The United States is deeply concerned about the violence in Egypt that has led to a tragic loss of life among demonstrators and security forces. We express our condolences to the families and loved ones of all who were killed or injured, and we stand with the Egyptian people in this painful and difficult time.
Now is a time for restraint on all sides so that Egyptians can move forward together to forge a strong and united Egypt. As the Egyptian people shape their future, the United States continues to believe that the rights of minorities—including Copts—must be respected. All people have the universal rights of peaceful protest and religious freedom.
We also note Prime Minister Sharaf’s call for an investigation and his appeal to all parties to refrain from violence. We echo these calls and stress the importance that the investigation be a transparent and credible process beginning immediately and holding accountable all responsible parties with full due process of law. To further protect religious freedom, we also support the Egyptian government’s decision to consider a Unified Places of Worship Law governing church construction and an anti-discrimination law within two weeks.
The tragic violence that has marred Egypt’s transition should not stand in the way of timely elections and the country’s continued transition to democracy.
Thank you, Mr. Chairman.
QUESTION: Thanks very much for doing this.
SECRETARY CLINTON: I’m happy to do it – glad this worked out.
QUESTION: We should have tea more often. (Laughter.)
SECRETARY CLINTON: That’s right. Exactly. Well, when I invited you, I wanted to talk about these two speeches that I’m giving this week. And obviously, there are a lot of other things going on in the world. But just so that I fulfill my obligation here, tomorrow I’ll be at CAP, the Center for American Progress, talking about American leadership and sort of linking it to the work we have to do at home, and obviously, the challenges we face around the world, because I know that there is this kind of maybe unspoken theme that, oh, we’re – we have all these problems at home with our economy, with political gridlock, et cetera. And we’ve seen this movie before, and the United States has enduring values and strengths that I just want to remind all of us of.
And then on Friday, I’ll be in New York at the New York Economic Club talking about economic statecraft because I want to also explain why what the work we do here at the State Department is part of our overall effort to increase economic opportunity for Americans. And I’ve been working with the Jobs Council. I think you were – somebody was at the Jobs Council meeting.
QUESTION: (Inaudible) last week, yes.
SECRETARY CLINTON: Because if we do better on exports, if we do better on foreign direct investment, we put Americans to work. And it’s not a connection that a lot of people make. They probably don’t think of the State Department as being part of the economic agenda. So I want to be very explicit about that and kind of make the case for it. So with that –
QUESTION: Good. Well, thank you. We’ll now turn – (laughter) –
SECRETARY CLINTON: (Inaudible) Pull up, Toria. Yes, don’t try to balance your tea –
QUESTION: To go to one news of the day –
SECRETARY CLINTON: Oh, was there some news today? Oh, what do you know?
QUESTION: You knew it was coming –
SECRETARY CLINTON: Yes.
QUESTION: – for three or four months now, but Attorney General Holder said that the State Department would be taking actions to hold Iran responsible for this. What are you going to do? What actions?
SECRETARY CLINTON: Well, first let me say the obvious, that this was a terrific achievement of our law enforcement and intel communities. Disrupting, preventing this plot to kill the Saudi Ambassador here in Washington took really creative, smart work. And obviously, the Attorney General and the FBI director and the Assistant Attorney General for National Security, along with the U.S. Attorney in the Southern District of New York laid out a lot of what has been done, and the complaint has more detail. And then I believe that Treasury should have issued its additional designations of sanctions against named individuals that I think you’ll find of interest this afternoon.
So we’re doing several things, and have been integrated into this effort, as you say, for many months now. What the Iranians were plotting violates the convention, the international convention, on the prevention and punishment of crime against internationally protected persons, of whom, obviously, an ambassador is one. It violates international norms in a way that cannot be denied by the Iranians, despite their best efforts. And we believe that through concerted outreach, which we are undertaking and have begun, both in New York at the UN and in capitals around the world, we will create a chorus of states that are condemning this kind of behavior, looking at their own countries to determine whether the Iranians are engaging in potentially threatening or disruptive activities within their countries. In addition to our sanctions that were designated by the Treasury today, we will be seeking other countries to do the same against named individuals and against entities within Iran.
We think the facts of this case, which include the outreach by the Iranian authorities to a Mexican drug cartel seeking a murder-for-hire assassin, will be quite disturbing to officials in countries that have even in the past given Iran a pass. So I think, Arshad, that this will be an opportunity to further isolate Iran. And if you believe, as I do, that their internal debates and power struggles that are going on in plain sight, combined with the impact of the sanctions, combined with the suspicion that they have already created in many countries in the region and beyond, with this very strong case that we have presented today, it will give us extra leverage in dealing with Iran. And I think that you may not see skywriting in the sky announcing it, but you’ll see a more reluctant stance by many countries toward dealing with Iran, toward doing Iran’s bidding, and I think that is all to our interests.
QUESTION: Madam Secretary, if I could follow up on that, obviously for the Saudis in particular, this is a worrisome development.
SECRETARY CLINTON: Indeed.
QUESTION: And we know that the Saudis themselves have no love lost for Iran. Are you worried that this is going to really fuel tensions that already exist in the Gulf in a dangerous way? And do you have any counsel that you might make public that you would give to the Saudis about how they should respond to this?
SECRETARY CLINTON: Well, Andy, you’re right. I mean, I talked with the Saudi foreign minister earlier today. They’ve obviously been brought in because of the target for quite some time and have been a great partner with us as we have tried to track down and unravel this very deadly plot. I think that it will certainly confirm the worst fears by the Saudis, but it will also perhaps strengthen their hand in dealing with the region about the threats posed by the Iranians.
Everybody knows that there is no love lost; that’s obvious. But this is such a blatant violation of the international norms that countries which have tried to hedge to some extent are going to find more pressure on them. We’ve spoken for some time about increasing our security cooperation not just with individual states in the Gulf but between and among them, which I think this will probably hasten. So I think there’s a lot of moving parts.
Now, you’ve probably noticed in the last week, even before this plot was revealed, Iran really vociferously attacking Turkey. Attacking Turkey because of the NATO missile radar that Turkey agreed with us to position to protect NATO from missile attacks. Attacking Turkey for advocating secular states that recognized and appreciated Islam but were more in line with what Turkey has achieved over the last many years. Really a full frontal assault on Turkey.
And I thought it was incredibly important because Turkey has tried to be a good neighbor. They share a long border, they’ve tried to get along with the Iranians, and what everyone is learning is that nobody is safe from the Iranians. They have their own logic, their own way of thinking about the world and their place in it. And they’re vying with everybody for influence. They’re vying with the Saudis, they’re vying with the Turks, they’re just in a constant state of agitation about their position. And this case will, I think, reinforce the well-grounded suspicions of many countries about what they’re up to.
QUESTION: Do you think it’s going to make it easier for you whenever you should seek additional UN Security Council sanctions against Iran because of its nuclear program? Do you think this is going to make it easier? Does that accelerate the timetable?
SECRETARY CLINTON: I don’t know, because I think that the likelihood of our seeking additional sanctions – I mean, they’re pretty well sanctioned. I mean, we’re now going after individuals, we’re going after entities. We’ve got a few more arrows in our quiver, but they’re pretty well sanctioned. But will it give us extra arguments when we go to a country and we said we told you these were bad guys, so don’t let that shipment go through like you have turned blind eyes to before. Enforcing the sanctions, I think, becomes more likely because of this.
QUESTION: Who are you thinking of? I mean, Turkey was the first country that I thought of in terms of hedging.
QUESTION: Malaysia’s been a problem in terms of (inaudible).
SECRETARY CLINTON: A number of countries, Warren, they’ve been cooperative, and I think we surprised Iran and the world at how effectively we’ve enforced these sanctions, because one of the things that I said after we got them through the UN was, okay, fine, we got them through, but now we need a designated group that will go after the Iranians every single day, will track down every single lead we have no matter where it goes about financing, shipment, whatever. So I think we’ve done a better job than people expected, but I want to do even more – close every loophole, make every country go the extra mile to enforce these sanctions. And I think this helps us on that.
QUESTION: Let me turn to the Israeli-Palestinian issue. Toria today told us that the Department is very hopeful that the Israelis and the Palestinians will agree to this preliminary meeting in Jordan on the 23rd.
MS. NULAND: Did I say very hopeful? I don’t think I said very hopeful.
QUESTION: Indeed. Two tape recorders and a transcript. (Laughter.) Why are you very hopeful?
SECRETARY CLINTON: Well –
QUESTION: (Inaudible) signals or –
SECRETARY CLINTON: – let me put it in context. When we got the Quartet statement finalized at the UN, one of the most important reasons why I wanted to get it out is because of the suggested timetable. Now, some people say, well, so what does that mean? Well, already we’ve had the meeting of the Quartet envoys over the weekend. We have a really intensive effort going on by nearly anybody you can imagine on both the Israelis and the Palestinians to get them back into negotiations. And we had said, coming out of the Quartet meeting, that we hope to have a meeting, or we hope to have a preparatory meeting between the parties by the end of this month. Some have said one date, some have said other dates, but the important thing is that the meeting happened, because part of the problem with the schedule was that we had some – we lost a number of days to the Jewish holidays, which – you couldn’t deal with the Israeli Government because, for obvious reasons, they were not available.
So I think that we are hopeful. We are always hopeful, Arshad. Hope springs eternal. It must, for any of us who deal with the Middle East. Otherwise, it’s too depressing to contemplate. So what I see happening is the Israelis have accepted without preconditions a return to negotiations. The Palestinians, as you know well, are reluctant because of the settlement freeze issue. But there are many people now who are interacting with and talking to the Palestinians who are making what I think is the right case, which is, look, you’ve lodged your letter of request for consideration at the Security Council. It’s not going anywhere for the foreseeable future. And even if it were, you’re not going to get a state through the UN. It’s not going to happen. So you’ve done what you needed to do to signal your seriousness of purpose. Now get back into negotiations where you can actually start talking about borders. What’s the best way to end the dispute about settlements? Start talking about borders. You know as well as we, some areas that the Israelis have built in are going to be in a new Israel and some areas are not. The sooner you start really negotiating over what’s in and what’s out, the better off you will be.
So that argument is now being made intensely by people other than us. I mean, one of my goals with the Quartet statement was to get international buy-in to get everybody back to negotiations. Nobody standing on the sidelines crossing their arms and saying one thing to one party and another thing to another party, which is just human nature, but to get everybody on the same page. The spotlight that is being put on these negotiations has a lot of additional actors under it, which I think is all to the good.
So, for example, last night I spoke to President Santos of Colombia. President Abbas is in Colombia. President Santos is going to see him. President Santos knows that part of the reason President Abbas is coming to see him is Colombia’s on the Security Council. Colombia has said they’re not going to support statehood in the Security Council, but they would strongly support and stand up for the Palestinians’ right to have a full, open negotiation. So President Santos wanted to convey that that’s what he was going to tell President Abbas.
So now, this is not – I’m not saying that there’s going to be some immediate positive response, but hearing this from so many different places really makes a difference. So I’m hoping that by the end of the month we will see a meeting between them.
QUESTION: Can I ask you two really short ones on this topic? Have you figured out – have the lawyers made a determination yet on whether you’re going to have to cut off funding to UNESCO if they, as it seems likely, accept the Palestinians as a member? And then secondly, what do you – do you think you’re going to be able to maintain the flow of American economic assistance to the PA, given the stance taken by — generally Granger? I mean, it just seems like, on the Hill, you really have a very hard case to make.
SECRETARY CLINTON: Well, you’re right, we do. And with respect to the first question about UNESCO, we are legally prohibited from continuing to fund organizations that accept the Palestinians as members or observers or in any way participants in the organization in a formal respect. We have made that clear to UNESCO. They know that our funding, which constitutes 22 percent of UNESCO’s funding, is in jeopardy. And it’s regrettable. I wish that it were not happening. I don’t really understand exactly why there’s a big push on in these ancillary organizations when the UN hasn’t acted, but there’s obviously pent-up desire to do something, and it’s being done.
Now, there are those on the Hill and elsewhere who say, well, UNESCO deals with cultural stuff; what’s the difference? Well, I think there are some significant problems if this begins to cascade. What happens with the International Atomic Energy Agency? What happens with the World Health Organization? What happens with the Food and Agriculture Organization? Not only do we provide 20 to 25 percent of all the funding that these organizations get, but our membership in them is in our self interest. I mean, it’s not anything to do with supporting the Palestinians or supporting the Israelis; it’s supporting the health of Americans, stopping pandemics, getting food into the Horn of Africa, holding Iran’s nuclear program accountable. So I am strongly making the case to Members of Congress that at some point we need some flexibility because pretty soon, if we don’t pay into these organizations, we lose our right to participate and influence their actions. So this is a difficult problem.
Now, with respect to the Palestinian Authority, so far, we and the Israelis have made the case that continuing to fund the Palestinians, particularly during this period of uncertainty around their statehood and the state of negotiations, makes sense. A couple of weeks ago, you might remember I was able to get freed up the remaining $50 million from the – it was the last tranche of funding. And I made the case to the Palestinians, to the Israelis, to the Congress, to everybody that this was in everyone’s interest. Certainly it was in the Palestinians’, but it was also in Israel’s interest to make sure that the Palestinians could keep their state running, pay their public officials, their security forces, et cetera. We have other funding that is up on the Hill that is being discussed right now, some of which goes directly to the security forces, and I strongly am advocating that that money be released. Now, the Israelis have been releasing the funds that they collect for the Palestinians. So they also see this as something in their interest. So again, we’re kind of taking it on a case-by-case basis.
QUESTION: I’m sorry. We’ve got to keep on jumping.
SECRETARY CLINTON: That’s okay.
QUESTION: There’s so much we now have to talk to you about. Just next door, quickly, on Egypt, obviously, events over the weekend were very disturbing and –
SECRETARY CLINTON: Right.
QUESTION: – we saw the statements out of this building and also out of the White House condemning the clashes. But I’d be curious to know if you get a sense now about the Egyptian military leadership; are they beginning to lose control? You have the Israeli Embassy situation, you have their handling of this problem. Do you get a sense that things are getting out of hand for them and want to bring it back into line if we want to go forward with this plan for elections?
