Archive for July, 2011

These videos were released by the State Department today.  She is commenting at the Lower Mekong Partnership summit and also at her meeting yesterday with Bingguo Dai.

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Meeting with Councilor Dai, posted with vodpod

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US Secretary of State Hillary Clinton attends the Association of Southeast Asian Nations (ASEAN) Ministerial Meeting in Nusa Dua on July 22, 2011. Clinton was to start two days of talks with her Asian counterparts focusing on security issues, amid rising tension in the South China Sea. AFP PHOTO / POOL / ADEK BERRY (Photo credit should read ADEK BERRY/AFP/Getty Images)

Hillary Rodham Clinton is perhaps the fiercest defender of the U.S.A. and its interests that I have seen, live, in my time on earth.   I have often stated here that I thank God daily for allowing me to be her contemporary.

In this vitriolic, uncertain climate we have come to accept lately as our quotidian environment, many of us have lost faith that our great country and the Party of Roosevelt can endure in its historic, traditional position of greatness in the world.  Hillary Clinton has been working very hard these past weeks to assure our friends and allies, partners that she has worked tirelessly to cultivate over two-and-a-half years as Secretary of State, that this is and will remain a great and solvent country. (See posts here of her past two weeks of travel from Europe through Asia.)  Those years have yielded hundreds of  trade agreements, entrepreneurial efforts and treaties,  business summits,  and MOUs all crafted under the seal of our current Secretary of State.

But do the American people share her faith?  Current polls say “no,” and last night’s “pep talk” by President Obama is unlikely to alter that.  He who made his career on oratory cannot sustain it without putting his words into action.  Erosion of the public trust cannot be allayed by levees built of words.  The people need to see concrete seawalls constructed against this AA rating tide and its predicted consequences.  Perhaps the most serious deficit this country suffers is not economic, but rather a deficit of bold, sure leadership.

An incisive post by my friend Tanya Domi illustrates the situation brilliantly.  Thank you, Tanya, for the outstanding analysis!

The Beginning Of The End Of The Obama Presidency

by TANYA DOMI on JULY 26, 2011

Before or on August 2, President Barack Obama, a Democratic Party nominated president, will in fact, sign into law a bill that cuts Social Security, Medicare and Medicaid as we know it.

Obama will sign a Republican measure to cut the first and second rail of Democratic Party politics, established by President Franklin D. Roosevelt, who launched America’s social and political compact following the dark days of the Great Depression during the 1930s.

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Public Schedule for July 26, 2011


Public Schedule

Washington, DC
July 26, 2011



12:00 p.m. Secretary Clinton meets with Secretary of Defense Leon Panetta and National Security Advisor Tom Donilon, at the White House.

3:00 p.m. Secretary Clinton meets with Ambassador Karl Eikenberry, at the Department of State.

4:00 p.m. Secretary Clinton attends a meeting at the White House.

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This evening the State Department  posted these three short videos from Mme. Secretary’s sojourn in Asia.  Two of them were around sideline meetings at ASEAN, and one is of her remarks at the beginning of the summit.  Enjoy!

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Remarks Before Trilateral with Korea and Japan, posted with vodpod

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To provide a glimpse into Mme. Secretary’s day today, I am including some remarks from today’s press briefing. The speech to which Ms. Nuland refers was posted previous to the public schedule.

Victoria Nuland
Daily Press Briefing
Washington, DCJuly 25, 2011
MS. NULAND: Well, I think the Secretary spoke very clearly, obviously in Hong Kong, about the fact that she has great confidence, that we have confidence, that we’re going to get through this, and that you have democracy in action as the two parties on the Hill work towards an agreement and work with the President on this.There have been a lot of questions around the world, as people try to understand how our system works, how our democracy works, about where all of this is going, so that was one of the reasons why the Secretary felt it was important to make a strong statement about democracy in action and about the fact that we will come through this, and about the adjustments that our strong, democratic economy has been able to make over time whenever we faced these kinds of challenges.

More broadly, though, I hope you caught the key themes of her speech, which were to ensure that not only in the East Asian region, but around the world, that we are working together on the basis of open, free, transparent, and fair market systems in which all countries can compete on the basis of a level playing field, whether they are developing nations, developed nations, and all businesses can compete, whether they’re big businesses or small businesses.>

I think what we have are countries, leaders, businesses trying to grapple with how the American system works. They see us engaged in a democratic debate about what the right moves are going forward in the U.S. economy, but a lot of countries find our system hard to understand. So those are the kinds of questions we get – how long will this go on, are you confident that there’ll be an agreement? And I think it was important for the Secretary to make a strong statement of confidence that our system will produce a good result not only for the American people, but for the world economy as a whole.QUESTION: Can you tell us a little bit more the upcoming meeting in New York between U.S. and North Korea? Who’s leading the delegation and when it’s going to take place; what’s your expectation?

MS. NULAND: In terms of the timing, we’re looking at the end of the week. I don’t know whether the precise date – Thursday or Friday – in New York has been set. I think you know that the expected DPRK representative is Vice Foreign Minister Kim Kae-gwan, and I think you heard the Secretary speak to what we’re looking for in this meeting, that we see this as a preliminary session where we’re going to lay out very clearly our expectations for what will be necessary to not only resume Six-Party Talks, but to improve direct engagement between the U.S. and the DPRK.

QUESTION: Was there any outcome regarding those issues come out when she was meeting the State Councilor Dai Bingguo and the other officials on the North Korea issues?

MS. NULAND: They did talk about North Korea today. They met for more than four hours in Shenzhen. And it was very broad-ranging conversation about the U.S.-China relationship, about our shared interest in regional issues, but North Korea was certainly one of the subjects of the meeting.

More that four hours!  Comes in a close second to that six-plus hour meeting with Bibi Netanyahu at the Waldorf last December.   (I think it was the Waldorf.)  I want to say here and now that for someone who took a pay cut from what she voted for as her predecessor’s salary (for Constitutional reasons),  this Secretary of State certainly gives us more than our money’s worth.  But, of course, she has never been in any of this for the money, or even for the credit.  All she cares about is that the work gets done.

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Public Schedule for July 25, 2011

Public Schedule

Washington, DC
July 25, 2011



Secretary Clinton is on foreign travel in Hong Kong and China. She is accompanied by Under Secretary Hormats, Assistant Secretary Campbell, Assistant Secretary Shapiro and Director Sullivan. Click here for more information.

9:30 a.m. LOCAL  Secretary Clinton meets with Hong Kong Chief Executive Donald Tsang, in Hong Kong.

10:30 a.m. LOCAL  Secretary Clinton meets with Hong Kong Legislative Council leaders, in Hong Kong.

11:05 a.m. LOCAL  Secretary Clinton meets with the staff and families of Consulate Hong Kong, in Hong Kong.

12:00 p.m. LOCAL  Secretary Clinton delivers remarks on “Principles for Prosperity in the Asia Pacific” to Chambers of Commerce in Hong Kong.

2:00 p.m.  Secretary Clinton holds a bilateral meeting with Chinese State Councilor Dai Bingguo, in China.

