually a—called for under the bilateral presidential commission that Presidents Obama and Medvedev signed. And that really is more concrete in terms of specific areas where we can see if we can increase our cooperation, but also exchanges of information dealing with global and regional threats and future cooperation.

Q. For a long time, U.S. and Russia were rivals. Does United States view Russia as a continuing threat to its national security? And are you concerned about Russian new build up of more powerful ICBMs?

Secretary Gates. No. I think that we are—we have—I don't see Russia as a threat. I see Russia—Russian-U.S. relations being those of normal states now. We're partners in some areas and competitors in others. But on important things, we are cooperating. The effort to deal with terrorists, we are cooperating, the effort to deal with the Iranian nuclear program. We're cooperating as evident in the U.N. Security Council resolution. We're working together on issues such as counter-piracy.

So there are a number of areas where we are cooperating. And as far as modernization programs, this is one of the great benefits, it seems to me, of the new START agreement, as with the agreements that have preceded it. And that is that they establish ground rules for both sides that provide both transparency and predictability. And so modernization programs that take place within the framework of new START are completely legitimate. We will have our own modernization programs.

Q. What areas of military cooperating—can you be more specific about the areas of cooperation with Russia that you view as potentially successful or successful? What chances do you see for the future of joint military exercises between U.S. and Russia?

Secretary Gates. Well, we've done some of those. We've just completed a very important joint exercise in which the problem for the exercise was a hijacked airliner by terrorists, and our air forces cooperated in that realm. I think that there are—we're already getting good cooperation out of Russia in terms of supporting our effort in Afghanistan by allowing equipment to transit Russia.

I know that the narcotics coming out of Afghanistan are of very real concern for Russia. And so clearly in the counternarcotics arena there can be greater cooperation. But I think there's—I think there's a much greater opportunity for military exercises, for greater interaction with one another. I think there are a number of areas that are—opportunity.

Q. Can you be more specific about what extent Russia helped to work on Northern Distribution Network in Afghanistan?

Secretary Gates. Well, we have negotiated contracts, and at this point, I think, we have—we have sent something like 20,000 containers across the Northern Distribution Network, and a very high percentage of those have come across Russia. It's enormously helpful to us. It's financially beneficial to Russia because these are commercial contracts. But there's no question that this network has become important for us. About 50 percent of the sustainment supplies for us in Afghanistan now go across the Northern Distribution Network, and I think it's an example of cooperation. We're obviously interested in buying MI-17 helicopters. They're well-suited for Afghanistan. Afghans are familiar with them, know how to fly them, comfortable with them, and we'd like to pursue that. We're getting, frankly, some pushback here in the United States by American helicopter manufacturers wondering why we're interested in buying Russian ones. The buy that we have in mind is pretty limited, but we'll have to work our way through the politics of that.

Q. When do you think the decision about that could be taken?

Secretary Gates. I honestly don't know. It really depends on being able to get the money from the Congress.

Q. I see. You mentioned START—new START treaty. How do you view the perspectives of the ratification of new START treaty? And do you think U.S. and Russia can agree to make next steps for further reductions of nuclear arsenals?

Secretary Gates. Well, I think that the Senate Foreign Relations Committee will vote this week on the treaty. I'm pretty confident that the treaty will get out of committee, if you will. The prospects in terms of the full Senate, I think, there is still a lot of dialogue going on between the administration and members of the Senate, particularly Republican members of the Senate.

I would just say that I first started in the strategic arms negotiations business with Russia, with the Soviet Union almost 40 years ago, 1971, and every single strategic arms agreement that we have signed with Russia, the Soviet Union, was passed by large bipartisan majorities. So I'm hopeful.

Q. So you don't expect it could be a victim of political dis-balance in the Senate?

Secretary Gates. Well, I mean, it would be a sad thing if that were—if that were to be the case because I don't think it would be on the merits of the treaty. I think that we all believe this treaty is in both countries’ interests and certainly should be approved.

Q. There was a letter leaked to the media from you to John Kerry on July 30th, that you expressed the assumption that if Russia violates START III, the United States will alert its submarines and bombers with nuclear warheads and deploy additional warheads. Does it mean that U.S. will take the same measures if Russia pulls out of the new START?

And Russian leaders claim that the development of U.S. ABM systems is a threat to the Russian strategic nuclear forces and may damage all the achievements of the new START.

What would be your response to that?

Secretary Gates. Well, first of all, the—I think our reaction to—I think what Senator Kerry was asking what would be our response if we caught Russia cheating on the treaty, and that obviously would have large political implications and we would have to determine the motives for the cheating and what the strategic consequences were before deciding what to do. If Russia withdrew from the treaty, again, it would depend on the motives and what actions Russia was taking, but I would not say that if Russia withdrew from the treaty, we automatically would raise our alert levels.

