Secretary Hillary Clinton and Foreign Minister Koichiro Gemba gave the following remarks in Washington, DC

Secretary Clinton. Well, good afternoon, everyone. It's a pleasure to welcome the foreign minister back to Washington. Cherry blossoms have come and gone, but we are still celebrating the 100^th anniversary of Japan's beautiful gift to our country. The minister reminded me Tokyo is in full blossom now.

Today, we discussed a number of important topics, starting with the United States' unwavering commitment to Japan's defense and security. Our negotiators have been working to finalize a new agreement that strengthens our alliance and is more politically sustainable. We have reiterated our commitment to maintaining a military presence in Japan that will enable the United States to defend Japan while ensuring regional peace and security.

Foreign Minister Gemba. Now, next with respect to the bilateral relationship between Japan and the United States, the upcoming visit to the United States by our prime minister is defined to be something that would set the direction of the Japan-U.S. alliance for many, many months and years to come. So we regard this as something that is very important.

Of course, it is needless to say that we need to further advance the Japan-U.S. security and defense cooperation. In respect of our discussion regarding adjustment to the realignment plan of the U.S. Forces in Japan, we agreed that we would make efforts so that we can come to an agreement that would contribute to the earliest possible mitigation of the burden on Okinawa by maintaining the deterrence. And we had a very extensive discussion about the security aspects. Now, we believe that the result of the realignment consultations will result in enhancing an ability of the Japan-U.S. alliance.

With respect to the issue of TPP, I am going to meet with the head of USTR, the ambassador, and so I refer the matter there. But we also had a conversation about the possibility of export of American shale gas to Japan, and Japan-U.S. cooperation in the field of outer space and the area of culture and personal exchanges, including the centennial of Japan's gift of cherry trees to the United States.

Of course, we discussed various other matters as well, but of course the topic of Afghanistan will be certainly discussed in the G-8 foreign ministers meeting to be held from tomorrow. And on this occasion, I would like to take this opportunity to express my respect to Secretary Clinton for exercising leadership on various fronts as chair of the G-8 foreign ministerial. And we would like to continue to closely cooperate with each other for a successful G-8 meeting that will begin tomorrow.

President Barack Obama and Prime Minister Yoshihiko Noda gave the following remarks at the White House

President Obama. Please be seated. Good afternoon, everybody. It is a great pleasure to welcome Prime Minister Noda of Japan, one of America's closest allies in the Asia Pacific region but also around the world. And, of course, one of the reasons that we enjoy such a strong alliance between our nations is because it's rooted in the deep friendship between our peoples. I've felt it in my own life, during my visits to Japan, including as a young boy. And we've seen that friendship on display very profoundly over the past year.

Last month, we marked the first anniversary of the Great East Japan Earthquake and tsunami and nuclear crisis that followed. All across Japan, people stopped and stood in silence at 2:46 p.m.—the moment that the earth shook. Mr. Prime Minister, on behalf of the American people, I want to say to you and the people of Japan—we continue to stand with you as well.

We stand with Japan in honoring the lost and the missing—19,000 men, women and children who will never be forgotten. We stand with you as you rebuild—what you, Mr. Prime Minister, have called “the rebirth of Japan.” And we stand with Japan—in the Asia Pacific and beyond—because even as it has focused on the hard work at home, Japan has never stopped leading in the world. It is a great tribute to the Japanese people and to leaders like Prime Minister Noda.

I'm told that over the past year many Japanese have found strength in what they call “kizuna”—the bonds of solidarity between friends and neighbors; bonds which cannot be broken. Mr. Prime Minister, the same could be said of the bonds between the United States and Japan. And today we welcome you in that spirit.

As President, I've worked to strengthen the ties between our two nations since my first days in office. And when Prime Minister Noda and I first met last September we agreed to modernize our alliance to meet the needs of the 21st century. Mr. Prime Minister, I want to thank you for the personal commitment that you've brought to this effort. You've called the alliance with the United States Japan's “greatest asset.” And in our work together we've seen your trademark determination and humility.

In fact, during our discussions today, the Prime Minister compared his leadership style to that of a point guard in basketball—he may not be the flashiest player, but he stays focused and gets the job done. He's brought that same sense of teamwork to our partnership, and it's helped make this visit a milestone in the history of our alliance.

I'm proud to announce that we have agreed to a new joint vision to guide our alliance, and help shape the Asia Pacific for decades to come. This is part of the broader effort I discussed in Australia last year in which the United States is once again leading in the Asia Pacific.

First, we recognize that the U.S.-Japan alliance will remain the foundation of the security and prosperity of our two nations but also a cornerstone of regional peace and security. As such, we reviewed the agreement that our governments reached last week to realign American forces in Japan. This reflects our effort to modernize America's defense posture in the Asia Pacific with forces that are more broadly distributed, more flexible and more sustainable. At the same time, it will reduce the impact on local communities, like Okinawa.

Second, our joint vision commits us to deepening our trade and investment. We're already among each other's top trading partners, and our exports to Japan and Japanese companies here in the U.S. support more than 1 million American jobs. But there's more we can do, especially as we work to double U.S. exports. So I appreciate the Prime Minister updating me on his reform efforts in Japan, including liberalizing trade and playing a leading role in Asia Pacific's economy. We instructed our teams to continue our consultation regarding Japan's interest in joining the Trans-Pacific Partnership, which would benefit both our economies and the region. And we agreed to deepen our cooperation on nuclear safety, clean energy and cyber security to enhance our economic competitiveness.

Third, our joint vision lays out the future we seek in the Asia Pacific—a region where international rules and norms are upheld, where nations contribute to regional security, where commerce and freedom of navigation is not impeded and where disputes are resolved peacefully. As such, we continue our close consultations on the provocative actions of North Korea, which are a sign of weakness and not strength, and only serve to deepen Pyongyang's isolation. And we discussed the changes underway in Burma and how our two nations can both reward progress there while encouraging more reforms that improve the lives of the Burmese people.

Fourth, our joint vision reaffirms our role as global partners bound by shared values and committed to international peace, security and human rights. For example, our nations are the largest donors in Afghanistan. As we plan for the NATO Summit in Chicago and the next phase of the transition in Afghanistan, Japan is planning for a donor conference to sustain development there.

I also want to take this opportunity to commend the Prime Minister and Japan for showing such strong leadership with regard to Iran's nuclear program. The regime in Tehran is now feeling the economic screws tighten, and one of the reasons is that countries like Japan made the decision to reduce oil imports from Iran. This is just one more example of how, despite challenging times at home, Japan has continued to serve as a model and a true global leader.

Finally, our joint vision commits us to deepening the ties between our peoples. This includes new collaborations between our scientists, researchers and entrepreneurs to foster innovation. And it includes new exchanges that will bring thousands of our young people together, including high school students, to help Japanese communities rebuild after last year's disasters.

So, again, Mr. Prime Minister, thank you for helping to revitalize our extraordinary alliance so that we enjoy even greater security and prosperity for both our countries. And I once again want to salute the people of Japan for the strength and the resilience and the courage that they've shown during this past year. More than ever, the American people are proud to call you a friend and honored to call you an ally.

And before I turn it over to the Prime Minister, I just want to warn the American press that the Prime Minister once considered himself a journalist, and instead he became a judo expert. He is a black belt. So if you get out of line—I've got some protection here.

Mr. Prime Minister.

Prime Minister Noda. Well, following President Obama forward, I, the point guard, Noda, will take over the microphone.

Now, this is the first visit to the United States by a Japanese Prime Minister in the bilateral context since the change of government took place in Japan. I wish to thank President Obama for the warm welcome and hospitality, as I know how busy he is with official duties.

I had a very good exchange of views with the President today on bilateral relations between Japan and the United States, the situation in the Asia Pacific region and various global challenges, among others. We were able to confirm from broader perspectives the present-day significance of the Japan-U.S. alliance and where the Japan-U.S. relations should be headed in the longer term.

The President just now spoke about his support, and I would like to take this opportunity to say thank you for all the unsparing support given by the government and people of the United States, starting with Operation Tomodachi conducted by U.S. forces at the time of the Great East Japan Earthquake of last year.

Yesterday I met with the bereaved family of Taylor Anderson, who unfortunately passed away, but who took care of children until the very last moment following the Great East Japan Earthquake. I also met with representatives of the Fairfax County Search and Rescue Team who, immediately following the earthquake, deployed in the disaster-affected region to help the people. So I was able to meet myself with these true friends of Japan.

Now, I have always held the conviction that our bilateral alliance is the lynchpin of Japan's diplomacy. And in the conversation that I had with U.S. friends yesterday, I felt anew that the U.S.-Japan alliance must be unshakeable, indeed, that it is unshakeable. Because of this belief, I am especially pleased that we're able today to announce a joint vision statement.

In this document, Japan and the United States clearly show their determination to utilize their respective capabilities and resources to the maximum extent possible dividing up responsibilities and roles for the peace and prosperity not only of the Asia Pacific, but of the world.

This is our firm conviction. The United States and Japan are at both ends of the Asia Pacific region, the world's growth center. This region also contains elements of instability such as North Korea, maritime conflicts and military buildups—in other words, major opportunities and challenges exist side by side in the region.

To cope with such conditions we are determined, as spelled out in the shared vision, to realize the new U.S. forces realignment plan in accordance with the Security Consultative Committee, or 2-plus-2, joint statement released the other day and to step up bilateral security and defense cooperation in a creative manner.

We also need to work with regional partners to build a multi-layered network that is open, comprehensive and building on international rules utilizing such frameworks as trilateral dialogues among Japan-U.S.-ROK and Japan-U.S.-Australia, East Asia Summit and APEC. From this point of view, we shall also cooperate with China, which is an important partner.

It is also important that Japan and the United States cooperate to promote necessary rules-making in the areas of non-traditional threats such as terrorism, proliferation of weapons of mass destruction and piracy, as well as human security and peace-building and development assistance—ocean, space, and cyber space.

In the economic area, we shall deepen bilateral economic ties and fortify the growth and prosperity of the two countries through their promotion of economic integration in the Asia Pacific region. And to this end, both our countries will work on regional trade and investment rules-making, with a view to building AFTA or the Free Trade Area of the Asia Pacific. From this vantage point as well, we shall advance consultations with a view to participating in the Trans-Pacific Partnership negotiations.

The shared vision also calls for the strengthening of energy cooperation. And we discussed in our meeting today expanding LNG exports from the United States to Japan.

Last, but not the least, as stated in the shared vision it is important to boost exchanges among next generation youth in the interest of the future of the Japan-U.S. alliance. We will further step up people-to-people exchanges among youth through such endeavors as Japan's Kizuna Project and U.S. Tomodachi Initiative.

The Japan-U.S. alliance has reached new heights. Together with President Obama, I shall firmly advance these steps. I thank you.

President Obama. So we've got two questions on each side. We're going to start with Laura MacInnis of Reuters.

Q. President Obama, could you confirm whether the blind Chinese dissident Chen Guangcheng is under U.S. protection in Beijing? And how do you foresee that situation being resolved? Would the United States grant him asylum if he asked for it?

And Prime Minister Noda, how likely do you think it is that North Korea will carry out a third nuclear test? How would Japan respond to such a test? And what would you like the U.S. to do to respond?

