>> on c-span2 this morning, we are live with prime minister question time from the british house of commons. then remarks by the chinese ambassador to the u.s. the senate returns at noon eastern as negotiations continue off the floor to reopen the federal government and raise the u.s. debt ceiling. >> and now to london for prime

minister's question time live from the british house of commons. every wednesday while parliament is in session, prime minister david cameron takes questions from members of the house of commons. prior to question time the house is wrapping up of the business. this is live coverage on c-spa c-span2. >> to support business and help them access finance. the scheme was extended to northern ireland within weeks of the commitment, and i'm sure that it's provide great benefits for young entrepreneurs and help in our efforts to rebalance our economy. >> mr. speaker,. [inaudible] easier for young people to access a printer ships without needing sponsorship from different companies. they have agreed to take it back to the minister. has there been any progress?

>> i don't have any further developments to report, but these are very important in helping skills in northern ireland is i'm sure every high priority for the northern ireland executive as it is of course to uk government. >> order. questions to the prime minister. paul broun field. >> number one, mr. speaker. >> thank you, mr. speaker. i'm sure the whole house will wish to join me in congratulating the england football team for the excellent when last night ensuring they qualify for next year's world cup. my commiseration to the other home nations including scotland who got an impressive win over croatia last night. i'm sure everyone in the united kingdom will swing behind the english team. >> here, here. >> you can always dream and hope it's bigger. mr. speaker, this morning i had meetings with ministerial colleagues and others, and in addition to my duties in this house, i shall have further such meetings later today. >> county circuit associate

myself with remarks made by the prime minister in relation to the english football team. i'm hoping united will follow their lead. [laughter] >> mr. speaker, we will all have heard from constituents who, while struggling to make ends meet, have taken at payday loans. and some are trapped in spiraling debt with excessive charges and escalating interest. yesterday, all the major national consumers and debt advice organizations came together in parliament to launch a charter calling for the tough regulation of payday lenders. the charter is backed by -- [shouting] the charter is backed by members representing every party in this house. will the prime minister at his support for? >> first of all can i commend him for the work he does on payday loans and the need for

tougher regulation. i think it is right we look at this area and make sure we get things right. earlier this month the government published two new report showing the problems in the payday market forces, and consumers to continue to suffer. that is why the conduct of 40 made a series of proposals using powers to ban loans, assuring lenders can roll over loans more than twice, limiting the number of attempts payday lender can take money out of the counts, and all other proposals all worthwhile. we continue to look at the issue of the cap and i don't think we should rule that out but we have to bear in mind what has been found that in other countries and to our own research about whether a cap would prove effective but it's right that would probably regulate this area. >> dr. liam fox. >> mr. speaker, can we have a full and transparent assessment about whether "th the guardians involvement in the snowden affair, and as my friend agree that it's bizarre from some

packing of celebrity phone demands prosecution believing the british people and the security personnel more vulnerable is opening a debate? >> i commend my right honorable friend for raising this issue. i think the plain fact is that what has happened has damaged national security and in many ways the guardians themselves admitted and when they agreed when asked politely by national security advisor and cabinet secretary to destroy the files ahead. they went ahead and destroy those files. they know it's dangerous for national city. i think it's up to committees in his house everyone to examine this issue and make further recommendations. >> ed miliband. [shouting] >> thank you i join the prime minister and sending arms congratulations to the english team on their victory last night and getting to the world cup finals next summer. today's economic figures are welcome fall on unemployment.