SECRETARY CLINTON: Well, here’s how I see it. I spoke with the foreign minister, Foreign Minister Amr, earlier today, and I asked him what was happening. And he’s been a very reliable interlocutor for me. I got him up and out at, like, 2 o’clock in the morning when the mob was attacking the Israeli Embassy. And he’s been very straightforward. He said, “Look, we are investigating it. We really don’t know what happened exactly.” And I said, “Well, I hope it’s going to be a thorough investigation, but in any event, you have to do more to protect all the people of Egypt, most particularly minorities – ” although the Copts are a pretty big minority, what, I guess 10 million or so – “and they have to be – they have to – the right to assemble peacefully needs to be protected, their right to worship needs to be protected, the two piece of legislation you have on – pending on building mosques and churches, ending discrimination against Copts, I mean, that would send a real positive signal I hope you’ll consider.”
And the problem is that the police force was disbanded, as you know. And the army doesn’t want to be a police force, so it’s always trying to balance what it’s supposed to be doing and what it’s not supposed to be doing, and they just have to figure out how to create a police force again that will restore law and order while protecting people’s rights. And that’s a big piece of business. So they are working on it, but it’s new territory for them.
So they are proceeding with the schedule that they have set out. We are strongly supporting that they do so. But it’s a fragile situation. I mean, it’s not at all clear to me how they balance all of these conflicting considerations, but we’re doing the best we can. Our Ambassador is very active. We’re all reaching out. We’re trying to send support, messages that kind of help them move through this. But it’s going to be a complicated process for the foreseeable future.
QUESTION: Well, one just quick follow-up, and then we’ll (inaudible). When you met the Egyptian foreign minister here a couple weeks ago, I mean, (inaudible) – I mean, emergency law –
SECRETARY CLINTON: Right.
QUESTION: – and that still seems to be a hang-up.
SECRETARY CLINTON: Right.
QUESTION: Does that concern you, I mean, that this seems to be a key demand that they’re just not willing to move on?
SECRETARY CLINTON: Yeah, it does concern me, and I’ve made that very clear to them. But I mean, look – and this is not in any way to make any rationalization – but I just try to think through in my own head, everybody in a position of authority in the military came up with the emergency law. They don’t have a police force, and they’re trying to figure out how to keep just everyday criminals off the street, because it’s not just these terrible instances like we saw over the weekend, but they don’t have law and order. They don’t have control over a lot of their neighborhoods and cities. They have a real problem. So they’re trying to figure out how to do that. But in effect, they’re kind of being asked to do something which nobody has ever done before. And so the emergency law, which they were going to take off, they then decided not to take off yet because they don’t know how to do this.
QUESTION: Go about it, yeah.
SECRETARY CLINTON: Go about it. So we keep saying, “You’ve got to do several things all at once. You got to move on the reconstitution of the police force, but they have to be trained so that they respect people’s rights. You’ve got to get the emergency law lifted, but you got to pass other laws so that you’re able to do it in an appropriate way.” Lots of moving pieces here.
QUESTION: You want to go to Iraq?
QUESTION: Yeah. Maybe just another quick one since we’re going to have to sort of – on the question of Iraq, Reuters had an exclusive interview, we can say, on Sunday with al-Maliki in which he was talking about the possibility of U.S. trainers staying in Iraq beyond the 2011 drawdown. And he was mentioning that this could happen, he could see it, that they could stay without an explicit grant of immunity from the Iraqi parliament, but somehow they’d be attached to NATO or the existing U.S. mission there, and that would be sufficient.
Is that an idea that would fly here, do you think? Or do you think that we – they’d still need – if this were to happen, you would still need to have a parliamentary bill pass that would grant them a specific immunity?
SECRETARY CLINTON: Well, this is something that we’re very focused on because we are meeting the terms of the agreement negotiated by the Bush Administration for our troops to leave. President Obama is very committed to that. We obviously have been willing to hear from the Iraqis what they might need, what kind of missions they would want our help from.
But we’ve made it clear from the beginning that we can’t leave any military forces in Iraq or even rotating through Iraq without protection for them. And if we can’t get a SOFA that is endorsed by the core, we would have to be absolutely convinced – and this is more of a DOD question – that what was being discussed would have the same effect. And this is something that – our Ambassador, our commander on the ground are in intense negotiations with the Maliki government, but – we’ll wait and see how that develops, but we’re leaving. If they want us to stay, we have relationships with many countries in the region – Kuwait, Qatar, Bahrain, Saudi Arabia, UAE. So certainly we would entertain it, but we would have to get the same kinds of protections that we get elsewhere.
QUESTION: I’d like to switch gears a little bit. Secretary Clinton, we are entering a U.S. election year, and we’re hearing voters voicing concerns about an apparent decline in the U.S. influence in the world. And we see as the U.S. struggles with a weak economy, there’s defense cuts, foreign assistance cuts, that there are nations stepping forward, like China, and people out in the heartland see that. I wanted to know, are you concerned that if present trends continue, the U.S. could lose some of its preeminence in global politics and economics, and what could be done to forestall that?
SECRETARY CLINTON: Well, that’s exactly why I’m giving these two speeches this week, because I hear the same things, I read it in what you all write, and it concerns me because I don’t think it squares with the reality that I see. I think America’s leadership is not only still paramount, but it is desired and respected everywhere in the world, and that people may choose to criticize us, but when times get tough, they expect us to kind of step forward and solve problems and manage difficult situations. And I think Americans, understandably because of our own economic pressures and very difficult problems for so many Americans when it comes to jobs and income and security and their homes and all of the terrible dilemmas that people are facing across our country, are very focused on that because, first and foremost, how do you put food on the table, send your kids to school, save for your retirement, all the things that everybody has to answer. But I do believe that our leadership is critical to our economic revival and to our security and safety in the world. So it’s something that I’m going to try to explain and connect to what people are going through right now.
If you, for example, look at China, which has developed economically, they’re still, by any standard, a poor country. And yes, there are great pockets of wealth and success, but that isn’t reflected in the overall standard of living, and our national wealth is so much greater, many times over, than China’s. So let’s put this into some perspective about what’s actually real and what is feared or a source of anxiety. Yet that doesn’t mean that we can just slap ourselves on the back and say, “Aren’t we the greatest?” and not do anything to maintain our leadership. I mean, leadership has to be earned. It has to be earned over and over again.
I mean, as an aside, it’s one of the reasons why I went to Asia first on my first trip and why I’ve just had published this long article in Foreign Policy, because it appeared to Asians – both our allies, like Japan and the Philippines or Australia and others – that we were ceding the Asia Pacific region because we were so preoccupied in the Middle East and Iraq and Afghanistan and Pakistan. And I wanted to send a very clear signal, no, we are a global power. We are an Atlantic power and a Pacific power, and we are a power to be reckoned with in the Asia Pacific. And you almost could see countries in the region going, oh, okay, yeah, okay. So when we say, “Hey, come on. We have to keep the South China Sea open and free for navigation and maritime activities,” everybody else is going, “Yeah, that’s right. We do.”
And so we are –we stand up for international norms, we stand up for universal human rights, we stand up for a free and open economic system, and we are the guarantor, in many respects, of all of those critically important global values. So I want to make that case, and I’m going to make that case in these two speeches, and I hope that people will understand that while we have to fix our problems at home, we cannot abdicate our leadership without it eventually boomeranging on us.
QUESTION: While we’re in Asia and talking about Asian power politics, obviously, that brings us to China, and there is the Senate version of the currency bill that’s likely to pass today. Is that something that you think the Administration would veto because it’s so potentially destabilizing to U.S.-China relations? And looking ahead, in your contacts with the Chinese and ahead of President Obama’s meeting with President Hu, how is – how are you going to convey to the Chinese the real sense of frustration, particularly in Congress, over this issue and that this isn’t something that can just be kicked down the road sort of for a –
SECRETARY CLINTON: Well, we have certainly conveyed that. We’ve conveyed it in a very clear, unequivocal manner to our Chinese counterparts. I don’t know whether this bill that, in the form that is passing the Senate, will ever end up as a piece of legislation coming from the Congress. I’m not going to speculate on that. But it does reflect a great deal of frustration on the part of the American people. And there are many reasons for that frustration, and I have already outlined some. I will be speaking to more on Friday in the – before the New York Economic Club. We believe in free and open economic structures. We believe that there ought to be reciprocity, not on a case-by-case basis but as a universal principle. And there is a lot of concern on the part of Americans and American businesses that we don’t see that coming from our counterparts in China.
So everybody needs to take a hard look at how we rebalance the economy, and the Chinese have more to do to stimulate internal demand, not to be artificially inflating their exports by depreciating their currency, and all anybody’s asking for is a fair field for competition. And if we can’t win on a fair field, that’s fine. But when you’re fighting with two hands tied behind your back because of all kinds of advantages for state-owned enterprises, for currency pegging, for not protecting intellectual property rights, I mean, there’s a long list of concerns that Americans have brought to me and that I have shared with the Chinese.
So we don’t want to spark any kind of retaliatory trade war that will disadvantage the global economy, the U.S. economy. We want to move toward a framework of rules that will be followed by everybody. And artificially deflating your currency is not a rule that is really in the best interest of the global economic system.
PARTICIPANT: No more questions? (Laughter.)
QUESTION: We’re trying to decide which ones (inaudible).
SECRETARY CLINTON: I’m just admiring these books that you two have.
QUESTION: I can get you one.
SECRETARY CLINTON: Oh, my gosh. Those are good looking. Really? They are nice. Wow.
QUESTION: They are nice.
SECRETARY CLINTON: And you’ve got a different kind.
QUESTION: Do I have a different kind?
SECRETARY CLINTON: I mean, you can –
QUESTION: She’s got the big boss kind. I’ve got the –
QUESTION: I’ve got the Reuters stamp at the top.
SECRETARY CLINTON: Oh, fancy dance. Okay.
QUESTION: Madam Secretary, I have a number of questions on, I guess, what you’d call the counterterrorism file. You and the Administration have labeled the Haqqani Network or fingered them as being behind a number of plots, including the plot to attack the U.S. – your Embassy in Kabul. Yet at the same time, officials over the years – U.S. officials have met with members of the Haqqani Network, representatives, and if the report’s correct, quite recently. And I’m wondering, do you see at least elements of the Haqqani Network as reconcilable? And as a follow-up, is that debate sort of part of the whole debate of whether or not to list them as an FTO, a foreign terrorist organization?
SECRETARY CLINTON: Warren, we have laid out what we view as the guidelines for reconciliation with those who are fighting in Afghanistan. And we’ve made it clear that it has to be Afghan-led and Afghan-owned. And after the Rabbani assassination, there was certainly a great deal of anguish in the Afghan Government and people about whether it was worth pursuing any kind of reconciliation or peace negotiations with any of these groups. But having thought about it for a while, the Afghans have said, “Look, we have to continue to try to find a way to resolve the ongoing conflict.” And we support that, and we want to work with them.
Now, it is also true that we’re still trying to kill and capture and neutralize them, and they’re still trying to kill as many Americans, Afghans, and coalition members as they possibly can. So as in many instances where there is an ongoing conflict, you’re fighting and looking to talk, and then eventually maybe you’re fighting and talking, and then maybe you’ve got a ceasefire, and then maybe you’re just talking. But where we are right now is that we view the Haqqanis and other of their ilk as being adversaries and being very dangerous to Americans, Afghans, and coalition members inside Afghanistan. But we’re not shutting the door on trying to determine whether there is some path forward. It’s too soon to tell whether any of these groups or any individuals within them are serious. I mean, the Afghans don’t know that. They were very shocked by the Rabbani assassination. In fact, President Karzai urged Rabbani to meet with this guy, thought he was a bona fide representative of the Taliban. But there’s – it’s always difficult in this stage of a conflict, as you think through what is the resolution you’re seeking and how do you best obtain it, to really know where you’ll be in two months, four months, six months. But we’re going to support the Afghans and they want to continue to see whether there’s any way forward or whether you can see some of the groups or their leaders willing to break with others. We don’t know that either, so that’s kind of the state of play.
QUESTION: Stranger things have happened, I guess, in terms of –
SECRETARY CLINTON: Stranger things have happened, exactly. And the old saying, “You don’t make peace with your friends,” these people have a long history of real antipathy toward each other; strangely enough, not so much for us. It’s like you go to Vietnam now, it’s like was never about you – (laughter) – yeah, I mean, tens of thousands of deaths later.
It really is – I mean, I know it sounds odd to say and it kind of goes to the question about American leadership, but I cannot tell you how many people say things to me like, “Well, we don’t always agree with what the Americans do, but we don’t think you have ill motives or ill intent. We think sometimes you don’t do the right thing.” And it’s funny because there’s that overarching impression that we’re not out to build an empire, we’re not out to take over these countries, we’re not out to enslave them, we’re not out to do X, Y, and Z to them. So I think we’ll find out as we move forward here whether the Afghans themselves can reach a resolution between them, and we’ve made it clear that we’re going to support that.
QUESTION: And a real quick one on Awlaki?
SECRETARY CLINTON: Uh-huh.
QUESTION: I don’t want to – we could spend all afternoon debating the legalities and so forth of his killing, but what I wanted to ask you was whether there’s been any diplomatic blowback, whether you’ve gotten any angry or concerned calls from foreign ministers, letters from the European Human Rights Council, any of that?
SECRETARY CLINTON: Not that’s been brought to my attention.
QUESTION: I’m sure it would have been.
SECRETARY CLINTON: Yeah, I think so. I don’t know. Mike, have you seen anything?
QUESTION: (Inaudible) the U.S. press, I would say.
SECRETARY CLINTON: Yeah, yeah. No, not at all.
QUESTION: All right.
QUESTION: Do you want to ask about –
QUESTION: We’re going to get in trouble if we don’t ask about Myanmar.
QUESTION: Well, let’s ask about Keystone too, so –
QUESTION: Okay. So, Keystone XL pipeline. So given the environmental impact report in August that Keystone XL would not do significant damage to the environment, are you leaning toward approval of the pipeline? And when do you expect to make a decision?
SECRETARY CLINTON: Well, I’m not leaning any way, I’m – because I don’t have any recommendation at all from the professionals and experts who have carried out the requirements that we’re mandated to follow. So I’m not going to comment. I’m going to wait and see what recommendation comes forth.