President Obama. Obviously, I'm aware of the press reports on the situation in China, but I'm not going to make a statement on the issue. What I would like to emphasize is that every time we meet with China, the issue of human rights comes up. It is our belief that not only is that the right thing to do because it comports with our principles and our belief in freedom and human rights, but also because we actually think China will be stronger as it opens up and liberalizes its own system.

We want China to be strong and we want it to be prosperous. And we're very pleased with all the areas of cooperation that we've been able to engage in. But we also believe that that relationship will be that much stronger and China will be that much more prosperous and strong as you see improvements on human rights issues in that country.

I know it wasn't directed at me, but I'll just make a quick statement around North Korea. This was a topic of extensive discussion between myself and Prime Minister Noda. Our consultation throughout the failed missile launch was, I think, reflective of how important our alliance is not just to our two countries, but to the region as a whole. And what I've tried to do since I came into office is to make sure that North Koreans understand that the old pattern of provocation that then gets attention and somehow insists on the world purchasing good behavior from them, that that pattern is broken.

And what we've said is, is that the more you engage in provocative acts, the more isolated you will become, the stronger sanctions will be in place, the more isolated you will be diplomatically, politically and commercially. And so although we can't anticipate—and I don't want to hypothesize on what might happen in the coming months—I think Pyongyang is very clear that the United States, Japan, South Korea, other countries in the region are unified in insisting that it abide by its responsibilities, abide by international norms, and that they will not be able to purchase anything from further provocative acts.

Prime Minister Noda. With regard to North Korea, between myself and President Obama earlier we—with regard to the so-called launch of satellite—the missile launch—we share the view that it undermines the efforts of the various countries concerned to achieve resolution through dialogue.

Now, in the latest round of missile launch, they also conducted a nuclear test, which means that there is a great possibility they will conduct a nuclear test. And I believe the international community as a whole, together, will need to call for restraint on the part of DPRK, and more specifically I believe the measures incorporated in the recent U.N. Security Council chairman's statement need to be complied with. And among Japan, the U.S. and Korea, as well as China and Russia, we need to communicate with each other fully and also stress that China's role continues to be very important, and cooperate with China while also maintaining close coordination with the United States. And we shared this view with President Obama.

And let me ask Mr. Imaichi of TBS, from Japan, to ask a question.

Q. Imaichi, of TBS Television, and I have a question for both President Obama and Prime Minister Noda. How do you regard the Futenma relocation issue in the context of this joint statement, although you did not refer specifically to Futenma relocation? And the interim report on U.S. Forces Japan realignment leaves this question open to some extent. And what do you think of the possibility that Futenma Air Station ultimately will be relocated to a place other than Henoko as agreed between Japan and the United States?

Prime Minister Noda. Now, it is most meaningful that in the 2-plus-2 joint statement, as well as the summit meeting today, that we were able to confirm that our two countries will cooperate in the context of a deepening bilateral alliance towards the realization of the optimum U.S. force posture in the region and the reduction of burden on Okinawa, and we'll continue to work for an early resolution of this issue by taking into account the development of the (inaudible) date.

President Obama. The realignment approach that's being taken is consistent with the security interests of both Japan and the United States. We think we've found an effective mechanism to move this process forward in a way that is respectful of the situation in Okinawa, the views of residents there, but also is able to optimize the defense cooperation between our two countries and the alliance that's the lynchpin not just of our own security but also security in the region as a whole.

So we're confident that we can move forward with an approach that realigns our base posture or our deployments, but also is continuing to serve the broad-based interests of our alliance as a whole.

And I want to thank publicly Prime Minister Noda for having taken such a constructive approach to an issue that has been lingering in our bilateral relationship for quite some time.

Q. I'm Takatsuka with Mainichi Shim-bun newspaper, and I would like to ask a question for Prime Minister Noda and President Obama.

There's no direct reference to China in this joint statement. What sort of exchange of views did you have on China in the context of working for stability in the Asia Pacific connected with their advances in the oceans and also their military buildup? I wonder what sort of interlocution you had on the subject.

Prime Minister Noda. Let me answer first. As you correctly pointed out, the shared vision does not refer to any specific country, but we recognize China as a major partner in the region. And in our exchange of views, both of us, in fact, confirmed that viewpoint. China's development is an opportunity for the international community and for Japan and for the Asia Pacific.

Now, I explained in the meeting to President Obama that when I visited China last December, I broached to the Chinese leaders my six-point initiative, including confidence-building and cooperation in the East China Sea in order to further advance our mutually beneficial relationship based on common strategic interests, and that I'll work steadily to implement this.

I also told to the President that I wish to realize his strategic dialogue among Japan, U.S. and China. Now, EAS last year, we—where the view that was a success—and of course ASEAN countries also participated in discussions that we need to seek a rules-based response for behavior from the Chinese. And we had these exchange of views.

President Obama. I think that I've said in the past and firmly believe that we welcome a peacefully-rising China. And we have developed a very important strategic and economic dialogue with China. We think what they've accomplished in terms of lifting millions of people out of poverty is good for its own sake and it's also potentially good for the world and for the region.

As Prime Minister Noda and I noted, we do believe that as China continues to grow, as its influence continues to expand, that it has to be a strong partner in abiding by international rules and norms—whether those are economic norms like respecting intellectual property; whether these are norms of dispute resolution.

So in maritime disputes, ensuring that small countries and large countries are both respected in international fora in resolving these issues; that across the board, we want China to be a partner with us in a set of international rules and norms that everybody follows. And I think as China makes that transition from a developing country into a major power, that it will see that over the long term it is in its interest as well to abide by these rules and norms.

And so all of our actions are not designed to in any way contain China, but they are designed to ensure that they are part of a broader international community in which rules, norms are respected, in which all countries can prosper and succeed.

Secretary Hillary Clinton, Secretary of Defense Panetta, Foreign Secretary Albert del Rosario, and Defense Secretary Voltaire Gazmin gave the following remarks in Washington, DC

Secretary Clinton. Good afternoon. It is such a pleasure for me to welcome our colleagues from the Philippines, Secretary del Rosario and Secretary Gazmin. And I am always happy to welcome my longtime friend and colleague, Secretary Panetta.

Today we held the first ever 2+2 meeting between the United States and the Philippines, a testament to our shared commitment to write a new chapter in the partnership between our two countries. With the growing security and economic importance of the Asia Pacific, the United States is actively working to strengthen our alliances, build new partnerships, and engage more systematically in the region's multilateral institutions.

At the heart of this strategy is our effort to deepen and broaden our alliance with our friend and treaty ally, the Philippines. This alliance is rooted not just in a deep history of shared democratic values but in a wide range of mutual concerns. And today we had a chance to cover a number of them.

First we discussed our bilateral military cooperation. Our alliance has helped keep both of our countries secure for more than 60 years, and it has been a bulwark of peace and stability in Asia. Today the United States reaffirms our commitment and obligations under the mutual defense treaty.

We also discussed steps we are taking to ensure that our countries are fully capable of addressing both the challenges and the opportunities posed in the region in the 21^st century. We need to continue working together to counter violent extremism, to work on addressing natural disasters, maritime security, and transnational crime.

We also discussed the evolving regional security situation. We both share deep concerns about the developments on the Korean Peninsula and events in the South China Sea, including recent tensions surrounding the Scarborough Shoal. In this context, the United States has been clear and consistent. While we do not take sides on the competing sovereignty claims to land features in the South China Sea, as a Pacific power we have a national interest in freedom of navigation, the maintenance of peace and stability, respect for international law, and the unimpeded, lawful commerce across our sea lanes. The United States supports a collaborative diplomatic process by all those involved for resolving the various disputes that they encounter. We oppose the threat or use of force by any party to advance its claims. And we will remain in close contact with our ally, the Philippines. I look forward to continuing to work closely with the foreign secretary as we approach the ASEAN Regional Forum in July.

Finally, we discussed the maturing economic relationship between our countries as well as our shared commitment to enhanced development, trade, and investment. We would like to see the Philippines join the Trans Pacific Partnership trade community. The foreign secretary raised the Philippines' interest in seeking passage of the Save our Industries Act, and we have conveyed that message to the United States Congress. And of course, I complimented the Philippines and the Aquino government on the progress with our Partnership for Growth and the Millennium Challenge Corporation Compact.

So once again, colleagues and friends, we appreciate your participating in this first ever 2+2, and we look forward to our future cooperation.

Secretary del Rosario.

Secretary Del Rosario. Thank you very much, Madam Secretary. I am honored to be here. Today marks a milestone in the alliance and strategic partnership of the Philippines and the United States. For the first time, we held our 2+2 consultations at the ministerial level. Our consultations were timely. Discussions on key issues of common interest to us were conducted within the context of our respective domestic concerns as well as the challenges and opportunities which coexist in the Asia Pacific region. The 2+2 consultations paved the way for us to revisit the bilateral engagement between the Philippines and the United States. It opened an avenue for us to consider ways of fine-tuning our relations as we adapt to changing circumstances both in our region and the world at large. Thus, the focal points of our consultations were how best to keep our alliance relevant and responsive to each other's needs.

We reaffirmed our shared obligations under our mutual defense treaty and underscored the necessity of ensuring that our alliance remains robust, agile, and responsive. We committed to jointly explore modalities by which the President could build a minimum credible defense posture and agreed to prioritize high-value and high-impact joint military exercises and training to meet our common objectives, including maritime security.

Moreover, we reaffirmed our common interest in maintaining freedom of navigation, unimpeded lawful commerce and transit of peoples, as well as a rules-based multilateral, peaceful approach in resolving competing claims in maritime areas within the framework of international law, including UNCLOS.

In the field of economic and development cooperation, we agreed to accelerate the implementation of the Partnership for Growth, which aims to establish an inclusive growth path for the Philippines as well as the Millennium Challenge Compact to reduce poverty in our country.

The Philippines and the United States shall endeavor to increase bilateral trade and investment as well as tourism exchanges. We agreed to continue discussions on Philippine interest to eventually join the Trans Pacific Partnership Agreement. In the area of good governance, we shall promote the establishment of a national justice information system for the Philippines. We will also work to sustain our partnership in combating human trafficking.

In the multilateral arena, we both expressed support for efforts to increase cooperation in the ASEAN, in APEC, and in the East Asia Summit. Beyond doubt, the combined action of the Philippines and the U.S. in promoting converting interests and shared objectives would propel our alliance and strategic partnership towards a higher trajectory at a faster velocity.

Our just-concluded 2+2 consultations is the latest impetus in sustaining this positive momentum. Thank you very much.

Secretary Clinton. Thank you. Secretary Panetta.

Secretary Panetta. Good afternoon. I'd like to join Secretary Clinton in saying what a great pleasure it was to host Secretary del Rosario and Secretary Gazmin for one of the first 2 by 2 meetings here in Washington with the Philippines. I look forward to hosting Secretary Gazmin for dinner at the Pentagon this evening.

We had a very successful meeting today with our Filipino counterparts, and we discussed a number of ways our governments can work more closely together to strengthen the importance alliance that we have to deepen our engagements and to find shared solutions to the joint security goals that we share.