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Remarks on Principles for Prosperity in the Asia Pacific


Hillary Rodham Clinton
Secretary of State
Shangri-La, Hong Kong
July 25, 2011

Thank you very much, Mr. Chipman, and thanks to all of you for being here today. I also wish to acknowledge and thank Mr. Ronnie Chan, chairman of the Asia Society, and Mr. Norman Chan, chief executive of the Hong Kong Monetary Authority.And I am so pleased to be here and to have this opportunity to speak with you today, and it was made possible by the U.S., Hong Kong, and Macau chambers of commerce and the Asia Society. And I thank the chamber very much on a personal level for its support of the U.S. Pavilion at the Shanghai Expo. I have been called the mother of the pavilion, which is actually one of the nicer things I’ve been called – (laughter) – during my very long public career.

And I am delighted to be back in Hong Kong, a city I have admired ever since I first visited about 30 years ago when my husband, who was then governor of Arkansas, led the first ever trade mission to East Asia from our small state. Hong Kong stood out then, as it does today, as a symbol of the open exchange of goods and ideas. People were drawn to this place from every part of the world, even far away Arkansas, as evidenced by a good friend of ours from Arkansas, Nancy Hernreich Bowen, who is here with us today.

Now, since that time, Hong Kong has changed a great deal. Certainly, the skyline attests to that. And after all, few things have stood still in East Asia. But one thing about Hong Kong has not changed – the principles that find a home here. Under the “one country, two systems” policy, this remains a city that bridges East and West and looks outward in all directions, a place where ideas become businesses, where companies compete on the merits, and where economic opportunity is palpable and real for millions of people, a place that defines the fierce and productive economic competition of our time.

That is why businessmen and women continue to flock to Hong Kong, and an opportunity to meet some of the Americans who have called Hong Kong home for 20, 25, even 30 years. And it is why I have come here today to talk about how the nations of this region and the United States can intensify our economic partnership on behalf of ourselves, each other, and the world, and how together we can work toward a future of prosperity and opportunity for people everywhere.

But before I talk about where we need to go together, let’s consider how far we’ve come. The economic rise of the Asia Pacific region is an astonishing historic achievement that is reshaping our world today and into the future. In Hanoi, bicycles and water buffalo have given way to motorcycles and internet cafes. Small Chinese fishing villages like Shenzhen have become megacities with their own stock exchanges. And while much work remains to improve labor practices and expand access to the formal economies, the numbers tell a powerful story.

Thirty years ago when I first came to Hong Kong, 80 percent of the people of this region lived on less than $1.25 a day. By 2005, that number had dropped to 20 percent. In the Lower Mekong Region countries, per capita GAP has more than tripled in the last 20 years. And in Thailand alone, the poverty rate fell from 42 percent in 1988 to 8 percent today. Never in history have so many people climbed so far, so fast.

And though this progress is largely due to the hard work and ingenuity of the people of Asia themselves, we in the United States are proud of the role we have played in promoting prosperity. Of course, we helped Japan and South Korea rebuild, patrolled Asia’s sea lanes to preserve freedom of navigation, promoted global shipping, and supported China’s membership in the WTO. Along with our treaty allies – Japan, South Korea, Australia, Thailand and Philippines, and other key partners like New Zealand and Singapore – we have underwritten regional security for decades, and that in turn has helped create the conditions for growth.

And the U.S. continues to contribute to Asia’s growth as a major trade and investment partner, a source of innovation that benefits Asia’s companies, a host to 350,000 Asian students every year, a champion of open markets, an advocate for universal human rights, and a guarantor of stability and security across the Asia Pacific. The Obama Administration has made a comprehensive commitment to reinvigorate our engagement as a Pacific power – shoring up alliances and friendships, reaching out to emerging partners, and strengthening multilateral institutions.

These efforts reflect our optimism and enthusiasm for what is happening in Asia today. Of course, countries in this region are grappling with challenges. We all are. But we are bullish on Asia’s future, and while the United States is facing its own difficulties, make no mistake: We are bullish on America’s future too.

America remains an opportunity society – a place to excel, a country of possibility and mobility where a brilliant idea hatched in a college dorm room or a product invented in a garage can find a global market and grow into a multibillion dollar company. Our workers are the world’s most productive. Our inventors hold the most patents. And today, we are reinvesting in our fundamentals – infrastructure, clean energy, health, and education. And we are doing the critical work of shoring up our financial system so that it protects investors and curbs excesses.

Now, as I have traveled around the region, a lot of people have asked me about how the United States is going to resolve our debt ceiling challenge. Well, let me assure you we understand the stakes. We know how important this is for us and how important it is for you. The political wrangling in Washington is intense right now. But these kinds of debates have been a constant in our political life throughout the history of our republic. And sometimes, they are messy. I well remember the government shutdown of the 1990s; I had a front row seat for that one. But this is how an open and democratic society ultimately comes together to reach the right solutions. So I am confident that Congress will do the right thing and secure a deal on the debt ceiling, and work with President Obama to take the steps necessary to improve our long-term fiscal outlook. Through more than a century of growth, the American economy has repeatedly shown its strength, its resilience, and its unrivaled capacity to adapt and reinvent itself. And it will keep doing so.

As we pursue recovery and growth, we are making economics a priority of our foreign policy. Because increasingly, economic progress depends on strong diplomatic ties and diplomatic progress depends on strong economic ties. And so the United States is working to harness all aspects of our relationships with other countries to support our mutual growth. This is an issue I recently addressed at the U.S. Global Leadership Coalition, and will again in a larger speech about America’s strategic and economic choices this fall. But economic issues have been front and center in my travels during the past two weeks – to Greece, which is working to put itself back on the path to economic stability, and to four rising centers of economic growth: Turkey, India, Indonesia, and then China.

Now, naturally, much of our economic diplomacy is focused on East Asia and the Pacific. The American Chamber in Hong Kong represents 1,200 companies, and thousands more looking to this region for new customers and markets. Last year, American exports to Hong Kong totaled $26 billion – that’s more than the Indonesian export amount of $20 billion — and our exports to the Pacific Rim were $320 billion, supporting 850,000 American jobs.

Now, numbers like these reflect how closely America’s future is linked to the future of this region. And the reverse is true as well. Because the future of the Asia-Pacific is linked to America’s. We are a resident power in Asia—not only a diplomatic or military power, but a resident economic power. And we are here to stay.

Now, while the U.S. economy and those in the Asia-Pacific are well positioned to grow together, our success — neither of ours — is preordained. Prosperity is not a birthright, it’s an achievement. And whether we achieve it will be determined by how we answer a defining question of our time: How do we turn a generation of growth in this region into a century of shared prosperity?

The United States approaches this question with great humility, and with hard-won lessons learned from overcoming difficult economic challenges throughout our history.

We must start with the most urgent task before us: realigning our economies in the wake of the global financial crisis. This means pursuing a more balanced strategy for global economic growth – the kind that President Obama and President Hu Jintao have embraced, and the G20 is promoting.

This demands rigorous reform by all nations, including the United States and the countries of Asia. We in the United States are in the middle of a necessary transition: we must save more and spend less. And we must not only save more and spend less, we must borrow less, as well. Our partners must meet this change with changes of their own. There is no way around it: Long-term growth requires stronger and broader-based domestic demand in today’s high-saving Asian economies. This will raise living standards across the region, create jobs in America, improve business for many in this room, and help stabilize the global economy.