QUESTION: So you have until the end of the year?
SECRETARY CLINTON: We have said we’d like to make a decision by the end of the year, yeah. If you look at it, I mean, it has certainly engendered strong emotions, both for and against. People are very, very intent upon expressing their opinion, and we have heard from thousands of people by this point expressing diametrically opposed opinions, but that’s all part of the process. We solicited that. We had six public meetings in order to try to make sure that people had a chance to be heard in addition to every other way we’ve tried to reach out. And at the end of the day, we’ll make a recommendation.
QUESTION: Can I ask you one about Burma? I mean, as you know, there are these reports that the authorities are on the verge of releasing a bunch of prisoners. I’m well aware that they do this periodically and that it’s unclear how many political prisoners will actually be in any group that they may release, but the question I have is: What is it going to take from the regime for the Administration to consider, if not removing sanctions, but sort of smaller steps? And there are things you could do. You could seek waivers, for example, that would allow assistance for things like training midwives. I mean, there are sort of useful things that you could do, (inaudible) –
SECRETARY CLINTON: That’s a good idea, training midwives. Write that down. I like that, Arshad. I’m big on training midwives.
QUESTION: Yeah. I think you’re – somewhere, somebody is actually (inaudible) about that.
SECRETARY CLINTON: I tried to convince the Bush Administration to train midwives in Afghanistan, so –
QUESTION: Yeah, it’s a hard sell. Anyway, here’s – so are you thinking about smaller steps that you could do? And what’s it going to take for you to take some of those steps?
SECRETARY CLINTON: Well, first, let me say we’re encouraged by the steps we see the government taking. As you know, we have the first-ever appointed Special Representative to Burma, Ambassador Derek Mitchell. He made a fact-finding trip there just last month and came back with a very comprehensive report of what he had heard from meeting across the political spectrum. We’ve had a very active diplomatic effort underway led by Kurt Campbell for several years now to try to encourage the democratic process there. And we’re going to take it – we’re going to take them at their word, but we want to see actions. And if they are going to release political prisoners, that would be a very positive sign.
So I think it’s a little premature for us to announce what we might or might not do, but I will say we’re encouraged by what we believe to be their efforts to try to do some internal reforms, continue the dialogue with Aung San Suu Kyi, listen to the voice of their own people as they recently did regarding the dam. So there are some promising signals.
QUESTION: Do you think that they’ve made a strategic decision or do you think these are just sort of tactical moves?
SECRETARY CLINTON: I don’t know the answer to that, but that’s why we want to watch and evaluate what they actually do.
QUESTION: I’ve got to ask you about North Korea. We’re – it’s almost two years since Ambassador Bosworth’s trip to Pyongyang. The North Koreans, as far as I can tell, have shown no interest in meeting the American preconditions – freezing Yongbyon, letting international or some inspectors back in.
So, two questions: Do you see any signs that the North Korean – that I’m missing that the North Koreans might be willing to do some of the things that the Administration has been very clear it wants them to do before resuming denuclearization talks? If you don’t, are you open to, are you considering, the possibility of entering into a more serious dialogue with them even absent – or continuing a dialogue with them since you’ve already had a couple – some meetings – absent those preconditions?
SECRETARY CLINTON: Well, as you know, we have the Korean state visit starting tomorrow and Thursday and Friday. And we have been closely consulting with and coordinating with the South Koreans to an unprecedented degree. I think that the relationship is very strong. And we will remain quite committed to moving forward together. So we will be, during this visit, discussing what next steps might occur. We have been willing to remain engaged with the North Koreans on a range of issues that they are following up on.
But again, I may know more in the next few weeks about what is possible, but it’s very important that we stay closely allied with the South Koreans, because it is not just about us and the North Koreans; it’s very much about our treaty ally, the South, and therefore, we want to be sure that we are working on the – as we have been, working on the same process moving forward.
QUESTION: From the way I see it, the South is more open to dialogue. I mean, there’s been a series of –
SECRETARY CLINTON: Well, but there’s been – but they have also asked some hard questions, explored some options. And I don’t want to jump the gun, I don’t want to preempt what they are willing to do, but I think we are in a very strong position to consider what our next steps – if any – what our next steps might be.
QUESTION: And do you think Bosworth is likely to go, or to have a meeting later this month with the North, or is that something –
SECRETARY CLINTON: Well, that’s something that, if that is confirmed, we will certainly announce.
QUESTION: So anything else? Are we –
QUESTION: Can I ask one personal question?
SECRETARY CLINTON: Yeah, I think this may be the last one.
QUESTION: So you’ve said that you’ll be a one-term Secretary of State, and 15 months doesn’t sound – for someone who’s in their job five and a half weeks –
SECRETARY CLINTON: (Laughter.)
QUESTION: – 15 months doesn’t sound like a whole heck of a lot of time. What would – what are going to be your priorities between now and January 2013? And what have you not accomplished that you’d really like to?
SECRETARY CLINTON: Well, this could really be part of an exit interview which we should do in January 2013, but –
QUESTION: We accept. (Laughter.)
SECRETARY CLINTON: Yes. But I am assuming and believe that President Obama is going to be reelected, and therefore, a lot of what I’m doing now will continue into the next term. And it’s both the headlines that we’ve been talking about – Afghanistan, Pakistan, Iraq, the Middle East, China, the economy, et cetera – it’s all through the trend lines; I mean, our continuing work on everything from nonproliferation to women’s empowerment, which we see as a key national security goal, to ensuring that we have a safe and secure energy supply.
And that’s why out of the process that I initiated, the Quadrennial Diplomacy and Development Review, the so-called QDDR, we set forth a number of priorities that we wanted to pursue. And we’re steadily achieving them. So we’re standing up our energy bureau, and to me, that’s a major step forward in how we think of ourselves here in the State Department. We are rationalizing and streamlining procedures between State Department and USAID so that we have a – we save money, we save taxpayer dollars, but we deliver more for what we spend. We are engaged in a very challenging budget discussion with the Congress, which will, to some extent, determine where our priorities are in what we do.
We are responding to the Arab Spring. We have a designated team led by Ambassador Bill Taylor to push the economic and political reform agenda across the region while we, of course, deal on a national basis with our embassies. We are looking at strengthening our strategic dialogues with key countries like Brazil, like Colombia, like Mexico, like Nigeria, South Africa, each of whom has specific benefits. We’re investing a lot of time in Nigeria. That’s not going to get in the headlines unless something really bad happens. A major oil provider of ours; we worked closely with them so that they would have free, fair elections, so that they had a leadership that had legitimacy; now we’re supporting what they’re trying to do. We obviously are deeply engaged in India and continuing to build that relationship. The reset in Russia; I mean, there’s just – there’s so much that we are working on.
And I don’t know any way that we can say, okay, we’re only going to work on this set of issues and we’re not going to work on that, because the way the world works today, there are so many emerging actors who can influence events in ways that either advantage or disadvantage us nationally, or promote or undermine the values that we stand for. And so we really have to have a broad, comprehensive, global presence at the very time when we’re having the money cut.
And it’s especially difficult given this Arab awakening because we look at the individual countries; they each pose specific challenges. Take Tunisia; they’re really doing a lot of what they need to do right, they’re very anxious to have economic help from us, we’re cobbling together what we can to help them start businesses, have an enterprise fund, inspire entrepreneurship, provide technical assistance on their election. And you multiply that many times over – Libya, Egypt, Jordan, Yemen, the other Gulf countries. So we have to be a lot more creative with the dollars that we have in order to get the impact that we’re seeking.
And I know that in the Congress, there are some who – they think foreign aid is 20 percent of the budget, and so if we just cut it out, we’d be able to balance the budget. And so we’ve been doing a lot of educating with our colleagues on the Hill to make the case: Look, this is a historic moment with so much that is happening. And we’re – we have to be present, whether it’s helping Central America with their security against drug cartels. I mean, hello, today, if people didn’t know why we were worried about that, maybe they do now. We have to be opening markets, creating more investment. There’s just a big agenda out there.
So I see the headlines and the trend lines, and I try to kind of keep an eye on both of them, so –
QUESTION: The budget thing must be somewhat frustrating to you. I mean, you’ve – if nothing else, you have a made a case for foreign assistance over the years –
SECRETARY CLINTON: Thank you.
QUESTION: – and Congress seems to be cutting some of it anyway.
SECRETARY CLINTON: Well, you’re right, Warren. I mean, part of our – part of what we’re trying to do – and I worked very closely with Bob Gates on this for two and a half years – was to make the case that the State Department, USAID were part of national security, that we weren’t some afterthought stuck out over in the corner here. So that implied several courses of action. One was to argue for an overseas contingency account, which the Defense Department always had. They would separate out sort of the war-fighting money from their base budget.
And when we started getting into this budget discussion, I realized that if we didn’t move quickly on that front, it was going to be very difficult because the Congress was basically saying, “Okay, we want you to do what you have to do in Iraq and we want you to do what you have to do in Afghanistan and, oh, yeah, take care of what you need to do in Yemen or Somalia or somewhere else, and we’ll just cut your budget.” And so we made the case, “Look, you treat the Defense Department this way. We’re part of national security; you should give us an OCO account – overseas contingency operations account – for what we do in these conflict zones.”
And you know what? They agreed. So now, we’ve got the money that we have to have to fund what we’re doing, this enormous undertaking in Iraq and elsewhere, which the State Department has never done before, and it’s incredibly challenging. And we are not having a total tradeoff with are we going to keep issuing visas for Chinese business leaders to come to United States, or are we going to be so far behind in our Consular Affairs budget that people are going to have to wait a year or two?
So we’re trying to make the case. The Senate has been quite understanding, and we’re making, I think, some progress in the House. But now, we are in this bucket – national security bucket – with DHS, with DOD. I don’t know – remember who else is in there, maybe VA.
QUESTION: DOE maybe?
SECRETARY CLINTON: Is – I think maybe some of the nuclear stuff is. I think; I don’t know. I don’t remember right now. So yeah, I mean, a lot of people say, “Oh my gosh, there’s so many members who are going to stand up for the Defense Department, so you’re going to be really disadvantaged,” but we just have to keep making the case, so –
SECRETARY CLINTON: Okay. Thank you, thank you, thank you. Always good to see you.
SECRETARY CLINTON: Well, originally when I set this up, I had wanted to do this for a while and I thought the – let me make sure everybody’s got their mikes here – I thought that the fact that I’m giving two speeches this week, one tomorrow at the Center for American Progress on American leadership and to talk about a lot of the sort of durable values and interests that shape our policies today and I think are helping us navigate through and even manage a lot of new and very difficult challenges.
And then on Friday, I’ll be speaking before the New York Economic Club on economic statecraft, how we sort of use what we do here in the State Department to promote economic progress here at home. And it’s an issue that I care deeply about and have been working on for the last two and a half years, but it seems particularly timely because of the Jobs Council – the event we had last week – but also because of the great anxiety in our country about our economic prospects, and to try to once again give Americans reasons to understand why we have to be focused outward, why we have to look at ways we can promote business – which is something we do a lot of in the State Department and that I do a lot personally. So we’re really trying to go into an arena in a very public way that we’ve been in for a long time, but where Americans themselves are thinking today.
And of course, this is to some extent related to the budget challenges that we’re having on the Hill, because there are a lot of people who don’t really understand what the State Department does or what USAID does and why it’s important not only for our peace and security, but also for our prosperity and opportunity in this very difficult global economic environment.
So those are two pieces of business that I feel strongly about, kind of laying down and making sure our part of the debate going forward within the Congress, obviously, the press and the public.
And I’m sure you’ve seen some of the news that we’ve had in the last few minutes.
SECRETARY CLINTON: Yes. (Laughter.)
QUESTION: I know that Donna wants to talk to you about the budget a little bit. Can we just start with that breaking news? Because that’s the reason I’m not wearing a tie right now and – (laughter) –
SECRETARY CLINTON: Yes. Oh, is that the reason Matt? (Laughter.)
QUESTION: We’ll talk to you about that afterward. (Laughter.)
QUESTION: And that is – presumably you are up to speed, you’re aware of this?
SECRETARY CLINTON: Yes, aware –
QUESTION: And I know that it’s a Justice Department thing and that –
SECRETARY CLINTON: It is.
QUESTION: But what does it say about – I mean, about Iran and any attempt to try and get them to be reasonable?
SECRETARY CLINTON: Well, first let me start with what it says about our whole-of-government efforts. I mean, this was a really important achievement by our law enforcement and our intel community to disrupt this plot. And you’ll be able to get the – you all were up here, but the news conference that the Attorney General and the FBI director and the U.S. Attorney from the Southern District and the Assistant AG for National Security just finished giving made it very clear that this was conceived by and directed by elements within the Iranian Government. The complaint has more detail than that. It’s something that we’ve been aware of and working on, led by the Justice Department and the FBI and the DEA.
So I think that the fact that the plot was disrupted and that, thankfully, the worst consequences that might have resulted from this kind of state-sponsored act of terror against a diplomat who, under the Convention for the Prevention and Punishment of Crimes Against Internationally Protected Persons, is a breach of international norms, and Iran happens to be a signatory to that convention, I think creates a potential for international reaction that will further isolate Iran, that will raise questions about what they’re up to, not only inside the United States or Mexico, but elsewhere in the world. More details will, of course, come out in the course of the case being processed.
But as you may know, Matt, there are two named defendants, one the holder of American and Iranian passports and one who is in Iran who was involved. And I’m going to let the details kind of be up to the Justice Department because it’s really within their bailiwick. But it will not, I think, surprise you to know that we are actively engaged in a very concerted diplomatic outreach to many capitals, to the UN in New York, to not only explain what happened so that we try to preempt any efforts by Iran to be successful in what will be their denial and their efforts to try to deflect responsibility, but that we also enlist more countries in working together against what is becoming a clearer and clearer threat by Iran within many nations.
This is about us today, but it’s not the only place where Iran is seeking to influence and use elements of its security apparatus, most particularly the Qods Force and departments within the Qods Force, to be an arm of Iranian policy in ways that violate international norms and violate the sovereignty of nations. So we are on a concerted effort to try to make that case and have a lot of voices in the chorus.