Our two nations have forged deep and abiding ties through shared sacrifice and common purpose. Seventy years ago this month, American and Filipino soldiers fought and bled together shoulder to shoulder during the opening battles of World War II at Corregidor and Bataan. Through dark days, and many of those dark days fought together, our forces joined again in 1944 to begin the hard-fought battle to liberate the Philippines. We honor that legacy with our renewed commitment to this U.S.-Philippine alliance.

Ours is an alliance and a friendship built on historic ties, common democratic values, and a shared desire to provide our two peoples a prosperous and more secure future. I want to emphasize how deeply the U.S. values this great partnership and the importance of the Mutual Defense Treaty that remains the cornerstone of our security relationship. Working together, our forces successfully are countering terrorist groups in the southern Philippines. We are improving the Philippines maritime presence and capabilities with the transfer of a second high-endurance cutter this year. We are working to expand and improve joint ISR programs and our ability to counter cyber attacks. And I'm pleased to see the close cooperation being built between our forces through training and exercises such as the recently completed exercise Balikatan in 2012.

The new U.S. defense strategy that we rolled out earlier this year recognized that one of the important regions of the world that we must focus on and that America's future security depends on is the Asia Pacific region. As a resident Pacific power, the United States is committed to a rule-based regional order that promotes viable and vibrant trade and the freedom of navigation. We are enhancing our defense cooperation and expanding security partnerships throughout the region in order to sustain peace and stability, and we are committed to continuing our robust, stabilizing presence in that region.

I look forward to sitting down later today with Secretary Gazmin to discuss, among other things, how we can deepen our engagement in ways that enhance this very important alliance and that promote our common vision of regional security in a very important Asia Pacific region. Thank you.

Secretary Clinton. Secretary Gazmin.

Secretary Gazmin. Good afternoon. Today's meeting was a manifestation of the mutual desire of the Philippines and the U.S. to further deepen our strategic partnership. After watching our alliance endure through the years, we deem it crucial to prepare for the security challenges of today and tomorrow.

This is why we decided to hold the first 2+2 meeting, to be able to exchange views on how to formulate adoptive and responsive strategic policies. We have reached a critical juncture in our alliance, where our concerns in both traditional and nontraditional aspects of our security have become much more intertwined. While we are sustaining the gains for successful efforts in various areas of cooperation, we need to intensify our mutual trust to uphold maritime security and the freedom of navigation and thereby contribute to the peace and stability of the region.

Meanwhile, the effects of natural disasters have become too disastrous and thus necessitate greater cooperation for expedient and effective response. We look forward to working together and consult one another on how to improve the capability to uphold maritime security and institutionalize efficient humanitarian assistance and disaster response.

Keeping these two objectives in mind, we look forward in working as reliable allies that contribute to the peace and stability in the region. We are also mindful that our efforts to further our alliance need to be in full consideration of our respective national laws and political context.

Thank you and good afternoon.

Secretary Clinton. Thank you.

Q. Thank you very much. Madam Secretary, thank you. I know you can't get into the specifics of the Chen Guangcheng case, but the whole world is watching. And already Mitt Romney has said that any serious U.S. policy towards China has to confront the facts of the lack of political freedoms and other human rights abuses. So can we be sure that your interests, America's interests in these talks in strategic issues such as Iran and Syria and North Korea and trade will not take precedence over human rights? And what are your concerns about all the activists who have now gone missing and the fate of Mr. Chen's family?

Secretary Clinton. Well, Andrea, I look forward to traveling to China this evening. We will be going to Beijing for the Strategic and Economic Dialogue. We have a full range of issues that covers all of the political and economic matters that are of concern to our nations and our people. I'm not going to address the specific case at this time, but I just want to put it in a broader context.

The U.S.-China relationship is important.

It's important not only to President Obama and me, but it's important to the people of the United States and the world, and we've worked hard to build an effective, constructive, comprehensive relationship that allows us to find ways to work together. Now a constructive relationship includes talking very frankly about those areas where we do not agree, including human rights. That is the spirit that is guiding me as I take off for Beijing tonight, and I can certainly guarantee that we will be discussing every matter, including human rights, that is pending between us.

Q. And those people who have gone missing?

Secretary Clinton. I have nothing to add to what I've said at this time. I have a full agenda of many issues of great concern to us, including human rights and the freedom and free movement of people inside China who have a right to exercise those freedoms under the Universal Declaration of Human Rights.

Q. Mr. del Rosario, the standoff at the Scarborough Shoal is into its fourth week now. Did you get an unequivocal assurance from the U.S. it will come to the aid of the Philippines if shots are fired? And what was the type or form?

Also, short of shots being fired, how do you see the endgame of Scarborough being played out if China cannot be persuaded diplomatically to withdraw its vessels from the area?

Secretary Del Rosario. Those are several questions rolled into one, my friend, but let me begin from your last question. We do have a three-track approach to endeavoring to solve the problem that we currently have with China in the Scarborough Shoal. It encompasses three tracks.

The first track is the political track. We are pursuing the ASEAN as a framework for a solution to this problem through a code of conduct that we are trying to put together and ultimately approve. Hopefully that will quiet the situation.

Secondly, we are pursuing a legal track, and the legal track involves our pursuing a dispute settlement mechanism under UNCLOS. There are five of them. We think that we can avail of one or two of those mechanisms, even without the presence of China.

Thirdly, we are pursuing a diplomatic approach, such as the one that we are undertaking, which is to have consultations with China in an attempt to defuse the situation.

In terms of U.S. commitment, I think the U.S. has been very clear that they do not get involved in territorial disputes, but that they are firm in terms of taking a position for a—towards a peaceful settlement of the disputes in the South China Sea towards a multilateral approach and towards the use of a rules-based regime in accordance with international law, specifically UNCLOS. They have expressed that they will honor their obligations under the Mutual Defense Treaty.

Q. Secretary Panetta, this is for you. White House Counterterrorism official John Brennan today spoke openly for the first time about drones. He said the—President Obama wanted more transparency on this issue and more openness. As former CIA director and now Defense Secretary, I'm wondering, is there some national security benefit to talking about this now? Why was the decision made? And what are your thoughts on it?

Secretary Panetta. I'm going to let the speech speak for itself. All I'll say is that this country has engaged in a number of operations, both covert and overt, to go after al-Qaida and our terrorist allies—or their terrorist allies. And we have been very successful at weakening al-Qaida as a result of that. This is a group that attacked this country on 9/11, and we have made clear that we are going to do everything we can to defend this country, using every means possible. And the means we use are those that we feel are most effective to go after al-Qaida.

Q. My question is for Secretary Gazmin. Secretary, in light of the current Chinese-Philippines standoff in Scarborough Shoal, what kind of assistance have you asked to bolster Manila's ability to patrol its waters and to deter what you call intrusions?

Secretary Gazmin. Thank you for the question. The assistance we have sought is to help us bring the case to international legal bodies, so that the approach is the legal rules-based approach in resolving the issue in the South China Sea or the West Philippine Sea.

Ambassador Gary Locke gave the following remarks in Beijing, China

Ambassador Locke. Let me just say that I and the Embassy have long had interest in Mr. Chen Guangcheng, and of course, the U.S. Government has long had an interest, and we've mentioned him in so many of our human rights statements, and have advocated for his humane treatment ever since for many, many years.

Last week, under most unusual extraordinary circumstances, he contacted us, we went out and met with him, and given the fact that he has a—he's blind, he was injured, we took the extraordinary step in a very unusual situation, exceptional situation, to bring him into the Embassy. I have spent sometimes five hours during the day with him almost every day, two to three, three-plus hours talking with him—so have other Embassy people—trying to determine what it is that he want.

He made it very, very clear from the very, very beginning that he wanted to stay in China, that he wanted to be part of the struggle to improve the human rights within China, and to gain greater liberty and democracy for the people of China. We asked him, did you want to go to the United States, and he said no; maybe someday to study, but his immediate goal was to stay in China and to help with the cause.

We spent a lot of time determining what it is that he wants. First and foremost, he did not want to go back to the village and be in Shangdong Province, and he outlined all the mistreatment that he and his family had received there. And he talked about his dreams of wanting to study law and to pursue his studies. He wanted a safe future for his family. And he also was, of course, concerned about those who had helped him during his escape and his travel to Beijing. So we had numerous meetings with the Chinese Government, and I was involved in every single one of those meetings. Sometimes those were—some of those meetings were three times a day trying to present proposals that—to the Chinese Government that met his objectives, and we were constantly trying to determine what those objectives might be and how we could accomplish those objectives.

We consulted with him regularly, and one thing that he really expressed an interest in was wanting to study, pursue the study of law. So we came up with a proposal. Some of it was then—we negotiated with the Chinese on it and it was changed. And we finally had a proposal that met with his agreement. I can tell you that he knew the stark choices in front of him. He knew that—and was very aware that he might have to spend many, many years in the Embassy, and that—but he was prepared to do that unless the terms of an agreement with the Chinese Government was not acceptable to him. He also was fully aware of the plight of his family if he stayed in the Embassy.

At one point on Tuesday, we presented a proposal to him, and he said it was unacceptable—unacceptable—and that he would stay in the Embassy. From then on, we started focusing on what that would mean in terms of procedures with the Embassy, and we left him alone. Later that night, a person went back in to deliver food and asked him if he was still comfortable with that decision, and he said he was, and we respected that. That night, however, we were able to meet with the Chinese Government, because he constantly said he needed some first steps by the Chinese Government as a demonstration of good faith, that they were always asking him to leave the Embassy before they would implement new procedures or part of the agreement, and he wanted a first step by the Chinese Government. And he said why can't they bring his family up to Beijing. And so we approached the Chinese Government on that, and they said yes.

And the agreement was that if you brought—if the family were brought to the hospital, that he would then be able to talk with his wife, and that would enable him to make the very final decision on whether or not he would leave the Embassy. So while the Chinese Government had agreed to his request to have the family come to Beijing, it was not necessarily in his mind, and we stated it—did not mean that he would definitely leave the Embassy until he had a chance to talk with his wife over the phone, and then he would make his final decision.

He spoke with his wife over the phone, two conversations with his wife over the phone.

Q. What day?

Ambassador Locke. Yesterday. And then we asked him what did he want to do, did he want to leave, was he ready to leave. And we waited several minutes and then suddenly he jumped up, very excited, very eager, and said, “Let's go,” in front of many, many witnesses. We then proceeded to take him down to the van with the doctors, translators, and many other personnel. Before he went into the van, I asked him again, “Is this what you want to do? Are you ready to leave the Embassy?” And he said yes. We then gave him a phone and he talked with Secretary Clinton. He called his lawyer. He wanted to reach out to a member of the press. And we made that—and facilitated, made all those connections for him.

We stayed with him in the hospital. Of many, many people, I was there for probably an hour and a half after he entered the hospital, met with the family, met with the children. The doctors were there for many, many hours. And so at all points, we were intent on carrying out his wishes and ensuring that we could put together something that met his needs.

