.. >> national security adviser, thomas donilon participated in a q&a session at the economic club of washington d.c. today. he discussed al qaeda, eric spring in military operations in iraq and afghanistan.

this is 50 minutes. [inaudible conversations] >> to have everybody's attention, please? can i have your attention so we can start? thank you very much. we are very honored today to have as our special guest of the president's national security advisor, tom donilon. thomas had a distinguished career in government works generally over some 30 years. i first met tom when i was working under president carter. tom had just graduated from catholic university, came to work in the white house and very quickly became so apparent that he came in charge of the president delicate at the age of 23. he did a spectacular job and hoped president carter every nomination.

that election didn't go the way we thought it would go. [laughter] den to help president carter set up his post government career and then went to law school at the university of virginia, where he became a member of our review. he bantering subsequently all milly and meyerson is back and forth for many, many years. he served in the clinton administration as chief of staff to warren christopher assistant secretary of state and was intricately involved in the foreign policy operation as well and in the obama administration, he served initially as deputy national security adviser and about a year or so ago became the national security but is there as well. so he served one of the few people to have been presented to serve in the carter, clinton and obama administration. as national security adviser he leaves the briefing for the president of the united states over 500 briefings for the president. he also is the chair of the

principals committee, which consists of the senior people and officers involved in the formulation of foreign policy and he let the principals committee meetings that led to the successful raids on osama bin laden and spent 11.5 hours on the operation chairing a committee. he's been integrally involved in the efforts in china and middle east and in his spare time, he has time for two children and his wife is also a member of the administration. she is the chief of staff for jill biden and his brother is a counselor to vice president biotin, so they know a lot about this administration. >> we have these good to see each other once in a while. >> i have no doubt. so you have worked for three very high i.q. presidents. who was the smartest of them? [laughter] >> that was in this staff preparation for the national security interview.

i guess the answer to that question would be best, that one of the keys to being able to work closely in a senior advisory role with three presidents over 30 years and not answering questions like that. i think is the answer to that. >> that's a fair answer. >> i have the privilege to work with the three administrations and fairly closely with president carter, clinton and obama. and i am struck, david increasingly by the burden placed on our presidents. you know, you mentioned the bin laden operation. that's a good example. at the end of the day, you mention i have a lot principal meaning that they peered at the end of the day with the decision was made the thursday before, the president had decided counsel. he sat at the head of the table in the situation room. our team of national security advisors is a team of prominent advisers from clinton to then

secretary gates, secretary panetta and others. as i said come them when he walks out of that room to make a decision, it's on his shoulders. i am increasingly struck by that the longer i surf. i am also struck by the fact that we have been exceedingly lucky in the men who have been in that job. >> we just mention the bin laden matters. that may get you that if it now. at night -- the night before the president spoke at the white house correspondents dinner coming 18 new is going to occur, he did a good job hiding the fact you chose those pressures in its name. did you have any doubt the raid would succeed? >> a couple points on now. we had high confidence the operation could be executed by the special forces that undertook. in stepping back in terms of analysis, a couple things. number one, the evidence with

respect to osama bin laden be in about about pakistan was circumstantial. it was an analysis, a result of work that it taken place during the course of two administrations. many of the same people working with president bush were working with us in the obama administration analyzing the evidence. it became the focus during 2010 and we worked it very hard. but at the end of the day, it was a circumstantial case. but it was the best evidence we had with respect to where about osama bin laden was to his skinny many years earlier. so we have the best case we had, but there was a circumstantial case. basically if you look at that, there is a slightly better than even chance perhaps that is fair. when people try to put a

percentage on the estimate, this is something bankers do more than an intelligence analyst who do, you know, it really is a judgment call it a point. what the president had with tremendous confidence that goes directly to your question. he had tremendous confidence in the ability of the special force to execute the commission and that's one of the reasons he chose that option of a helicopter as opposed to other options he had appeared our special forces have developed expertise through thousands of these kinds of operations. and through the present experience for the first two and half years of his presidency, three experience he knew about special forces in iraq and afghanistan, to the quality and rehearsal the special forces have presented to him, what he did have it's really 100% confidence in the ability of the special forces to go when common secure the place in abbottabad and get that. so an unclear judgment call on intelligence, but a very high degree of comp names with

respect to the ability to special forces to do the operation. >> when you heard that a helicopter had failed, did you relive the carter administration dave? were you worried this was going to be another failed mission or do you have complete confidence he could still succeed? >> you know, in my job, i spend quite a bit of time worrying about things as you would hope. [laughter] but with respect to that specific incident, david, it had been a contingency that the special forces folks had out about and had planned for. and the fact is that even when there was any of that you mentioned with respect to the helicopter, which came down in the courtyard and into the wall, i don't think that these folks missed a minute, frankly.

i do think it delayed the mission more than a minute and they have tremendous adaptability through what is really an extraordinary set of scales and in said that the united states has right now to put together. >> the iconic photo now where you are all looking at the screen, what were you actually looking at? >> i actually don't -- i don't have the answer to that question. as you said, i was there for the entire day. there were hundreds of pictures taken, but we were monitoring. >> was the plan to not ring back osama bin laden alive? was not always the plan? would you have brought them back alive if he just had a surrender? >> no, well, first of all, it was a military option enemy combatant and indeed the leader, the only leader of al qaeda ever had. authorized by the congress in 2001 and the authorization for the use of military force.

bin laden in that case did not surrender. he didn't give any indication he was going to surrender. one of the hallmarks of al qaeda operations in suicide and other kinds of booby-trapping of homes and facilities where they were. so i think that our forces were absolutely within their right to take the action that they did. indeed, because the president chose the office they chose come in the helicopter in, we were able to limit their extraordinary efforts collateral damage, protection of women and children and noncombatant at the facility, anyone who is associated with protected and again the action took place against those combatants who didn't indicate any signal they had any intention of surrendering. >> shifting to another person who we are not that friendly with, gadhafi. if gadhafi is found the u.s. position that he should be tried in libya or be tried by to the international court?

but with the united states prefer? >> began, the libyan people have to make a decision. i guess it's a couple things about that. i do think it's important that he is captured and brought to justice. i think he has shown over the course of his life that he is capable of exercising in undertaking actions of very negative consequences, including killing americans. and i think he would detainee to be not a threat in terms of overturning the government because the libyan people have clearly thrown them out. but in terms of undertaking harassment and trying to undermine the success of the democratic government in libya. so it is an important thing to capture. although this is not slowing down the development of the libyan government. again, i think what the leadership of the transition national council has said is

they would capture him and turn him over to the international criminal court to be tried there. >> yesterday, president sarkozy and prime minister cam ranh were in libya saying they wanted to hope the new government. if the united states prepared to help the new government and what kind of sources or repair. to give the new government? >> the united states is prepared to help the new government and we have helped the transition of the national council in its efforts to get where we are today, which is a very successful outcome today. we have been leading the effort and led the effort prior to the fall of the gadhafi government to recognize that we have frozen under our laws here is the no some 30 billion plus dollars in libyan assets, right? who did that immediately at the front then after the president said gadhafi should step down, the united states undertook an extraordinary set of actions under the weekend to freeze north of $30 billion worth of

libyan assets. we've gone to the u.n. and unfrozen dna did nations of about a billion and half dollars today. that's an extraordinary resource at the libyan people and will be working on freezing assets and getting them to the libyan government. we also will support the reopening and reestablishment of the oil industry there and obviously we will be working with them through the united nations in terms of getting their government. a lot of challenge, but it's a very big success for nato. the operation here, you know, the president saw a potential real humanitarian catastrophe when gadhafi was threatening a town on the coast in libya confident as he was hundred thousand people. and the president saw an opportunity there to act in concert with others to protect those people. and we did that. it was i think a well designed

approach, we decided that military action could be taken, could be successful. we set a set of criteria to include the wind go unilaterally would have united states puts on the ground. we wanted to participate of the herb country not just in the ways that we wanted to see a burden sharing here commensurate with interest. the president worked through with the leaders of nato and other countries i think a division of labor, which worked. we took the front and honest doing unique things that only we could do. no other country could take data can shake and a couple of days. we then turn the ongoing operations over to the nato. it's been a very successful operation. we have talked about burden sharing for a long time. we were able to implement here and tier inoculates commensurate with interest to apply that logic, why not do the same in

syria? there seem to be people being killed there. >> i laid out the front end of the answer. a set of criteria you need to work through with respect to military action, including a set of allies and partners he would work with, but also needs to be as. >> you don't expect anything by us in terms of syria? >> i don't expect that, no. but expect us to do in the case of syria is that we have organized an effort around the world to isolate and really squeeze the assad regime. he took a choice to repression. he had other choices in front of him. what he is done of course now is lost even his neighbors who have had close relations. an example of course is turkey who had invested 10 years and really trying to develop a positive constructive relationship with syria. during the course of the last 45

or 60 days, a site has demonstrated his commitment to repression. he is slaughtered people during the holy month of ramadan. he reject a turkey and its efforts to seek and push them towards reform. he now has the european union must be putting in place oil energy sanctions. that's where 90% of oil experts go to and he succeeded in making himself a pariah. a candidate -- >> he think he survives? >> i think at the end of the day the assad regime will not be the governing regime in syria. >> speaking of trials, former ally of the united states, president of egypt is now being put on trial in each of. this united states government support those trials? >> .us decision for the people of egypt. to undertake an accord with their lives. >> to have regrets about the

egypt is handled by the administration class sometimes people thought were pushing him to leave. sometimes people said we could tolerate him for a while. are you happy with the message that came out from the administration during that period? >> it was consistent with the set of principles we laid down in the arab world since the beginning of the year, which are that we are post-repression of violent, that we are for a set of universal rights and principles, freedom of assembly, freedom of speech impaired we stand for reforms, economic and political reform. i don't at all regret the way that the united states handled this. i do regret this. i regret that president mubarak did not take action sooner to be responsive to what was going on in tahrir square and around each edge. there were mistakes that turned out to be tragic for him. one last thing with this question on the air of spring. i think obviously it's ongoing,

as very country to country as we've been discussing. it is indigenously driven. it's obviously broader trends that work at governance, letting people down, communications now possible both in countries and out of countries, which a lot of these movements to move forward. a couple of big strategic impact so, the contrast with the al qaeda would talk about osama bin laden with the al qaeda narrative is really start. this is a bit low. the people in tahrir square and tunisia in syria and throughout the arab world were not in any way advocating the violent really kind of no positive agenda of al qaeda. it's a real blow to the al qaeda narrative. it's also a blow to iran.