QUESTION: Is there an immediate impact to – I don’t know what more you can do to Iran. Is there anything that happens immediately to –
SECRETARY CLINTON: Well, I think the Treasury Department will be, if they haven’t already, be issuing additional designations of some named people which I think you’ll find of interest. We will clearly be speaking with our counterparts in the Gulf, in Europe, and beyond about what actions they might take – additional personal designations of sanctions. I mean, it’s been my experience over the last two and a half years that when we have designated individuals, as we did for systematic human rights abusers inside Iran, that drew a real response.
So I just finished talking to the Saudi foreign minister, and I will, the President will, be making a number of additional calls. I’ve already spoken in the past week with the Mexican foreign minister. So we have a lot of outreach going on, because this really, in the minds of many diplomats, government officials, crosses a line that Iran needs to be held to account for.
QUESTION: Madam Secretary, you said it was –
QUESTION: (Inaudible) in the region? I mean, obviously the U.S.’s Gulf allies and Iran have already been pretty unhappy with each other and there’s been a lot of allegations in the region of Iranian meddling –
SECRETARY CLINTON: Yes, right.
QUESTION: — in Bahrain, in Saudi. Does that give you any – I mean, does this prove that there’s any more proof to those accusations, do you think? Or –
SECRETARY CLINTON: I think that it does strengthen the case that a number of nations have made, but without the solid base of evidence that we have put together on this one. There is a great deal of anxiety about Iran anyway, and we often in our discussions with other nations, particularly in the Gulf, are trying to make sure that they’re not overcharging, because everything that happens is not necessarily caused by Iran.
So what we want is to make it clear that, yes, is there a real threat from the way Iran is behaving, most particularly in its region but clearly now beyond ? The idea that they would attempt to go to a Mexican drug cartel to solicit murder for hire to kill the Saudi ambassador? I mean, that even – nobody can make that up, right? And so that does give a lot of credibility to the concerns, but we also have to be careful – and we’ve tried to be very careful in this instance to – what you’ll see in the complaint is what we know, what we can prove. But now we want to reassure our friends that the complaints against Iran are well-founded, so we have to be careful about how we go after them now and how we make it in common cause with a lot of these other countries, some of whom have not been willing to point the finger at Iran, but now may be.
QUESTION: Is this supposed to go on in (inaudible) talks or is it –
SECRETARY CLINTON: Well, I mean – you know what? I mean, we said just a few weeks ago when Ahmadinejad came to New York and he said, “Look, I’m willing to talk. All I want is my 20 percent enrichment for the Tehran Research Reactor. We had Cathy Ashton on behalf of the P-5+1 basically say, “Look, if you have a real proposal, you know where we are. Come talk to us.” And they haven’t. So, no, I mean, the door is not closed, but there has to be some seriousness of intent before we’re going to walk through that door again.
QUESTION: Is there evidence of – from – well, from this case of Iranian plotting in other countries against others?
SECRETARY CLINTON: Michael, we have had evidence going back a number – well, running back a number of years. I mean –
SECRETARY CLINTON: — we have reason to believe that in many different countries, Iran or proxies of Iran have been active. But we do – that was mostly in other countries. And most of those other countries have not put together criminal cases. They might have kicked out a diplomat or they might have protested to the Iranians. So it was all handled kind of below the radar screen, if you will.
This case, we are pushing into the sunlight with evidence and accusations which we hope will give some support to those who know this is going on in or near them so that they too can be more forthright. Yeah.
QUESTION: But nothing specific in this case that they were hiring these drug cartel guys for this –
SECRETARY CLINTON: No.
QUESTION: — they were hiring them for something else too?
SECRETARY CLINTON: No, but in this case, look at (inaudible) worked for them. Who knows, right? (Laughter.) I mean, that’s what’s so scary about their overaggressive outreach here.
QUESTION: I just want to get to two other kind of – one other issue of the day and then I’ll be quiet and let all my colleagues talk, and that is – one other issue of the day, and Toria talked about this in the briefing, is Egypt and how concerned you are about what appears to be a really significant deterioration of things like sectarian violence. And then the second thing would be the Quartet offering the 23rd (inaudible) exactly 30 days from the last 23rd, what did you – is there any hope that they’re going to accept?
SECRETARY CLINTON: Well, first on Egypt, Matt, I share the concerns that have been expressed about the outbreak of violence and particularly what appeared to be the sectarian nature of it. I’ve spoken with the foreign minister, who has assured me that there is an investigation going on, that they understand very well in the Egyptian Government, as expressed by the prime minister in his remarks last night, that they have to, number one, find out what happened, and number two, take steps to prevent it from happening again.
I also pressed on a couple of laws that they’ve been considering that would give certain rights to the Coptic Christian minority, to be able to build churches, more of an evenhanded approach, ending discrimination against the Copts. These, as I say, are laws that they’ve considered but they haven’t yet passed.
I have to tell you, the foreign minister, with whom I have spoken on numerous occasions, memorably in the middle of the night during the mob attack on the Israeli Embassy, has been very responsive, and I have found him to be very forthright, so that he hasn’t, again, told me what I wanted to hear. He has been very straight with me, and I felt like, again today, he was sort of describing the process that they’re going through. They don’t yet have the information that they are seeking about how this all happened and got out of control.
And I also pressed him on the role that the official state media played in kind of fanning the flames. And it’s our information that the official media was saying things like go out and protect the military and doing things that was not helpful. And he said he was aware of that and they were also addressing it.
So we just have to keep in a constant channel of communication with our counterparts in Egypt because this is all new territory for them. And it’s quick to jump to conclusions about what they really intend, but it’s also, I think, fair to say sometimes they don’t know what is going to happen next because this is something that they didn’t sign up for. And so we have to try to keep our voice in the mix, along with others, about when we talk about a democracy, when we talk about elections, when we talk about building a democratic government, it’s not just holding an election. They’re protecting minorities, independent judiciary, all of the pieces, freedom of press, et cetera. So I did – I told him that we hope that they would get back to protecting peaceful assembly, freedom of worship, the kind of basic rights that make up a democratic society.
With respect to the Middle East, the Quartet has been very active since we came out with the statement. They held a meeting, as you know, in Brussels – I think it was Sunday, over the weekend – as the preparatory meeting that they had promised to do among the Quartet. And then they’re aiming for a preparatory meeting by the end of this month. The exact date, that’s still in negotiation because where, when, how, that’s a detail.
But I personally have been encouraged by the seriousness that the Quartet has brought to this and the responses of the Israelis and the Palestinians. President Abbas, as you know, is on a road tour, so to speak, and has been in a number of countries seeking support for his UN position. But we have made clear that he’s lodged his request in the UN; there is no route whatsoever for a state being formed through the UN; it can only be formed through negotiations. And we are urging him, and now there are many voices in the Quartet and beyond who are urging him. So it’s not just the United States; it’s everybody saying you have to return to negotiations and there has to be a way to work out your demand for a settlement freeze and the Israeli demand for no preconditions if you really want to make progress toward a Palestinian state. So I think everybody’s on the same page, and that’s important, and I’m hoping that we’ll be able to see some movement.
QUESTION: Madam Secretary, just following up on that, there is this month-long deadline that was in the Quartet statement. If negotiations don’t resume then, what do you see happening, particularly since, in the interim, we’ve seen new settlement building by the Israelis and really no sign that there’s going to be any significant progress to settle this? Doesn’t this really feed into the Palestinians saying, well, look, we’ve waited so long and look what happened right after we made this bid?
SECRETARY CLINTON: Well, Edith, I think that the situation has changed from a total paralysis or stagnation between the parties, because you do have the Israelis saying that they’re willing, ready, and able to go into negotiations; you do have President Abbas knowing that he cannot get a state through the United Nations even though he was able to express the aspirations of the Palestinian people by lodging his request at the Security Council.
So I really think that this is hard under any circumstances, as we all know so well. And it always seems, historically, when one is ready to move, the other isn’t. And we’ve been down this road now for 20-plus years. But I actually believe that the spotlight that is now shining on this process has the potential for moving both sides in a way that we haven’t experienced for quite some time, maybe not since the Camp David efforts at the end of the ’90s.
And I am of the opinion that having the Quartet playing this leading role – because remember, everybody on the Quartet had to come together to set this timetable for us. So everybody now has a stake in it, which is one of the reasons we worked so hard to get it nailed down and just sort of made it under the wire at the UN to be able to get it public. Because what happens in most of these situations is one side or the other calls somebody and says you’ve got to listen to me, we can’t really do this, I can’t go forward, I’m not getting what I need, and now there is a common response: Go back to negotiations. We’ve all signed up to that.
And you’re right that the announcement of additional housing was counterproductive, unhelpful. All of the people on the Quartet said that. Certainly, our government said it. But as I’ve told the Palestinians, and as I think the Quartet is now telling the Palestinians, what’s the best way to end settlement development? Negotiate borders. Come up with a process where what is yours is yours, what is theirs is theirs, and then it becomes moot. The Israelis, if they were sitting on this side of the table, would say to you everybody knows Gilo is going to be in whatever we negotiate. Everybody knows that. So what’s the big fuss? It’s not like we’re building in Ramallah; we’re building in Gilo. And there’s a certain logic to that because, in fact, I don’t know any map that doesn’t have Gilo in it. There are other places that are more controversial, but Gilo is pretty much assumed.
So I actually think there’s an enormous amount of energy behind this now. And people who have never been involved at all – like I spoke last evening to President Santos in Colombia. Colombia sits on the Security Council. Colombia has made it clear that they are not going to vote for statehood because they think that it would be disruptive and not lead to a state. But President Abbas is in Colombia, so President Santos is going to speak with him. And so it’s not just the Americans, it’s not just the Europeans. The whole world is saying now is the moment. What better moment could there be? It’s kind of the argument that Olmert made in his op-ed of a few weeks ago. Whatever the reasons were for doing this before, it’s even more imperative now to try to resolve this conflict and have a safe and secure Israel with borders that are recognized by everyone, and have a Palestinian state.
So if you hang around the Middle East peace process, you either hang your head and give up, or you keep looking for any ray of light that you possibly can see. (Laughter.) And I have found every scintilla of light.
QUESTION: Although –
QUESTION: There’s an upside to the UN.
QUESTION: That’s diplomatic (inaudible). (Laughter.)
QUESTION: That very argument, though, that now is the time, it’s not – things are only going to get worse from here, is one that Ariel Sharon made five years ago. And now we’re five years down the road and, arguably, things are worse. I mean, are you worried that this just keeps getting moved along in some sort of weird middle-muddle and it never gets fixed?
SECRETARY CLINTON: Well, Anne, I think that’s a possibility. And who knows? Look, who knows what would’ve happened if Rabin hadn’t been assassinated? Who knows what would’ve happened if Sharon hadn’t had a stroke? I mean, who knows what would’ve happened – it’s like after my husband left office, Arafat calls him up some months later and says I’m ready to take the deal now. I mean, so – (laughter) – there’s always something that is happening which makes it incredibly painful and excruciating to move forward.
But it’s by no means a coincidence that you had a succession of Israeli prime ministers, no matter where they started from, who have all ended in the same place, that we need to do this. You had Netanyahu, who doesn’t – who often it’s not written about this way – who embraced the two-state solution, which had not been something he had done before. And as I remind the Palestinians, Bibi Netanyahu agreed to a 10-month settlement freeze. I dragged you all to Jerusalem and stood on the stage with him and said look, this is a big deal, never been done before. There was never a settlement freeze when Rabin was there, Barak was there, Sharon was there. Ten months, and then for a confluence of events, the Palestinians didn’t come to the negotiating table until the ninth month, one week.
So you’re right that who knows what will happen, but I think it’s the kind of difficult problem that does not get better by ignoring it or trying to put it on a shelf somewhere or taking half measures toward it. So therefore, we have to keep trying. And I think we are building a good, strong case for international support for negotiations. We just have to convince the parties of that.
QUESTION: I want to ask you about another area of things that may not improve by being ignored, and that’s the Taliban and the prospect of a peace process. Do you feel any closer to that goal than when you laid out your terms for it, I believe, in February? I mean, just sort of looking at the landscape, I mean, you’ve got President Karzai saying there’s really no use in talking and the Pakistanis have to do it. You have the assassination of the head of the – the leader of the outreach there, and if reports are to be believed, the stagnation of the U.S.’s own unilateral outreach. Where do you assess U.S. outreach to the Taliban, and how confident are you that that’s a deal you can get done before you leave?
SECRETARY CLINTON: Well, I think if you carefully analyze what President Karzai said – and of course, in the immediate aftermath of the Rabbani assassination, the emotions were intense, and for all the right reasons there was a sense of great loss. I think where we stand right now is that President Karzai understands that there has to be outreach to see whether or not there is an opportunity for a resolution with some parts of the Taliban or with all of the Taliban.
And Ambassador Marc Grossman, who has been working around the clock on this, has been in the region for the last week and believes that the parties understand – meaning Karzai and all of the elements within his government – that as difficult as it is to pursue a peace process and potential agreement with the Taliban, it has to be done.
So we believe that this has to be an Afghan-led, Afghan-owned process, which we support. And therefore, their conclusion after a lot of soul-searching, after deciding that probably the best person to succeed Rabbani was his son, that there will be a continuation of outreach.
Now, there are a lot of moving parts here, and what we have tried to do is to put whatever efforts the Afghans, with our support, with the support of others – because there are a number of countries who have inroads into or contacts from the Taliban that are being pursued – that if you put this into the context of where we are today, we’re going to continue to try to kill, capture, or neutralize as many of their fighters as we possibly can, whether they are Afghan Taliban, Pakistan Taliban, Haqqani Network, whomever they might be. And we are going to press the Pakistanis even harder about being a positive player in this process.
And we are, at the same time, aiming toward two significant meetings – the meeting in Istanbul November 2nd, which is a meeting of the region, including us, to talk about what are the peace dividends, if you will; how can everybody make more money if you quit fighting with each other, to put not too fine a point on it. So we have this program that we’ve developed called the New Silk Road vision, which I unveiled with the Germans and the Afghans in New York, which people are really excited about. Because when you look at sort of South Central Asia, it is remarkably underdeveloped economically because there is so much suspicion between and among them; they don’t trade, they don’t have open borders, Pakistan – you got to go through Pakistan in most instances to get into India, and that’s not moving as quickly as we would hope. So there’s a lot of other elements here that we’re going to be pressing forward on. And of course, in December, we have the 10th anniversary of the Bonn conference.