Number one, relocation to another part of China, and the Chinese Government gave him seven different universities and places that he could choose from. Number two, that he would receive a college education paid for by the Chinese Government with living expenses and housing for him and his entire family at one of seven institutions of his choosing. Number three, that while he was in the hospital for medical treatment, that the Chinese Government would listen to his complaints of abuse and conduct a full investigation, and three, that he would be given all the rights and privileges of any student at any university, which included the opportunity to apply for a different university down the road.

And so I can tell you unequivocally that he was never pressured to leave, he was excited and eager about leaving when he made his decision, announced it. He simply—while he was sitting there, we waited for him to make his decision. He also fully knew of what would be—of what staying in the Embassy would entail if he decided not to leave. And he was fully aware of and talked about what might happen to his family if he stayed in the Embassy and they stayed in the village in Shangdong Province.

Q. Toria, he said he made an offer on Tuesday night? I just wanted to clarify. You said you made an offer on Tuesday night and he said it was not acceptable. Was that an offer for asylum?

Ambassador Locke. No. He never asked for asylum.

Q. Okay.

Ambassador Locke. He never asked for asylum. He always said he wanted to stay and live in China, and wanted to go back into China and continue his work on civil rights and to pursue an education.

Ms. Nuland. I think—

Q. So—

Ms. Nuland. Guys, I think what Ambassador Locke was saying was that the first proposal that was negotiated with the Chinese side was unacceptable to him, and on that basis, he was prepared to stay as long as he was going to have to, and the Embassy understanding that it could be years.

Ambassador Locke. And we were—we respected that and started making preparations and thinking about what his living arrangements would be on a daily basis in the Embassy based on that decision. So we respected his decision.

Q. I want to just quickly ask, though, just understanding you're giving us your account of what has already transpired, as the Ambassador, he has publicly asked the United States to help him now and said that he's not comfortable and he wants to leave the country. Are you going to help support his bid to leave the country now that he's publicly calling on you and Secretary Clinton?

Ms. Nuland. Again, I think the Ambassador has been here all day. If anybody has any questions about what went down until we got him to the hospital and yesterday, Ambassador Locke can take one or two of those, and then we'll move on.

Q. Yeah, I've just got one question in terms of—it seems like the change of heart came after he got to the hospital. Now whether that was speaking with his wife—there's other reports from activists that he may have actually seen some of his home province sort of—enemies or thugs or whatever at the hospital, that he may have been actually intimidated there. Do you have any indication of what may have transpired while he was at the hospital that could have forced that change of heart?

Ambassador Locke. No. I can only just say that I was there for probably about an hour, hour and a half at the hospital after I arrived—after we all arrived there. I know that the deputy chief of mission was there until the evening, and medical personnel were there until the evening. I saw him being interviewed by medical personnel with his wife, assess—or compiling a medical history and what his issues were. I saw the doctors with him and the American doctors with him going over his medical history and any particular issues, so—

Q. I just want to clarify, what was wrong with the initial deal that he was given on Tuesday? And given that you had trust in this deal, what is your understanding of why he changed his mind? I mean, is it—if the central authorities were giving their word that they were going to do this for him, why should he have freaked out and changed his mind?

Ambassador Locke. On Tuesday when we presented the latest offer and response by the Chinese Government to all of our proposals, we were constantly giving—presenting proposals that talked especially about education—which institutions, where, and the like. On Tuesday afternoon, we presented the latest proposal or response by the Chinese Government. He said that that was unacceptable, and he said he, in fact, needed to speak to Premier Wen Jiabao. He was now demanding a meeting with Premier Wen Jiabao.

And later on that evening, after we checked on him again and he said he was still comfortable with his decision to stay at the Embassy, he indicated that why can't the Chinese Government take a first step as a sign of good faith; they're asking me to leave the—or proposing that I leave the Embassy and all these other benefits would follow; why can't they do something first like bring my family here.

So we went back to the Chinese Government and said he needs some assurance; you're asking him to take a leap of faith and he wants the Chinese Government to take a first step. And so it was agreed by the Chinese Government that they would put the family on the fast train, the high-speed train, bring them up to the hospital. And that night, Tuesday night, after we informed him that the Chinese Government was willing to do that, but before they did that, we needed to find out that if they—in fact, they did that, and if in fact he was able to talk to his wife, would in—was he inclined to leave the Embassy.

The Chinese Government did not want to go to the effort of bringing the family up if it was still not acceptable. And he said it was, provided he still had the opportunity to talk to his wife at the—when she was at the hospital before he made his final, final decision.

Ms. Nuland. Okay. Thank you. I think—

Q. Can I just ask one question? I just want to clarify whether you or anyone else from the U.S. Government spoke with the wife. You said that he spoke with his wife twice yesterday. Did you ever—she's now accounting—saying that she was beaten after he escaped, that terrible mistreatment was meted out over the last few days. Did you or any U.S. official hear this from his wife, or was it just her conversations with him?

Ambassador Locke. We—there was a U.S. Government or Embassy official with her during her—their conversations at the hospital, outside the presence of the Chinese Government. I could hear part of the conversation at the Embassy in which Mr. Chen repeatedly asked are you alone; are there any Chinese Government there; have they mistreated you; are you okay; are you safe. And she was imploring him to come to the hospital, to be reunited with the family, and saying that there will always be uncertainties and we need to take first steps, we don't want—we need to keep the struggle going, and we have to take it a step at a time. And it may not be everything that they would like or want, but this was a good proposal, and they need to take a step at a time.

Secretary Hillary Clinton gave the following remarks in Beijing, China

Secretary Clinton. (In progress)—Strategic and Economic Dialogue, and I know that both Secretary Geithner and I greatly appreciate all the work done by both of our delegations and the months of preparation for this meeting. I've read readings from President Obama and a letter from him expressing how important the Strategic and Economic Dialogue is to the U.S.-

China relationship and how important this relationship is to the United States.

As President Obama says, the United States remains committed to building a cooperative partnership based on mutual benefit and mutual respect. Since we launched this dialogue three years ago, high-ranking officials from both our governments have criss-crossed the Pacific dozens of times. Our relationship has grown closer and more consequential, and the web of connections that link our nations is increasing.

As a result, this dialogue is even more necessary today than it was when it began, and the eyes of the world are once again upon us. The Chinese people and the American people looking for us to work together for their benefit, and the international community looking to us to work together for the world's benefit; in today's world, no global player can afford to treat geopolitics as a zero-sum game, so we are working to build a relationship that allows both of our countries to flourish without unhealthy competition or conflict, while at the same time meeting our responsibilities to our people and to the international community.

We both know that we have to get this right because so much depends upon it. We also both know that our countries have become thoroughly, inescapably interdependent. As President Obama and I have said many times, the United States believes that a thriving China is good for America, and a thriving America is good for China. So we have a strong interest in China's continued economic growth and if China's rising capabilities means that we have an increasingly able and engaged partner in solving the threats we face to both regional and global security, that is all good.

Now, having said that, we understand too that building a cooperative, resilient, mutually beneficial relationship is not easy. That's why this dialogue is so critical as well as the Strategic Security Dialogue that took place here yesterday. We are discussing how the talks are opening economic activity to advance prosperity, support innovation, and improve the lives of people, how to promote greater military transparency to avoid misunderstandings, to build trust and maintain mutual stability, how to tackle some of the world's most urgent crises from climate change to proliferation.

The United States welcomes China's increased engagement on the highest priority regional and global issues, and in our strategic track, we will be discussing these. For example, on Iran, the United States and China share the goal of preventing Iran from acquiring a nuclear weapon. And we had a productive first meeting as members of the P-5+1 in Istanbul, and are looking forward to the next meeting in Baghdad because we both understand it is critical to keep pressure on Iran to meet its international obligations, to negotiate seriously, and prove that its nuclear program is solely for peaceful purposes.

In Syria, we are absolutely committed to end the brutal violence against civilians, and therefore, it is essential that the international community work together to hold the regime and the others involved in violence accountable, because regrettably, the Security Council on which we both serve as current members is at stake.

Regarding North Korea, the missile launch seems to suggest that Pyongyang actually used improved relations with the outside world not a goal, but as a threat. And we recognize the role that China is playing and are continuing to work together to make it clear to North Korea that strength and security will come from prioritizing the needs of its people, not from further provocation.

In Sudan and South Sudan, China and the United States are working together. In fact, with me today is the U.S. Special Envoy to Sudan who is in regular contact with the Chinese special representative for Africa. And I'm pleased that China and the United States joined with a unified international community just hours ago to support a strong UN security resolution that provides unambiguous support for the African Union roadmap.

Our countries are addressing everything from cyber security to the changes and reforms going on in Burma to piracy and so much else, because we know that we are working to better the lives of our people and a better future for all humanity. Now of course, as part of our dialogue, the United States raises the importance of human rights and fundamental freedoms because we believe that all governments do have to answer to citizens' aspirations for dignity and the rule of law, and that no nation can or should deny those rights.

As President Obama said this week, a China that protects the rights of all its citizens will be a stronger and more prosperous nation, and of course, a stronger partner on behalf of our common goals. The conversations we have here in Beijing reflect how much the U.S.-China relationship has grown in the 40 years since President Nixon came to China. Then, we had hardly any ties to speak of; now, we work together. I think it's fair to say China and the United States cannot solve all the problems of the world, but without our cooperation, it is doubtful any problem can be solved. And so we are working as we go forward with our dialogue, seeking opportunities for engagement, building ties that are not only between governments but family, friends, entrepreneurs, students, scholars, artists, and so much else.

Tomorrow, I will attend the annual meeting of U.S.-China Consultation on People-to-People Exchanges, and we will discuss the progress we're making, including for our 100,000 Strong Education Initiative that will increase significantly the numbers and diversity of American students studying in China.

So I wish to thank our hosts for their gracious hospitality once again, and pledge that we will continue to work together in a true spirit of partnership and mutual respect for the mutual benefit of our two nations. Thank you very much.

Secretary John Bryson gave the following remarks in Shanghai, China

Secretary Bryson. This is a very special occasion. We are here to recognize the top five tour operators in the Shanghai region who arrange group travel to the U.S.

Travel and tourism between our countries is crucial to building stronger cultural and economic ties. This generates greater understanding and friendship between our people. And it also generates greater prosperity.

As you all know, the U.S.-China Memorandum of Understanding on Cooperation in Travel and Tourism was signed in 2007. It opened the door for packaged leisure travel to our country by Chinese groups.

Since then, the number of Chinese people traveling to the U.S. has grown significantly. So far this year, travelers from China have increased 40 percent over the same period in 2011!

We are very happy to welcome these visitors, and we look forward to welcoming many more.

And under the leadership of the Department of Commerce, the United States government is taking a number of steps to ensure continued growth in travel and tourism from China to America.

As you no doubt know, at the direction of President Obama, our State Department has increased our capacity to process visa applications here in China.

Also, we are working with America's travel and tourism leaders to make sure that our travel hubs—such as airports—are easier to navigate.

In addition, we are working to educate our hotel owners and service providers about the needs and wants of Chinese travelers.

And we are doing more to share information about all of the diverse cultural, recreational and entertainment opportunities that America offers.

These are important steps, because over the next five years, the number of international visitors traveling to the U.S. from all over the world is expected to grow significantly. We expect over 65 million visitors in 2012 alone.

This reflects the fact that travel and tourism is America's number-one services export—and it continues to get stronger each day.