[shouting] they also show that prices have risen faster than wages and that 39 out of 40 months that living standards have fallen since he became prime minister. will he confirm what everybody knows, that there's a cost of living crisis in this country? >> first of all let me welcome his welcome for the unemploymunemploym ent figures. not everyone in the house would've been able to study them but it is good news. a number in work is up 155,000, unemployment is down 18,000, women's unemployment is down, youth unemployment is down. long-term an opponent is down and vacancies are up. the fall in the claimant count is 41,000 this month alone, that is the fastest fall in the number of people claiming unemployment since februar february 1997. so these are welcome figures. of course, were all want to see living standards improve, and last year's disposable income increased at the ways to deliver on living standards is to grow

the economy, keep reducing the jobs and cut people's taxes. -- keep producing the jobs. >> prime minister, the almost 1 million young people still out of work and record numbers of people working part-time who can't find full-time work. that is no cause for complacency for this government. and i think the british people will be very surprised to hear the prime minister duncan their living standards are rising when they know the truth. under him living standards are falling months upon months upon months there is a cost of living crisis and one reason is rising energy bills which one leading charity reports today is one of the things driving people to food banks. in light of that does the prime minister think the energy company to raise its customers energy bills by a.d. .2% as justified? >> first of all let me come back to on the youth unemployment figures which he mention. because the youth claimant count

the number of young people claiming unemployment benefit is down 79,000 since the election. there's no complacency, we need more young people in work, more jobs. one of the remarkable things about today's figures is they show for the first time there are 1 million more people in work than they were when this government came to office. let me remind the right honorable gentleman of something he predicted in october of 2010, he said this, he said the government, i think people want to listen to this, he said this, the government have a program which will clearly lead to the disappearance of 1 million jobs. that was his prediction. he was 100% wrong and he should apologize to this house of commons. [cheers and applause] >> now, of course, we all want to see energy prices come down. that's why we're putting people on the lowest terrace. the one thing that won't work is a price calm and that is what he

is recommending. >> ed miliband. >> this prime minister for the cost of living crisis facing millions of families. let's talk about ssd because they see on the website and i quote, they have just won strategic priority, and they call it their dividend obsession. it's not to get deals done. it's not to be on the side of the consumer. so its make up your mind time for the prime minister. whose side is he on, the energy company for the consumer? >> we are on the side of hard-working families. that's why we have cut income tax or 25 million people. why we have frozen the council tax but what we've lifted too many people out of tax. let me make this simple point about living standards. if you want to help with living standards the best way to do that is to cut people's taxes. you can only cut taxes if you cut spending. he has opposed every single spending cut that we have

proposed, even now he still wants to spend more money. that is the truth. more spending, more borrowing from our debt. it's the same old labour. >> ed miliband. >> isn't as striking that the one thing the prime minister doesn't want to talk about is energy prices? he can talk about it because he is no answer. let's have an answer on the energy price freeze. can he confirm that opposing the freeze he has on his side the big six energy companies? and supporting a freeze we have consumer bodies and small energy producers, and the vast majority of the british people? >> if an energy price freeze was such a great idea why didn't he introduce it when he stood here as energy secretary? the fact is it is not a price freeze. it is a price gone. he's not in control of worldwide gas prices, which is why he has to admit the next day he

couldn't keep his promise. that is the truth. the reason the right honorable gentleman doesn't want to talk to the economy is because he hasn't got a credible economic policy. he can't explain why the deficit is falling, the economy is growing, unemployment is coming down. i have to say, given his problem, is no -- he doesn't help himself by having a totally incredible energy policy. >> ed miliband. >> i thought he might get to the record of the last government because they found a new tactic. they been slandering all of the place and they blame the last government. let's talk about green levies, because who was it who said vote blue, go green. i think it was this prime minister. who was it who said, as leader of the opposition and i quote, i think green taxes as a whole needs to go up. it was him as leader of the

opposition. and he's been talking about my record as energy secretary. so i looked back at the record on the energy bill of 2010. did he oppose the energy bill of 2010 bucks know. he supported the energy bill of 2010. you could say, mr. speaker, two parties working together in the national interest. let me ask him, doesn't he feel embarrassed that in five short years he's gone from hunter haas keep to voucher? [shouting] >> the only embarrassing thing is this tortured performance. he wants to talk about the record of the last labour government. let me remind them on the cost of living they doubled the council tax. they doubled the gas bill. they put up electricity bills by half. they put a pet troll attacks 12