So there’s a lot going on, a lot of diplomatic activity, a lot of outreach. But the bottom line for us is it has to be Afghan-led and owned. And if the Afghans tomorrow say, “We don’t want anything to do with this, we don’t ever think it can happen,” we can’t act in their stead. We can only act in support of them. It is their country, it’s their future, but I think they have concluded, after being quite shaken by the vicious, duplicitous murder of Rabbani, that they still need to be pursuing these threats.
QUESTION: Do you expect to have a strategic partnership dialogue document concluded and ready to sign at that Bonn conference? What’s the holdup there?
SECRETARY CLINTON: Well, we’re certainly working hard on it. We’ve resolved a lot of the outstanding issues. There are a couple more that we’re still negotiating. We’ve put the lead on it now in Kabul with Ryan Crocker and John Allen. I had a SVTC with them last week and we got updated on the progress. So yeah, I think that that’s our goal. Our goal is to try to get it resolved.
QUESTION: Madam Secretary, you mentioned the budget, and it’s under assault on the Hill –
SECRETARY CLINTON: Right.
QUESTION: — with both Republicans and Democrats –
SECRETARY CLINTON: Right.
QUESTION: — even on the Senate bill. What are you saying to members up there and what is your outreach to members to try to hold the line against deeper cuts? And also, you’re in an odd position now because in everyone’s wisdom up there, they threw you all into this national security pie, so you’re up against the Defense budget.
SECRETARY CLINTON: Right.
QUESTION: So there are a lot of members who don’t want to trim Defense either. So what’s your word to them and who are you reaching out to to make the case?
SECRETARY CLINTON: Well, Donna, we are intensely reaching out to both Houses, both sides of the aisle, on a daily basis. Tom Nides, who is our deputy for management and resources, kind of runs a team of policy and legislative experts here so that we’re constantly assessing where we are and where we’re headed. The idea of having a national security budget was something Bob Gates and I proposed, and I still think it’s the right idea. And I’m fully aware of the much greater presence of the Defense Department on the Hill – (laughter) – and also the very strong allegiance that many members have to every weapons system that ever was proposed. So we are certainly cognizant of the challenges we face.
However, we have strong support in the Congress, particularly in the Senate, which understands what Bob Gates and I have been preaching together for the last couple of years, which is that if you talk to the military in Afghanistan or now coming out of Iraq, there’s just a real division of labor that State Department and USAID cannot be expected to do if we don’t get support.
Now, one of the innovations that I’ve pushed very hard for, which I believe is going to be embraced by the Congress, is the overseas contingency operations. Because as you know so well, for a long time – well, as long as anybody can remember – Defense has put all of their war-fighting costs off their budget so that they were part of what is called the OCO account. And we were competing against ourselves when this – when the new House came in and changes in the Senate and people were looking at how – while they wanted us to keep doing what we’re expected to do in Iraq and what we were doing in Pakistan and Afghanistan, “Oh, by the way, what you’re doing in Yemen and what you’re trying to do in Somalia and what you’re trying to do in Sudan,” et cetera, et cetera. So yeah, “Oh, okay, but that – but we don’t want to give you as much money, so you just keep doing that.” Well, then, okay, so who’s going to process visas, right? And when you go on your CODEL to Paris, who’s going to be there to meet you?
And so we began to make the case that we needed to replicate the Defense Department’s approach, which was an overseas contingency operation so that the funding didn’t go into the base. And I think that the Congress really understood that. So it looks like we will get an OCO account, which will release some of the pressure that we face. But to go back to the economic speech on Friday, I mean, the biggest concern that I hear from everybody from Jeff Immelt to the business guy I run into on the street in New York is “You got to process more visas. I want to do business with a Chinese supplier. He’s been waiting six months to get his interview to get the visa.” Well, we are processing – we have increased the numbers, we are open six days a week, we have more people doing it. The demand is just enormous. And so if we’re going to keep up on the economic side, there are certain functions we have to be able to perform. So that’s just one example.
Similarly, on the foreign aid side, we struggle against this unfortunate perception that 20 percent of the American budget goes to foreign aid. And it’s a burden for us to keep making the case, “No, no, no.” But then I’ll get called by a conservative member of Congress who says, “Why aren’t we doing more in the Horn of Africa? Those people are starving.” And so we have to keep making the case, and we are, and we have a lot of allies. We have religious groups who are our allies on foreign aid. We have the military and the intelligence community much more aware of what we help them do in areas of conflict. So we’ve created a much broader set of advocates.
Having said all that, it’s still going to be hard because people, when it comes down to it, especially if this super committee kicks in, it’s going to be hard for both the Defense Department and State. I’d rather have their problems than my problems, but we’re just going to do the best we can to make the case and to get the resources we need.
QUESTION: Madam Secretary, could I follow up on that? What about the efforts in Congress to defund the United Nations and other international organizations? What’s that going to do to America’s international standing?
SECRETARY CLINTON: Well, as you know, Edith, there’s already laws on the books that predate this Administration that require the end of funding to any international organization that recognizes the Palestinians as a state, gives them observer status, in any way kind of validates their claims. And we’re seeing this played out at UNESCO. I think – I can’t remember exactly, but we provide a healthy percentage of the budget to UNESCO.
SECRETARY CLINTON: How much?
SECRETARY CLINTON: Twenty-two percent. And we have made it very clear it’s not our choice to cut off funding, but we are legally required to cut off funding. And there are those who up on the Hill say, “Well, UNESCO, that’s education, that’s cultural,” but what about the International Atomic Energy Agency or what about the World Health Organization or what about the Food and Agriculture Organization?
You go down the alphabet soup of all of the international organizations and it would be very much against America’s interests. Here we are at the IAEA pushing to find out everything we can find out about Iran or North Korea, and we’re no longer at the table? That is not in our interests. So we are looking for ways to comply, of course, with the law, but perhaps to inject some understanding into it that doesn’t end up undermining America’s interests in these organizations. So that’s where we are right now, and it’s challenging.
QUESTION: And how do you see the fight over aid to the Palestinians (inaudible) out in this funding?
SECRETARY CLINTON: Well, I think that we were successful a few months ago in convincing the Israelis to support my releasing the last tranche of money – I think it was $50 million – to the Palestinian Authority. And we made the case – this was money that had been appropriated in the, I think, 2010 cycle – we made the case that we needed to keep the Palestinian Authority functioning, we need to pay salaries, that it was very much in their interest but also equally if not more in Israel’s interest so that there was not outbreaks of violence, that there wasn’t a collapse of their state structure, that the security forces were paid. And the Israelis have also been continuing to provide the fees that they collect for the Palestinians, the kind of customs revenue fees, so they recognize that.
So we’re taking this on a case-by-case basis. For example, we have money up there now as part of our continuing funding of the training of the security forces. And we’re in discussions with the Hill, with the Palestinians, with the Israelis about wanting to keep that flowing, because if you go back and look at the last several years, when Tahrir Square broke out, Syria breaks out, everything is going on around them, the Palestinian security force has been reliable, stable, a very good partner with the Israelis in trying to keep peace, trying to prevent Hamas infiltration into the West Bank. So we’re making the case.
QUESTION: And you’re asking the Israelis to help make the case with –
SECRETARY CLINTON: We do on a case-by-case basis, yeah.
QUESTION: I need to get a quick one in on Keystone (inaudible). So there are environmentalists –
QUESTION: Time’s up. (Laughter.)
SECRETARY CLINTON: I was waiting for that (inaudible). You’re slow off to start (inaudible).
QUESTION: Too bad. He started talking. (Laughter.)
SECRETARY CLINTON: Yeah, right. Okay.
QUESTION: There’s been a lot of allegations from environmentalists that there’s a conflict of interest, that this TransCanada guy who worked in the campaign has somehow gotten sort of a cozy relationship with the Department then. So the question is, one, I mean, is there – was there a conflict? Do you see any conflict of interest, any problem here? Do you still expect a decision to be made sooner than the end of the year? Will make it yourself? Will you delegate it to someone? How does all that work?
SECRETARY CLINTON: Well, Matt, first, I think that the Department, both here in Washington and in Ottawa, has been very much in listen-and-outreach mode, and they have met with, talked with, received information from a very large group of interested parties – some for, some against, as you know. They recently concluded six public sessions that were held gave a forum for people, and you just can’t – this is a very emotional decision. You have people who feel very strongly on both sides, as has been evident. You have states that are welcoming it, states that are rejecting it, all of whom, I think, are governed by Republicans. Or maybe one isn’t but – (laughter) – it’s quite – this is a very local – this is an issue that raises very local concerns. So I have been just having our team go forward and do what they’re supposed to do, so I have nothing more to say at this time because until a recommendation comes up the chain and – originally, two and a half years ago, this had been delegated to the deputy. This was not something that the Secretary was going to decide. But there is no recommendation, and when there is a recommendation, there’ll be a decision, but it’ll be very much rooted in all the work that has been done. And I think people have tried to be extremely careful and thoughtful, and it’s a process that I am trying to respect until it reaches its conclusion.
QUESTION: But you don’t see any merit to this conflict of interest (inaudible).
SECRETARY CLINTON: No. I mean, I haven’t – I have no reason to believe that.
QUESTION: Can I ask one question about you? You said you’re leaving these lovely rooms at the end of next year, and I know a lot of people will be interested in your plans. Is elective office done?
SECRETARY CLINTON: I have said that before; I will say it again. I really am looking forward to returning to private life. And I’ve told everyone that I assume and believe that the President will be re-elected. I will, obviously, wait until he has a chance to make whatever transition he wants to make, but then I am looking forward to being out of public life, whether it’s high-level appointments like this or elective office. I have no interest in or no plans of any sort to pursue that anymore.
STAFF: From that, I like to say her next appointment is waiting out there.
QUESTION: Bradley –
SECRETARY CLINTON: He wore this good-looking –
QUESTION: I know. (Laughter.)
SECRETARY CLINTON: — ascot thing. I can’t let him go without a question.
QUESTION: I figured that the ascot plus no tie equals a regular tie.
SECRETARY CLINTON: Yeah. I think you’re right. (Laughter.) Okay, so Bradley gets the last question.
QUESTION: Just to go back to the Middle East, we skipped over a couple countries in – near civil war –
SECRETARY CLINTON: Right.
QUESTION: On Syria, you’ve done various piecemeal sanctions, but how do you see this situation being resolved beyond the call that it would be great if Asad stepped down from power and the transition occurs? And how is this going to – how can this be brought about?
And then on Yemen, it’s such a difficult situation because you’re getting some cooperation against al-Qaida on the one hand but the same – some of the same officials who are helping in that way are creating this huge power crisis, which is kind of creating the conditions in which al-Qaida can grow and operate there. So how do you deal with that situation, and what can we look forward to?
SECRETARY CLINTON: Well, first with respect to Syria, I think that what we have been strongly advocating for and what Ambassador Ford has been really putting himself out on a limb for is the right of the Syrian people to demonstrate, to organize, to demand change on their terms. And when this all started, there really wasn’t anything resembling an organized opposition. Now there is. There’s a coalescing opposition. We strongly believe it is their interest to maintain their nonviolent approach to this. We do – we think it’s right because they are not organized or able to even imagine some kind of armed action, and they don’t – they have the moral high ground right now. And one of the techniques of the Asad regime is to try to claim that it’s a armed gang, it’s thugs, it’s terrorists. So we really are focused on keeping the nonviolent aspect of this.
And I think that has done a couple of things. It has certainly attracted a lot of European support, a lot of European sanctions, because people believe that the opposition and the Syrian people deserve that. But it’s also, I think, put China and Russia on the wrong side of history. People have asked me, well, were you upset about the vetoes by China and Russia? And I say, well, first of all, I obviously expected them. But secondly, it’s China and Russia who have to explain what they’re doing about the Arab Spring and what they’re doing about the Syrian people and why they’re continuing in, at least according to available information, supporting a regime that is using weapons that Russia has sold them in the past against their own people.
So I think this is an evolving situation, and it’s not – it cannot be accelerated from the outside. The single message that comes through loudly and clearly from everyone associated with the opposition is they do not want foreign intervention, unlike the Libyans. The Libyans were asking for it. They went to the Arab League, they went to the GCC, they went to the UN. Syrians reject it. They do not want anybody coming in, and I respect that because they’re – they have a lot of work to do internally because there is not yet an acceptance by many groups within Syria that their life would be better without Asad than with Asad. There are a lot of minority groups that are very concerned.
Now, I think the killing by the Syrian authorities of the Kurdish leader seems to have been just a spark to the tinder because that goes right at one of the groups that up until now have been kind of on the sidelines. You didn’t hear a lot from the Kurds, the Druze, the Christians, obviously the Alawites, the business leaders in Damascus, Aleppo. But as this goes on, I really believe there will be more support for change. And I know we get impatient, and you guys have to write all the time so you’re especially impatient, but sometimes you just have to let – you have to let circumstances unfold. And the act that – the steps that Turkey has taken, which have drawn a fierce attack from Iran, I mean, this is all, I think, kind of moving in the right direction.
So how long, when, I cannot predict to you. But first there has to be something more of a Syrian opposition, and that opposition has to be more reassuring to all the constituent groups inside Syria in order for there to be some agreement, consensus reached to go try to bring down the government in whatever way they think they can.
Yemen is an entirely different case. I mean, Yemen – we signed on to the GCC plan because, frankly, the GCC had a better chance of influencing the Yemenis than anybody else, particularly Saleh and his family. I think that it also is a very complex situation inside Yemen. Our ambassador has been terrific in marshalling support, keeping the European and Arabs together in trying to force Saleh to actually leave. But it is also going to take some time. He’s clearly not ready to go, and the demonstrators are not ready to leave, and al-Qaida is trying to take advantage of it. And you have a lot of discontent across the country, pro-, anti-government. So it’s a lot of very complex actors who we are trying to all put in the same frame of saying, look, regardless of where you’re from or who you are, you need a fresh start and you need a new leader, and then you need a fair process for choosing the next leader. And we can help you do all of that, but you’re going to have continuing conflict and cries of – accusations of illegitimacy and the like if – unless you really come to grips with this.