For years, my image of the global economy was an inverted pyramid resting on the shoulders of American women, since we are the primary consumers in the world. And therefore, it seems to me that that is no longer a sustainable model. And so we have to change how we do business internally and externally. And, above all, we must reach agreement on the rules and principles that will anchor our economic relationships in the coming decades.

Last March in APEC meetings in Washington, I laid out four attributes that I believe characterize healthy economic competition. And these are very simple concepts, easy to say, hard to do: open, free, transparent, and fair. Hong Kong is helping to give shape to these principles and is showing the world their value.

First, we must seek an open system where any person anywhere can participate in markets everywhere.

Second, we must seek a free system, one in which ideas, information, products and capital can flow unimpeded by unnecessary or unjust barriers. That is why President Obama has mobilized a government-wide effort to attract foreign investment to America. Now, in the past, foreign investment has been seen as controversial. But today we know it helps create growth and jobs, and it can attract American dollars held overseas back into the U.S. economy. As we welcome investors to our country, we hope that all investors, including those from America, will receive an enthusiastic welcome overseas.

Third, we must seek a transparent economic system. Rules and regulations need to be developed out in the open through consultation with stakeholders. They must be known to all and applied equally to all. Hong Kong is a testament to the power of transparency, good governance, the rule of law, freedom of the press, an independent judiciary, and a vibrant civil society, all of which help to explain why so many people choose to do business here.

Openness, freedom and transparency contribute to the fourth principle we must ensure: fairness. Fairness sustains faith in the system. That faith is difficult to sustain when companies are forced to trade away their intellectual property just to enter or expand in a foreign market, or when vital supply chains are blocked. These kinds of actions undermine fair competition, which turns many off from competing at all.

A growing number of countries in Asia are proving the value of these principles. And the United States deeply believes in them, because their value has been proven time and again, not only in times of prosperity but also in times of hardship, as well. At the end of the Vietnam War, there was a thriving commentary around the world on the idea of America’s economic decline. That seems to be a theme that kind of repeats itself every couple of decades. But all the while, then and now, these principles were nurturing a system of entrepreneurship and innovation that allowed two college students to found a small tech startup called Microsoft. And today, they are helping power companies like Solyndra, a green-energy startup in California that began producing solar panels in 2007 and now installs them in more than 20 countries worldwide.

Every time in history when the United States has experienced a downturn, we’ve overcome it through reinvention and innovation. Now, these capacities are not unique or innate to the people of the United States. They are activated by our economic model, which we work hard to keep open, free, transparent, and fair, a model that has its imperfections but remains the most powerful source of prosperity known to humankind.

Of course, no nation is perfect when it comes to safeguarding these principles, including my own. We all recognize the temptation to bend them. And we all recognize the inevitability of human nature’s capacity to look for ways around them. Some nations are making short-term gains doing that. Some developing countries—admirably focused on fighting poverty—might be slow to implement at home the same rules they benefit from abroad. And a number of nations, wealthy in the aggregate but often poorer per capita, might even think the rules don’t apply to them.

In fact, all who benefit from open, free, transparent, and fair competition have a vital interest and a responsibility to follow the rules. Enough of the world’s commerce takes place with developing nations, that leaving them out of the rules-based system would render the system unworkable. And that, ultimately, that would impoverish everyone.

The businessmen and women of Asia seek the benefits that these principles offer. Malaysian manufacturers want access to markets overseas. Indian firms want fair treatment when they invest abroad. Chinese artists want to protect their creations from piracy. Every society seeking to develop a strong research and technology sector wants intellectual property protections because, without them, innovation comes with a much higher risk and fewer rewards. People everywhere want to have the chance to spend their earnings on products from other places, from refrigerators to iPods.

Now, these four principles are easily uttered and embraced, but they do not implement themselves. So our challenge is always to translate them into practice. And my country is hard at work doing that, and we encourage other governments to join us in this effort.

The United States is taking steps to promote these principles around the world through multilateral and regional institutions, new trade agreements, and outreach to new partners, to enlist us all in the quest for inclusive, sustainable growth. These steps are connected to and build upon the work we are doing to revitalize our own economy.

First, we are working through regional and international institutions to achieve balanced, inclusive, and sustainable growth. That starts with our commitment to APEC, the premier organization for pursuing economic integration and growth in the Asia-Pacific region. And President Obama is pleased to be the chair and host of APEC this year in Hawaii.

We want APEC to address next-generation trade and competition challenges, like strengthening global supply chains; empowering smaller companies to connect to global markets; promoting market-driven, non-discriminatory innovation policy. We are pursuing a low-carbon agenda by working to reduce barriers to trade in clean-energy technologies, and we hope to reach agreement on implementing transparency principles to promote economic growth and the rule of law on a 21st century field of play.

Because burdensome regulations and incompatible sets of rules in different countries can hold back trade and growth every bit as much as tariffs, we are also working at APEC to find common ground on transparent, effective regulation, with broader public consultation and better coordination. The quality of the rules we put in place is just as important as our willingness to enforce them.

And I have to mention that discrimination against women is another barrier to fair competition and economic growth. A 2007 United Nations study found that the Asia-Pacific loses at least $58 billion of economic output every year because of restrictions on women’s access to employment and gender gaps in education. So, as host of APEC, we are organizing a high-level Summit on Women and the Economy in San Francisco this September.

We are also working though the World Trade Organization to address continuing challenges to fair competition. Take government procurement. The purchases that governments make represent an important part of the global economy, and citizens everywhere deserve to know that their governments are getting the best product at the best prices. Consistent with the WTO Government Procurement Agreement that we signed, America lets companies from other nations who have signed that same agreement compete for appropriate American Government contracts. We would naturally expect countries that want access to our government contracts to offer our companies genuine access to theirs in return.

Across the full spectrum of international institutions—the G8 and G20, the IMF, OECD, ILO, WTO, and others—we are working to level playing fields and encourage robust and fair economic activity. Just as the WTO eliminated harmful tariffs in the 1990s, today we need institutions capable of providing solutions to new challenges, from some activities of state-owned enterprises to the kinds of barriers emerging behind borders.

We also support innovative partnerships that develop norms and rules to address these new concerns. We should build on the model of the Santiago Principles on sovereign wealth funds, which were negotiated jointly by host governments, recipient governments, the World Bank, IMF, OECD, and the sovereign funds themselves. This code of conduct governing sovereign investment practices has reassured stakeholders – investor nations, recipient nations, and the private sector. And it may prove a useful model for other shared challenges, like ensuring that state-owned companies and enterprises compete on the same terms as private companies.

As a second step, we are pursuing new cutting-edge trade deals that raise the standards for fair competition even as they open new markets. For instance, the Korea-US Free Trade Agreement, or KORUS, will eliminate tariffs on 95 percent of U.S. consumer and industrial exports within five years. Its tariff reductions alone could increase exports of American goods by more than $10 billion and help South Korea’s economy grow by 6 percent. So, whether you are an American manufacturer of machinery or a Korean chemicals exporter, this deal lowers the barriers to reaching new customers.