iran thought they would take advantage. if you do an analysis right now is the area of spring in iran, iran turns out has been very negative. the mac each of now is force the israelis to close their embassies in cairo and in fact, are you worried the impact on israel from the uprising in egypt will be damaging to defend israel necessary? >> i think two or three things. there's a lot of elements to the question. number one, is al qaeda is absolutely committed to the security of israel. i spend a lot of time personally on that issue. we have been devoted to ensuring israel's qualitative military edge. we have worked with them on important projects there that are very important in the current circumstances, which is higher don't come a protection against rocket attacks. we've buried deep intelligence and security cooperation with israel. as a first principle of middle

east policy come israel's security is front and center number one. number two, there's tremendous uncertainty on each of israel's borders i don't. and that is obviously to focus the government and people of israel in working through these issues. in dealing with this uncertainty. we have to acknowledge the uncertainty and we work with israel on its security and acknowledged the uncertainty third. the egypt israel relationship has been a pillar of israel's security fence you and i were in the white house 30 years ago. and we have been working on both sides to try to do everything we can to preserve that. now, we had instant last friday in cairo. the israeli embassy is on an upper floor of a high-rise building in cairo. there was general break down in cairo last friday of order. and the ministry of the interior and others responsible were not enforcing it generally and it

migrated to the building with the israeli embassy and started to push over a wall and threatened the israeli embassy. we worked very hard during that day with the egyptians to have the egyptians meet obligations, which is obligation of a sovereign country to protect the embassy of another country in your country. >> that they were able to evacuate the israelis who are under siege and we were able to do that working with the egyptian military leadership who run the country right now, pending their moving to elections. we have been clear with egyptians on their obligations and limit those obligations. as a testing, but ultimately not those on friday and we've also been very direct with egyptians with respect to the importance of maintaining its international agreements, including agreements with israel, which are really pillars of security there.

there are other issues at work right now, given this level of uncertainty and simultaneous revolutions going on. so there is a very serious security situation, for example, that it's really become difficult to handle in the wake of the event in the last six or seven months that we've been focused on every best egyptians to focus on really dealing with this that is resulted in the death of several israelis several weeks ago. >> now, you have a relation with king abdullah of saudi arabia. i was told i read in the newspapers that he was very upset about the way we handled egypt. is that true? is our relationship with abdullah different before the uprising in egypt? >> i will address that directly. number one, obviously at the outset of this year there was tremendous uncertainty, including in tunisia, by the way were moving towards elections in very important story.

mubarak, president mubarak was the leader long-standing in the region, had close relationships in the region. it was not the united states or indeed any extra vote for sublet to president mubarak having to step down as president of egypt. it was an indigenous side of the fence. during that period, i would be less than honest if i didn't admit there were disagreements with how the united states should go out and do not appear to not disagreements in the administration? >> our conversation with the saudi's were scratchy and there were some disagreements about this. third, i think since then it really has become clear to everybody in the region that these were indigenous forces, that the sources were building for a long time, that mistakes had been made by these leaders. i've checked directly with the

leadership of saudi arabia may think the relationship is a very good shape. why? i think because it is based in shared strategic interests. i think you get past things that happen at the beginning of this year. there's a recognition user inexorable forces that the states have been made, that they were not brought on by the united states or any external force and you reflect on the fact of this fact of this and these are the conversations i would have with saudi counterparts, that we've had a relationship for 70 years. it is based on the set is shared strategic interests that include the following. is not edited nation or some other group get a dominant role in the region. we have a shared interest in counterterrorism efforts. we have a shared interest in global growth, economic growth. we have a shared interest in securing stable energy supplies among others. so david, i guess to be

perfectly square a.q. khan i guess there were some issues at the beginning of the year. they have been worked through. king of bela and president obama have a very good relationship and we really have through this kind of focused on a reminded ourselves of the strategic foundations and shared interest in this e-mail come in international relations at those shared interest that at the end of the day are critical. countries don't engage with each other if it's not in their interests. between now and our presidential election, d.c. in the prospect of a peace agreement between israel and the palestinians? >> well, that's an exceedingly difficult problem. you know, we have pushed through during the course of this administration quite a bit of change. and we have focused on, as the principal strategic priority, renewing and restoring the united states prestige, power and authority in the world,

which went through. at the munition. there's a lot of reasons for it. we were tremendously invested in iraq and there is a tremendous amount of capital spent as well as blood and treasure, that political capital around the world. with the global financial crisis in 2008 and there's a dynamic obviously that moves against the dominant power and we were dealing with all those simultaneously. when president obama came into office, our principal after was to restore that authority power and influence in the world so we can move towards addressing our national interest. that includes a number of lines. but it's your question just a second. you know, -- >> is somewhat of a peace agreement between now and the end of the year. >> i think that's probably right. but as we pushed the red comment

though, you know, we obviously had strong focus on restoring on revitalizing alliances, which by the way some things affect talk about at some point. it's a unique asset focused on enhancing and deepening partnerships with emerging powers in rebalancing foreign policy is what they wanted to get to. the drawdown in iraq under renewed focus on asia, taking the focus is to find counterterrorism area efforts and focusing on key challenges like non-proliferation. we've got a lot of that done and on the right path. we have not been able to move the middle east peace process as far as we would like. and it's a difficult set of issues and choices. the president laid out in may and has done consistently his

approach, which is a two state solution. we will continue to be persistent and i can't make any predictions. >> you mentioned iraq. how many american soldiers do you think we'll have in iraq at a time of our next presidential election? who would be gone or keep 15,000 there? will we depend on what the iraqis ask us to do are we going to decide what we want to do? >> at the end of the day, iraq is a sovereign country. under the understandings that in place by two administration scum of the bush and the obama administration, by december 31, 2011, the united states will complete his stride down the troops we have. i tried to do that and we had 145 to 150,000 troops when president obama came into office in iraq. we now have about 45,000. the troops are on track to withdraw from iraq and that which i will be complete by the end of this year. >> on the issue you raise, liquid with countries all over the world, will have a conversation with iraq, about

the nature of the security relationship will have with them going forward, in terms of weapons systems, training and assisting in things like that in those discussions are ongoing. the bottom line is twofold. one is the united states is on track and will complete its withdrawal by december 31, 20 leavened with respect to the relationship going forward. that is a separate conversation that will take place. >> how many troops do we have in afghanistan? >> the president -- well, when we came into office, >> fewer than we have now. >> the afghan effort was really a drifting strategically and underresourced. i don't think there's a lot of disagreement on that. i think was the first presentation i got during the transition. we looked at it very hard. we narrowed our goals down to two. that is ultimately strategically defeating al qaeda and putting

in place a security force in afghanistan and a support mechanism that wouldn't have it fall completely to the taliban providing operational space again for a group like al qaeda to plan operations against the united states. ..

when have we will completely turnover the security lead to the afghans in the united states remaining force and during present force focused on counterterrorism. >> now you said in meeting several times with people who ran against each other for president, barack obama, joe biden and hillary clinton. what were those meetings liked? the relationships among those people? >> well, again, as you said, i have to be careful of my characterization of these things. but the bottom line is as you know, there is a sense around the president particularly the people who committed it public service of the fact that you represent over 300 million americans every day, so the president -- it is obviously the

leader of the group. now these are not shy people with the rest of our group, but it is rebuffed very experienced people, people express their opinions very forcefully, but i want to say a couple things about it. you know you mentioned the bin laden reader earlier and as i mentioned we had a first real focus on the path towards pakistan in august 2010. we have some 24 interagency meetings on this topic. leading up to the raid at the beginning of may, 2011, we had half a dozen principles committing committees in the weeks before the raid and there wasn't a week so i think that speaks well obviously of the commitment and the purpose of the group the president put together so robust debate.

these are deeply experienced public figures who bring a lot of experience to the table, but the sense of trust and at the end of the day the president makes decisions. there was divided counsel. the last thing i will say about this, we put in place a system and a process which i think has been an essential to our success in the foreign policy national security side and add these elements to it. one process, the national security council process and not competing process these. there were not back doors into the present or the national security process these. one of process and a trip designed but the beginning to that being the exclusive process. number one. number two, the decisions made would be executed by this group and number three, when he came to the table you came up with a view in the view of your

building. and number four, i would comment on our side that the decisions, you are an organization that oversees a lot of this and it's very important, that the results of each meeting would be published in writing in 24 hours so the people can see with their assignments were and they could object if they disagree so it is an absolute clarity of the end of the day. we also fully integrated the vice president's national security team. the same people who briefed the president of iraq reach the vice president in the fully integrated steel so the system as robust in the other administration you are referring to. >> if i just described the administration -- >> i will tell you this about the system that we built is based expressly on our study of the scowcroft gates model and the bush administration, bush 41. if you were to pick any one

person to be the role model for the ideal national security adviser who would you say is your role model? >> that's a difficult question for the following reasons because each national security adviser serbs in the functions in the manner the president wants and were her disturbance, so different approaches, number one. member to, i also want to say something about the national security advisers and national security policies generally. they're really is kind of a community of people in the national security who have been in these jobs who understand them and work with each other across party lines. i give tremendous support from my republican predecessors. from steve had ali and condoleezza rice and colin powell and brent scowcroft i am in touch with them quite regularly and get very good advice. i wish frankly we had the same sense of community and by partisanship on the political

side because there really is a sense of, you know, i've been there. i know you're dealing with. i disagree with you on some policy issues, no doubt, but at the end of the day, we are all about protecting the country and the events of national interest and i see these folks quite regularly and so there is a community of interest in the national security side which is i think an important asset for the country. now we ask about models, there are different models. i think in terms of process management i do think that, you know, in a study fairly carefully over the years i do think that for one he said the shot twice and did put in place kind of this committee system in the late 80's that we felt good today and that is brent scowcroft to i think it a tremendous job. on the policy development side, you know, pretty consistently, obviously dr. kissinger is a

master policy development and i've learned a lot from talking to him but is a -- it is unusual until you get there it is an unusual community of interest where the politics to get pushed aside. lots of disagreements about policy, but lots of mutual support frankly, and i am very, very grateful to my predecessor on both sides of the all. >> can you briefed the former presence of the united states on the national security issues and do they ever have good ideas to give you about what they should be doing? >> in the regular there may be specific issues a president has to be briefed on, and i've done that, and there are sometimes projects that we ask former presidents to undertake. we worked very closely with president clinton on his trip to north korea to get back to the

young journalists who have been kidnapped basically taken into custody north korea and we worked very closely with him on designing that trip, working through various aspects and ensuring that was for real so we have worked with president bush 43 on behavior relief efforts, so the short answer to the question is kind of a project. >> you have had to careers in government service involved in the national security for quite some time. you've also been involved in presidential campaigns and briefed president for debate and i think that he briefed every president running for a candidate and preparations since 84 and you helped obama, president obama with his debate preparations. when you were in the oval office

of the president and nobody else is around do you say what is your political advice comfort of the national security advice come to the ask political questions? >> if you get before i got deeply involved in the foreign policy if you look at my political record you probably wouldn't spend a lot of time asking about my political adviser. [laughter] but in all seriousness, no, and i've got to spend, you know, quite a bit of time with president obama during the preparation, probably 50 or 60 hours during the campaign getting ready for those. schenectady that a debate compared to the other candidates that you have put in? >> the last two come a day or -- they were pretty good at this and a tremendous communicators obviously with president clinton and president obama. absolutely. but on the question you ask directly, i don't have political conversations with the president, and --