QUESTION: Is this a civil war?
SECRETARY CLINTON: I think it’s a – no, not yet. No, I don’t think so. I don’t think so. I think it’s – I mean, there are certain – people have chosen up sides, but not completely. And that’s why we’re trying to keep everybody focused on what the GCC plan was, because at least is a coherent plan, and there’s a process attached to it, and that’s the way I think we should proceed.
QUESTION: Coherent plan without a coherence.
SECRETARY CLINTON: Well, without a decision by Saleh, who just doesn’t want to leave. (Laughter.) What can I tell you? He doesn’t want to leave. And he is hanging on by –
SECRETARY CLINTON: — whatever he can hang on to. And remember, he’s the only guy who ever unified Yemen. So he is a guy who understands the country as well as anybody else, and he’s trying to play every possible angle on this. But we’ve remained consistent. The GCC – everybody’s remained consistent, but we’ll have to see how it unfolds still.
Well, thank you all.
QUESTION: Thank you.
SECRETARY CLINTON: My pleasure. My pleasure.
Secretary Clinton spoke with Egyptian Foreign Minister Mohamed Kamel Amr this afternoon to convey our deep concern about the violence that occurred over the weekend. She expressed condolences for all those who were killed and injured as a result of the violence.
The Secretary conveyed U.S. support for the Egyptian Cabinet’s decision to launch a transparent and credible investigation into the violence and stressed the importance of the investigation beginning immediately and holding accountable all responsible parties with full due process of law.
Secretary Clinton reiterated the need for the Egyptian government to ensure that the fundamental rights of all Egyptians are respected, including the rights of religious freedom, peaceful assembly, and the end of military trials for civilians, and that efforts be made to address sectarian tensions.
The President is deeply concerned about the violence in Egypt that has led to a tragic loss of life among demonstrators and security forces. The United States expresses our condolences to the families and loved ones of all who were killed or injured, and stands with the Egyptian people in this painful and difficult time. Now is a time for restraint on all sides so that Egyptians can move forward together to forge a strong and united Egypt. As the Egyptian people shape their future, the United States continues to believe that the rights of minorities – including Copts – must be respected, and that all people have the universal rights of peaceful protest and religious freedom. We also note Prime Minister Sharaf’s call for an investigation and appeal to all parties to refrain from violence. These tragic events should not stand in the way of timely elections and a continued transition to democracy that is peaceful, just and inclusive.
QUESTION: Madam Secretary, we’re really pleased to have you here and honored to have you on our show, Al-Hayat Al-Youm, and it’s exciting times in Washington, it’s exciting times even in Cairo.
I’d like to ask you about your assessment – after nearly eight months after Egyptian revolution. How do you in Washington look at what’s happening in Cairo?
SECRETARY CLINTON: Well, thank you very much, Mr. Amer, for having me on this show and giving me a chance to talk with you. And I want to say that from our perspective, we are very impressed and encouraged by what we see happening in Egypt. We know this is a difficult transition period and, in the great span of Egyptian history, one of the most important moments of your history. And I think it’s essential that all of us look at how much has been accomplished in the last eight months and the fact that elections are scheduled, that there is a path forward for this very vibrant, new democratic change is very encouraging and we think it’s on the right track.
QUESTION: You’re talking about the very positive things that’s been taking place, however there are so many among the Egyptian politicians and intellectuals, some fears or concerns about the extension of the military rule. How do you think SCAF is holding up and managing the transition period?
SECRETARY CLINTON: Well, they took on an enormous responsibility that they never expected they would have to shoulder. But the fact that they are moving toward elections, I think, is not only important, but essential. I expect them to fulfill the promises that they have made to the Egyptian people because you cannot have the democratic governance that you are seeking unless you have a fully free, fair, transparent set of elections that then empowers the people who have been elected. But this is what we expect to see happen, and of course, we will express concerns if we don’t see it happening. But there is a schedule we believe needs to be followed.
QUESTION: Speaking of elections, how do you (inaudible) the elections process especially that – as you – of course, you’ve been following – you have new players, the fundamental Islamic political movements. How do you (inaudible)?
SECRETARY CLINTON: I think it’s important that peoples’ voices be given an outlet to participate in the political system. But I also think that there must be a commitment to respecting human rights, to freedom of religion, freedom of speech, to the rights of women, and there has to be an agreed-upon understanding of what it will take for Egypt to go from where you are today to where I would like to see Egypt. I really believe that Egypt’s always been a leader of the Arab world – Egypt can become a world leader. There is a difference. Egypt could, with the right political and economic reforms, become one of the top 20 economies in the world, maybe even eventually one of the top 10.
There is so much that is in the potential, it can be so easily derailed. As you said, somehow not permitting the elections to go forward, military rule continuing, having one election one time that empowers people who have no interest in continuing to modernize the society, rejecting the rights of all Egyptians in favor of one particular point of view – that’s what the Egyptian people have to be careful about. You want an Egypt where people are free to be liberal, fundamentalists, conservative, progressive, whatever their particular views are, but showing respect for the state, for the institutions of the state, and the rights of the people. And that’s what I see you searching for and moving toward.
QUESTION: Will you be ready or prepared to sit in with a government with members of the Muslim Brotherhood as members or other Islamic (inaudible)?
SECRETARY CLINTON: We will be willing to and open to working with a government that has representatives who are committed to non-violence, who are committed to human rights, who are committed to the democracy that I think was hoped for in Tahrir Square, which means that Christians will be respected, women will be respected, people of different views within Islam will be respected. We have said we will work with those who have a real commitment to what an Egyptian democracy should look like.
Now, we don’t expect your democracy to mirror ours – every country is unique historically and culturally – but we do think, from long experience around the world, there are certain pillars to a democracy: free press, free speech, independent judiciary, protection of minority rights, protection of human rights. All that was in the air in Tahrir Square.
So we hope that anyone who runs for election, and certainly anyone who’s elected and joins the parliament, joins the government, will be committed to making Egypt work and be open to all Egyptians no matter who you might be.
QUESTION: You’re looking at things very positively and that’s the same, maybe, atmosphere back in Egypt, with some fears of course.
SECRETARY CLINTON: Yes.
QUESTION: It’s the main feeling there. According to reports released a couple of weeks ago, the congress will be always waiting for your words in a report to assess the kind of U.S. aid that’s been given to Egypt. How do you (inaudible)? Is the U.S. aid, be it civilian or military, really jeopardized in the next – in the future?
SECRETARY CLINTON: I do not believe so. I very much support continuing aid. We have provided aid, both for civilian and military purposes, going back many decades now. And it’s been bipartisan; Republicans and Democrats have supported it. We believe in aid to your military without any conditions, no conditionality. I’ve made that very clear. I was with the foreign minister, Mr. Amr yesterday, and was very clear in saying that the Obama Administration and I personally am against that. I think it’s not appropriate. At the same time, we do have a long experience in understanding what works and what doesn’t work. And I’ll give you an example.
You were asking questions about what happens if certain people are in the government. Well, it’s really going to be up to the Egyptian people as to how they organize themselves for these elections. But I think it’s fair to point out that if there is an organized Islamic party and 40 other parties that divide up all of the votes, then I think one party will have a stronger position.
And I have been speaking with, when I was in Cairo some months ago and since then, young activists from Egypt. Our Embassy has certainly been reaching out. Because going from being demonstrators for freedom to being political actors – that’s not an easy –
SECRETARY CLINTON: — transition. And so we want to help people get themselves organized so that they are able to participate effectively, and again, with the conditions of nonviolence and all the others that I laid out, but no conditionality on our aid.
QUESTION: Yeah. When helping the others, this is something that might fuel some concerns in Egypt about funding NGOs. Why do you really fund NGOs in Egypt?
SECRETARY CLINTON: I think it’s a – it’s something that we have done for many years, and we have learned from long practice that when you have a transition, a democratic transition, many people want to be active in politics. They don’t know how to do it. They don’t know how to register voters, how to form political parties. It’s not part of the experience that has been the daily life of Egyptians.
So we have several organizations that have worked all over the world. We do not take positions. We’re not for or against any party or any individual. It’s more the nuts and bolts; how do you run an election? Because you’ve had elections, but they were not free or fair or transparent, and they didn’t build confidence in the Egyptian people. We want Egypt to have the best election it’s ever had, and so our experience, particularly coming out of the fall of the Berlin Wall, where countries in Eastern and Central Europe came to us and said, “Help us do this,” the democratic transition in – across Africa, where we were helpful – we don’t have any stake in who’s elected. We wait to see who the people choose. But we think our nongovernmental organizations have a lot to contribute. We are more than happy to follow the rules of Egypt, but –
QUESTION: I was just going to ask about that. Because it’s against the law, and there’s so many NGOs that working outside the law and certain regulations.
SECRETARY CLINTON: Right.
QUESTION: So how are you going to do that?
SECRETARY CLINTON: Well, we would like our NGOs to be registered. We would like for them to be under Egyptian law. I will say it’s a little ironic, because President Mubarak didn’t want us to have NGOs that were working with people either, so we think that Egypt is strong enough and resilient enough that appropriate regulation can recognize who the NGOs are that are working for the betterment of Egypt. Because I said to the foreign minister yesterday, “You know we’re there. You know we are saying look, we want to help people know how to run elections. We know that there are groups and countries that are funneling money into Egypt and nobody knows about it. You know what we’re doing, and we’re going to be as transparent with the government as possible.” But I would ask that everybody in Egypt say, “Look, the Americans are here to help us decide who we want to elect. Some people are trying to determine who gets elected.” There’s a big difference.
QUESTION: Okay. I wanted to ask you, you’re speaking right now on – about your reflections in Tahrir Square. When did you really feel that Mubarak has no chance?
SECRETARY CLINTON: I was as surprised as everybody else in the world that this happened as it did. Because I knew something would happen someday, but I didn’t expect it so soon. I had given a speech in Doha just a few weeks before saying that the foundations of these authoritarian regimes in the region were sinking into the sand. And then we saw Tunisia, and we saw Egypt, and then Libya. And we see all of the aspirations of the people coming forth.
But I think we were trying very hard, and our military was communicating directly. I was communicating directly with officials in the Mubarak regime to urge no violence against demonstrators, to urge that people be treated respectfully, that they had a right to demonstrate peacefully. And when you think about it, for as large a country as Egypt, what happened was remarkable, the way that it transitioned so quickly. And I think that we all saw it happening before our eyes, and we were doing our best to try to make sure that there was limited or as little bloodshed as possible and some agreement on a way to go forward that would permit people’s feelings and opinions to finally be heard and then to have a democratic transition and now that’s what we’re seeing.
QUESTION: But what was the – was there a certain point? Because we all remember your first statement when you were thinking – and everybody was thinking at the same time the same thing – is that we do have a stable government (inaudible) in Egypt. And a few days ago, everything just changed.
SECRETARY CLINTON: Right.
QUESTION: When was that point for you?
SECRETARY CLINTON: I think for me it was when I concluded that there wasn’t any way that President Mubarak and the people closest to him could understand what was really happening, and there was no –
QUESTION: They were out of touch.
SECRETARY CLINTON: They were out of touch, and it was becoming clearer and clearer because of the responses. I mean, I had many conversations with many high-level officials, as did others in our government, urging, “You must, first of all, protect people. But secondly, you must change, and you’ve got to recognize that this has to – the new Egypt is being born.” It was just no way to communicate that. And we tried. We sent very direct messages.
QUESTION: I know you’re running on a very tight schedule. I have one more question to go. Everybody was looking to the Obama Administration when – I think you had a problem with high expectations. (Laughter.) How are you going to deal with the Palestinian application to the United Nations, especially that everybody’s maybe really think it will go through the General Assembly?
SECRETARY CLINTON: Well, let me reiterate that President Obama and I very much want to see a Palestinian state, and I have been publicly on record in favor of that since the 1990s. I was the first person associated with the United States Government to do that. And President Obama is also very committed. But we, I think, are realists that no matter what happens or doesn’t happen in the United Nations, unless we can get the Palestinians and the Israelis to negotiate over the boundaries of the state, the security provisions, what happens in Jerusalem, what happens with refugees, water, all of the issues we know so well have to be resolved, we’re going to raise expectations without being able to deliver.
I mean, if the United Nations passes a resolution which says we want to see Palestinians become a state and maybe we upgrade their status or maybe we recognize them, the next day nothing changes in Ramallah, and I want things to change. I want the Palestinians to have their own state; I want them to govern themselves; I want them to continue developing economically to be a real example, to work with Egypt for the betterment of people in the region, and we know that won’t happen.
So what we have said is very straightforward. We want to see both sides back at the table, and we criticize and make absolutely clear we don’t want to see provocative actions. We’ve said that about the recent announcements from the Israeli Government, but we also know that the Palestinians have to be willing to negotiate. And it’s hard for them because they feel like they’ve been at this for a while and nothing has happened. Both sides have their case to be made. Make it at the negotiating table. And that’s what we’re pushing for.
QUESTION: Madam Secretary, we thank you very much for being with us today, for the time you’ve given us. We hope to see you soon in Cairo and have the same chance again.
SECRETARY CLINTON: Thank you. I would look forward to that.
QUESTION: Thank you very much.
SECRETARY CLINTON: Thank you so much. I appreciate it.
SECRETARY CLINTON: Good afternoon, everyone. It is a great pleasure to welcome the foreign minister here to the State Department for our first official bilateral meeting. We’ve spoken on the phone several times during these last few months, we’ve seen each other at large multilateral meetings, but there is no substitute for a face-to-face meeting. So I am very pleased we had the opportunity to discuss a range of issues, and I expressed our very strong support for Egypt’s ongoing democratic transition.
It is clear that Egypt’s leadership in the Arab world and in the region and beyond is key to regional progress. And I was very pleased that Egypt has recognized the Transitional National Council in Libya. I think there is a lot of opportunity for cross-border cooperation. I was also very pleased that the minister has reiterated Egypt’s support for the Camp David Accords, which is essential for stability and, of course, essential for Egypt’s growth, prosperity, and peaceful transition.
We discussed a number of our joint priorities, and I’d like to recognize the work of the Supreme Council of the Armed Forces, which has been an institution of stability and continuity. The Egyptian people look to the Supreme Council to support the transition and to ensure that the elections go in a very positive way that provides transparency, freedom, and fairness.