But this trade deal isn’t simply about who pays what tariff at our borders. It is a deeper commitment to creating conditions that let both our nations prosper as our companies compete fairly. KORUS includes significant improvements on intellectual property, fair labor practices, environmental protection and regulatory due process.

And let me add that the benefits of KORUS extend beyond the economic bottom line. Because this agreement represents a powerful strategic bet. It signals that America and South Korea are partners for the long term—economically, diplomatically, people to people. So, for all these reasons, President Obama is pursuing congressional approval of KORUS, together with necessary Trade Adjustment Assistance, as soon as possible. He is also pursuing passage of the Colombia and Panamanian Free Trade Agreements as well.

Now, we have learned that, in our system, getting trade deals right is challenging, painstaking work. But it’s essential. We consider KORUS a model agreement. Asian nations have signed over 100 bilateral trade deals in less than a decade, but many of those agreements fall short on key protections for businesses, workers, and consumers. There are a lot of bells and whistles, but many of the hard questions are glossed over or avoided.
Beyond that, there is now a danger of creating a hodgepodge of inconsistent and partial bilateral agreements which may lower tariffs, but which also create new inefficiencies and dizzying complexities. A small electronics shop, for example, in the Philippines might import alarm clocks from China under one free trade agreement, calculators from Malaysia under another, and so on—each with its own obscure rules and mountains of paperwork—until it no longer even makes sense to take advantage of the trade agreements at all. Instead, we should aim for true regional integration.

That is the spirit behind the Trans-Pacific Partnership, the so-called TPP, which we hope to outline by the time of APEC in November, because this agreement will bring together economies from across the Pacific—developed and developing alike—into a single trading community.

Our goal for TPP is to create not just more growth, but better growth. We believe the TPP needs to include strong protections for workers, the environment, intellectual property, and innovation. It should also promote the free flow of information technology and the spread of green technology, as well as the coherence of our regulatory system and the efficiency of supply chains.

We are working to ensure that the TPP is the first trade pact designed specifically to reduce barriers for small and medium-sized enterprises. After all, these are the companies that create most of the world’s jobs, but they often face significant challenges to engaging in international trade. So, the TPP aims to ensure fair competition, including competitive neutrality among the state-owned and private enterprises.

The idea is to create a new high standard for multilateral free trade, and to use the promise of access to new markets to encourage nations to raise their standards and join. We are taking concrete steps to promote regional integration and put ourselves on a path over time to bring about a genuine Free Trade Area of the Asia Pacific.

Finally, we need to pursue strategies for achieving not just growth, but sustainable, inclusive growth. Now, it is a maxim of mine that foreign policy must deliver results for people. Because ultimately, our progress will not be measured by profit margins or GDP, but by the quality of people’s lives – whether men and women can work in dignity, earn a decent wage, raise healthy families, educate their children, and take hold of the opportunities to improve their own and the next generation’s futures.

The United States supports a number of endeavors to promote inclusive growth in the region. Our Millennium Challenge Corporation, for example, makes large-scale investments in partner countries to reduce poverty through growth. We have a compact with the Philippines to invest in roads, community development projects, and more effective tax collection. We are negotiating a compact with Indonesia to promote low carbon development, and we began a threshold partnership with Timor-Leste earlier this year to fight corruption and improve children’s health.

Across the region, we are partnering with governments to encourage and help them uphold their commitments to inclusive growth by practicing good governance, providing public goods like health and education, and creating tax systems that improve revenue collection and ensure that everyone pays their fair share. We are supporting civil society and citizens alike in holding governments accountable, supplying job training and networking, and being a strong voice for bringing opportunity to places where it is scarce.

And we are working very closely with the private sector. Two years ago, I created a Global Partnership Initiative to support a new generation of public-private partnerships focused on everything from protecting and developing the Lower Mekong region to helping more families gain access to clean cookstoves, to protect them from the harmful smoke that kills two million people worldwide every year, and puts black soot carbon into the atmosphere.

We also launched the Global Entrepreneurship Program, to identify promising entrepreneurs, training them, linking them with mentors and potential investors, advocating for supportive policies and regulations, helping spread best practices. And we are supporting initiatives like Partners for a New Beginning, which supports economic opportunity, education, science and technology exchanges between the United States and Muslim communities worldwide, and we just opened a chapter in Indonesia.

We are connecting entrepreneurs with Diaspora communities in the United States that are eager to help fund new projects in countries where they have family ties. And we are looking to the private sector to help us. There are so many ways that we are grateful to the private sector. After all, it drives what we are talking about today. But we do need to try to consider, even within the constraints of modern financial practices and expectations, not just short-term benefits but long-term consequences. The work that each of you do in your businesses can help lift people’s lives, promote human rights and dignity, and create new markets, creating a virtuous cycle. Or it can further ensnare people in poverty and environmental degradations, creating a vicious cycle.

So that’s our agenda, and you can see why I’ve come to Hong Kong to talk about it, because here, we have a perfect example of what can be done and how important it is to lead in the economic realm with the kind of principles that Hong Kong has developed on. Now, we know very well that the future is arriving at a breathtaking pace, and the choices we make today will define what is possible economically for so many millions of people

And so while the specifics are forever changing, many of the ideals that guided us in the 20th century are the same ones we need to embrace in the 21st – a belief that a good idea is a good idea no matter where it comes from or from whom, a willingness to embrace change, a culture driven by marriage, faith in the notion that a rising tide of economic growth and innovation can improve everyone’s quality of life whether they live in Hong Kong or Appalachia. It is up to us to translate those enduring principles into common practice, shared prosperity, the opportunity for as many people as possible on both sides of the Pacific to live up to their God-given potential.

And what is standing in the way of achieving that vision? Well, there are many issues and challenges we can enumerate, but ultimately, it comes down to leadership – leadership in both the public and the private sector. We were blessed over the last part of the 20th century with farsighted and effective leaders in many parts of the world, leaders who set the rules that created the economic growth that we enjoyed in the 20th century, leaders who changed course in their own nations and catalyzed the extraordinary growth that we have seen in a country like China, leaders who had visions, private sector leaders who were able to look over the horizon and understand the consequences of not just this quarter’s results but the decades. We need that leadership again. We need it everywhere. And we need it both in governments and in business. That’s why the partnership between the public and private sectors is so essential.

Sitting in the office of the Secretary of State and knowing that I’m here in this position after so many luminaries in my own country have held it, it is a very humbling experience. And I often marvel at what they achieved. And I think a lot about George Marshall and Harry Truman and the Marshall Plan. What an amazing decision – to rebuild former enemies with an eye toward the future. And I think about it in very personal terms, because at the end of World War II, my late father had served in the Navy, so when he left service as so many men of that time did and returned to private life, the last thing he wanted to hear his president or secretary of State say was, “Guess what? We’re going to still be taxing you to send money to Germany, to Europe. We’re going to rebuild Japan because we believe it is in the best interests of your children.”