>> given your political experience, you don't think -- >> frankly to be totally honest with you i think that the work we have to do together fills up more than the time we have together. >> can you explain what it is to be briefing of the president, you go in every morning at all things that presumably are not in the newspapers that nobody else knows who else is in the meetings is it that vice president and what time has occurred and what time does it last? >> it occurs at nine or 9:30 in the morning and it's a combination of an intelligence briefing and a policy briefing. the people that take part in this are the president and vice president are the people that are briefing. at the beginning of that briefing we have intelligence that serves led by general clapper or a briefer on a particular issue, general clipper is the director of national intelligence to it he may ask to bring another head of an intelligence service like dave petraeus at the cia or

another one of the service is at work and the constellation of 16 or 17 intelligence organizations that takes place and then we will have kind of a policy briefing that i would leave, and analysis of the intelligence, its implications, and then the three or four or five or six most important things going on in the world that day. there may be three or four decisions we want to reach during the course of that that have come up during the course of the 24 hours since the last briefing. the principal people who do this again at the head of the intelligence services and then myself, dennis mcdonough of the national security adviser, tony lincoln was of the national security advisor and john brennan who is a intelligence adviser and that is the core group that meets every morning. it's a very efficient way i think and it lasts between 30 to 40 minutes every morning. it's an efficient way to have a continuing conversation and focus on the key issues in front of the president and in front of

the country. >> does the president prefer to read things or how would you compare him with the others you work with? >> with respect to that, the president has read all the materials before and there's different ways to do it and again different presidents to a different ways to read different presidents prefer to have it presented and to have the book handed to them that is the key item and go through with a briefer. president obama has read everything prepared for the morning we go in, and we work from there. if you start a briefing on things that are in the newspaper, not going to be a career as a briefer and on the agreements we have had agreements with triet and in colombia, and there's the law of the sea treaty. you think you can get those terms this year? >> a couple things on that.

number one, with respect to the free trade agreement, and tear from the republic of korea we have been working closely on the important free trade agreement. with respect to the free trade agreement, there are three that are ready to go that have been negotiated and are ready for submission and i express to the to expect to pass this law. we would like to pass this law. korea, colombia and panama. they are very important committed andrea. this would be the largest free trade agreement in the united states since nafta. it's a slightly critical in terms of creating american jobs and opportunity and in terms of as integrating ourselves into the fastest-growing region, economic region of the world. there are as you notice of living in the region a number of preferential trade agreements and if we are not integrated, if we don't pursue these we are going to be excluded from opportunities. so it's very important for the

export industry and the creation of jobs. but critically important for the kind of effort that i described in terms of rebalancing. that is when we came into office and get the opportunity to ask a question or we over invested, where are we underweighted and overweighted? and was our judgment at the start of the administration that we were underweighted given the importance of the future of the united states? indeed, secateurs clinton took her first trip as the secretary of state to asia at the beginning of the administration which is the first time this took place since dean rusk became secretary of state in the kennedy administration so we have really been focusing on a bigger presence there in terms of always focusing on building that architecture. i think that we have done a very

good job at revitalizing the alliance's which is the core of the effort out there. so we have these burning issues with china right now and asia. >> enormously complicated relationship. [laughter] >> ambassador, are there any issues -- >> i think that as a part of our -- again, the investors can be deep experts in this area. at the start of the administration with everyone that is tightly focused on or increase our focus on asia, part of that obviously is to be china but it's part of an overall strategic focus on maintaining

great relationships and getting them right. if you have your great relationships in a good place is a platform for which you can work to attack problems. if they are not in a decent place, it becomes problematic in terms of attacking problems, so we have focused very tightly on improving our relations in europe and asia and from russia and we have worked very hard with the russian administration and part of that is obviously china today is we've spent an enormous amount of time focusing on china and we have engaged in an intensive way president obama and president hu jintao at nine face-to-face meetings. we are deeply involved in the series of other dialogues. we've been working to try to integrate china in the rules based system in the world. we have been pressing with china

on things important to our company and other companies around the world and we have been working to shape the environment in asia so that china's rise occurs in the state more peaceful and more peacefully. i think the relationship with china has been fairly productive and constructive and is a naturally good place but there are always a lot of challenges in the relationship is complicated. >> time for one more question and my question is what is it that keeps you up at night with is the single greatest worry you have as the national security adviser of the problems you have to face is there one thing that you are most worried about that keeps you about life or that worries you? >> we have challenges. economic recovery is critical. the president said in his speech last year that history doesn't really allow for the country to maintain without mentioning its economic fatality. put simply there's a direct relationship between our strength at home and strength abroad and revitalizing the

economy is absolutely critical. i do, david, everyday focus on this facing a security, the men and women we have a broad and in what zones. i do focus every day about our homeland security and terror threats to read now we've made tremendous progress i think and we have a situation with respect to al qaeda. at the end of 2010 al qaeda was in the worst shape it had been since 2001. we took a big blow against them in may with some of bin laden operation and we've taken a number of steps against them but it's still a threat. and in general you worry every day but the dispersion of the means of violence and technology and where the nonproliferation agenda is so important. but there's a second term for

president obama would in choosing his national security advisor? >> well i would say two things about that. i would argue of the if and when it's a privilege to serve there. i enjoy every day. if you're in my position and you looked on the table every day and you see vice president biden, secretary clinton come sector leon panetta, david petraeus, it is a privilege to go to work everyday. islamic very articulate and know these issues well. i very much appreciate you doing this, and whenever you have the national security adviser you'd realize nothing terrible is happening during that hour at least i hope. [laughter] >> let me give you a gift. [applause] skycam at the district of columbia, the original map of the district of columbia.

thank you very much. [applause] [inaudible conversations] [inaudible conversations]

british home secretary teresa maysan al qaeda's recruitment efforts in england have british intelligence looking for signs of rising radicalism. in remarks at the council on foreign relations in washington, d.c., may, entel efforts to increase the british muslim community to speak out against terrorism. this is one hour.

>> good afternoon everyone. welcome. we are [inaudible] very lucky today to hat the right honorable theresa may joining us. she will be discussing counter terrorism and the strategy by both the u.k. and the work that they do with our government to combat terrorism globally. a detailed biography is i believe in your packet there but quite briefly, she is the home secretary minister for women and a call the, the position she was appointed in may, 2010. she was elected before that in may of 1997 as a member of parliament from the conservative party and served in the parliament up until she was appointed to the home secretary. she served as a member of the shadow cabinet until 2010. she will be discussing terrorism

and counterterrorism and a brief discussion after her remarks we will open it to the floor for questions. please welcome the home secretary. [applause] >> thank you very much. it's good to join you here today. the tenth anniversary of 9/11 is inevitably the time for reflection, the time and for most to remember those who lost their lives, but also to reflect on the terrorist threat but we still face on the lessons we've learned and on the challenges ahead. we know that the terrorist threats we face have changed significantly the past ten years. al qaeda is now substantially weaker than it has been since 9/11. u.s. military and intelligence operations, the effort and afghanistan led by pakistan and many other countries are all key

factors. al qaeda has lost its people, its facilities, its freedom of action and much of its support and reputation. this is a considerable achievement and we should be thankful for it. but we need to be realistic about the threats that remain. in the u.k. we continue to arrest significant numbers of people for terrorist offenses. almost 2,000 since 9/11 over 650 in the past two years alone. this is more than other countries in europe. the leadership of al qaeda continues to plan operations in the u.k.. they attract people for training, the of sections dedicated to overseas operations and they've radicalized and recruit. even as the capability of the outcome of a leadership is reduced, the threats of emerge which in the u.k. affect a starkly. we have seen a wider range of terrorist groups active and from the pakistan. some of them knew but rapidly

growing and others are well established. we now pay more attention to al qaeda as affiliate's in yemen and the whole of africa in particular. these affiliate's of independent to the devotees. they can radicalize people in the country. people are traveling to fight in somalia with al-shabaab and al qaeda and to train in yemen. some aspire to conduct attacks back home. we remain in effect activity in and spreading out of iraq watching with concern terrorist planning and plotting in nine major area and elsewhere in sub-saharan africa. and of course we know that at its command and control of a tax al qaeda seeks to inspire loan acts of terrorism organized and conducted without its guidance or instruction. the new terrorist threats are no less complex and difficult than the old. in some ways they are harder to deal with. the challenge of systems and structures. terrorism now was more diverse

and decentralized, and perhaps also more agile than the landscape of 9/11. in the u.k. we also face a significant threat from terrorism in northern ireland. in 2010, almost three times as many people were arrested for the terrorist offenses in northern ireland as the international terrorist offenses across the u.k.. we had authority attacks in 2010 and 16 by the end of june this year. but even some oslo this summer have noted to reconsider the threat from the extreme right. this is much less widespread and systematics in the charter was associated with al qaeda but it has a strange symbiotic relationship with extreme islamism treated the feed and often fight each other. the counterterrorism police and strategy are already addressing this threat. after oslo we will be allocating further resources to this work. in the last decade we have learned a great deal about effective counter terrorism.

the closest correlation between the policing and the security of intelligence agencies. much closer than they may have imagined ten years ago. this response needs to be disbursed a run of the country and the central command that integrated into the local policing and close to the communities that it owns to protect. the network needs to join seamlessly with what we've come to call hour upstream response to read our efforts overseas to stop the attack planning against the u.k.. until very recently almost all of the attacks planned against the u.k. had an organized and structured overseas connection. we also know that successful counterterrorism knees to be more wide-ranging and more in scope than the first thought. it must include not only keep devotees to investigate and prosecute, but also to prevent or to counter radicalization come to provide protective security and established community and state resilience.