times. and increase the basic state pension by a measly 75 cents. then we came to the low pay they got rid of that can be income tax banned altogether. they have absolute no economic policy and that is why the former chancellor, the honorable member said this, on the ninth of september i'm waiting to hear what we've got to sit on the economy. well, we've all been waiting but i think we can give up because they are a hopeless opposition. >> i'll tell him what happened because he talks about the last labour government. i'll tell him what happened. living standard -- living standards -- [shouting] living standards up 3700 pounds over the 13 years of the last labour government. living standards down 1500 pounds under him. this is the reality of britain under this prime minister. food bank use on the rise,

energy bills and soaring, even if you're in work you are worse off and they prime minister in total denial about the cost of living prices facing millions of families. [shouting] >> if he wants to debate the last labour government i say bring it on. they crashed the economy. they bust the banks. they doubled the national debt. they bankrupted this country. and i have to say, today on the day we can see the our 1 million more people in work in our country, that is 1 million reasons to stick to the economic plan that we have. it is 1 million reason to keep on getting the deficit down, delivering on education, to living on welfare. it's 1 million reasons to say more borrowing to more spending and more debt. that is the same old labour. never again. [shouting] >> thank you very much, mr. speaker. last night, speed the honorable german will be fully heard.

>> thank you very much, mr. speaker. last night -- [inaudible] the gay world war ii codebreakers of this country went world war ii. the government indicated in july it would move to give a pardon to him for his conviction for indecency which led him to take his own life. to my right honorable friend, can he tells when the pardon will be credited? >> first of all let me pay tribute to what alan and all the people who worked at the park if our country. it was remarkable and crucial in winning the second world war. clearly what happened and was completely wrong, and a looking back everyone can see the. everybody knows that. the specific issue of the pardon i'm happy to look at the response of the honorable gentleman but above all what we should do is pray for him and the brave people who worked for him. >> today is the day. the prime minister embrace the campaign including the need to

cut federal grain biofuel mandates, which effectively hijacked food product for fuel consumption by the rest. today, the eu presidency is proposing a 7% gap as opposed to a 5% cap. that difference could be feeding six many people you. what effort is he making to compromise the fight to? >> first of all let me pay to get to the honorable gentleman, the campaign is waged on this specific issue. we are clear the production of biofuels should not undermine food security and on some occasions in some countries it clearly is. a 5% cap made from crops was one of the kiosk of the if campaign. i pay tribute to what they did. that is exactly what we are pushing for an current negotiations and hope we will be successful. >> mr. alastair burr.

[shouting] >> thank you. thank you, they use of content a blood product by the nhs in the 1970s and '80s exposed 5000 people to have to -- and some 1200 others included in that number the hiv as well. of those 1200, just over 300 are still a life. has never been an apology or a public inquiry. will my right honorable friend who has an outstanding record in seeking to close historic wrongs of the past meet with me and one of my constituents, look again the possibility of public acknowledgment that perhaps this last historic health of scandal and ensure the for those who survive now they are treated equally and fairly by a state that wrong to them in the first place to? >> can i think my right honorable friend for raising this issue in the way that he has? i have constituents have been affected by this appalling thing

that happen i in our country. and 2011 come in january we announced a package of measures to provide additional support for those affected not least because there's been a change in the potential outcomes of people with hiv compared with those with hep c. i'm very happy to meet with him and consider all of the issues he raises and see whether there's more we can do to bring this very, very sad chapter to a close. >> the prime minister will know of the many injustices that have been meted out in the last few years. they will mention again on monday in an interview. the latest victim was a farmer who went in december 2012, and were stripped of his benefits. for 11 months he waited for an appeal. and then his aggressive cancer

took his side, took his hearing, and then last friday, took his life. isn't it time that would put an end to this system where people that are really suffering should not be allowed an appeal having to live on 70-pound a week, him and his widow? two things that prime minister should do -- [shouting] with immediate effect, make an extra payment to his widow to cover the suffering, the pain and the loss of income, and secondly, abolish this cruel, heartless monster. get rid of it. >> prime minister. >> prepare for it. >> the gentleman rightly raises what is a deadly sad case and am happy to look at this and look at the specifics of the case that he raises.