We project that China will—by far—have the largest percentage growth in tourism to the U.S. over the next five years, at nearly 200 percent.

Our message to China and people across the globe is clear: “the United States welcomes you.”

Before I go any further, let me recognize two groups.

First, thank you to the National Tour Association for developing the program that qualifies the U.S.-inbound tour operators. Without this program we could not have entered into the agreement that allows selling packaged travel to the United States.

Second, thank you to the China National Tourism Administration, which has been a good partner in developing travel and tourism for both countries.

We look forward to working with all of you to strengthen U.S.-China ties and reap all the economic and cultural benefits that flow from our relationship.

And finally, thank you to the Shanghai Commercial Service and Shanghai Tourism Bureau for all their work to support this event and to continue promoting U.S.-China travel and tourism.

Secretary Hillary Clinton gave the following interview in New Delhi, India

Q. And if you don't mind, I want to kind of go back to the beginning and talk about the situation with the Chinese dissident Chen Guangcheng. How soon do you expect him to be able to be in the United States?

Secretary Clinton. Well, Michele, he is still in the hospital receiving medical treatment, some of which was discovered to being necessary by our Embassy doctors. We remain in close contact with him. He has been meeting with the Chinese Government to prepare the necessary arrangements to be able to come to the United States to pursue his studies. And on our end, we've gone to the point of getting all of our arrangements finished. So I think we're certainly making progress, but I'm not going to put any timeline on it.

Q. You and your staff took a lot of heat back in Washington for how you handled it, but you also seem to have taken a lot of risks for him. And I wonder if you can tell us a little bit about what it was like talking to the Chinese, first, about when he wanted to stay in the country and live a normal life, and then going back to them and asking them when he changed his mind and said he wanted to come to the U.S.

Secretary Clinton. Well, Michele, I know you'll understand my reticence to go into any retrospectives until we finally welcome Mr. Chen to the United States. I want to see him safely arrive and begin his studies, and I think there'll be plenty of time to talk about the details. But I'm very proud of the extraordinary professionalism and commitment of our diplomats, both in Washington and Beijing.

Q. And do you see a shift in how the Chinese are approaching this issue?

Secretary Clinton. I'm not going to comment on what the Chinese are doing. I think it's clear from our following this closely and from Mr. Chen himself that they are pursuing the necessary actions in order to give him the documents that he requires.

Q. And how worried are you about a run on U.S.—the U.S. Embassy?

Secretary Clinton. This was an extraordinary case under exceptional circumstances, and I do not anticipate anything like this in the future.

Q. I noticed in public, in China, when you talked about human rights issues, it was—you talked about it, but in a very measured sort of way, whereas when we were in Bangladesh, you were much more forceful and specific about disappearances of opposition figures, murder of a labor activist. Why the difference in tone? Is there a different way of dealing with these issues?

Secretary Clinton. Well, the issues are the same no matter where they are in the world and we raise them no matter where they are happening. But I've been engaged in an intensive, ongoing dialogue with the Chinese on human rights and every other issue that is of significance to us both for the entire time of my tenure as Secretary of State, but actually going back to 1995. I've been to China numerous times. This is only the second time I've been to Bangladesh; I don't have the opportunity to engage on a regular basis with either their government or their people. And so certainly, the need to cover a lot of ground very quickly during the visit there, I think is an apparent and necessary reaction.

Also, we raise all of these issues through our embassies, through other high officials of the United States, going to countries on a regular basis, through our annual human rights report. So I don't think it's anything other than this is a constant part of our dialogue. In some cases, it's perhaps viewed as more intense than others, but the commitment remains the same.

Q. And what are you telling the Chinese now about the future for Chen's family, the network of people that have supported him?

Secretary Clinton. I'm not going to go into those conversations. I—let's take this one day at a time, and we hope to be welcoming Mr. Chen to the United States to pursue the studies that he wishes to do.

Under Secretary Lael Brainard gave the following remarks in Washington, DC

Under Secretary Brainard. The conclusion of the fourth Strategic and Economic Dialogue (S&ED) presents a good opportunity to reflect on the progress we have made in our economic relationship with China and the challenges and opportunities that lie ahead.

We are working to achieve an economic relationship with China that delivers greater benefits for American workers and businesses while contributing to stronger and more balanced global growth.

Over the past three years, we have made progress on our goals. Since early 2009, U.S. exports to China have more than doubled and now exceed $130 billion a year. China's exchange rate has appreciated by 13 percent against the dollar in real terms over the past two years. And we have seen a large reduction in China's current account surplus—from 9 percent the year before President Obama took office to under 3 percent today.

Our discussions with China in the S&ED yielded encouraging progress on our goals of rebalancing the economy, opening the financial system, and leveling the playing field.

Rebalancing global demand is critical if we are to sustain strong and sustainable growth. As the United States reorients its growth strategy to focus on exports and competitiveness, and with European demand expected to be weak for some time, sustaining growth will require stronger demand from surplus emerging economies. Fortunately, China has ample capacity for growth driven more by domestic consumption and less by overinvestment in resource intensive and export industries. But achieving this shift will require important policy changes.

That is why we are pleased that China has pledged to embark on structural tax reductions before the end of the year. Cutting tariffs and reducing burdensome taxes on services will create opportunities for U.S. producers and boost the buying power of China's consumers.

Moving to a market-determined exchange rate will be a powerful tool as China rebalances and opens its financial system. Going into the S&ED, Chinese authorities announced the widening of the exchange rate band in a context of diminished intervention. If implemented in a way that enables the exchange rate to fully reflect market forces, this could make an important contribution to rebalancing.

Extensive controls in China's financial system have been a significant impediment, providing low returns and few choices to consumers, channeling cheap financing to state-owned enterprises, and depriving U.S. firms of market opportunities. It is thus noteworthy that China is moving forward with a number of steps to liberalize and open its financial system—increasing the ability of offshore and global investors to participate in the Chinese market, initiating a program in Wenzhou to allow new private lenders to supply funds to small and medium private enterprises, and encouraging greater international use of the RMB.

At the S&ED, China announced it intends to move beyond its commitments in the WTO by permitting foreign investors to take up to 49 percent equity stakes in domestic securities joint ventures, and shorten the waiting period for securities joint ventures to expand into brokerage, fund management, and trading activities that are essential to building competitive securities businesses.

China will also allow U.S. and other foreign investors to establish joint venture brokerages to trade commodity and financial futures and hold up to 49 percent of the equity in those joint ventures.

And our auto financing companies will be able to issue local bonds to finance their operations—a plus for our auto producers in the world's largest market for automobiles as well as for China's consumers. China has also amended its regulations to allow U.S. and other foreign insurance companies to sell mandatory auto liability insurance, opening access into a large and rapidly growing market, as well as an entry point to sell a variety of other insurance products.

Going forward, it will be important for China to press forward with financial reform, in particular eliminating controls on interest rates.

As we work to create opportunities for our workers and our businesses, it is important to level the playing field with China's favored state-owned enterprises, which have benefited from preferential policies across a range of industries. At the S&ED, Chinese authorities committed to ensure credit, taxation, and regulatory policies would apply on a nondiscriminatory basis across enterprises of all types.

China announced it will increase the portion of profits state-owned enterprises must pay out in dividends to be in line with publicly listed companies. During the years when China's imbalances ballooned, the high profits retained by state-owned enterprises were a major contributor to those imbalances, acting as a drag on consumption and a competitive impediment.

Going forward, as those enterprise savings are unlocked, it will help level the playing field for firms that compete against Chinese state-owned enterprises and contribute to rebalancing by providing resources to boost social spending.

Another longstanding competitive impediment is China's export credit programs, which have remained outside the rules followed by other major exporters. This is no longer tenable, with China now one of the world's largest providers of export financing.

That is why it is significant that China has now confirmed its intention to participate in negotiations for new rules on official export financing with the United States and other major exporters, with the first meeting to take place this summer and the goal of reaching agreement on a set of rules by 2014. It is critical that competitive U.S. exports are not undercut by subsidized foreign government financing.

We continue to press for robust protection and enforcement of intellectual property rights in sectors such as software and for strong enforcement against trade secret misappropriation, as well as to ensure that China honors its commitments not to require technology transfer and to reverse discriminatory innovation preferences.

And we will push hard to ensure that China opens its large government procurement market at all levels of its economy on terms that are comparable to those of other large markets.

These objectives are broadly consistent with the goals China has set for itself. In the face of a looming demographic cliff, weaker demand in advanced economies, rising wages and costs, diminishing returns to fixed investments, and an oversized state-owned sector, China has to fundamentally reorient itself towards a more services and consumption oriented economy with greater innovation and a more open and dynamic financial system if it is to meet rising expectations and avoid the middle income trap. It is very much in our interest that Chinese authorities manage these challenges successfully.

Most importantly, these objectives—rebalancing towards domestic consumption-led growth, reforming the financial system, and leveling the playing field—are critical to achieving greater opportunities for American workers and businesses in China's market. We will continue to engage intensively with China to ensure our economic relationship is more balanced and delivers greater benefits, even as we take the critical steps at home to invest in the foundations of America's competitiveness.

Secretary Hillary Clinton and Foreign Minister Murray McCully gave the following remarks in Washington, DC

Secretary Clinton. [W]ith the constantly growing economic and strategic importance of the Asia Pacific, it is even more pressing that we strengthen those historic ties and deepen our cooperation to meet the challenges of the future. The Wellington Declaration, which we signed during my visit to New Zealand, ensures that our governments are in regular contact on a wide range of shared concerns, and we addressed a number of those today.

Before I begin to talk about our bilateral meeting, I'd like to say a few words about the Baghdad round of E3+3 talks which have just concluded. We set forth a detailed proposal focused on all aspects of 20 percent enrichment based on concrete step-by-step reciprocal measures. We had intensive discussions with the Iranians on our proposal. They put forth their own ideas. As Lady Ashton said, significant differences remain. We will seek to address those differences at a further round of talks which will take place in Moscow on June 18^th and 19^th.

As we lay the groundwork for these talks, we will keep up the pressure as part of our dual-track approach. All of our sanctions will remain in place and continue to move forward during this period. Iran now has the choice to make—will it meet its international obligations and give the world confidence about its intentions or not?

I'd also like to mention Egypt's historic first round of presidential elections, which is just wrapping up as we speak. This is obviously an important milestone in Egypt's transition to democratic government. And the world is watching as the Egyptian people embark on their journey toward a freer, more democratic future debating and deciding among themselves about the best way to take these first steps. And we will continue to support them.

Lastly, on the conviction of Dr. Shakil Afridi in Pakistan, as I've said before, the United States does not believe there is any basis for holding Dr. Afridi. We regret both the fact that he was convicted and the severity of his sentence. His help, after all, was instrumental in taking down one of the world's most notorious murderers. That was clearly in Pakistan's interests as well as ours and the rest of the world. This action by Dr. Afridi to help bring about the end of the reign of terror designed and executed by bin Ladin was not in any way a betrayal of Pakistan. And we have made that very well known and we will continue to press it with the Government of Pakistan.