that involves all whole of government linking to work on community integration, diplomacy, counter proliferation, foreign aid, and of course the military operations coming and it needs to be local, national and international. bye state and on state actors, government's overseas, industry and communities at home. the very complexity of the task, the number of moving parts across careful coordination and genuinely strategic approach. shortly before the summer both the u.s. and the u.k. launched new counterterrorism strategies both look forward taking account of these lessons in different ways. they also describe the threats we face using comparable terms and language that is important because the threats we face not only seem similar. very soon after 9/11 and certainly by 2005 we in the u.k. realize that terrorist groups

are becoming embedded into the fabric of our society and in particular the city's to read these groups have a complex relationship with non-violent extremists who exported the freedoms in our society even as they sought to attack its free principal all the time skirting around wall. the terrorism to the u.k. from outside, but it made use of a small numbers of kurdish residents and citizens who were already in our country. in america for many years use all the terrorist threat as something external practiced by people who wanted to strike at american citizens over here. the different threat let us to respond in different ways. the response has often been framed by milledge reaction overseas and hours as being grounded in policing of law enforcement and our own country. neither approach was wrong. in the recent years the threat to america has been challenged by the experience of the

so-called homegrown terrorism. and in the u.k. we are very clear that a domestic law enforcement response alone will not resolve the continued threats we face. our strategy is now reflected the common perspectives to read the security relationship is grounded not just an exchange of intelligence but on collaboration on other areas. we both recognize the need to come to be to tackle the urgent short-term threats but also the vital long-term challenges. today i will focus on four of these challenges, legal, ideological and technical, and on the need to secure our borders. first, looking at the legal challenge. we agree the counterterrorism work must reflect the core values, respect for human rights and the rule of law. our law must create powers of a proportion of, necessary and effective. we must use the powers in ways

that are as focused, targeted and precise as we can make them. both strategies make clear that the successful prosecution of terrorists is vital to read it is our highest priority. but writing strategies is easier than delivering them. it may now be an inevitable feature of counterterrorism work that we identify more people engaged in terrorist related activity than we can prosecute. the intelligence base operations cannot always deliver evidence we can use in court. domestically that causes us both problems. in britain we have had to develop means to restrict the actions of people that we can neither prosecutors nor deport but who we know are engaged in the terrorist related activities. this measure is necessary but we must ensure they are always applied in the way consistent with law and the values. but the legal challenges overseas are far greater. in the countries where tourists

are most active there often the least likely to be prosecuted to read in these countries, agencies may not have the skills to investigate terrorist cases, the judicial system may be weak or corrupt growth and the absence of political will. the consequences are far reaching. when we identify terrorist threats we cannot always results then. the absence of the functioning judiciary may lead to the violation of human rights. it may then be impossible to cooperate with states in a way that we would wish and we cannot lend support to the countries for the nationals engaged in terrorist activities on our own soil. it is hard to see how we can deal with terrorism in the longer term without better promoting the rolph all overseas. we are looking to expand our international work around the will fall and we assure the agency's overtures have the capability to develop evidence led investigations into the terrorism.

but the challenge for of strips our own resources. the solution to the problem and others must be international. promoting the rule of law must be a hallmark of our global counterterrorism work in the years to come. the second challenge is ideological. our strategy argues that the ideology associated with al qaeda may continue to globalize the terrorists and others long after al qaeda itself is gone. so dealing with the tataris ideology must be a central part ever overall efforts to defeat terrorism. your strategy is very clear about this. you rightly say we must always carefully weigh the costs and risks of our actions recognizing the tactical success can sometimes contribute to the strategic dillinger. our counterterrorism work wasn't given legitimacy to the claims made by terrorists about. we also agree we have to demonstrate that the ideology of those who wish to do us harm is wrong. we must recognize and take on

the core of that ideology that we as countries at war with this, and this justifies acts of terrorism against us. in the u.k. both terrorism and on violent extremists support this outlook. to back up the claim they say that it is unacceptable for the muslims to participate in a democracy and indeed it is wrong for the muslims and non-muslims to live alongside and to associate with one another in an integrated content and cookies of society. we will deal with those who promote terrorism through the criminal justice system and we will prevent extremists operating freely in our schools, universities and prisons. we will not amend our legislation to ban extremist groups operating just within our law but nor will we let them pass unchallenged and we will stop extremists at whatever kind coming to the country to preach hatred and division. but there are limits to what the government can do. it is vital to empower the

communities to contest these issues. muslims living in the country can best disproved claims made about them. they struck for freedom across the middle east and not africa have shown the political change does not depend on the acts of terror and in the air of spurring al qaeda has been irrelevant. in this ideological struggle we must of course recognize the role of the internet. the internet facilitates not only terrorist attack planning and recruitment but also radicalization and the circulation of extremist ideology. we know the terrorists and extremists use of the internet is becoming more sophisticated. and we know that much of the extremist material that concerns us is posted overseas including here. we are determined in the u.k. for the internet must not be a no go area for the government but terrorists and extremists can proceed unhindered. we've encouraged the development of a specialist unit responsible

for enforcing the removal of material which is unlawful under our legislation. that unit has international reach since it started the unit has removed material from the internet on 170 locations. we also developed the new online facility which more easily allows the public to refer unlawful or offensive material they've identified to the web hosting companies. when this breach is there on condition of use which it often does, they will remove it. i commend this model. i believe this is exactly the kind of community participation and empowerment which best indoors the terrorism remains marginal in our society. but the internet is only one of the technological challenges that we now face. we know that terrorists use technologies for operational planning to communicate and spread ideology and protect security and increase lisalyn pact. the attacks and mumbai in 2008

were directed by people using off-the-shelf secure technologies. software to encrypt the voice messaging is widely available. satellite imagery which used to be the classified preserve of military planners is now freely available. some terrorists want to acquire or develop access to the chemical biological radiological or even nuclear weapons. in the future, the direction and the wide publication of the scientific research may make that easier. we continue to see little evidence of the systematic cyber terrorism but this is now part of the language of al qaeda. as a tactic and as a weapon, for terrorism is perfectly suited to the world of the lone terrorist operating outside of a hierarchy and without traditional command-and-control. collectively these are very significant issues for us and our allies the availability of the technology has the potential

to more than compensate for the progress we've made since 9/11. it can make the ideological struggle look irrelevant, technology can give much more lethal power to the fewer people. if course a great deal has been done to address these threats and we've taken denny on the counter proliferation around the world. we've got to look solutions to deal with emerging technical threats and we sure that technology and learn from others but we have much more to do. we need a much clearer shared idea of how technology will change terrorism and our response to it. we will need to nurture the academic link between the two countries to find solutions in the future and we need to develop new and rather different relationships with our private sectors to of course owned much of this technology and who for the white benefit would develop this past as aggressively as they can. let me turn finally to one of the most striking achievements

since 9/11, the upper and of security of the borders and for aviation in particular. i use that term striking because it is the complexity and skill of the task because it has been achieved alongside the continued rapid expansion of the travel around the world because it is required global cooperation and because it has maintained as part of the majority of the traveling public. the u.s. said the department of homeland security have led the way to really does look a dialogue together which is vital to the national security and to our counterterrorism efforts. it's given a new meaning to the term border security and perhaps to the term border itself. but in the future the work will get more challenging. right now, 200 million passengers travel by air to or through the country each year for some 465 points of departure around the world. that number would have risen to

around 390 million. we know that the common feature of threats we face is that terrorists increasingly operate across the state traveling and not working freely. we know the and to carry lethal material either with the intent to use it in the air or in their destination. we also know that our border security to a considerable extent depends on border security and other states often less capable than ourselves and it depends to on the collection exchange and analysis of large amounts of data. within the u.k. we've done a great deal to strengthen our borders. we are working on their technical programs and we will be setting up a new border police command. we are looking at your customs and border protection which says to the true sense important lessons. we are also working closely with in the european union and other countries to develop passenger data sharing arrangement agreements. i have secured an agreement in europe that this is vital to the

security. it is often talk of the values of our intelligence exchange and that is of course absolutely right. the exchange of data and information on the border security may be far less glamorous but it is no less important or effective. in the u.s. alone for example you have used the analysis of the truffle data to identify 3,000 people suspected of terrorist connections over two years. countries a run of the world must commit to developing an international consensus on the secure borders and the kaput the of ensuring the the. we know our enemies share technology, new ideas and expertise, and we must do so, too. so as we look back to 9/11, we can rightly point to the many achievements and containing at reducing the threats we face. looking forward we can see these threats will continue to change. the spurs organizations and individuals to make more use of different technologies able test

our force and intelligence capabilities. as a 9/11 commission we have to use our imagination to anticipate future trends. terrorism in 2015 is likely to be very different from terrorism today. success will depend on balancing the year and long-term objectives. repeated tactical success will not in itself ensure a strategic victory. we must extend the law, address the tautological challenge, harness and not be harmed by technology and preserve our borders in what will surely remain a period of instability. but in that period of instability, one thing must remain stable. the strength of the u.k. and u.s. security relationship. its scope will change, its importance will not to read the security of our citizens and the wider world depends on at. thank you. [applause]

>> thank you very much. i should have set up the out set in the session is on the record. so i will begin in as few questions of the secretary and then open up to the floor and please, turn off your blackberry and salles phones. >> made reference to the outset of the fact that al qaeda, the core al qaeda had taken its obviously in the killing of osama bin laden and subsequently at least five other senior al qaeda operatives just the other day and the head of operations for al qaeda. how seriously do you think the core al qaeda has been damaged by these military abrasions? >> i think the corps has been damaged very significantly by these operations.