I've been in conversations with Russia's leaders now for almost four years on missile defense, on several occasions with now-Prime Minister Putin, then-President Putin and subsequently with President Medvedev. And I think one of the things that is absolutely clear about the new approach this administration has taken with the phased, adaptive approach in Europe is that neither in terms of physics nor geography can the missiles that we are putting in as part of the phased adaptive approach be considered a threat to Russia's missiles. They don't have the speed. They don't have the orientation, the radar's orientation.

Q. You mean U.S. missiles?

Secretary Gates. U.S. defensive missiles, anti-missiles. And these—as we've pointed out all along, this is all intended as a defense against Iran. And we would be, as I have said from the very beginning, we would like to have Russia as partners in this, and not just in terms of enhancing our capabilities but enhancing Russia's defenses as well. And, you know, one of your senior leaders several years ago told me, you know, the Iranians don't need a missile to get a nuclear weapon into Russia. But the reality is Iranian missiles with nuclear warheads are as big a danger, are actually a bigger danger to Russia than they are to the United States because they don't have intercontinental ballistic missiles yet. And we are prepared to work with Russia. We think that there are opportunities, not only to partner, but where the Russians could make a contribution to their own security, as well as being a partner with us.

Q. Is there a chance for—to create mutual ABM with Russia? And are there any technical abilities of Russia that are of interest to the United States, for interest, Qabala station? Can it be used?

Secretary Gates. We have been very interested in the Qabala radar. We've had conversations about it. I think we've sent technical experts there to examine the radar. We've talked about a data center, a data exchange center in Moscow where all of this information on missile launches could be shared.

So I think that there are a number of areas where we could work together.

Q. At this time, what is your assessment of Iran nuclear capabilities? And how far Iran has gone in to build up nuclear weapons, do you think?

Secretary Gates. Well, they have—they have—they seem to be implacably determined to develop nuclear weapons. I mean, here we have multiple U.N. Security Council resolutions condemning their efforts, imposing sanctions on them. They are isolated in the international community and still they move ahead.

We have always said, even under the Bush administration, that a—that we were prepared to agree to a peaceful nuclear program for Iran and we are prepared—we supported with the proposal on the Tehran research reactor, we supported the idea of them providing—giving the enriched uranium they've already created to Russia to hold and for Russia to have kind of a bank, if you will.

Q. Yes.

Secretary Gates. And we're very supportive of that. If the—if it can be arranged in verifiable ways that we all can know that they've stopped their nuclear program, their nuclear weapons program—but nothing has deterred them to this point. We will keep all of our options open as any country must, but we continue to believe that the pressure track, both diplomatic and economic sanctions, still have the potential to persuade the Iranians to come to terms and end their efforts to get nuclear weapons.

Q. Is there a possibility for military strike over Iran if Tehran won't stop its nuclear program?

Secretary Gates. Well, as I say, every country will keep its options open, and clearly, the military option is one of them. By the same token, war brings with it enormous unpredictability and uncertainty. And I think it would have to be—a military option would have to be considered a last resort.

Q. May I ask about Georgia? The United States is supplying Georgia with weapons and it's a matter of big concern for Russian Federation. What do you think about the future of weapons supplies to Georgia? Will the United States continue to provide weapons, or how do you—what's your expectation?

Secretary Gates. Well, what I would say is, first of all, every sovereign country has the—has the right to provide for its own defense. We have been, I think, careful in what we have provided to Georgia. We also are interested in providing Georgia with the means by which they can help us in Afghanistan, and so a good part of the training and other things that we're doing with the Georgians are because they have been so willing to make a contribution of considerable importance to our efforts in Afghanistan.

Q. Thank you very much.

Secretary Hillary Clinton and Foreign Minister Guido Westerwelle delivered these remarks in Washington, D.C.

Secretary Clinton. Good afternoon, everyone, and welcome to the Treaty Room of the State Department. I am delighted to welcome the foreign minister back to Washington. He and I have gotten to know each other over the course of the last year since his appointment, and I very much appreciate the chance to work with him. We talked a lot over lunch about the many issues that Germany and the United States are concerned about and how we can together strengthen security and foster prosperity, not only in our own countries but throughout Europe and the world.

The partnership between Germany and the United States is very strong. It's vital and it is essential to our respective citizens. We see that in Europe where Germany has led the effort to sustain and strengthen European integration, including the expansion of NATO and the European Union. And I congratulate the foreign minister and Chancellor Merkel and the people of Germany on the upcoming commemoration of unification.

In Afghanistan, Germany has shown a continued commitment to the international mission and the future of the Afghan people. Whether it is in the wake of an earthquake in Haiti or a devastating flood in Pakistan, Germany is there with support to assist the people who are so devastated by these natural disasters. We see so much evidence every day of Germany's leadership and the critical role that the German-American partnership plays in the world to promote peace, defeat common threats, further economic growth, reduce poverty, and defend democracy and human rights.