But it wasn’t only our public leadership who sounded that note. It was also our business leadership as well who basically said, “Okay, we get it. And we’re willing to do our part as well.” In fact, when support for the program was flagging, the White House and the State Department called the heads of large corporations and universities and asked them to fan out across the United States making the case. So the United States invested $13 billion over four years, which in today’s money would be about 150 billion.

Imagine leaders today in either government or business going to their people and saying something similar. When the Berlin Wall fell, Helmut Kohl said, “We’re going to pay what it takes to reunify Germany and we’re going to rebuild our neighbors because the wall is gone,” and people said, “Oh, what a incredible investment of our money. We won; we should be the ones getting all the benefits.” But no; it was a decision that was supported by both government and business.

We face a lot of similar challenges today, and we need visionary leaders in both government and business. But those leaders need to be guided by these principles. Whether we’re talking about politics or economics, openness, transparency, freedom and fairness stand the test of time. And in the 21st century, every citizen who is now potentially connected with everyone else in the world will not sit idly by if those principles do not deliver, and if governments and business do not make good on when we’ll provide long-term opportunity for all.

This agenda is good for Asia, it’s good for America, it’s good for business. Most importantly, it’s good for people. And I absolutely believe it will help us create more a peaceful, stable, and prosperous world for the rest of this century. Thank you all very much. (Applause.)

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Meeting with Staff and Families of Mission Indonesia and Mission ASEAN


Hillary Rodham Clinton
Secretary of State
Bali, Indonesia
July 24, 2011

AMBASSADOR MARCIEL: Okay, we have a joint venture partnership here, of David Carden and I, who will do the easiest job in the world, which is introducing the Secretary of State of the United States of America, Hillary Clinton.

It is wonderful to have you here. Thanks for spending so much time. This is, of course, part of the team, but a big part of the team. They all have been working very hard, very grateful for your time, and all looking forward to getting back to Jakarta tonight, so we can continue all the great work of partnership.


AMBASSADOR CARDEN: Thank you. It is a challenging, introducing somebody who needs no introduction, but it seems only right that I should do it, because I wouldn’t be here without her.

I simply want to say that I have not been in this whole-of-government family very long, but I have been here long enough to know that the job that we do out here is made an awful lot easier by this woman. The leadership and the vision that she brings to this job may not be unprecedented, but it is hard for me to believe that that’s not the case. So it is my pleasure to introduce the United States Secretary of State Hillary Rodham Clinton.

SECRETARY CLINTON: Thank you so much. (Applause.) Oh, my goodness. Well, this has been an extraordinary couple of days here in Bali. And I have a new rule. Every international conference should be in Bali. (Laughter.) And the President is looking forward to coming back soon. You are going to get rid of me, and then immediately have to turn around and get ready for him. So I hope you have a few days of respite.

But I wanted to thank each and every one of you. Certainly our bilateral mission and our ASEAN mission — I just am so grateful and impressed by the work that you have done. And I think that we can agree that both of our ambassadors are doing a first-rate job. I want to thank both Scot and David. Their leadership and their passion is evident in the work that they and you do together. They are a real dynamic duo. Their partnership is a model for what we hope to achieve in a whole-of-government approach, not only in Jakarta, but around the world.

Let me just say a few words about David and the ASEAN team. (Laughter.) The ministerial meetings were terrific. Everybody, with the preparation that you put into it, I want to thank you, because it certainly paid off. It makes a big difference to have a dedicated team to ASEAN.

And, as some of you know, I was determined to do that from the very first time I visited back in 2009, when we said we would sign the Treaty of Amity and Cooperation. I came back, told the White House, “We are going to sign the Treaty of Amity and Cooperation.” They said, “The what?” (Laughter.) I said, “You know, it’s a friendly, cooperative” — but it has worked out very well, because we do believe that we have deepened and broadened our relationship.

I know that, for those of you working on the ASEAN mission, it has felt like a start-up, because it is a start-up. We are the first country to have named an ambassador. And you didn’t have a lot of resources, you didn’t have a lot of space, and you certainly didn’t have a lot of sleep. So it is triply impressive, what you have accomplished in such a short period of time.

And then I want to thank and recognize Scot, who I have the privilege of working with before he was confirmed to be our Ambassador. And Scot was an absolutely essential member of my team before he came out to Jakarta. And his help in organizing the comprehensive partnership joint commission meetings is so appreciated. We heard great reports this morning. And I just want to thank you, thank you, Scot, for all you are doing to strengthen our relationship.

And I know education has been a major priority. Because after 9/11, student visa applications fell way off. But through EducationUSA you have helped to change that. And last year alone, student visa applications for the U.S. increased 20 percent. And 95 percent of those applications were approved.

On the scientific front, you have been very active, and it is clearly paying off: @america, the interactive, high-tech outreach space that was recently completed — in the mall, right — something that former Under Secretary Judith McHale was so enthusiastic about, she must have reported to me about it 100 times, because it’s where the people are. We closed down American centers all over the world for security reasons, and made it also difficult for people to come to the embassy or some other location. So now we are going to where people are.

And I also know the climate change discussion you convened earlier this year had great success, bringing together scientists, business leaders in green technologies, NGO reps, government officials, and even former vice president Al Gore. But that is kind of above and beyond the day-to-day work that you do every single day.

I know that you are assisting the 50,000 Americans who visit Bali every year. You have engaged with youth groups and are educating them about scholarship and exchange opportunities, as well as creating the science and energy partnerships, and telling America’s story.

So, I want to thank you. And I know you do it under difficult circumstances. Sixty years has taken its toll on the Jakarta chancery. And as you prepare for a transition into a new facility, I know you’ve been working out of sheds and temporary buildings. Sometimes the power goes out, or the water stops running. But your commitment doesn’t stop in any way, and I thank you for that. And I thank family members who support you here in Indonesia, and back home.

And I particularly want to thank our local staff, because you are the backbone of our operation, as you are around the world. Year in and year out, ambassadors and counsels general and Foreign Service officers and secretaries of state come and go, but you stay. And you provide the continuity and the experience and expertise that we need. And that is greatly appreciated.

I also want to thank our security team. We have 550 security guards throughout the country. Thank you for all you do to protect us. And I know you put a lot of energy into protecting us, and you put a lot of energy into organizing volleyball tournaments. So I don’t know who won the last one, but I know it brought friends and family together, and raised everyone’s spirits. So thank you for that, as well.

So, really, this has been a smooth, productive set of meetings. And I am grateful to you. And I look forward to continuing to work with both ambassadors and with the tremendous teams that support them. President Obama and I believe that Indonesia is one of the most consequential relationships for both of our countries in the 21st century. And we are going to do everything we can to put it on the strongest possible foundation for years to come. Thank you all very much.