Now the foreign minister and I covered a great deal about our bilateral relationship as well as regional and global issues. I want to thank the foreign minister and the Government of New Zealand for the excellent role they played and the contributions they made to the success of the NATO Summit over the weekend in Chicago. We saluted New Zealand's leadership in Bamyan Province and the orderly plans it has set in place for an effective transition to Afghan leadership. New Zealand's commitment to this critical effort has been exemplary, and we are enormously grateful for the service and sacrifice of the people of your country.

Next, on Burma, as you know, the United States is in the process of easing certain restrictions and sanctions on that country. And we believe and have encouraged our New Zealand friends as well to work with the international community to move forward the reforms, both political and economic, as well as taking actions to improve human rights, speed democratization, and foster national reconciliation.

I also expressed our appreciation to New Zealand for their strong support of the people of Syria, and by the actions that they have taken to help support Kofi Annan's mission. By supplying personnel, New Zealand has helped the UN's supervision mission ramp up operations quickly, and we also are grateful for New Zealand's generous support for the UN refugee program for Syrians fleeing into Turkey. Together, we must increase our pressure on the Assad regime, and we must continue to work toward the day when there will be a political transition that will give the Syrian people the chance to chart their own future.

And finally, I thanked the foreign minister for New Zealand's leadership as chair of the Pacific Islands Forum this year. New Zealand's efforts have brought a needed focus on development coordination and curbing climate change. The United States will continue to work with the Pacific Island nations, especially when it comes to responding to disasters, as we saw with flooding and landslides in Papua New Guinea and Fiji earlier this year.

So once again, Murray, it's always a pleasure for me to have a chance to sit down across the table from you, and to continue this important dialogue between our countries.

Foreign Minister McCully. Thank you, Hillary. Ladies and gentlemen, today we've had the opportunity for excellent talks, and I thank the Secretary of State for her time and for those excellent discussions. They're part of a pattern of regular engagement that we now have following the signing of the Wellington Declaration about 18 months ago.

Reflecting on the relationship and its development, I was very pleased to be able to tell Secretary Clinton that we are in two weeks time going to receive a delegation of Marines, 50 in number, plus a 50-person Marine band that will be involved in a series of events in New Zealand over about three weeks to commemorate the landing in New Zealand 70 years ago of U.S. forces which provided security and protection for the New Zealand people at a time when we were not in a position to afford that security and protection to ourselves. So this will be a chance for that deed of honor to be recognized. Also there'll be a chance for New Zealanders to see the Marines exercising with some of our own people, and so this is going to be a symbolic time looking backwards but also looking at the contemporary relationship. Those exercises are part of a pattern of regular exercises that now take place between military personnel from both of our countries. We now have a process of cooperation and exercising that is normal and which we strongly welcome.

The talks we've had today have been an opportunity to update ourselves on a range of areas, as Secretary Clinton has said: Afghanistan, where we've both just come back from the meeting in Chicago; the Asia Pacific region, where New Zealand strongly welcomes the rebalancing of U.S. resourcing which has seen the Asia Pacific region become a stronger area for focus on your part. We welcome in particular the engagement with the East Asia Summit and the suite of meetings that give us both a chance to work cooperatively promoting the joint interest in security and stability in the region.

We had a chance to review developments in the Middle East briefly, Syria, and of course, as Secretary Clinton has mentioned, Burma. I've had the opportunity to visit quite recently, and we're looking to reinforce the work that is being done under U.S. leadership and some of the work that has been done by the EU in Burma to promote improvements in that country.

Turning briefly to the Pacific, I updated Secretary Clinton on the work we're leading as forum chair. Our hopes for continuing improvement in the situation in Fiji as we move closer to elections that have been scheduled for 2014. We discussed briefly the challenging situation that's emerged in Papua New Guinea in recent months. We in New Zealand and Australia are closely engaged, and I thank Secretary Clinton in particular for the USAID engagement in the region, where we now have a USAID office in Port Moresby and our first joint project on Tarawa is underway.

So while we've still got plenty of work ahead of us, it's probably appropriate for me to look back over the last three years or so in this relationship as a time of quite remarkable progress. And I want to acknowledge the positive and effective leadership that Secretary Clinton has brought to that process, and I also want to acknowledge the deep goodwill and friendship that she has brought to New Zealand as well.

Q. Secretary Clinton, on the Baghdad talks, it's hardly surprising that differences would remain after only two rounds. Would you say that you made any substantive progress whatsoever in today's talks?

And on the case of Dr. Afridi, beyond expressing regret and restating your view that there was no basis for his incarceration and sentencing, are you actively seeking to negotiate some kind of a solution that might reduce his sentence or free him inside Pakistan or get him out of the country?

Secretary Clinton. Well, Arshad, on the first question regarding the talks in Baghdad, as you know, the talks just concluded and I haven't had time to get a full debrief from our team yet. But I will say that they were serious. They were an opportunity for the E3+3 to engage on substantive matters with the Iranians. But there are clearly gaps in what each side sees as possible, and we think that the choice is now Iran's to work to close the gaps. We anticipate there will be ongoing work between now and the next meeting in Moscow. But it's very clear that there's a lot of work still to do. Yet at the same time, I have to say this is the second of two serious meetings after a gap of at least 15 months where there was no contact and no discussion about any of these matters. So we will continue to engage seriously with our partners.

And the final point I would make is that the entire E3+3 group is united. And I think if you had asked three and a half years ago, certainly when I started this job, could we have unity around some very difficult issues with Iran and have everybody onboard speaking literally off the same page with the same voice, there would have been a certain level of skepticism. So I will leave it at that. But Cathy Ashton summarized for the press where she saw matters, and we will be consulting deeply with my own team and then with the other countries involved.

With respect to Dr. Afridi, we are in the midst of a series of discussions with the Pakistani Government on a range of issues that are important to the United States and the international community. We certainly consider the treatment of Dr. Afridi to be among those important issues. We are raising it and we will continue to do so because we think that his treatment is unjust and unwarranted.

Secretary Leon Panetta gave the following remarks in Singapore

Secretary Panetta. Ladies and gentlemen, it is an honor to have the opportunity to attend my first Shangri-La Conference. I want to commend the International Institute for Strategic Studies for fostering this very important dialogue, this very important discussion that is taking place here this weekend.

I am, as I understand it, the third United States secretary of defense to appear at this forum, across administrations from both political parties in the United States. That is, I believe, a testament to the importance that the United States places in this dynamic and critical region of the world.

It is in that spirit that I have come to Singapore, at the beginning of an eight-day journey across Asia that will take me to Vietnam and to India as well.

The purpose of this trip, and of my remarks today, is to explain a new defense strategy that the United States has put in place and why the United States will play a deeper and more enduring partnership role in advancing the security and prosperity of the Asia-Pacific region, and how the United States military supports that goal by rebalancing towards this region.

Since the United States grew westward in the 19th century, we have been a Pacific nation. I was born and raised in a coastal town in California called Monterey, and have spent a lifetime looking out across the Pacific Ocean. As a fishing community, as a port, the ocean was the lifeblood of our economy. And some of my earliest memories as a child during World War II are of watching American troops pass through my community, trained at the military reservation called Fort Ord, and were on their way to face battle in the Pacific.

I remember the fear that gripped our community during World War II, and later when war again broke out on the Korean Peninsula. Despite the geographic distance that separates us, I've always understood that America's fate is inexorably linked with this region.

This reality has guided more than six decades of U.S. military presence and partnership in this region—a defense posture which, along with our trading relations, along with our diplomatic ties, along with our foreign assistance, helped usher in an unprecedented era of security and prosperity in the latter half of the 20th century.

In this century, the 21st century, the United States recognizes that our prosperity and our security depends even more on the Asia-Pacific region. After all, this region is home to some of the world's fastest growing economies: China, India, and Indonesia to mention a few. At the same time, Asia-Pacific contains the world's largest populations, and the world's largest militaries. Defense spending in Asia is projected by this institute, the IISS, to surpass that of Europe this year, and there is no doubt that it will continue to increase in the future.

Given these trends, President Obama has stated the United States will play a larger role in this region over the decades to come. This effort will draw on the strengths of the entire United States government. We take on this role not as a distant power, but as part of the Pacific family of nations. Our goal is to work closely with all of the nations of this region to confront common challenges and to promote peace, prosperity, and security for all nations in the Asia-Pacific region.

My colleague and my good friend Secretary of State Hillary Clinton has also outlined our refocus on the Asia-Pacific, emphasizing the crucial part that diplomacy, trade, and development will play in our engagement.

The same is true for defense policy. We will play an essential role in promoting strong partnerships that strengthen the capabilities of the Pacific nations to defend and secure themselves. All of the U.S. military services are focused on implementing the president's guidance to make the Asia-Pacific a top priority. Before I detail these specific efforts, let me provide some context for our broader defense strategy in the 21st century.

The United States is at a strategic turning point after a decade of war. We have significantly weakened al-Qaida's leadership and ability to attack other nations. We have sent a very clear message that nobody attacks the United States and gets away with it. Our military mission in Iraq has ended and established—established an Iraq that can secure and govern itself.

In Afghanistan, where a number of Asia-Pacific nations are playing a critical role in the international coalition, we have begun our transition to the Afghan security lead and to an Afghanistan that can secure and govern itself. Recent meeting in Chicago, NATO and its partners—over 50 nations—came together to support General Allen's plan to accomplish this goal. In addition to that, we joined in a successful NATO effort to return Libya to the Libyan people.

But even as we have been able to draw these wars to a hopeful end, we are confronted today by a wide range of complex global challenges. From terrorism—terrorism still remains a threat to the world—from terrorism to the destabilizing behavior of Iran and North Korea, from nuclear proliferation to the new threat of cyberat-tack, from continuing turmoil in the Middle East to territorial disputes in this region.

At the same time, the United States, like many other nations, is dealing with large debt and large deficits, which has required the Department of Defense to reduce the planning budget by nearly half a trillion dollars or specifically $487 billion that were directed to be reduced by the Congress in the Budget Control Act over the next decade.

But this new fiscal reality, challenge that many nations confront these days, has given us an opportunity to design a new defense strategy for the 21st century that both confronts the threats that we face and maintains the strongest military in the world.

This strategy makes clear the United States military, yes, it will be smaller, it will be leaner, but it will be agile and flexible, quickly deployable, and will employ cutting-edge technology in the future. It makes equally clear that while the U.S. military will remain a global force for security and stability, we will of necessity rebalance towards the Asia-Pacific region. We will also maintain our presence throughout the world. We will do it with innovative rotational deployments that emphasize creation of new partnerships and new alliances. We will also invest, invest in cyber, invest in space, invest in unnamed systems, invest in special forces operations. We will invest in the newest technology and we will invest in the ability to mobilize quickly if necessary.

We have made choices and we have set priorities, and we have rightly chosen to make this region a priority.

Our approach to achieving the long-term goal in the Asia-Pacific is to stay firmly committed to a basic set of shared principles—principles that promote international rules and order to advance peace and security in the region, deepening and broadening our bilateral and multilateral partnerships, enhancing and adapting the U.S. military's enduring presence in this region, and to make new investments in the capabilities needed to project power and operate in Asia-Pacific. Let me discuss each of these shared principles. The first is the shared principle that we abide by international rules and order.