Today, the foreign minister and I discussed several priorities, including the Middle East peace process, ensuring that Iran meets its international obligations, the upcoming NATO and U.S.-EU summits in Lisbon. It is always a great pleasure to work with the foreign minister.

And on Sunday, October 3^rd, the world will be reminded of all that Germany has accomplished in the last two decades to heal its wounds and to reconcile its people. German unification is a remarkable story. It is testament to the vision of Germany's leaders and the strength of the German people. I often talk about it, Minister, with others who are not yet able to overcome past differences in order to build a better shared future. But Germany has shown the world that walls can be torn down, that communities can be stitched back together, that lasting peace is possible even after long periods of division and discord, and that cooperation is the best way to achieve peace, progress, and prosperity.

So on behalf of the American people, let me extend congratulations to the people of Germany on this upcoming anniversary, thank you for your many years of friendship and partnership, and pledge that the United States will continue to look for ways to deepen and broaden the work we do together. Thank you.

Foreign Minister Westerwelle. Thank you very much. Madam Secretary, Hillary, it is a great pleasure to be back in Washington. Thank you very much for your warm hospitality. We had a very good conversation, intensive dialogue, and it was very good to exchange our ideas and our perspectives, of course.

Please allow me, first of all, a few words to a very special occasion. On Sunday we are celebrating the 20^th anniversary of German unity, and it is something what you mentioned, and you expressed your appreciation what the German people did in those days. But I, by myself, I would like to thank you. I would like to express our gratitude to the Government of the United States of America, but also to the people of the United States of America for their great support over so long years. You stand with us in the painful time when we have been divided as a country. You worked with us for our unification, and the German unification was also the European reunification.

And I really want to express our gratitude to the people of America. We really are very grateful about your support and we are now in a very, very close friendship like we saw in our meeting here. Once again, without your unconditional support, our freedom and our unity would not have been possible, and this is something the German people will never forget to the American people.

Thank you very much, first of all, to this. And now I would like to change for some short remarks into my native language.

I would like to repeat in my very own language too that I want to express my heartfelt and strong gratitude towards the American people for having cooperated with their government to contribute to German reunification. That is something that Germany, that the German people, and the German Government will never forget, especially as we are looking ahead to the 20^th anniversary of that very date of reunification.

We are facing important foreign policy decisions this autumn. Our intention is to use the NATO summit on 19^th and 20^th November this year to pass a new Strategic Concept of NATO. Secretary General Rasmussen has circulated a draft that we believe provides a good basis for further discussions and that takes up many of the suggestions that we have made in the process of preparing this new Strategic Concept.

The very important topic of Afghanistan too will be a point where the Lisbon summit will provide an important milestone. Our intention is to prepare the ground to throw the switches, so to speak, to prepare the ground for a step-by-step handover of the security responsibility, the responsibility for the security into Afghan hands. We want that to begin next year.

We also talked about the Mideast, and I assured my colleague once again of the very strong support that we intend to show and that we have shown for the American effort in the peace process.

I told Secretary Clinton that we wholeheartedly support the American efforts to take the Middle East peace process forward. The renewed direct talks are a historic change that must not be missed, and therefore we welcome the engagement of the American Government, of Secretary Clinton, of the President Obama. We think this is very important. The strong leadership in this process is so important and it is in our common interest that we bring this peace process to a successful and peaceful end, and therefore I also welcome the engagement of our High Representative of the European Union, of Cathy Ashton, and I think it is very, very supportable and very—we appreciate really her visit now to the region in the Middle East which she will start tomorrow.

Yeah, I really waited for the translation. I'm sorry.

Finally, we discussed also the relations with Turkey. The relationship clearly has a strategic dimension for both of us. Turkey is not only a NATO ally; it is also an important player in the region. We want to cooperate closely and it is in our own interest that the perspective of Turkey remains European and Western.

Thank you very much for your (inaudible) and thank you very much once again for your hospitality.

Q. My name is Christian Wilp. I'm with N-TV, RTL German Television. I have a question for both Madam Secretary and (inaudible) minister. How would you describe the current terror threats in the United States and in Europe, and are you especially concerned about terrorists with a German passport?

Foreign Minister Westerwelle. Relations between the United States of America and the Federal Republic of Germany are excellent, and I think that is also important to mention because we are standing together in combating terrorism. We exchanged views and we also exchange intelligence where available. And we do so in order to better coordinate our actions in fighting terrorism. We've done so in the past and our intention is to continue that practice into the future, which is to say, in other words, that the cooperation between both our countries is to the benefit of the citizens of both our countries, which is to say that we're providing for their very own security, that we're protecting them against terrorist threats, against the use of violence. And our intention is to continue that excellent cooperation.

Secretary Clinton. I can only say I agree. It's a very important part of our cooperation. We don't comment on any specific threats or specific intelligence, but there is a very positive level of exchange of information that goes on constantly. And we are very grateful for that strong partnership.

Thank you.