US Secretary of State Hillary Clinton waves from her plane prior to her departure from Indonesia's resort island of Bali on Sunday July 24, 2011. The United States said that it has invited a top North Korean envoy to New York for "exploratory talks" on the possible resumption of the six-party negotiations on denuclearisation. Secretary of State Hillary Clinton said the North's vice foreign minister and former nuclear negotiator, Kim Kye-Gwan, would visit the US "later this week" for the talks -- the first such contacts for almost two years. (AP Photo/ Saul Loeb, Pool)

US Secretary of State Hillary Clinton disembarks from her plane upon arrival in Hong Kong on Sunday July 24, 2011. The United States said that it has invited a top North Korean envoy to New York for "exploratory talks" on the possible resumption of the six-party negotiations on denuclearisation. Secretary of State Hillary Clinton said the North's vice foreign minister and former nuclear negotiator, Kim Kye-Gwan, would visit the US "later this week" for the talks -- the first such contacts for almost two years. (AP Photo/Saul Loeb, pool)


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Remarks With Indonesian Foreign Minister Marty Natalegawa After Their Meeting


Hillary Rodham Clinton
Secretary of State
Ayodhya Hotel
Bali, Indonesia
July 24, 2011


FOREIGN MINISTER NATALEGAWA: A very good afternoon, dear colleagues from the media. (In Indonesian.) I would like to begin once again by welcoming and expressing our appreciation to Secretary Clinton, as well as her delegation, for having attended and participated actively in this second Joint Commission meeting between the United States and Indonesia.

I had begun our discussion this morning by expressing one key thought. First, that during the past few days, as you are aware, Secretary Clinton has given Bali to attend the ASEAN-U.S. meeting, the East Asia Summit meeting at the ministerial level, as well as the ASEAN Regional Forum. And during the course of those sets of meetings, Indonesia and the United States worked very closely, all for the purpose of promoting peace, stability, and prosperity for our region.

But I have also suggested the idea that all those endeavors would not be possible without being anchored by strong bilateral relations, as Indonesia and the United States today enjoy. And that is why today’s second JMC is extremely strategic and extremely important. As colleagues will be aware, the JMC process was launched last September 2010 for the purpose of injecting momentum and ensuring concrete (inaudible) to the vision of a comprehensive partnership between Indonesia and the United States.

And during the course of that period, since September 2010 until today, we have seen, based on the report that we have just now received from the six working groups — namely the working groups on democracy and civil society, working group on climate and environment, working group on education, on trade and investment, on security issues, and on energy — based on the submission from the six working groups, I think both Secretary Clinton and I feel ever more confident that the comprehensive partnership between our two countries are in a good state, and that we are actually further deepening and strengthening our collaboration and partnership.

And more specifically, each of the working groups were able to share with the Secretary and myself the kind of progress they have made in their own respective domain, and lay out the concrete work plan for their year ahead, in order to ensure that the momentum is maintained.

More specifically, as you are aware, come next November, in 2011, we are to have the East Asia Summit here in Bali. And on that occasion, we are anticipating, of course, the first participation by the United States, by President Obama, to that summit. And, at the same time, there will be, no doubt, a bilateral meeting between the two presidents: of Indonesia and President Obama. In other words, the work that we are doing now, today, of the JCM, becomes a useful (inaudible) for us to be able to take stock where we are and where we wish to become next November.

So, all in all, I would say, Secretary, it has been — and I am sure you would agree with me — a most productive meeting, and encouraging, as well, because not only have the working groups been extremely diligent and energetic in their work over the past few months, but they continue to be driven by a sense of wanting to achieve better achievement and identifying more potentials for the future.

Of course, besides the issue of bilateral relations, the Secretary and I had the advantage on this occasion to compare notes on various regional and international issues, following on from the discussions that we have been having at the ASEAN Regional Forum, as well as the East Asia Summit at the ministers level.

That is by way of introduction for myself. I should now like to give the floor to Secretary Clinton to also deliver her remarks. Please.

SECRETARY CLINTON: Thank you very much. I want to express my appreciation to the Foreign Minister and the delegation from Indonesia for not only welcoming us today, but preparing the opportunity for such a productive second meeting of our joint commission. As the foreign minister said, we covered a lot of ground. I want to just touch on a few of the highlights.

First, we discussed how to increase trade and investment between our countries. Because while Indonesia is the largest economy in ASEAN, trade between our two countries still lags between others in the region. For example, our trade this year with Indonesia was $20 billion, but our trade with Malaysia was $40 billion. So we want to look at what are the impediments and the potential barriers. How do we reduce tariffs? How do we create more dynamic trade and investment between Indonesia and the United States?

Secondly, we discussed how we can work together more closely to protect the environment and to address the challenge of climate change. I know that is something that the Government of Indonesia and President Yudhoyono has been particularly focused on. I emphasize that, as we enter the final stage of negotiations on a Millennium Challenge Corporation compact that aims to promote low carbon development, we look forward to the quick creation of an accountable national trust fund to implement the compact, and to spur sustainable growth here in Indonesia.

Third, we discussed our shared goal of expanding educational exchanges. And I was so pleased to hear the report from the two chairs of the education working group. We are well on the way to doubling the number of Indonesians who study in the United States, and increasing the number of American students who come to study in Indonesia. We have expanded study abroad initiatives, such as our Fulbright Program, and we are eager to continue to build on that, as we will at a higher education summit to be held in Washington on October 31st.

Finally, we discussed Indonesia’s growing role as a regional and global leader, and the important leadership that Indonesia is providing in ASEAN, in the ASEAN Regional Forum, in the East Asia Summit, in APEC, in the G-20, in all the major multilateral fora where the hard problems facing us in the world today are addressed.

This is an exciting time, and I was very impressed by the work that has been done by the working groups. And I think that this comprehensive partnership is, indeed, producing results for both of our people. Because, after all, we have to report to the people of Indonesia, and the people of the United States. And I think they can be reassured that we are not meeting for the sake of meeting; we are meeting to build relationships, to explore potential, and to deliver results for both of our people.

So, again, let me thank the Foreign Minister for his hospitality and his friendship, and to commend you, Marty, on the excellent job done in hosting these important gatherings in the last week.

FOREIGN MINISTER NATALEGAWA: Thank you very much, Hillary. Before opening the floor for questions, may I express a sentiment which I am sure Hillary would want to associate herself to, as well? Once again, to reaffirm and communicate our (inaudible) with regard to the attacks that took place in Norway just recently, the loss of life, of innocent lives lost, and our condemnation for that event, yet, at the same time, our confidence in the strength of the Norwegian nation, of its government, to be able to overcome this particular challenge, and that we, as members of the international community, stand by them in expressing our solidarity and support.

QUESTION: Thank you very much (inaudible). I have a question for you, ma’am, and one question to you, Mr. Marty.

First question, I would like to know what is your opinion on how ASEAN works on problems such as the border disputes (inaudible), issues of human rights (inaudible), and especially South China Seas issue. And do you think that we should always be (inaudible)?

My second question. There has been (inaudible) on the human (inaudible) Indonesia following the statement of Human Rights Watch. How (inaudible) participation of human rights in Indonesia, especially (inaudible).

And to Mr. Marty, (inaudible).

FOREIGN MINISTER NATALEGAWA: Ah, right. Thank you very much.

SECRETARY CLINTON: Let me begin with responding. I want to commend Indonesian leadership of ASEAN this past year. Because of its active role in promoting a resolution to the border disputes between Cambodia and Thailand. Indonesia played that role very effectively, to the point that both countries have asked Indonesia to continue playing such a role, even after its chairmanship of ASEAN expires.

And I think the international court of justice’s decision about the disputed territory between two ASEAN members itself highlighted the importance of ASEAN continuing to seek a permanent resolution.