as i say, i think the problem we now face is that we have a greater diversity in terms of the threat from al qaeda affiliate's elsewhere but there is no doubt the court has been significantly damaged. >> do you think the court is still capable of carrying out a major operation? >> i think we must assume the core is still capable of that of tasking and planning and so forth, and it is why is to plan and prepare on that basis. i think what has happened of course over the recent years in particular now with the very significant changes that have taken place is that we not only have to look at that it's the standard problem that when you have got one substantial area or threat but you can look at and prepare for sometimes it is easier to do that than to have to deal with a number of divert threats we have to accept the number of threats around the

world and increasing areas of threat. obviously we've been talking that areas like aqap and in yemen and al-shabaab and somalia for some time, countries like nigeria are now countries we also need to look at. >> you mentioned al qaeda and the arabian peninsula and the short and i guess aqap last october, october 2010i believe your authority intercepted a shipment from yemen and the east midlands airport which intelligence indicated an explosive device which was aimed for the united states and upon inspection no explosive device was detected initially did i believe it took several hours and had to go back. how did that happen. how did the inspectors and the authority on the ground not

detect the device crux? >> what we continue dealing with is to become more sophisticated in the devices that they prepare , and it is a challenge part of the technological challenge as making sure that we can find ways of increasing our ability to detect, and increasing the whole question an engine of the fusion secure and cargo security is part of the question of the securities on passenger planes. >> there is a specific incident in which the explosive device to have the intelligence were you surprised that the inspection didn't detect that and surprised at the level of sophistication on that particular device? what did that tell you about the individuals making explosive devices? >> i think it tells us they are

becoming more sophisticated in what they do. terrorists can learn from what's gone before is indeed counterterrorism and the law enforcement agencies have to learn from what has come before. >> the other thing last year there was a major number which we all heard about both in this country and in europe that there was a pending attack on europe, and apparently the intelligence was very good and everybody was on high alert for some time and then it just kind of evaporated and i wonder if you can give an insight into at the end of the day with the assessment was of that particular threat. >> in the sense this is the world of dealing in counterterrorism is the world where you would hear a number of threats or a potential attack

plans to challenge is always to assess what response is needed in relation to those depending on the assessment of credibility and capability, and sometimes obviously been that thankfully proves not to be that if nothing happens it is maybe the action that taken in order to deal with the threats you receive and in the u.k. we did a number of things in response to that and one of the things we've done is significantly enhanced for the simple our filing a capability among the police in the u.k.. secure country has been targeted and attacked members of both homegrown as well as imports in number of muslim countries that he mentioned in pakistan and others. you have a long immigrant

population and what steps have you taken from your government taken to market these populations and to try to detect these kinds of plots before they are actually hatched without interfering in people's civil liberties. >> much of that is about actually people understand in the communities involved in communities. we have a particular area of work that we do that isn't about the detection of threats that is about trying to prevent people from being involved, prevent them from being radicalized. cities depend on good community engagement from the police and with local community groups and organizations working with them to understand what is happening in the community. now there is constantly in these areas there is more to be done on these issues. i think one of the challenges is

to as i mentioned in my speech it's not as important as the best people to get the message to those who are at risk of adopting the ideology that leads them into the violent extremism is the message to confirm their own community to negate that ideology and one of the things i think we will certainly be doing is working not through my department but through our department of the government that deals with community working on a new program of the community participation, community engagement as a part of this process of working with those, the vast majority of people in the muslim community to get on with their lives and just carry on like everyone deals and who are not involved in this and don't listen to the ideology but working with them to ensure the positive messages of being part of the community can be scared throughout. >> what steps have you taken to

counter the influence of the individual extremists imams or other members of the community who seek to radicalize these populations? it wasn't that long ago when the moscow we saw the imam down the street not trying to indoctrinate people with very extremist ideology. what steps have you taken to try to intercept that kind of behavior? >> there is a number of things that can be done. of course if people are actually pleading a message that in a way is against our law than we can take the criminal justice action against people. but also, it's about working with mosques about the sort of messages that are given by the imams in the mosques but there are areas we recognize we need to do more work and in our present counterterrorism strategy which is about thus

preventing radicalization. we have identified a number of key areas where we do need to do more universities, higher education. we think that there is a scope of much more to be done there in both identifying individuals who might be vulnerable to the requisition, but also in working with universities in terms of the sort of people who go and speak at the universities and it's a fine balance between freedom of speech and academic freedom. >> where do you draw the line? what is acceptable and what is not? >> welcome i think first of all there is an obvious line that can be drawn in relation to anything that would be suitable was being prosecuted under the law. that is sort of obvious. but there is also i think one can work with and we've done work with our national students about dhaka affordable organization that they are willing to do work and speak at universities but there is more to be done in that area and

prison is another area we need to i think do more to look at what messages can be given between prisoners and also letters coming to prison. >> i think one of the interesting phenomena that started the foundation there has been some movement among british muslims but everywhere to try to counter extremism how important do you think that is? >> i think it's very important. i think it is vital that messages about countering extremism, countering the ideology come from within the community and not just from government. >> have you seen that that has set in the impact? >> i think it is heading in pact but it is -- i think that there is much we can do around it. it isn't just about countering the archaeology. it's about what i mentioned

earlier, the community engagement and community participation as an important part of this, to. >> can you give a brief summary of what steps you are taking to meet the challenges of the upcoming olympics in london and what kind of things you see as the primary challenges and fritz? >> certainly. we've been working obviously on the security in the olympics for some considerable time coming and we may have a security plan in place and that is constantly being worked on to make sure that we are monitoring any potential issues that develop so that we can respond to those. and it's obviously a sort of mixed response. there will be very significant presence at the olympics. metropolitan police are talking about the order of 12,000 the police on the streets at certain times which is double the number that would currently be there on what is the biggest event that currently takes place.

so very significant policing part of the olympics and the paralympics and working with the organizing committee in relation to the venue security. so the plan which goes beyond the immediate revenue of the olympics but also looks at some of those areas where other allied defense would be taking place. >> gives a sense if you will of the u.k.'s involvement in a major austerity program at the moment. that cuts back across the board in many areas. those cutbacks impacted the capabilities of the police treat stomach to be very clear there has been a need for the cuts in the police budgets in relation to counterterrorism it would be protecting the counterterrorism budget which protected the olympics as well and specifically protected that as far as the overall general policing is concerned, it is possible to make significant

cuts in the budgets without affecting the front line policing operation. >> how do you do that? >> just some simple -- if you what the figures i can give them. >> by cutting bureaucracy or -- >> to cut bureaucracy. if you brought the sources, the least efficient sources currently at the level of deficiencies average level of efficiency, then you save 1.5 billion pounds. we've often to save over four years just over 2 billion. then you can add on to that by changing the way they deal with i i.t. collaboration and by bringing all of the forces of to the level of the most efficient and on both of those 150 million each over the two year pay freeze and we have a two year pay freeze across the sector in negotiation at the moment we are

expecting it likely to be the pastries and policing as well and the money that you need to save. >> we might need you to copper of the super committee given a few tips the 1.5 trillion. we will open it up now to everyone here. we would ask you to wait for the microphone, state your name and your affiliation if you have one and once again, we are on the record which means your questions or on the record as well as answers. >> madam secretary, one of the problems we have dealt with here since 2011 is the problem of getting intelligence on terrorist threats collected at the national level down to the state and municipal officials who need it, the problem somewhat more complicated than yours because the federal structure but i wonder if there are lessons we can learn what how you cope with that problem.

>> well, i can talk about how we do cope with that and of course the u.k. both having a different structure, governmental structure and also the site is being significantly different does me get a little easier. but one of the things that was recognized by is we need to set up the regional counterterrorism units as the police and agents and we have done that and it's true i think that regional structure that we've got that we've been able to ensure the intelligence is down much more of the regional and down through that into the local level but obviously you've got to get that to we st right. it's not just the picture that the national level going down to the national level so it can be acted on. is also the information, providing the information that comes from the local communities and that local level being set back into the national picture where it can be connected with other information. ..

the arrest and treatment of cheatgrass à la, i was a bit disappointed just because it seems that britain has seen to have taken a more hardlines stance than even the israeli government. can you explain what this prominent palestinian imam has been held until now and never convicted of any anti-semitism

back in israel? they have is that fell to was safe that define how that continues to radicalized arab population. thank you. >> welcome in relation to that, i'm going to make a point that i don't comment in detail on an individual case, given the legal proceeding taken place in relation to that at the moment. if it would be inappropriate for me to comment in detail on that. i have the power as secretary of what would not be conducive to be in the u.k. and the decision was taken in relation to that particular individual. as you know, what happens as he was let into the u.k. and action is being taken to remove him from the u.k. and is being challenged at the legal process. i think it is right obviously that i have that power. we have taken a slightly different stance over the last 18 at the new government in the

peanut because we believe this issue for words that are said, what people say and how they are able to encourage others through the word they say is an important issue for us to address and that's what we have taken positions in relation to individuals that might not be taken in the past. that's why we have chosen to look not just about extremism, but extremism is important that we do so because they were able to do that, i think that enables us to operate in a simpler way with at extremism. since i equate to you to the specific of your question about but given the legal proceedings, it would not be right for me to do so. >> secretary may come a thank you for being here.

i am caring gottfried and i went to pick up on one of the comments you made when you are talking about challenges orders security. if you're speaking about cooperation with european level and data collection, which made me think about the very different perspective in the u.s. and europe on the privacy. i wonder if i could try you out on the role you see the union playing in the fight against terrorism, specifically the world european parliament. thanks so much. >> that is quite a challenge to answer in a short fashion. you're absolutely right. there are some different views about privacy of data and data sharing in the european union. it's one of the disc -- as we are having within the european union at the moment and with the commission about what is appropriate and how long for all

of those issues. what i think is interesting, obviously you mentioned to see ftp issue we've taken and the european parliament to take a blocking position initially. but then it was possible to work with the commission with the parliament to come up with a solution that actually meant everybody's needs. it can be a lengthy process, but i think by carefully working on the commission of parliament, it is possible to achieve what we need. i think one of the things that are changing within europe and start more member states are members within europe. now, understand perhaps the issue of terrorism and the way that some of them didn't in the past. the u.k. has a history of dealing with terrorist attacks and has been well aware of the

issue. if you look at what happened in recent years, if you look at what has happened with the extreme right wing in oslo, as i mentioned, there was a greater awareness now that this is an issue that people need to address the need to be thinking about. it's in that context that we see no more willingness to move forward on this. i will say that everybody is suddenly in the fina to share data because there are still some significant issues that we have to overcome. >> let's go over here. >> thank you, melissa reno from northrop. a u.k. is not the only country whose belt needs taking wonder if you might reflect to give your reaction to belt-tightening all over europe, particularly in the southern half of europe,

where borders are long course and there are issues of not only people trafficking, but infiltration of terrorism -- terrorists are people trafficking and whether you have heightened concerns about this because the outside and in other countries and whether this might leave unction leap to european union to greater cooperation because everybody's cutting back. >> yes, there are some very particular issues. i mean, there's one particular issue about the border -- issue at the border into the u.k. come into europe in terms of the ability to deal with problems that border. but within the european union, what we are increasing in what i am from the u.k. trying to encourage my colleagues to do is look at the pratt goal cooperation that we can give each other and there is a