Let me underscore that this is not a new principle, our solid commitment to establish a set of rules that all play by is one that we believe will help support peace and prosperity in this region.

What are we talking about? These rules include the principle of open and free commerce, a just international order that emphasizes rights and responsibilities of all nations and a fidelity to the rule of law; open access by all to their shared domains of sea, air, space, and cyberspace; and resolving disputes without coercion or the use of force.

Backing this vision involves resolving disputes as quickly as possible with diplomatic efforts. Backing these principles has been the essential mission of the United States military in the Asia-Pacific for more than 60 years and it will be even a more important mission in the future. My hope is that in line with these rules and international order that is necessary that the United States will join over 160 other nations in ratifying the Law of Seas Convention this year.

The second principle is one of partnerships. Key to this approach is our effort to modernize and strengthen our alliances and partnerships in this region. The United States has key treaty alliances with Japan, South Korea, Australia, Philippines and Thailand. We have key partners in India, Singapore, Indonesia, and other nations. And we are working hard to develop and build stronger relations with China.

As we expand our partnerships, as we strengthen our alliances, the United States-Japan alliance will remain one of the cornerstones for regional security and prosperity in the 21st century. For that reason, our two militaries are enhancing their ability to train and operate together, and cooperating closely in areas such as maritime security and intelligence, surveillance and reconnaissance. We are also jointly developing high-tech capabilities, including the next generation missile defense interceptor, and exploring new areas of cooperation in space and in cyberspace.

In the past several months we have strengthened the alliance and our broader strategic objectives in the region with a revised plan to relocate Marines from Okinawa to Guam. This plan will make the U.S. presence in Okinawa more politically sustainable, and it will help further develop Guam as a strategic hub for the United States military in the Western Pacific, improving our ability to respond to a wide range of contingencies in the Asia-Pacific region.

Another linchpin of our Asia-Pacific security is the U.S. alliance with the Republic of Korea. During a year of transition and provocation on the Korean Peninsula, this alliance has been indispensable, and I have made it a priority to strengthen it for the future. To that end, even as the United States reduces the overall size of its ground forces in the coming years in a transitional way over a five-year period, we will maintain the United States Army's significant presence in Korea.

We are also boosting our intelligence and information sharing with the Republic of Korea, standing firm against hostile provocations from North Korea while transforming the alliance with new capabilities to meet global challenges.

The third shared principle is presence. While strengthening our traditional alliances in Northeast Asia and maintaining our presence there, as part of this rebalancing effort we are also enhancing our presence in Southeast Asia and in the Indian Ocean region.

A critical component of that effort is the agreement announced last fall for a rotational Marine Corps presence and aircraft deployments in northern Australia.

The first detachment of Marines arrived in April, and this Marine Air-Ground Task Force will be capable of rapidly deploying across the Asia-Pacific region, thereby enabling us to work more effectively with partners in Southeast Asia and the Indian Ocean and tackle common challenges such as natural disasters and maritime security.

These Marines will conduct training and exercises throughout the region and with Australia, strengthening one of our most important alliances and building on a decade of operational experience together in Afghanistan. Speaking of that, I welcome and applaud Australia's announcement that later this year it will assume leadership of Combined Team Uruzgan, and will lead our security efforts there through 2014.

We're also continuing close operational cooperation with our longtime ally, Thailand. The Thais annually host COBRA GOLD, a world-class multilateral military exercise, and this year we will deepen our strategic cooperation to meet shared regional challenges.

We are energizing our alliance with the Philippines. Last month in Washington I joined Secretary Clinton in the first-ever “2+2” meeting with our Filipino counterparts. Working together, our forces are successfully countering terrorist groups. We are also pursuing mutually beneficial capability enhancements, and working to improve the Philippine's maritime presence. Chairman Dempsey will be traveling from here to the Philippines to further our military engagement.

Another tangible manifestation of our commitment to rebalancing is our growing defense relationship with Singapore. Our ability to operate with Singaporean forces and others in the region will grow substantially in the coming years when we implement the forward deployment of the Littoral Combat Ships to Singapore.

As we take existing alliances and partnerships in new directions, this rebalancing effort also places a premium on enhancing partnerships with Indonesia, Malaysia, India, and Vietnam, and New Zealand.

In the coming days I will travel to Vietnam to advance bilateral defense cooperation, building off of the comprehensive memorandum of understanding that our two nations signed last year.

From Vietnam, I will travel to India to affirm our interest in building a strong security relationship with a country I believe will play a decisive role in shaping the security and prosperity of the 21st century.

As the United States strengthens these regional partnerships, we will also seek to strengthen a very important relationship with China. We believe China is a key to being able to develop a peaceful, prosperous, and secure Asia-Pacific in the 21st century. And I am looking forward to traveling there soon at the invitation of the Chinese government. Both of our nations recognize that the relationship—this relationship between the United States and China is one of the most important in the world. We in the United States are clear-eyed about the challenges, make no mistake about it, but we also seek to grasp the opportunities that can come from closer cooperation and a closer relationship.

I'm personally committed to building a healthy, stable, reliable, and continuous mil-to-mil relationship with China. I had the opportunity to host Vice President Xi and later Defense Minister General Liang at the Pentagon in the effort to pursue that goal. Our aim is to continue to improve the strategic trust that we must have between our two countries, and to discuss common approaches to dealing with shared security challenges.

We are working with China to execute a robust military-to-military engagement plan for the rest of this year, and we will seek to deepen our partnership in humanitarian assistance, counter-drug, and counter-proliferation efforts. We have also agreed on the need to address responsible behavior in cyberspace and in outer space. We must establish and reinforce agreed principles of responsible behavior in these key domains.

I know that many in the region and across the world are closely watching the United States-China relationship. Some view the increased emphasis by the United States on the Asia-Pacific region as some kind of challenge to China. I reject that view entirely. Our effort to renew and intensify our involvement in Asia is fully compatible—fully compatible—with the development and growth of China. Indeed, increased U.S. involvement in this region will benefit China as it advances our shared security and prosperity for the future.

In this context, we strongly support the efforts that both China and Taiwan, both have made in recent years trying to improve cross-strait relations. We have an enduring interest in peace and stability across the Taiwan Strait. The United States remains firm in the adherence to a one-China policy based on the Three Communiqués and the Taiwan Relations Act.

China also has a critical role to play in advancing security and prosperity by respecting the rules-based order that has served the region for six decades. The United States welcomes the rise of a strong and prosperous and successful China that plays a greater role in global affairs.

Another positive step towards furthering this rules-based order is Asia's deepening regional security architecture, which the United States strongly supports. Last October, I had the opportunity to be the first U.S. secretary of defense to meet privately with all ASEAN defense ministers in Bali. We applaud the ASEAN Defense Ministers Meeting Plus for producing real action plans for multilateral military cooperation, and I strongly support the ASEAN decision to hold more frequent ADMM-Plus discussions at the ministerial level. We think this is an important step for stability, real coordination, communication, and support between these nations.

The United States believes it is critical for regional institutions to develop mutually agreed rules of the road that protect the rights of all nations to free and open access to the seas. We support the efforts of the ASEAN countries and China to develop a binding code of conduct that would create a rules-based framework for regulating the conduct of parties in the South China Sea, including the prevention and management of disputes.

On that note, we are obviously paying close attention to the situation in Scarborough Shoal in the South China Sea. The U.S. position is clear and consistent: we call for restraint and for diplomatic resolution; we oppose provocation; we oppose coercion; and we oppose the use of force. We do not take sides when it comes to competing territorial claims, but we do want this dispute resolved peacefully and in a manner consistent with international law. We have made our views known and very clear to our close treaty ally, the Philippines, and we have made those views clear to China and to other countries in the region.

As a Pacific power, the United States has a national interest in freedom of navigation, in unimpeded economic development and commerce, and in a respect for the rule of law. Our alliances, our partnerships, and our enduring presence in this region all serve to support these important goals.

For those who are concerned about the ability of the United States to maintain a strong presence in the Asia-Pacific region in light of the fiscal pressures we face, let me be very clear. The Department of Defense has a five-year budget plan and a detailed blueprint for implementing this strategy I just outlined for realizing our long-term goals in this region, and for still meeting our fiscal responsibilities.

The final principle—shared principle that we all have is force projection.

This budget is the first in what will be a sustained series of investments and strategic decisions to strengthen our military capabilities in the Asia-Pacific region. I would encourage you to look at the increasing technological capabilities of our forces as much as their numbers in judging the full measure of our security presence and our security commitment.

For example, over the next five years we will retire older Navy ships, but we will replace them with more than 40 far more capable and technologically advanced ships. Over the next few years we will increase the number and the size of our exercises in the Pacific. We will also increase and more widely distribute our port visits, including in the important Indian Ocean region.

And by 2020 the Navy will reposture its forces from today's roughly 50/50 percent split between the Pacific and the Atlantic to about a 60/40 split between those oceans. That will include six aircraft carriers in this region, a majority of our cruisers, destroyers, Littoral Combat Ships, and submarines.

Our forward-deployed forces are the core of our commitment to this region and we will, as I said, sharpen the technological edge of our forces. These forces are also backed up by our ability to rapidly project military power if needed to meet our security commitments.

Therefore, we are investing specifically in those kinds of capabilities—such as an advanced fifth-generation fighter, an enhanced Virginia-class submarine, new electronic warfare and communications capabilities, and improved precision weapons—that will provide our forces with freedom of maneuver in areas in which our access and freedom of action may be threatened.

We recognize the challenges of operating over the Pacific's vast distances. That is why we are investing in new aerial-refueling tankers, a new bomber, and advanced maritime patrol and anti-submarine warfare aircraft.

In concert with these investments in military capabilities, we are developing new concepts of operation which will enable us to better leverage the unique strengths of these platforms and meet the unique challenges of operating in Asia-Pacific. In January, the department published a Joint Operational Access Concept which, along with these related efforts like Air-Sea Battle, are helping the Department meet the challenges of new and disruptive technologies and weapons that could deny our forces access to key sea routes and key lines of communication.

It will take years for these concepts and many of the investments that I just detailed, but we are making those investments in order that they be fully realized. Make no mistake—in a steady, deliberate, and sustainable way the United States military is rebalancing and bringing an enhanced capability development to this vital region.

Earlier this week I had the opportunity to deliver the commencement address at the U.S. Naval Academy. And there I had the pleasure of handing a diploma to the first foreign student to achieve top graduate honors, a young midshipman from Singapore: Sam Tan Wei Chen.

I told that graduating class of midshipmen that it would be the project of their generation to meet the challenges and seize the opportunities that are emanating from the Asia-Pacific region.

By working in concert with all elements of American power, I truly believe that these young men and women will have the opportunity to play a vital role in securing a century of peace and prosperity for the United States and for all of the nations of this region.

Over the course of history, the United States has fought wars, we have spilled blood, we have deployed our forces time and time again to defend our vital interests in the Asia-Pacific region. We owe it to all of those who have fought and died to build a better future for all nations in this region.

The United States has long been deeply been involved in the Asia-Pacific. Through times of war, times of peace, under Democratic and Republican leaders and administrations, through rancor and through comity in Washington, through surplus and through debt. We were there then, we are here now, and we will be here for the future. Thank you.