Secondly, with respect to human rights in Burma, we discussed that in our meetings, in the ASEAN Regional Forum, and in the U.S.-ASEAN dialogue. And I think it is very important that we continue to press the new Government of Burma to take action that will demonstrate a break with the past. And again, here I commend Indonesia’s leadership, both as chair of ASEAN, in reaching out to the new government, but also, based on your own experience, I think there is much for Indonesia to share, as to how you make a successful peaceful transition to a democracy as vibrant and successful as the one here in Indonesia.

And with respect to the South China Sea, as you know, that took up a great deal of our time in discussions, both prior to and during the meetings. I have to comment Indonesia’s leadership again. Because, as chair of ASEAN, Indonesia led the way to the adoption of the declaration of conduct. I think that it is important for all of us to realize what is at stake here. Because, clearly, the South China Sea is absolutely essential to global trade. At least 50 percent of all global trade goes through the South China Sea every single year. And it is important for us to support freedom of navigation, unimpeded commerce, so there is no question as to the rights of every nation for its ships, its goods to pass through the South China Sea. But it is especially important for the region.

And the United States takes no position on any claim made by any party to any disputed area. What we want to see is a resolution process that will be aided by the code of conduct that ASEAN is working toward, based on the Declaration of Conduct, and that the principles of international law will govern, so that there can be peaceful resolution of all the claims. In order to achieve that, every claimant must make their claim publicly and specifically known, so that we know where there is any dispute. And secondly, all claims must be related to territorial characteristics.

So, we think that it was an important first step, but only a first step in adopting the Declaration of Conduct. And we commend, again, Indonesia’s leadership in achieving that, and urge that ASEAN move quickly — I would even add urgently — to achieve a code of conduct that will avoid any problems in the vital sea lanes and territorial waters of the South China Sea.

With respect to — you had two questions in there — with respect to human rights, we have a working group in our Commission on democracy on human rights. We had a very positive discussion about those important issues during the reporting from that working group, and we look forward to continuing to support Indonesia in its important leadership on democracy and human rights, not only in the region, but globally. And, therefore, we look forward to continuing to make progress.

FOREIGN MINISTER NATALEGAWA: If I may just also add to the point that Secretary Clinton has made on the South China Sea, Indonesia is acutely aware of the need to maintain momentum. Of course, the conclusion of the guidelines just now — a couple of days ago now — is a very important development. I would not wish to underestimate its importance. But, at the same time, it reminds us of the further work that needs to be done maintaining momentum, maintaining a sense of urgency. And we have a road map at the back of our minds of what needs to happen between now and then, whenever the “then” is. But you can be assured that we have a clear outline and expectations of what needs to happen. And not least, of course, the identifications of elements for Code of Conduct within the process of its eventual conclusion, as well.

On the specific question asked — addressed to myself, namely Indonesia and the United States with regard to the East Asia Summit, as you are very much aware, of course, the process, the very process of United States participation and addition to the East Asia Summit was, among others, a product of a process that Indonesia and the United States bilaterally (inaudible) about.

I remember my first conversation with you, Hillary, in Singapore, if I am not mistaken, at the sideline of a conference. This was an issue that you raised then. And, therefore, even from the beginning, the United States and Indonesia have been engaged in a very thorough way to discuss, to compare notes of our strategic vision of what the East Asia Summit is all about. And now that the United States is part of the East Asia Summit, it is our task, together with the other members of the EAS to give flesh to this — to give value to this forum. And I think that the discussion that we had yesterday was extremely instructive — a couple of days ago now — among others, to ensure that the East Asia Summit, besides discussing the five priority issues that we have been discussing, also deepen and broaden its engagement or discussion on so-called broad strategic issues.

The East Asia Summit must provide solutions to many of the region’s challenges, and opportunities, as well. And I am glad that, with the United States being part of the equation, being part of the architecture, then the chances of having this summit providing that answer is suitably enhanced. Thank you.

QUESTION: I am going to follow up on a couple of human rights issues. Foreign Minister, do you believe that the change that occurred in Myanmar, Burma, this year is sufficient for Burma to take its place, for instance, as head of ASEAN? I don’t believe the United States thinks so. I mean you both can comment on that.

And in advance of the Secretary’s visit, a number of media groups, a human rights group, issued statements critical of Indonesia’s handling of the situation in Kampar, saying that aid groups and journalists were being barred, and that there were reports that — of a crackdown on the indigenous people. And I was just wondering if you both can comment on those specifics.

FOREIGN MINISTER NATALEGAWA: Thank you. In a way, the questions are somewhat related, as relates to human rights and democratization.

One thing that we have learned in the course of our decade-long now — nearly — democratization is that it is a process. It is impossible to have a snapshot of one moment in time and sort of decide, “Are we there yet, or are we not there yet?” And this is most definitely the case with respect to Myanmar. Myanmar is obviously a work in process, in terms of democratization. To put it more — in a more — I guess — yes, I don’t want to use — describe it as a work in progress.

But it is very much related to the issue of chairmanship. As you know, at the moment, the decision has not been made by ASEAN. When we last met as foreign ministers, the decision has been left — not quite done yet. But we have to see and have a sense of — comfort level whether Myanmar is actually prepared and ready to assume chairmanship of ASEAN in 2014. I am aware — we are aware — of the responsibilities and the expectations that is inherent in a particular country chairing ASEAN, especially on the eve of 2015. So we are well aware of that, and we are going to have plenty more discussions among ASEAN member states to ensure that there is a real comfort level about the issue.

On the issue of human rights situation in Indonesia, the kind of concerns that we have expressed, many — we hear such comments and expectations on a regular basis. But the only thing is nowadays it is also a concern that is shared by all Indonesians alike. So it doesn’t take an external party to suggest to us we need to do this and that, because it is being — efforts are being made to ensure that our own democratic and human rights expectations are fulfilled, as we expect them to be.

But, you know, as Secretary Clinton has said, we have this working group within this forum on human rights and civil society that has been working not only in promoting bilateral cooperation on human rights issue, but also increasingly now, of cooperation of a multilateral character, as well, a lot of experience sharing that we are disseminating to some other countries in transition, including in the Middle East and North Africa, which shows the potential demonstrative effect that countries like Indonesia, working together with United States, can impact — impart upon our partners, as well. Thank you.

SECRETARY CLINTON: Well, we greatly appreciate Indonesia’s leadership in promoting progress toward political reconciliation and democracy in Burma. And, as the foreign minister said, Indonesia’s own recent history provides an example for transition to civilian rule and building strong democratic institutions.

And we have, in many different settings, expressed our deep concern about the oppressive political environment in Burma. We have called on the newly-elected government to release political prisoners, open a meaningful dialogue with Aung San Suu Kyi by utilizing decision-makers who can respond to her legitimate suggestions and concerns, and we will continue to press for the kind of changes that we see benefiting the people of Burma in the future.

With respect to Papua, the United States supports the territorial integrity of Indonesia, which includes the Papua and West Papua provinces. We, of course, believe in open dialogue between Papuan representatives and the Indonesian Government to address grievances and support development. But, as the Foreign Minister said, this is a matter for the Indonesian Government, and they are addressing it. And we hope to see full implementation of the special autonomy law for Papua, which is a commitment on the part of the Indonesian Government to address many of the concerns that have been expressed.