relative organization in the union, which is there to give support and be able to move in if the country is particular problems in maintaining border security, being able to move in and we give practical support in terms of individuals in the border agency being willing to be part of groups that will go into countries and deal with these. so i think that's the way to go forward. if i think one of the discussions we have with europe is the question of do we pass legislation or do we actually were practically from the u.k. legislation is it going to do it. you've got to actually have practical cooperation on the ground and not do something with unlucky not. and of course we've been working with a number of other states in relation to what happened with the arab spring, and the movements we've seen as a result of the arab spring and also from

our point of view, we very much see the border security should be part of the civilization packages in countries like libya. >> roger cressey, pusan hamilton. neither secretary tommy talked about affiliates and that what they have to make her his. can you talk about pakistan-based groups that have not been considered project any power or potential threat to western europe and the united states? last -- lecture he typed, juicy specific evidence within the british population there's recruitment and training going on for that scenario seeking to project a threat last. thank you. >> yes, as i referred to in my speech, i mean, i think these are areas we need to have a growing awareness of and to look at more closely. i mean, there have been some

links into the u.k., particularly more in terms of fundraising and not sort of the tv in the past, but we must be ever vigilant about what might develop in relation to that as we see the group perhaps expanding its interests. and so, it is important i think for us to be willing to think through not just al qaeda and al qaeda affiliates, but be aware of the changes taking place elsewhere and working in communities in relation to those sorts of groups and sometimes you will see people who do activities, which seems perfectly reasonable and they don't realize that money is going to need usage might be and working with communities in explaining these things is another part of the picture that we need to be engulfed in. >> you don't see any evidence

that lat is doing a country in any activities in the u.k. beyond funding at this point and recruiting for operations? >> what we've seen in the u.k. tended to be more relation to fundraising. >> in the back. >> hello, i was actually interested in hearing more about whether there have been any changes to monitoring and combating extremism following the norway tragedy and also if there's any concerns around the english defense. >> yes, in relation it is an organization who has been, as you know, it's the main activity we see from the english defense league are the number of patients where this had taken place. there's a number of occasions

where it's actually answer marches. i recently agreed to a ban through media march due to take place in london very soon after the riots have taken place in london. and so, we do take decisions from time to time. that we have let following -- we are looking into it, but we slipped following the house though in more detail perhaps for more extreme right-wing groups and looking out what intentions they might have and will be putting more resource into that. our new contest strategy come as you may knew that counterterrorism strategy is contact and when we revise our content strategy earlier this summer, what we did was expanded it to say we are not just looking and international terrorism in terms of al qaeda. we are always looking at all forms of terrorism.

the bulk of the threat if you like a still al qaeda related threat, but we are looking more widely known. >> mauri sonnenberg, jpmorgan. i'd like you to educate me. and what i'm thinking about is your own laws. for example, you mention trying to stop propaganda and terrorists coming at you do have a glorification and i wonder whether or not a glorification terrorism, what do you cut that. it is my understanding that higher authorities can get on searches without judges in your extradition laws, some of us think could be much better in terms of the movement of these

people and i won't hold anyone here. but would you get into that a little deeper, please? >> yes, i'll try to do a short summary. i mean, we are looking at publishing a green paper on some aspects of the legal system in relation particularly to issues of post materials and that green paper will be published sometimes in the next couple of months or so. we are looking at the whole issue. the question of sort of propaganda amounts related to glorification, they're your people being prosecuted for people holding terrorist materials chemist of these are laws that are being used. in relation to some of the other aspects, you mentioned two others. [inaudible] >> higher authority.

>> yes, there's a whole variety of types of warrant and the requirement that is needed to enable those warrants to be undertaken various depending on what the warrants are. under the regulation of investigatory acts, ripper, those thought of responsibility for secretary of state. so it's that level a position to take. we've made some changes to our authorities recently, but it's not in relation to counterterrorism. is it that counterterrorism laws are being used by local governments inappropriately and were now going to require that to go to a magistrate to get the go-ahead to use some of those powers. >> the other is extradition. >> extradition, thank you.

we have a review of our extradition being undertaken at the moment. and i would hope within the next couple of months that will be published. as a variety at the u.s. u.k. with other countries in the european arrest warrants. we have a group of lawyers, justice scott baker is leading a panel. the panel came over to the united states two or three months ago in talks to people there in other parts of the world a better extradition. so were waiting to see what that review comes up with. but we do have -- >> usx traditionary question. >> yes, i'm aware of that. there's a number of high-profile cases where the decision ultimately is to what happens is down to the secretary and i'm aware of that. but if i could slightly come at

the issue we need to do with extradition and the impact of human rights on an ability to deport or remove people from the u.k. if that would be to a country where our court decides they would not be treated properly, they might be subject to an appropriate treatment when they turn back home. that is an issue for us and we are looking with a number of countries the agreements with a number of countries for us to build people that will be treated and we are working with more countries than we develop some of those assurances, some of those agreements so we can give ourselves greater ability to remove people from the u.k. their deep involved in terrorist but were not able to prosecute.

>> in the back. >> vince visclosky, northrop grumman. i want to go back to the secure borders scene. could you expound more on your order police command and responsibilities. you made a remarkably similar to or cbp are birder patrol is about 20,000 agents. with a large fleet of airplanes and uavs and quite a bit of men and equipment. could you expand on that a little bit? >> yes, what we are doing is setting up a new crime agency and policing within the u.k. and we are moving a local force level four commissioners who are the local police in a number creaminess separate national crime agency, which will deal with international level crime. it will have a number of commands that senate to complete the picture.

we will climb command which will be on organized crime nations these today and we are going to create a nixing anticrime because the u.k. is not being good enough in the past is dealing with economic crime. and then the fourth command will be the border policing command and it will bring together policing capability to gather with our u.k. border agency, the immigration authority at the border, which you would be surprised perhaps as much as you've got here, but it has some of the things that the secretary mentioned. but one of the reasons for even looking at tbp here is to look at the x and to which we can learn lessons here in terms of that border command, how we set it up with india national crime agency capabilities the

empowerment path. the national crime agency won't be in place until 2013. and although we will be appointing the person who will have it will be appointed within the next couple of months also and will work as we put the necessary legislation empowers into place. so we're looking at the examples here in the united states to see what we can learn from and whether there are aspects of that model we should take to the border command. >> i think we're time for one more question and then we'll wrap it up. serve. >> hi, mike levine with fox news. i believe he met with secretary napolitano this week. we often hear these meanings are productivity had good conversation. with so much going on current give you give an sense of what you talked about this week? what ideas are exchanged in things like that.

>> well, i'm not going to tell you everything we exchange because you might want to talk about more publicly at a later stage in some of the ideas are being developed. we talked quite a lot about counterterrorism. we talked about the issue and the question i just responded to about border security here in the u.s., about the latest tbp operates and so forth and how we can learn from that particular model. we have talked about -- i've been talking with others in the u.s. about the experience we've had in the social media networks to get information around in relation to those. quite a number of issues. >> very good. well, please join me in thanking the home secretary for her time. [applause] sound [inaudible conversations]

>> the first thing you hear the boom, see the flash in the next thing you hear is some cry out in pain. the second thing i heard is, you know, if i've lost anything special, you know, shoot me.

>> on this constitution day, a reminder that the student can constitution is underway. open to middle and high schools events. $80,000 in prizes. the deadline for submissions is in january, but you can get all the details now. >> president obama today signed into law a bill that the patent process right now there's a backlog of over a million patent applications. the president also called on congress to pass his $447 jobs bill. from thomas jefferson high school in alexandria, virginia, this is 25 minute. [cheers and applause] [cheers and applause] >> thank you.

thank you so much, everybody. please, please have a seat. i am thrilled to be here at thomas jefferson high school for science and technology. thank you so much for the wonderful welcome. i want to thank rebecca for the unbelievable introduction. give rebecca a big hand. [cheers and applause] in addition to her back a we've got got some very important people. first of all before we do, i want to thank your wonderful principal, dr. evan glazer. [cheers and applause] stand up, and then. -- evan. [cheers and applause] the people who are responsible for making some great progress

on reforming our package was here today, senator patrick leahy of vermont. [cheers and applause] and lamar smith, republican from texas. [cheers and applause] and in addition, we've got representatives bob goodlatte, representative jim moran, representative melvin watt are out here. [cheers and applause] becky blank, was there at secretary of commerce. [cheers and applause] david kappos, who is the director of u.s. patent and trademark office. [cheers and applause] and we've got some extraordinary business leaders here. louis foreman, ceo of eventys.

[cheers and applause] just cannot you come the ceo of uncharted place. [cheers and applause] ellen kullman, ceo of dupont. [cheers and applause] john lechleiter, ceo of eli lilly. [applause] and we've got another outstanding student, karishma popli. [applause] -year-old classmate. this is one of the best high schools in the country. [cheers and applause] as you can see, it is filled with some pretty impressive students. i have to say when it was a freshman in high school, none of my work was patent worthy. [laughter] i was -- we had an exhibit of some of the projects that you

guys are doing and the first high school student satellite, a wheelchair controlled by brain waves, robot. there's one thing i don't know exactly how to describe it, but it's measuring toxicity in the oceans. it's unbelievable stuff. so to the students here, i could not be more impressed at what you guys are doing. i am hoping that i will learn something just by being close to you, through osmosis. [laughter] i will filter in -- [applause] i will soak in some knowledge. i already feel smarter standing here. [laughter] one president who would have loved this school is the person

that it's named after, thomas jefferson. he was a pretty good inventor himself and he also happened to be the first american to oversee our country's patent process. and that is why we are here today. when thomas edison filed his patent for a phonograph, his application was approved in just seven weeks. and these days, that process is taking an average of three years. over the last decade, patent applications have nearly tripled and because the patent office doesn't have the resources to deal with all of them, right now they're about 700,000 applications that have been even been opened yet. that these are jobs and businesses of the future just waiting to be created. the ceos who are represented here today, all of them are running companies that were based on creativity and

invention from the ability to commercialize good ideas. some lawyer and not stack of applications could be the next technological breakthrough, the next miracle drug, the next a tip that will launch the next fortune 500 company. and somewhere in this country, maybe in this room is the next thomas edison or steve jobs, just waiting for a chance to turn their idea into a new thriving business. so we can't afford to drag our feet any longer. not at a time when we should be doing everything we can to create good middle-class jobs to put americans back to work. we have always succeeded because we have been the most dynamic, innovative economy in the world. that has to be encouraged. that has be continued. we have to do everything we can to encourage the entrepreneurial

spirit wherever we find it. we should be helping american companies compete and sell their products all over the world. we should be making it easier and faster to turn new ideas into new jobs and new businesses. we should not have any barriers that stand in the way. because of her going to create jobs not in the future, we have to out build and and activate every other country on earth. we have a lot of competition out there. if we make it too hard for people with good ideas to track investments and get them to market, countries like china milpitas at it and beat us to it. so that is why i asked congress to send me a bill that reforms that patent process and cuts away the red tape and slows down their inventors and entrepreneurs. and today, i am happy to have the opportunity to finally sign that bill. it is a bill that will put a dent in a huge stack of patent applications waiting for review.