And we fully support the Egyptian people in their journey. We are looking forward to the parliamentary elections this fall, the upper house in parliament, the presidential elections to follow. But we’re well aware, having been working at our own democracy for over 230 years, that this takes time. This takes persistence and patience, and it’s often hard to have the latter in a time when there’s so much pent-up demand and hope for a better future. So we look to being a strong partner for the Egyptian people.
We are also looking to implement, through the Congress, the $1 billion debt swap that President Obama announced in May. Rather than making interest payments on a debt, the Egyptian people can invest that money into new projects that create jobs and give them a better standard of living.
We’re also working on launching a network of community colleges in Egypt that would provide training for Egyptians to be able to take advantage of the investment opportunities that we hope will come to Egypt. Egypt has the largest market and the largest workforce in the Arab world. In fact, Citibank released a study earlier this year suggesting that with smart investment in its people and its political and economic systems, Egypt could become one of the top ten economies in the world. And I believe that, Minister. I really do. It’s not going to happen tomorrow, but it is absolutely possible.
So we’re going to be focused on trade, investment, on the new Middle East Trade and Investment Partnership, to help Egypt gain even greater access to global markets. The Enterprise Fund that we are seeking to establish, the ongoing work of the Overseas Private Investment Corporation, are all intended to provide support for what Egyptians themselves are doing.
And it is going to be a very important couple of months for the people of Egypt. I will be giving an interview tomorrow to an Egyptian radio host and taking this message and sending it out to millions of Egyptians that the United States stands with you and supports you and wants to see a prosperous, peaceful, exciting future for not only Egypt but the entire region.
Thank you, Minister.
FOREIGN MINISTER AMR: Thank you very much, Madam Secretary. As you said, we’ve been on the phone many times before, but this is the first time we have such an extended, face-to-face meeting, and it really was a pleasure.
I am pleased to be here today representing Egypt post 25th January revolution. I am pleased to have had the opportunity to have this round of talks with you. Egypt and the United States have enjoyed a longtime friendship and partnership. The United States assisted Egypt in many ways in its development and it continues do so, and we are sure that our cooperation and our friendship will only strengthen in the future. Both our countries have worked in the past for peace and stability in the Middle East and beyond, and we will continue to do that.
As you know, Egypt now is in the middle of a transitional period. During this period, we look forward to the solidarity and goodwill of all our partners. It is our expectation that our friends in the United States will demonstrate their commitment, as usual, to this partnership, and I am pleased to say that I have heard from the Secretary such a commitment explicitly today.
I have discussed with the Secretary a number of issues of mutual interest. Of course, bilateral issues were paramount in our discussion, but we also touched upon regional issues. Of course, the Palestinian issue came up, and I think we believe that negotiations should resume as soon as possible between Israelis and Palestinians with clear terms of reference and with a clearly defined timeline. Israeli illegal settlement activities continue to be an impediment in the road for peace, and we would like to see them stop. Our region is going through deep change and delicate times. Egypt and the United States will need to continue to work hand in hand in order to ensure that our peoples benefit from the opportunities that these changes bring.
Again, I’d like to thank you, Madam Secretary, for your warm reception, kind words, and frank and useful exchange of view. Thank you very much.
SECRETARY CLINTON: Thank you so much, Minister.
FOREIGN MINISTER AMR: Thank you.
SECRETARY CLINTON: My pleasure.
MS. NULAND: We have time for two questions from each side today. The first question is from Reuters, Arshad Mohammed.
QUESTION: Secretary Clinton, a week ago today, the Egyptian army said that the emergency law would remain in force until the end of June 2012. That’s exactly the timeline that was outlined when President Mubarak was in power. Is its extension for another nine months acceptable to the United States?
And Mr. Minister, can you explain to us how it was that that Egyptian security forces were not able to protect the Israeli Embassy when it was attacked some weeks ago?
SECRETARY CLINTON: Well, Arshad, we have encouraged and continued to encourage the government to lift the state of emergency. The Supreme Council has said that it will be in a position to do so in 2012. We hope to see the law lifted sooner than that, because we think that is an important step on the way to the rule of law, to the kind of system of checks and balances that are important in protecting the rights of the Egyptian people, to create the context for free and democratic elections, and we want to see this as soon as possible. We have discussed this repeatedly, and we will continue to raise it.
And I know you asked the minister to comment on the attack on September 9th against the Israeli Embassy, but I want personally to thank the minister and thank the high officials of the Egyptian Government who were very responsive to our outreach. I reached the minister at 2:30 in the morning. He was on an airplane before that, and I certainly can attest to the fact that the officials in Egypt moved to remedy the problems that existed.
FOREIGN MINISTER AMR: Yes. That attack on the – or the incident with the – involving the Israeli Embassy in Cairo was quite unfortunate, and I think it was condemned by all responsible parties in Egypt at the time. We made it very clear that Egypt respects its commitment under the Vienna 1961 Treaty on diplomatic relations. We made it clear that we are committed to protect any mission on our soil and the personnel working in them. If you remember, actually, we – that the army was very careful to see that all the personnel that wanted to leave left in – I mean, under the guard of the army. No one was hurt; we made sure that everyone was safe, and I think we were very clear in just reiterating our commitments to the protection of any mission and personnel.
MS. NULAND: Next question from (inaudible).
QUESTION: I have two questions, one about Egypt and one about the Palestinian and Israeli issue. About Egypt, I wonder if there is some more on light on the performance of the transition in Egypt and how the military council is responding. How do you assess this? Because it is very difficult conditions prevailing Egypt and anybody else or any authority will suffer a lot to govern this.
For the Palestinian issue, I want to – negotiation is the best way to – this is the United States stance. And this is very good, but there must be terms of reference, as the foreign minister said, and something to be abiding – they have to abide by – there must be a certain time they have to come to a conclusion over this term. Is there a possibly for arbitration as the end of the road, the last thing to hope. Thank you very much.
SECRETARY CLINTON: Excellent questions. Let me start with the first one and say that we are very supportive of the steps that have been taken in Egypt to establish a timetable for elections, to create the conditions that permit the elections to proceed, the formation of political parties, for example, a lot of free and diverse opinion being expressed. The invitation to international witnesses we think is a very important step. So we have a lot of experience around the world in helping countries that are moving to democracy, most recently after the fall of the Berlin Wall in parts – other parts of the world as well.
And I know that people in Egypt are very anxious, because this is a right they wish to exercise. But I think if one takes a step back and looks at how rapidly this has moved, it’s quite remarkable. And the elections that are upcoming in the next several months should produce an outcome that will set the stage for a new constitution, for the presidential elections. And we think that’s an appropriate timetable. We want to do all we can to support those who are trying to make sure these elections are viewed as free and fair and legitimate.
I also know that the economic challenges in Egypt are significant, and we are urging our Congress to work with us to move the aid that President Obama announced as quickly as possible, and we are urging other donors who have made commitments to Egypt to also move. Because the revolution that occurred, which was so important, did disrupt economic activity. And I was pleased when the minister told me tourism is returning, investment is returning, but there’s more to be done to create jobs and more prosperity. So I think on both the political and the economic tracks, progress is being made, but it’s never fast enough and it needs to keep moving, but be done right, not to be detoured or diverted.
With respect to your question about the negotiations, the Quartet statement that came out last week referenced President Obama’s speech of May, where he clearly said there needs to be negotiations about territory that he said had to be reflective of the 1967 lines with mutually agreed swaps; there had to be negotiations on security so that there could be an agreement about how you could transition security.
I mean, one of the most important parts of the Camp David Accords was an agreement on security. And it’s one that has, I think, served both Egypt and Israel well to protect your sovereignty, your borders, avoid conflicts. And it was very regrettable about the loss of life of the Egyptian soldiers, which I have expressed to the minister, which is why the security cooperation has to continue. But there has to be similar agreements about security cooperation between Israel and the Palestinians.
So I think that the most important terms of reference are there. If there were an agreement on borders, then there would be no more controversy about settlements, because everybody would know what side of the border is for Palestine and what side is for Israel.
So I think that there’s no shortcut to this. We have to urge the parties to put aside their reluctance or their distrust and begin the hard work of negotiating. And Egypt, the United States, the Quartet, everyone will stand prepared to put pressure on both sides to try to move toward a settlement of the outstanding issues.
MS. NULAND: The next question, CNN, Jill Dougherty.
QUESTION: Madam Secretary, hello.
SECRETARY CLINTON: How are you?
QUESTION: Good to see you again. This week, Admiral Mullen called the Haqqani Network a veritable arm of Pakistan’s ISI. Do you share that assessment? And of course, Pakistanis are very angry about this. How are you dealing with the blowback on that?
And just a very quick thing on – you’re in the process of deciding whether or not to list the Haqqani Network as a Foreign Terrorist Organization. How far are you down that path?
SECRETARY CLINTON: Well, Jill, first, as you may know, I had a very long meeting with Pakistan’s foreign minister, Hina Rabbani Khar, a week ago Sunday. And we discussed the urgency in the wake of the attack on our Embassy in Kabul and on the NATO-ISAF Headquarters for us to confront the threat posed by the Haqqani Network. It was certainly a threat to the United States, but it was also a threat to Pakistan, to Afghanistan, and to anyone who stands against terrorism.
And I think that you will see a lot of work taking place as we try to determine how best to confront this mutual threat. And it’s important to realize that while it’s not always easy, the United States and Pakistan have vital strategic interests that converge in the fight against terrorism. And Pakistan faces a very real threat. They have suffered far more casualties, civilians and military alike. It is their mosques and markets and police stations and homes that have been bombed and attacked.
And so we are committed to working with Pakistan to confront this threat, and we’ve had a lot of tangible results from our cooperation. I mean, most recently the Pakistanis helped to roll up al-Qaida’s number two. They have been helping us continue to dismantle the al-Qaida network that is inside Pakistan. So I have no argument with anyone who says this is a very difficult and complex relationship, because it is. But I also believe strongly that we have to work together despite those difficulties.
And with respect to the Haqqani Network, we are in the final formal review that has to be undertaken to make a government-wide decision to designate the network as a Foreign Terrorist Organization. But remember, we’ve already designated the key leaders. We have already – I did that some time ago to make it clear that the leaders of this organization fell under the Foreign Terrorist designation. So we’re going to continue to struggle against terrorism, and in particular against those who have taken up safe havens inside Pakistan. And we’re going to continue to work with our Pakistani counterparts to try to root them out and prevent them from attacking Pakistanis, Americans, Afghans, or anyone else.
MS. NULAND: Last question, Al-Ahram (inaudible).
QUESTION: (Inaudible) Al-Ahram newspaper. My question to Secretary Clinton: There is a discussion in Congress now about the U.S. aid to Egypt, and some people, especially now in the Senate, are trying to impose some conditionality on the aid. What’s your – the State Department position on this issue?
SECRETARY CLINTON: We are against conditionality, and I conveyed our position to the minister. We will be working very hard with the Congress to convince the Congress that that is not the best approach to take. We believe that the longstanding relationship between the United States and Egypt is of paramount importance to both of us. We support the democratic transition, and we don’t want to do anything that in any way draws into question our relationship or our support.
We also believe that the army has played a very stabilizing, important role during this period, and you can see what happens when you either don’t have an institution like the institutions that Egypt has, including an army, and you’ve seen what happens when the army is not on the side of the people. Well, Egypt’s strong institutions, longstanding respect for the army, and the role the army played was absolutely critical for the revolution.
So we’re going to make that case very strongly, and I want to be sure that Egyptians know that the Obama Administration opposes conditionality and do not believe that’s in the best interest of our relationship.
Do the Internet and social media empower Big Brother or individuals in autocratic regimes, or do they offer a rare level playing field? This year’s Arab Spring resurrected exuberant claims for the role of new technologies in spreading democracy. At the same time self-proclaimed “cyber-realists” were quick to point out that President Mubarak’s problems seemed to grow after he unplugged the Internet. Now, summer’s deadly stalemate in Syria has given pause to anyone peddling absolute theories about the interplay between new information technologies and revolution. If not a panacea, how can social media and the Internet be deployed to maximize civic engagement in autocratic societies? Does the U.S. policy of supporting Internet freedom amount to a policy of regime change in some countries? When Big Brother does unplug the Internet, what can, or should, the rest of us do about it?
Follow the conversation on Twitter: #140rev
2:00 pm – Reflecting on the Tunisian Hair Trigger
Sami Ben Gharbia (from Tunisia) Co-founder, nawaat.org Advocacy Director, Global Voices Steve Coll President New America Foundation
Michael H. Posner Assistant Secretary of State for Bureau of Democracy, Human Rights and Labor U.S. Department of State Moderator Jacob Weisberg Chairman and Editor-in-Chief Slate Group
2:50 pm – Friending Revolutions: Social Media and Political Change in Egypt and Beyond
Merlyna Lim Professor, Consortium of Science, Policy and Outcomes and the School of Social Transformation – Justice and Social Inquiry Program Arizona State University
3:10 pm – How the Arab Spring Begat a Deadly Summer
Oula Alrifai Syrian Youth Activist Ahmed Al Omran Blogger, Saudijeans.org Andrew J. Tabler Next Generation Fellow, The Washington Institute for Near East Policy Author, In the Lion’s Den: An Eyewitness Account of Washington’s Battle Moderator Katherine Zoepf Schwartz Fellow, New America Foundation Contributor, New York Times
4:00 pm - Myths, Realities, and Inconvenient Truths of the Internet
Rebecca MacKinnon Senior Schwartz Fellow, New America Foundation Co-founder, Global Voices Online
4:30 pm – The View from Havana
Yoani Sanchez (via video) Blogger, desdecuba.com Human Rights Activist
4:45 pm – Internet Freedom’s Next Frontiers?