Secretaries Hillary Clinton and Leon Panetta and Ministers Kim Sung-Hwan and Kim Kwan-jin gave the following remarks in Washington, DC

Secretary Clinton. Well, let me welcome all of you, particularly our Korean friends, to the Thomas Jefferson Room here in the State Department. Today, Secretary Panetta and I hosted the second session of the U.S.-Republic of Korea Foreign and Defense Ministerial Consultation, what we call our 2+2 meeting. And it is a great pleasure to welcome Foreign Minister Kim and Defense Minister Kim to Washington as we continue to find ways to strengthen the global alliance and cooperation between our countries.

Today we discussed how our partnership has advanced in the three years since our two presidents set forth their joint vision for the alliance between the Republic of Korea and the United States. We are combating piracy together in the Indian Ocean, investing in sustainable development in Africa, promoting democracy and the rule of law and human rights around the world. It would be difficult to list all the ways we are working together.

We touched on how we are deepening our economic cooperation. Just a few months ago, the U.S.-Korea Free Trade Agreement officially entered into force, and it is already creating jobs and opportunities on both sides of the Pacific.

It is fitting that today is the Global Economic Statecraft Day at the State Department, because around the world in all of our embassies we are highlighting economic cooperation. And our relationship with the Republic of Korea is a textbook example of how our economic statecraft agenda can boost growth and create jobs.

As Korea has developed into an economic powerhouse, it has also steadily assumed greater responsibilities as a global leader. Today, it is an anchor of stability in the Asia Pacific and a go-to partner for the United States.

On the security side of our dialogue, we reaffirmed our commitment to the strategic alliance between our countries. Secretary Panetta will speak to our military cooperation, but I want to emphasize that the United States stands shoulder to shoulder with the Republic of Korea, and we will meet all of our security commitments. As part of this, we discussed further enhancements of our missile defense and ways to improve the interoperability of our systems.

Today we also agreed to expand our security cooperation to cover the increasing number of threats from cyberspace. I am pleased to announce that the United States and Korea will launch a bilateral dialogue on cyber issues. Working together, we can improve the security of our government, military, and commercial infrastructure, and better protect against cyber attacks.

Foreign Minister Kim. Let me first thank Secretary Clinton and Secretary Panetta for inviting Minister Kim and I to the ROK-U.S. 2+2 ministerial meeting. This meeting was first held for the first time in 2000 in Seoul. That was 60 years since the Korean War. And I am pleased that we held today the second 2+2 ministerial meeting this time in Washington. We took note that a number of alliance issues are proceeding as planned, and we had our agreement in that this will contribute to a greater combined defense system.

Secretary Panetta. Secretary Clinton, Ministers, I was very pleased to be able to participate in this very important 2+2 meeting. I want to commend Secretary Clinton for her leadership in guiding us through this discussion, and also thank both ministers for their participation.

I've been very fortunate over the past year, since becoming Secretary of Defense, to have developed a very strong working relationship with my Korean counterparts. I've been—I made a visit to Korea last fall, and we have had a series of consultations such as this 2+2. I just returned, as many of you know, from a two-week trip to the Asia Pacific region, where I met with Minister Kim at the Shangri-La Dialogue in Singapore. And at the time, I made clear that the United States has made an enduring commitment to the security and prosperity of the Asia Pacific region, including the Korean Peninsula.

I also made clear that our military will rebalance towards the Asia Pacific region as part of our new defense strategy. As part of that strategy, even though the U.S. military will be smaller in the future, we will maintain a strong force presence in Korea which reflects the importance that we attach to that relationship and to the security mission that we are both involved with.

The United States and the Republic of Korea face many common security challenges in the Asia Pacific region and around the world, and today, we affirmed our commitment to forging a common strategic approach to addressing those challenges. I'm very pleased that we are progressing on our schedule to achieve the goals that we outlined in our Strategic Alliance 2015 base plan. We remain on track to transition operational control by December 2015 in accordance with the base plan timeline.

As the Strategic Alliance 2015 initiative proceeds, we will continue to consult closely with the Republic of Korea in order to ensure that the steps that we are taking are mutually beneficial and strengthen our alliance. During our meeting, we also discussed ways that we can further strengthen our alliance, including greater cooperation in the area of cyber security. To that end, we are making our bilateral military exercises more realistic through the introduction of cyber and network elements.

Another way to strengthen and modernize our alliance is by expanding our ongoing trilateral collaboration with Japan. On my trip to Asia, I was pleased to participate in a trilateral discussion that included the Republic of Korea and Japan, because this kind of security cooperation helps strengthen regional security and provides the additional deterrent with respect to North Korea. I'd like to thank the ministers again for their commitment to this alliance, and I look forward to hosting Minister Kim in Washington for the 44th Security Consultative Meeting in October. This alliance has stood the test of time, and today, we affirmed that it will remain an essential force for security and for prosperity in the 21st century.

Q. Can we do it the reverse? I'm sorry. Scott and I always do this, get it a little confused. But in any case, thank you, Madam Secretary. I'd like to start out with Egypt, please. What is your reaction to dissolving parliament? Is this a step backwards?

And then also on Syria: For the second day in the media and the news, we're talking about the weapons and the helicopters. By making this such a high-profile issue—and by pinning your strategy of shaming the Russians, are you running the risk of allowing Moscow to define what happens or doesn't happen in Syria? In other words, I guess, where is the American strategy?

Secretary Clinton. Well, first, with regard to Egypt, we are obviously monitoring the situation. We are engaged with Cairo about the implications of today's court decision. So I won't comment on the specifics until we know more.

But that said, throughout this process, the United States has stood in support of the aspirations of the Egyptian people for a peaceful, credible, and permanent democratic transition. Now ultimately, it is up to the Egyptian people to determine their own future. And we expect that this weekend's presidential election will be held in an atmosphere that is conducive to it being peaceful, fair, and free. And in keeping with the commitments that the Supreme Council of the Armed Forces made to the Egyptian people, we expect to see a full transfer of power to a democratically elected, civilian government.

There can be no going back on the democratic transition called for by the Egyptian people. The decisions on specific issues, of course, belong to the Egyptian people and their elected leaders. And they've made it clear that they want a president, a parliament, and a constitutional order that will reflect their will and advance their aspirations for political and economic reform. And that is exactly what they deserve to have.

Let me also note that we are concerned about recent decrees issued by the SCAF. Even if they are temporary, they appear to expand the power of the military to detain civilians and to roll back civil liberties.

Now regarding Syria, I spoke extensively about Syria yesterday. Our consultations with the United Nations, our allies and partners, and the Syrian opposition continue on the best way forward. Today, my deputy, Bill Burns, had a constructive meeting in Kabul with Russian Foreign Minister Lavrov. We don't see eye to eye on all of the issues, but our discussions continue. And President Obama will see President Putin during the G-20 in Mexico.

We're also intensifying our work with Special Envoy Kofi Annan on a viable post-Assad transition strategy. And I look forward to talking to him in the days ahead about setting parameters for the conference that he and I have discussed and that he is discussing with many international partners. Our work with the Syrian opposition also continues. Ambassador Ford is in Istanbul today for a conference with the opposition that Turkey is hosting.

So we're working on multiple fronts. I think our strategy is very clear. We want to see an end to the violence, and we want to see the full implementation of Kofi Annan's plans, including the political transition so that the people of Syria have the same opportunity that the people of the Republic of Korea or the United States have to choose their own leaders and to build their own future. And the work is urgent, because as you know, the Syrian Government continues to attack its own people, and the bloodshed has not ceased. And we have to do everything we can to end the violence and create a framework for a transition.

Moderator. Next question: Kang Eui-Young from Yonhap News, please.

Q. Thank you for the opportunity to give you question. I'm—name is Kang from the Yonhap News Agency. My question is for Minister—Defense Minister Kim. It is written in this statement that you have decided to develop a comprehensive alliance approach towards the missile defense. I want to know what this means. If you are referring to the missile defense, are you intending to build a Korea air missile defense or are you saying that you will be integrated into a U.S.-led missile defense? Could you elaborate on what missile defense system you are envisioning? You mention comprehensive alliance defense system. What—how does this build into the U.S.-led assistance?

Defense Minister Kim. The position of the ROK military regarding the missile defense is this given the terrain of the Korean Peninsula. The most effective approach is a low-tier defense. And how will this be linked to the U.S. missile defense system? This is of the analysis—the studies that are being conducted right now. That's what I mean by saying an effective combined air defense system.

Q. Secretary Panetta, is the United States expanding intelligence gathering across Africa using small, unarmed, turbo-prop aircraft disguised as private planes, as reported by The Washington Post?

Secretary Panetta. Well, I'm not going to discuss classified operations in that region, other than to say that we make an effort to work with all of the nations in that region to confront common threats and common challenges. And we have closely consulted and closely worked with our partners to develop approaches that make sure that the nations of that very important region do not confront the kind of serious threats that could jeopardize their peace and prosperity.

President Barack Obama and President Hu Jintao gave the following remarks in Los Cabos, Mexico

President Obama. I just want to say that it's a great pleasure once again to have this bilateral meeting with President Hu.

Over the last several years, as a consequence of not only extensive one-on-one meetings, but also because of the outstanding work that our teams have done through the strategic and economic dialogue, we have been able to really create a new model for practical and constructive and comprehensive relations between our two countries.

Obviously, as two of the largest economies in the world, much of our focus has been on increasing trade and commerce between our two countries in a way that creates mutual benefits, and we have made significant progress in not only our bilateral relations, but also in helping to manage through some very difficult economic crises.

We've also been able to cooperate on a range of regional issues relating to the Asia Pacific region, but also with respect to conflict and security challenges around the world.

In the wake of the G20, this will be a good opportunity for us to recap the work that both China and the United States have to do to sustain global economic growth and to make sure that we are creating jobs and opportunity for our citizens.

And I'm also looking forward to having the opportunity to discuss some immediate issues that the world confronts—being able to discuss Iran, North Korea, and the challenges of curbing nuclear proliferation. This will also give us an opportunity to discuss the situation in Syria, and to arrive at a cooperative approach that can end the bloodshed there and lead to the kind of legitimate government that I think we all hope for.

So once again, I want to thank President Hu for his leadership both in the G20 and in helping to nurture the kind of cooperative relationship that we've developed. And I look forward very much to our discussion.

President Hu. I'm delighted to meet with you, Mr. President, again. It's already our 12th meeting. In March this year, you and I had very close in Seoul, Korea, and over the past three months, the working teams of both countries have been working in real earnest to follow through with the important agreement you and I reached. And we have made new progress in developing a cooperative partnership between China and the United States.

Building a good, stable, and productive China-U.S. relationship is in our mutual interest of our two countries and our two peoples, and also contributes to peace and development.

China is willing to work together with the United States to remain firmly committed to building a cooperative partnership. We are willing to work with the United States to continue building trust and cooperation, appropriately handle disagreements and sensitive issues, and continue to move forward with this cooperative partnership on a sustained, steady and sound course.

I highly appreciate the important role played by President Obama in promoting the growth of this relationship. I believe that the talks we are going to have are going to be conducted in a sincere, friendly and productive manner.

President Obama. Thank you.