it will help startups, small business owners turn their ideas into products three times faster than they can today and it will improve patent quality and help give entrepreneurs a protection and confidence they need to protect investment, grow their businesses and hire more workers. i want to thank other members of congress who are hoping to get this done. they especially want to thank patrick leahy and lamar smith, who led the process in a bipartisan way in the house and in the senate. i have to take this opportunity while addressing members of congress here to say i've got another bill that i want them to get past to help the economy right away. it's called the american jobs act. [cheers and applause] in these things i can did. -- connected.

this change in our patent laws as part of the agenda for making us competitive over the long-term. but we've also got a short-term economic crisis and a set of challenges we have to deal with right now. what the american jobs that does the splits were people back to work in more money than the pockets of working americans. everything in the proposal in the jobs act is the kind of proposal that's been supported by democrats and republicans in the past. everything in it will be paid for and you can read the plan for yourself during all the free time that you have here at thomas jefferson. on whitehouse.gov. i want congress to pass this jobs bill right away. let me give you an example of why this is relevant. we are surrounded today by outstanding teachers. men and women who prepare young people to compete in the global economy.

if congress passes this jobs bill, we can get thousands of teachers all across the country who have been laid off because of difficulties that the state and local level with their badges, we can get them back to work, back in the classroom. this jobs will put unemployed construction workers back to work, rebuilding schools, roads and bridges and give tax credits to companies that hire our veterans. because if you serve our country, you shouldn't have to word about finding a job when you get home. it connects one term unemployed temporary work to keep their skills sharp while they are looking for a job in just thousands of young people the hope of a job next summer and will cut taxes for every middle-class family and small business owner in america appeared if you're a small business owner that hires more workers can make an extra tax credit. it will match the data say. who will pay for it by following the same rules that every family follows. spend money on things you need to cut back on things you don't will make sure everybody pays

their fair share, including those of us who have been incredibly fortunate and blessed in this country. so this bill answers the urgent need to create jobs right away, but as i said, we can't stop there. we have to look further down the road and build an economy that last into the future. that is going to depend on the tone for the young people like you. an economy that creates good middle-class jobs that pay well enough for families is sense of security. and we live in a world that is changing so rapidly, companies like the one represented here today can set up shop anywhere where there is an internet connection. if we want start its here and if we want established companies like dupont or eli lilly to make products here, we have to compete with any of their country around the world. so this patent that will encourage that innovation, but

there other steps we can take. today, for example, my administration is announcing new center that will help companies reduce the time and cost of developing life-saving drugs. when scientists and researchers at the national institutes of health discovering new cure or breakthrough, we're going to make it easier for startup companies to sell those products to the people who need them. we've got more than 100 universities and companies to agree that they will work together to bring more and tensions to market as fast as possible and we are also developing a strategy to create jobs in biotechnology, which has tremendous promise for health, clean energy and environment. to help his company could be for new jobs and businesses can donate to invest in basic research and technology, said the great ideas of the future will be borne in our labs and classrooms like these. you guys have such an unbelievable headstart already. but as you go to mit and a cal

tech and uva and wherever else you guys are going to go, what you will find is the further you get along in your pursuits, the more you are going to be reliant on research grants and governments are always playing a critical role in financing the basic research that then leads to all sorts of conventions. so we are going to have to make sure we continue to invest in basic research so you can do the work that you are capable of. and still pay the rent, which is important you'll find out. [laughter] we need to continue to provide incentives and support to make sure the next generation of manufacturing in china and europe, but in the united states is not enough to invent things here. our workers should also be building the products and understand with three proud words, made in america. [applause]

and if we want companies to hire our workers, we need to make sure that we give every american the skills and education they need to compete. we've got to have more schools at thomas jefferson and it's got to start even before kindergarten and preschool and before high school. the reason that you guys are doing so well if you had a foundation very early on in math, science and language arts that allowed you to succeed even not a very young age. but we've got to make sure the opportunities available for all kids. our kids. [applause] including this little guy right

here. with the hair. [cheers and applause] that's why we are boosting science and technology and engineering and math education all across the country. that is why we are also working with businesses to train more engineers and revitalize their community college to become the provide workers with new skills and training. finally, and that is why we are making sure that all of our children can afford to fulfill their dream of a college education, that they can afford to go to school and not power plants and student loan programs ensure that they don't come out of college with mountains of debt. [applause] so, this is the economy we need to build. one word innovation is encouraged. education is a national mission

in new jobs and businesses take weird right here in america. so that is a long-term project. we still have a short-term agenda and that is putting people to work right now. we've got to do everything we can to get this economy growing faster in the short term. that is why ask members of congress to meet their responsibilities can send me the american jobs right away. there are folks in washington who may be fined waiting until the next election to settle differences and move forward. but the next election is 14 months away. the american people can't wait that long. there's a lot of people out there who are living paycheck to paycheck come at a midday day. they're working hard, making tough choices in meeting their responsibilities, but they need us to do the same. so i need everyone who's listening here and across the country, top congress to pass the american jobs.

we came together to pass patent reform. we should be able to come together to also put people back to work. and while the students at thomas jefferson, i could not be prouder of you. i expect that among you are going to be incredible scientists and engineers and business leaders. you guys are going to transform the world and i'm just looking forward to taking it and it showed the incredible science and technology that you develop in the years to come. you guys are our future and whenever i see what young people like you are doing, i know that america's future is going to be brave. thank you so much everybody. god icu. god bless the united states of america. [cheers and applause]

[cheers and applause] [cheers and applause] [cheers and applause] [applause] [applause] [inaudible conversations] [inaudible conversations] >> see this is where i have to sign my name with all these patterns. usually my signature is better than this. see that way everybody gets a pencil. but all these folks who worked so hard to get the bill passed.

[inaudible] >> you know, i kind of figured it out. [inaudible conversations] [inaudible conversations] >> you don't always distributed properly. all right, you guys, congratulations. ♪ ♪ ♪ ♪ ♪ ♪

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>> even a partially successful strategic defense initiative would mean that the soviet plan

or looking at the united states could not be assured of the outcome of an assault in the first strike on this. >> on wednesday, it chinese premier jiabao wen discussed chinese economic growth. he also urged the united states and europe to reduce their budget deficits. premier wen spoke at a summer conference in china. this is an hour. [applause] [applause]

>> it's a great honor, privilege and a personal pleasure to welcome his excellency, jiabao wen, premiere at the state council of the people's republic of china. here in gallienne dalina. premier wen, i consider you to be since its inception, you have always inspired us, by sharing your vision and thinking that the president and future economic and financial contacts. today's world is in a critical situation in china clearly has

an ever more important role to play in driving those in strengthening the global economy and global corporations. and here, i know how much public welfare, job creation, innovation, education hopes are key policy priorities in your leadership of china. at the summit should fill the support and strengths, praising dignity and quality of life of all people of the future economic activity is in the hearts of the participants here of the world, make for a, acquired a full partnership of all stakeholders.

for this reason, i'm particularly delighted to say they are not only business leaders, but all set as a society, outfall democratics, with a particular emphasis on young, innovative. we are all committed to improving the welfare of society. with disrespect, mastering the quality is most appropriate for needing this time here in china. premier wen, you have encouraged us over many years. i would like to thank you on behalf of the 1500 new champions here for your great support, which has been so essential to make this annual meeting a total success. now, of course, we are keen to

hear from you on the future development of china's economic policies and your personal vision of the world's transformation. ladies and gentlemen, please welcome his excellency, jiabao wen of the people's republic of china. [applause] [applause] [speaking mandrin chinese] >> translator: the world economic forum, ladies and gentlemen, i wish to extend warm congratulations on the opening of the first annual meeting of

the new chancellor. [speaking mandrin chinese] >> translator: and a sincere welcome to you all. [speaking mandrin chinese] >> translator: this has been the fifth-year for the start of the summer meetings. the first five years have witnessed the formation of the very foreign oriented towards the world, to the future, to innovation and to the young people. [speaking mandrin chinese] >> translator: my first points of discussions, roundtables and

sessions are very lively and full of vigor, especially at the height of the international financial crisis that sent on a message of hope to the international community and a broad internal confidence and courage to the business community. the theme of this year's meeting, mastering quality growth represents people's shared desire for robust, sustainable and economic growth and i wish this meeting a great success. [applause]

[speaking mandrin chinese] >> translator: september the 15th, three years ago, marked the bankruptcy of lehman brothers and that marked the beginning of the international financial crisis. three years have passed since then. international organizations, business community and academia are all taken a hard look at their root causes of this crisis and exploring ways to sustain the growth of the global economy and national economy. with regard to china's economic development, some people have held its achievements while some others have expressed doubt.

some are optimistic about china's economic future, while some others say that china is in trouble. [speaking mandrin chinese] >> translator: that we in china are clearheaded and are firm in our confidence. we know where we stand. the first decade of the century has seen major changes in the global, political and economic landscape. it is also seen rapid industrialization and urbanization in china. great progress has been made in china. comprehensive reform opening up and modernization and other during this decade. over the past 10 years, china's economy has been growing by 10.8% annually.

its gdp and trade volume play roles in the sixth and seventh place to the second place in the world. china's industrial structure is being upgraded or the foundation of its agriculture has grown stronger. development and the central and western provinces has picked up speed in the mold of regional development with each region having a distinct as shape. social services are finding urban rural income has risen substantially. china has taken on a completely new luck at the total economic at work and overall national stress, significantly increased and the people's living standard greatly improved. we have continued to resolve challenging issues in the development by carrying out

socialist and market economy. an array of important reform measures have been introduced and taxation, finance, enterprises, rural areas and resource prices. these measures have the biology of maker economy and make her regulation and the efficiency of market allocation. we have made slow progress expanding social services nationwide, screen educations has been a key social security system covering both urban and rural areas has been put in place. construction of government being celebrated. the goal of the chinese that everyone should have access to

education, employment and pay, medical care and housing is becoming a reality. .. to change the way of conducting foreign trade, in

part, upgraded the processing trade, and vigorously developed trade in services. we have pursued the strategy of introducing foreign capital and encouraging chinese companies overseas to achieve greater balance between the views of the overseas chinese investments. we've taken that approach in the reform of the global economic government structure and building of regional corporation mechanisms and the deepened economic and trade relations. china today is a fairly open market economy. the policy has both benefited china's developments and the well-being of its people and contributed to the regional and of the global economic growth. ladies and gentlemen, with its

historical stage in the second decade of the 21st century, china is an important period of strategic opportunity. peace, development and cooperation remain the trend of our times. the international environment is generally conducive to china's pursuit of peaceful development. numerous factors continue the industrialization, urbanization and agricultural modernization, a huge market potential, the relatively high savings rate, better capacity, better education, the more skilled labour force, deepening reform and overall stability. all of these have created in a blink conditions in the space for continued economic and social development in china.