QUESTION: Thank you, Madam Secretary and Mr. Foreign Minister. I want to ask about how far this relation has progressed since you (inaudible), especially about the (inaudible) and security sector.

And then, what will U.S. President Barack Obama of United States bring to the East Asia Summit next November? Thank you.

SECRETARY CLINTON: Well, I think that there has been a discernable amount of progress in the relationship between the United States and Indonesia under the Obama Administration. President Obama came to office very committed to deepen, broaden, and strengthen the bilateral relationship between our two countries. And, based on the work that I have overseen, and that I have been able to analyze, given the work of the Commission, I am very pleased by the progress that our bilateral relationship is making.

We, on both sides, have more to do. And so, this is a continuing process that we will be focused on. I know President Obama is looking forward both to attending the East Asian Summit and the U.S.-ASEAN Summit, and his bilateral meetings with President Yudhoyono and others. But this is a very important relationship, one that the United States highly values, and that we are deeply invested in. And I think, based on the progress we have made in a very short period of time, there is a tremendous potential for future cooperation.

QUESTION: Hi. I am Anthony Kuhn with NPR, National Public Radio of the U.S., and I would like to hear both from Secretary Clinton and Minister Marty on this.

To go back to the South China Sea, Secretary Clinton, you have asked claimants to back up their claims in international law. This is probably the most — as China would put it — core interest, or core matter, the thorniest issue you could raise. It has taken the better part of a decade just to come up with a non-binding resolution that says very little about what to do when there are spats. What about the medium term? What about the short term?

What do you propose to address — to prevent incidents which you say threaten security? Might you — although you are both not claimants in this — for example, engage in diplomacy in, say, to claimants, at least try to get to your different domestic departments in line, reading from the same page on this issue? Thank you.

SECRETARY CLINTON: Thank you very much, Anthony. I think that the progress that we saw this year stands in marked contrast to our meeting last year. The achievement of a declaration, as you point out, had been a long time coming, thanks to the hard work and leadership of the foreign minister and the Indonesian Government as chair of the ASEAN meeting, as well as the ARF. There has been progress on the dialogue between China and ASEAN.

The Declaration is a first step. Nobody claims it is more than that. It is a first step. It needs to be quickly followed up on by the code of conduct. There needs to be a lot of dialogue between ASEAN and China in their already-existing mechanism. And the rest of the world needs to weigh in, because all of us have a stake in ensuring that these disputes don’t get out of control. And in fact, the numbers have been increasing. The intimidation actions of (inaudible), of cutting of cables, the kinds of things which will raise the cost of doing business for everyone who travels through the South China Sea, which, as I said earlier, is half of all global commerce.

So, we support a collaborative, diplomatic process by all claimants to resolve all of their disputes. What we do not support, and are strongly against, is the use or threat of force by any nation to advance its claims. Therefore, we think simultaneously there needs to be a very concerted effort to realize a code of conduct, and there needs to be a call by the international community for all parties to clarify their claims, both land and maritime, and to conform them to international law, including as reflected in the UN Convention on Law of the Seas.

This is the way the world is supposed to work. And in the 21st century, this is the way it must work. Because no nation can, on its own, manage everything that needs to happen. And those days are and must be over. And, therefore, we have to have the kind of cooperative, collaborative effort that Indonesia has led.

FOREIGN MINISTER NATALEGAWA: Well, thank you very much for that question. Collaborative and cooperative mindset is an effort — is certainly exactly the kind of spirit and outcome we are promoting as Indonesia, as ASEAN chair, for our region. Of course, the obvious recent manifestation among others has been on South China Sea, as well as on the Thai-Cambodia situation.

In other words, we are keen to avoid for our region the kind of fault lines and schisms and divisions that may not be — that would not be to the interest of any countries in this part of the world. And the South China Sea, the guideline itself, the Declaration and its guidelines, when you look at it, it may not seem to suggest much. It may not. However, if you look at the broader picture of what it represents, the fact that after about eight years, finally, this year, after much strong effort, and in contrast to — like Secretary Clinton said, in contrast to last year’s ambience and conditions, we were able to get this done. I think that is a good start. And it is an asset for us to develop on.

The key point here is that we must make sure that this is not the end of the line. This is but the beginning. And I can assure you that Indonesia, as chair of ASEAN, we have a road map — as I said before in my earlier remarks, we have a clear road map of what needs to happen between now and, say, November. That is the next junction, when we will be having the summit of ASEAN, the East Asia Summit, to ensure a constant sense of progress and momentum. Because we do sincerely and genuinely feel letting things not going anywhere, letting things be state of status quo can be possibly destabilizing, and creating uncertainty and opening up the potentials for miscalculation. And this is what we wish to avoid. Transparency, in terms of intent, in terms of claims, is extremely important.

But all this must be done within the diplomatic process. And I don’t mind having very difficult debate — frank and candid, as we say it in diplomatic parlance — as long as it is all done in the construct of a conference room, rather than out there at sea. And there has certainly been, as Secretary Clinton said, recent incidents at sea. I am afraid it is a general trend, not only in the South China Sea; the other seas of all parts of the world also have been marked by tensions. The militarization of fishing vessels, for example, that — how fishing vessels have been protected by the navies of different countries and creating incidences at sea, and these are very serious developments.

That is why, among our initiatives just now, was to have a maritime forum for our region, an East Asia or Asia Pacific ASEAN maritime forum, where all the different assets of maritime ocean issues can be discussed in a cohesive way. Indonesia, you recall, is an archipelago. It is a country that is not small, made up of some 17,000 islands. We used to think of the oceans as a factor that divides us. But, thanks to the foresight of our founding fathers, the oceans, the seas between the islands, becomes an issue that binds us in accordance with this archipelagic outlook.

Now, we would like to think that East Asia and the Asia Pacific, a great deal of which is made up of the seas, can also have a similar integrative outlook, to look at the seas as a potential for cooperation, rather than a source for conflict and tensions. That is certainly the kind of outlook we would like to promote. Thank you very much.


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In the course of her jam-packed day two at ASEAN in Bali, Indonesia, Secretary Clinton participated in a series of bilaterals with her counterparts from a wide range of Asian countries. We see her here with Japanese Foreign Minister Matsumoto, Korean Foreign Minister Kim, Singaporean Foreign Minister Shanmugam, Bruneian Foreign Minister Mohammed Bolkiah, and Pakistani Foreign Minister Hina Rabbani Khar.

It is impossible for me to avoid commenting that Mme. Secretary is, once again,  beautifully color-coordinated with the backdrop as participants pose for the “family photo.”  Given that she has flown halfway around the world and cannot simply grab a pantsuit from her closet at a moment’s notice, I am wondering how complex packing is for her.  She must somehow receive advance notice, probably from the embassies, about what colors will dominate certain events and plan her traveling wardrobe accordingly.  Just thought I would mention this as I appreciate the effort that must go into it as well as the effect which never fails to be lovely.  Very pretty, Mme. Secretary.  Very pretty indeed!

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