Omid Memarian Journalist Recipient, 2005 Human Rights Defender Award, Human Rights Watch Mary Jo Porter English Translator for Yoani Sanchez and other Cuban bloggers Co-founder, hemosoido.com and translatingcuba.com Marcus Noland Deputy Director, Peterson Institute for International Economics Author, Witness to Transformation: Refugee Insights into North Korea Moderator Andrés Martinez Co-Director, Future Tense Initiative Director, Bernard L. Schwartz Fellows Program, New America Foundation
5:20 pm – Bypassing the Master Switch
Sascha Meinrath Director, Open Technology Initiative New America Foundation Ian Schuler Senior Program Manager, Internet Freedoms Program U.S. Department of State Moderator Robert Wright Future Tense Fellow, New America Foundation Author, Nonzero, The Moral Animal, and The Evolution of God
Secretary Clinton’s Remarks With Brazilian Foreign Minister Antonio de Aguiar Patriota After Their Meeting
SECRETARY CLINTON: Good morning, everyone. It is indeed a pleasure for me to welcome back my colleague, the Foreign Minister of Brazil, and someone quite familiar to those of us in Washington. And I want to thank you for bringing with you such a stellar, high level team of representatives from across the Brazilian Government for the meetings that we have held these past two days.
And as I think both of our teams from the U.S. and the Brazilian side know, our countries have walked a long, difficult road together. We’ve worked hard to build societies that respect the rights of minorities that believe in free and fair elections, human rights, the rule of law, social inclusion; and the entire hemisphere, indeed the entire world is inspired by Brazil’s incredible rise from an illegitimate military government to a thriving, prosperous democracy. And we look to Brazil as a model for what is possible, not just throughout our hemisphere but indeed globally.
We meet as partners as the Western Hemisphere’s two largest democracies and its two largest economies, and we discussed a full range of bilateral and multilateral issues. Our Global Partnership Dialogue, which our two presidents endorsed during President Obama’s very successful visit to Brazil, provides a framework to bring together many existing dialogues and initiatives and adding new ones that are responsive to the needs and aspirations of us both. And we have seen progress already. We are addressing through our Economic Partnership Dialogue issues for collaboration like energy, food security, development assistance in third countries. Brazil is now a global donor to many of the important funds and efforts that are aimed at alleviating poverty, hunger, and suffering.
We work together on biofuels and the launch of our initiative on aviation biofuels in Brazil in March was a significant step, and we will continue to discuss how what Brazil has pioneered can make a difference to so many others. As we expand our relationships, we’re focused particularly on our people-to-people exchanges and commitments. We know that President Rousseff’s wonderful commitment to lifting up the educational attainment of the Brazilian youth is one that we’re strongly in support of, and increasing the number of students and educators who go back and forth between our two countries is one of our highest priorities.
So we are looking on every front for work that we can do, and we partner not only bilaterally but in the hemisphere and increasingly through the G-20, through the Security Council, on so many important issues. And I thank you very much, minister, for your great commitment to our cooperative relationship.
FOREIGN MINISTER PATRIOTA: Well, thank you so much. A pleasure to be here with Secretary of State Hillary Clinton to follow up on what I think has already been described as a very successful meeting between our two presidents. President Obama visited Brazil very early on during Dilma Rousseff’s administration; I think this sets the stage for enhanced cooperation on a number of areas, building upon the already very strong relationship that we have in trade and political dialogue and a number of areas, including social issues.
I had an opportunity to go over the bilateral relationship with my colleague, Secretary of State Hillary Clinton. Looking at trade, for example, there is an increasing trade deficit in our relationship which is cause for some concern in Brazil, but we spoke of ways of addressing that. Of course, there are other agencies in the U.S. side that deal with the issue as well and we will be engaging with them, including with the new Secretary of Commerce that has just been appointed by the U.S.
We would like to see enhanced investment and many of you are aware that we will be modernizing our airports, that we will welcome U.S. investment in this upgrading of our capacity in a key sector for preparations for the World Cup and the Olympic Games. I’m very pleased that Secretary Clinton mentioned education because I think it’s one of the most concrete outcomes of this meeting that we’ve had and our delegations have had – and I thank your very capable team also for their work in the many areas that have been touched – is a Joint Action Plan on Education. This is a plan that will increase and encourage educational, academic, and technical exchange programs between Brazilian and American universities and institutions, and hopefully promote a fast track for identifying clusters of universities, institutions, and colleges that are ready to receive Brazilian students in the United States. It’s part of our attempt to update the relationship. We also looked at science and technology, innovation. This allowed me to speak of Rio + 20, the conference that we will be hosting in 2012, and that will look at green economy and combating poverty and discussing new paradigms for sustainable development. We’d like to see participation from the U.S. during the preparatory process, but also at the highest political level during the conference itself.
We spoke of regional issues Secretary Clinton mentioned, but also of the developments in North Africa and the Middle East. I have been recently to Cairo. There are opportunities there for us in joining forces and transforming the movements in favor of greater freedom of expression, improved governance, opportunity for young people in the Arab world, in two projects where we will also strengthen each other’s participation or assistance to countries such as Egypt and others in the region.
Let me also say that I mentioned our candidacy to the Food and Agriculture Organization. Those from Brazil are aware of Professor Jose Graziano da Silva’s candidacy, a man who was involved from day one during President Lula’s government in the Zero Hunger Program that has been so effective, as well as in the social programs that have lifted millions out of poverty. We would very much like to look forward to a situation where a Brazilian at the FAO could work in tandem and very closely with an American at the World Food Program.
So these are some of the issues that we touched upon. The meeting will continue after our own encounter, and as of now, I am already very encouraged by the results that we’ve achieved.
MR. TONER: The first question today goes to Kirit Radia of ABC.
QUESTION: Hi, Madam Secretary and Mr. Minister. Madam Secretary, yesterday President Karzai threatened to make some additional restrictions on U.S. bombings in Afghanistan following the latest reports of civilian deaths. What can you and the United States do to reassure President Karzai and the Afghan people that the U.S. is trying to stop civilian casualties?
President Mubarak is going to be going to trial in August. How do you feel that this fits into Egypt’s path toward democracy?
And finally on Yemen, there’s been escalated violence over the past 24 hours with reports of many dead. How is that going to end?
SECRETARY CLINTON: Well, I think first with respect to Afghanistan, U.S. and international military forces have in the past and continue to place the highest priority on protecting civilian lives. And certainly, it is the goal of the military efforts to root out the insurgents who are responsible for the vast majority of civilian injuries and deaths. And we recognize that in a complex military environment, it’s just a tragic fact that some civilian casualties may be inevitable and unavoidable. But we are very concerned any time there is any civilian casualty caused by the NATO ISAF military mission, and every single one of the issues or events that is brought to the attention of the military command is investigated thoroughly.
General Petraeus has consistently emphasized that we have to do everything in our power to reduce the number of civilian casualties. And we are seeing a steady increase of Afghan lead through their army and security forces on any night raids, and procedures are being put into place in preparation for a transition to greater Afghan responsibility to ensure that such operations are properly authorized and approved by senior representatives of the Government of Afghanistan.
So we’re going to continue to do everything we can to express our deep regret when a terrible incident occurs and civilians are injured or killed. And I would only underscore that that stands in stark contrast to the indiscriminate killing, the suicide bombing, the IED – the improvised explosive devices, that are used by the insurgents without regard for any human life.
With respect to Yemen, we continue to watch the situation, and we are where we’ve been for weeks, in doing everything we can, along with the international community, to convince President Saleh to step down from power. If it wasn’t obvious before, it certainly should be now, that his presence remains a source of great conflict and, unfortunately, as we have watched over the last several days, even military action and violence. President Saleh was given a very good offer, that we strongly backed, by the Gulf countries, and we cannot expect this conflict to end unless President Saleh and his government move out of the way to permit a – the opposition and civil society to begin a transition to political and economic reform.
And finally, you asked me a question about – a third country in one question, so I –
QUESTION: Mubarak’s trial.
SECRETARY CLINTON: Mubarak’s trial. That is a decision for the Egyptians to make. Obviously, we want to see the rule of law. We want to see appropriate due process and procedures followed in anyone’s trial, and particularly in such a highly charged trial as that will certainly be. And we are keeping very close watch on events in Egypt. We’re disturbed by the reports of efforts to crackdown on journalists and bloggers and judges and others, which we don’t think is in keeping with the direction that the Egyptian people were heading when they started out in Tahrir Square.
MR. TONER: Next question goes to Luis Fernandez of (inaudible).
QUESTION: Madam Secretary, Ministro Patriota, the imbalance in the trade relationship between the United States and Brazil has been referred to by the minister. The question to both of you is: Do you see the United States becoming again the main trading partner of Brazil, and if so, in which basis? The main trading partner of Brazil at the moment, the relationship is based largely on the exportation of raw materials from Brazil, of commodities, and that’s not the best situation – China specifically. And in relation to the visit of the Brazilian President Dilma Rousseff to the United States, I would like to ask you what was discussed. Is the visit confirmed, and for when, specifically? Thanks.
FOREIGN MINISTER PATRIOTA: Well, I can start on the trade relationship. Of course, this was mentioned, and as I said, we have a number of other dialogues, an economic dialogue. We have a meeting that is already scheduled between Department of Commerce and our department – our ministry for industrial development and commerce during the month of June, in addition to the USTR foreign ministry dialogue. So we will be pursuing different avenues to try to develop a trade that is mutually beneficial.
The relationship is a very robust one, and we discussed some of the opportunities for increasing exports from Brazil to the United States, as you mentioned, with other important trading partners, including our individually most important at present, China. There’s a concentration on a very few products, namely iron ore, soya, and oil, and we’re trying to diversify our exports to China. With the United States, we don’t confront the same problem. It’s a more diverse platform, and we would like to continue exporting airplanes, exporting beef, and looking at other products.
There was also a question about a potential visit by President Rousseff. Well, this is mentioned in the joint communiqué that was adopted by our two leaders when President Obama visited Brazil in March. But I think what we are concentrated on right now is to implementing the many decisions that were taken then, and I’ve invited Secretary of State Hillary Clinton to come to Brazil to continue this discussion so that we can in the future have a productive summit meeting between our two leaders at the earliest possible and at the most convenient time so that we can start reaping some of the benefits of the discussions that we are having already.
SECRETARY CLINTON: I endorse what the minister said and would only add that we are quite satisfied by the depth and breadth of our relationship. I think both of our presidents set forth a comprehensive agenda, and we continue to add to it. And in the area of trade and investment – that’s a very high priority for the Obama Administration. The minister is correct that we have a diversified economic relationship. We want it to become more so. We fully endorse President Dilma Rousseff’s commitment to innovation, science, and technology because we think that’s not only very directly in Brazil’s interest, but also in the interest of the hemisphere, including the United States, to see Brazil continue to develop and broaden its own economic foundation. And we will be working on finding a date for the president’s visit to Washington, and as the minister said, he and I will be in close consultation in preparation for such a visit because we have a very high standard to meet given the successful visit of President Obama to Brazil. Thank you.
FOREIGN MINISTER PATRIOTA: Thank you so much.
The U.S. Government will support Egypt and the Egyptian people with their needs for economic recovery, free and fair elections, and overall stability. In the short-term, our assistance efforts will leverage existing funding to produce quick, concrete results and have a tangible impact in support of Egypt’s economic recovery and democratic transition. We recognize that a prosperous and democratic Egypt, buoyed by economic growth and a strong private sector, can be an anchor of stability for the Middle East and North Africa.
Long-term Partnership with the Egyptian People: Working together over the years, we are particularly gratified that we have been able to help Egyptians in practical ways. We are proud of over thirty years of U.S. assistance to Egypt, in which the United States has:
Contributed massive resources to one of the most successful and renowned health programs worldwide, resulting in a 15-year extension of the lifespan of Egyptians, a decrease in the maternal mortality rate by over 50% and the child mortality rate by over 70%, and the eradication of polio;
Provided clean drinking water and sanitation to the city of Cairo and other metropolitan areas where no such service was previously available (the sewer system we constructed in Cairo constitutes the largest construction project in the world);
Built more than 2,000 schools and stocked 39,000 school libraries, and helped Egypt double literacy levels;
Sent thousands of Egyptians to the United States for advanced university studies;
Invested $1.8 billion in power sector projects accounting for roughly one-third of total present capacity; and
Invested billions in technical and financial assistance to modernize Egypt’s economy to create new jobs in fields like high-technology and manufacturing. This has directly contributed to Egypt’s status as a top ten country in the World Bank Doing Business report four out of the last five years.
Renewed Bilateral and Multilateral Support: The United States requested $250 million in economic support funds and $1.3 billion in foreign military financing from Congress in FY 2012, in support of a revitalized partnership with Egypt and Egyptians.
The United States also provides critical support to Egypt, together with our international partners, through our leadership at international financial institutions, such as the World Bank, African Development Bank, and the Organization for Economic Cooperation and Development, where we have repeatedly used our leadership and contributions to mobilize billions of dollars in ongoing support for Egypt.
Immediate Economic and Political Transition: In addition to ongoing U.S.-funded economic and political reform programs in Egypt, the United States has made available a total of $165 million for near-term assistance to support projects that generate jobs and economic growth and support Egyptian efforts to secure a democratic future.
To address immediate economic needs arising from recent events, the United States expects to provide technical assistance, capital, and advocacy training to support small business and entrepreneurs; sustainable job creation focused on, but not limited to, the tourism/hospitality sector and infrastructure; and education, management skills, and vocational training to help get people back to work.
The United States is providing support to Egyptian and U.S. organizations working to promote respect for human rights and political freedom, building a free and fair elections process, advance media professionalism and political party development, and increase youth and women’s participation. We will ensure that a significant portion of our assistance will directly support Egyptian civic organizations’ efforts to promote political and economic reform, expand civic awareness, and promote government transparency.
OPIC Support for Investment: OPIC will provide up to $2 billion in financial support to encourage private sector investments in the Middle East and North Africa, building partnerships between U.S. and Arab businesses to promote growth, and regional job creation. OPIC will prioritize small and medium-sized enterprises and is prepared to grant proposed projects “fast track” approval status (provided due diligence requirements are met) to mobilize capital quickly.
ExIm Letters of Credit: The U.S. Export Import Bank has approved $80 million in insurance cover to support letters of credit issued by Egyptian financial institutions, showing our support for the Egyptian economic recovery.
USTDA Business Forum: USTDA will host a June forum in Washington, D.C., bringing together a wide variety of Egyptian and U.S. public and private sector representatives to explore trade, investment and commercial opportunities. The Forum will encourage enhanced trade and sustainable economic development in Egypt, focusing on energy, information and communication technology, transportation, and agriculture.