on either hand, we are still facing a pressing problem that is china's's development is not yet balanced, courtenay did, and sustainable and there are many institutional constraints hindering scientific development. as the size of the chinese economy grows, it will become difficult to achieve high speed growth over a long period of time, however, the near development both internationally have not changed the fundamentals of china's development. we have the right conditions and we have both the confidence to maintain steady growth of the economy and to bring the chinese economy to a new stage of development.

the time period is a critical stage in a china's efforts to build a society in all respects. taken into consideration the future trend and conditions as well as china's goal for 2020 and in responding to the need for changing the model of growth at a faster pace, achieving scientific development, and bringing the benefits of reform and development to all the people we have set the following goals and strategic tasks for these five years. china will continue to follow an expanding domestic demand with its focus on improving the structure of demand and increasing the consumer demand to drive economic growth. domestic demand is crucial and the necessary choice for the country to achieve sustainable

economic growth. china has 20% of the world's population with its per capita gdp exceeding 4,000 u.s. dollars china has entered a key stage for upgrading consumption structure. to upgrade consumption and raise the quality-of-life for the urban and the rural population and strengthen the weakening economic and social development where it generates the domestic demand will endeavor to build a long-term mechanism for funding consumer demand, create a favorable environment for consumption, improved consumer expectations both spending power and upgrade consumption structure we will expand consumption in the course of the developing urbanization protecting the well-being and speeding up the development of

the service industries. we aim to make urbanization grow by four percentage points and raised a share of the value in gdp by four percentage points. so that final demand will become a major force driving china's economic growth. china will continue to develop education as a priority, bringing out all she and develop with and promote economic development on the basis of improving the quality of human capital. for the major developing country like china with the education and improving quality of human-resources will drive economic development and make it more competitive. we will act quickly to achieve

economic growth by increasing the quality of human capital rather than by just using more workers. this will enable us to catch up with the progress and technology and change the models growth and about to demographic changes and achieve sustainable development. we will implement the outline of the national media in the long term plan for education and promote balanced development of education at the defense missiles and various types to ensure the acquisition for all and provoked the well-rounded people katrina innovation and advanced education in the scientific manner and move faster to make china not only a big country but also a strong country in both education and human resources. this is a strong intellectual

both sustaining china's economic development. >> china will continue to build an innovation german society, speed up the development of innovation systems and enhance the role of science and technology into our economic and social development. it is crucial in getting our efforts to accelerate the change of growth model. during the part of we will give greater priority to deepen the reform of the science and technology institutions and address the causes of the r&b not fully meeting the needs of the economic development. we will increase in size and technology and raise the share of budget for gdp from 1.75% to

2.2%. we will follow closely the latest progress in overseas frontier technologies to strengthen basic research and the research as high technologies of strategic importance and the resources to make breakthroughs in developing the port technologies we will enhance capacity to create and utilize the management and bring to play the creativity of the whole society. we will accelerate the uprooting of the traditional industries by using new technologies, new materials, new techniques and new equipment. we will vigorously develop a strategic emerging industries with the focus of the stage on industries related to energy conservation, environmental protection, new generation information technology, a high-tech manufacturing new

materials and new energy vehicles. our goal is to develop the nuclear industry's so as to gain an initiative for the development in the new scientific revolution and industrial revolution. china will continue to save resources and protect the environment, follow the path of low carbon and the sustainable development and use resources in a more efficient way and develop stronger capacity for tackling climate change. to consume resources and protect the environment is crucial to achieving sustainable development, and this is one of china's the five basic policies. we will speed up the building of an industrial structure, a mode of production and a model of consumption conducive to resource conservation and the government protection and

promote harmony between the men and nations. during this period we will raise the share of energy and energy consumption to 11.4%, reduce energy consumption and co2 emissions if the unit of gdp by 16% and 17% respectively and cut the charge of major pollutants by eight to 10%. we will improve the regulations and the standard strength and performance based accountability , overhaul the pricing for energy and resources and increase fiscal taxation for the national policy and other policy incentives. we will promote and develop low carbon industrial construction

and transportation systems, promoting energy waterline and material conservation and integrated resource utilization. we will preserve and repair the ecosystems increased and build a stronger capacity for tackling the climate change. china will continue to put people's interest first, pay more attention to ensuring and improving people's well-being and pursue the con prosperity's everything we do is to enable all the people to have better lives, and this is the criteria to measure the performance of all of our work. our goal is to bring the benefit of the development to all, and

assure and improve people's well-being and advanced social programs in all respects. we will give priority to the job creation and promoting economic and social development and promote the job opportunities for all. we will adjust income distribution and ensure the personal income growth in step with economic growth and that labor growth in step with increase of productivity. we will gradually raise the share of the personal income in the national income distribution we expect that per-capita disposable income and the per capita rule in that income will both grew by more than 7%

annually. we will put in place systems providing basic medical and health care for the whole urban and rural population, and extend the coverage of the government subsidized housing to 20% of the urban population. china will continue to deepen the reform and resolutely removed the institutional hurdles to increase the momentum of pursuing the sustainable development. china opposes rapid development in the past 30 years or more to the reform. and this will be equally true for the development of progress. we will continue to advance both economic and the political structural reform to create a strong impetus for economic and social development.

we will uphold and improve the basic economic system, speed up the fiscal taxation and the financial reform of the production and the reform of the monopoly factors and other important and strive to make major progress in these reforms. we will exercise the government's pursuant to the law and address the institutional causes for overconcentration power and lack of tax on it. we will protect people's space rights and their local rates and interest so as to appalled fairness and justice. china cannot defend itself and isolation from the world and the world also needs china for its development. here i wish to reiterate that china is opening of to the outside world as a long-term commitment which covers all beneficial.

china's be 60 policy of opening up will never change. we will continue to get actively involved in economic globalization and worked to build a fair and equitable trade regime and financial system. we will continue to improve these regulations and policies so well as to make china's investment environment in keeping with international standards, transparent and more business friendly. ladies and gentlemen, while the world economy is slowly recovering, uncertainties and destabilizing factors are growing both of the emerging

economies have experienced a slowdown in growth. solving the risks are growing in some countries posing turbulence market. unemployment in the major advance economy remains high while emerging economies are facing upward inflationary pressure. this shows the world economic recovery will be a long-term difficult and complicated process. in addressing the early 20009i said that the crisis is a global challenge. to overcome the crisis we need to have confidence, strengthen cooperation and lives up to our responsibility. the crisis also points to the test the international community

sincerity, sincerity for the commitment to the cooperation and puts to the test our wisdom as well. i still hold this view today with so many uncertainties facing the global economic recovery the international community must have more confidence in cooperation and tackle the challenges. we should strengthen the dialogue and the coordination of the macroeconomic policies and accelerate the building of the just and equitable sound and stable new world economic order. the government should fulfill the responsibilities and fought their own house in order. the major developed economies should adopt responsible and effective fiscal and monetary policies, properly handle the debt issues and ensure the safety and stable operation of investment in the market and

maintain the confidence of investors around the world. china's economy is generally in good shape. since the beginning of this year the growth has taken an orderly shift from being given the stimulus to this of generating growth moving in the right direction of the macroeconomic regulation in the first half of this year china's gdp grew by 9.6% and its trade surplus decreased by 17.6%. we have achieved these things to the domestic consumption to the the the total of 6.5 have been created and the price under control markets are injured and structural adjustments of the economic factors are moving forward this is increasing quite

fast. people's income have increased and their lives have further improved. since the second quarter, the economic growth has dropped somewhat, but this is mostly the result of the macrorevelation and is not beyond our expectation. we will address the pressing challenges in the economy and continue to implement a practice fiscal policy and prudent monetary policy. we will maintain security and stability and economic policy and make our policy responses more targeted, flexible and forward looking in light of the changes in the economy. we will maintain control over the intensity, pace and focus of the macroeconomic relations and strike a balance among maintaining a stable economic

growth adjusting the economic structure and managing the inflation expectation. this will enable us to maintain general stability as a whole, prevent major economic fluctuations and meet this year's growth for economic and social development. i am confident that china's economy will grow over a longer period of time at a higher level and will have greater quality and in concert in the chinese economy will make new contributions to the robust sustainable and balanced growth of the global economy. we sincerely welcome foreign companies to actively involve themselves in china's reform and in that process share the benefits of china's prosperity and progress. thank you. [applause]

>> we have the opportunity for one or two questions but first, i would like to thank wen for his presentation, which inspires us with optimism not only for china, but for the world as a whole because what we need is a much more comprehensive mission of how to overcome the challenges which we face, and i think your commitment to the

robust balance and sustained growth is exactly what we want to express also in the scene of this annual meeting of quality. now, you refer in your speech to the challenges which are faced in some countries particularly in the financial system. but, and that's my question, but could china do in order to help the world to overcome those financial challenges which we face particularly in europe and in the united states? >> [speaking mandarin chinese] >> translator:

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[speaking mandarin chinese] >> as the economy recovers we still face a host of uncertainties and destabilizing factors. the growth in the major economies remain sluggish and unemployment has been high.

the united states has three major tasks, namely to control public debt, to bring down budget deficits and to increase jobs by growing the economy. some european countries face of the sevier sovereign debt crisis. what is most important now is to prevent the further spread of the sovereign debt crisis in europe. the fluctuations in the value of the u.s. dollar has resulted in instability of the prices on the international markets. new emerging economies are under inflationary pressure under these circumstances the chinese economy is closely linked with the global economy. countries must first put their own house in order and at the same time work together to advance the reform in the international economic and financial systems, maintain the

stability of the development of the global economy and work hard to enhance strong balanced and sustainable growth of the international economy. >> [speaking mandarin chinese] [speaking mandarin chinese] [speaking mandarin chinese]