i think everyone who has constituents and talk to constituents knows that would have to improve the quality of decision-making about this issue. but where i would take issue, i think it is important that we carry out proper assessment of whether people are qualified for benefits are not qualified for benefits. that's why the four members opposite shout out about this, that is why they started to look at work capability. >> the question was heard, and heard i think with great courtesy. and the answer must be heard. the prime minister. >> that is why when they were in government, the less government did look at the issue and making sure whether proper way of judging who should be receiving benefits and who should and. as i say we can always improve the system. the our appeals and the system but happy to look at the individual case. >> thank you, mr. speaker. [inaudible] including alexander harris has suspended my daughter. i am really concerned that their ecological process -- protests

is being misinterpreted as piracy because nobody wants -- [inaudible] >> i share my honorable friend concerned at one of the people involved is a constituent of mine but i think we need to follow this case extreme it closely and that is what the foreign office is doing. the foreign office minister had a meeting which i'm sure she attended and we are daily seeking updates from the russian government about how these people are being treated. >> thank you, mr. speaker. last week in answer to question on his marriage tax policy the prime minister answered that all married couples paying basic rate tax would benefit from this move. that wasn't correct, was it, prime minister? can he confirm that? >> what i said was married couples allow tax is available to all couples who are on basic rate tax to anyone who has unused tax allowance is able to transfer it between a husband or the wife but it comes back to a

very simple principle, which is would want to back marriage in the tax system and not just as a party opposite did, backpacks in the marriage in the inherent tax system. but we want to back marriage for less. if the shadow council wants to raise another point of order, i'm very happy to stick around and hear that. [shouting] >> thank you, mr. speaker. i originally intend to raise the issue of a keep 14 with my right honorable friend but an important announcement was made today by the supreme court which sent down an appeals of bridges rights. also importantly, mr. speaker, reasserted it is the role of this parliament to make the decision rather -- can my right honorable friend incher we will not be voting for prisoners rights in this parliament? >> well, can i thank my auto friend for taking the issue and raising this very important issue? and can i congratulate the attorney general on the

excellent results here he thought his case himself in front of the supreme court. he made a compelling and forceful argument, and this is a victory for common sense. my views on this issue are well known. i do not believe that prisoners should have the vote and the believe it's a matter for this house of commons. the supreme court today has stood up for commonsense, stood up for democracy and made clear this issue is nothing to do with the european union and i think we can all rejoice in that result. >> mr. speaker, the number of people held by food banks in 2012-13 will triple compared with the previous year. is the prime minister proud of this achievement? >> well, food bank usage went up 10 times under the last labour government. of course, what i want to see is helping all families with their living standards. that is why we are recognized the fact we're getting more people into work, growing our economy, keeping interest rates

down and crucially what cutting taxes. for things that are vital to living standards and four things you'd never get from the labour government. >> mr. speaker, in september and and the service moved to a makeready system. and today you are known to man ambulances based in the borough. already several of my constituents have been left for with totally unacceptably long periods waiting for an indolence to take them to the hospital. talking to endless chief as i followed up the death. so will the prime minister agreed to meet with me to see what can be done before a constituent dies waiting for an adult to come? >> i share my friends concerned about the importance of response time for ambulances. i think we have to pass the in a as for how to best meet those targets because what matters most of all is swift attended to people who need it. i'm very happy to arrange a

meeting with her and held diminished to look at this. i know the and its services look at ways to improve its services include she will encourage them to do just that. >> mr. speaker, the prime minister will note that yet today the independent police and state commission published a damaging report into an event that occurred involving the former government chief whip. this report goes to the heart of the issue of integrity and ethics of the police. does he agree with the home secretary who, in her evidence to the committee yesterday, said it was right that the constable should apologize to the right honorable member, and wrong if the relevant officers did not face disciplinary procedures? >> i agree 100% with what the home secretary said yesterday, and i think we should be clear about what we're discussing here. the whole case of what happened outside number 10 downing street with the cbs and we actually that on one side until they make

their decision, what's being discussed here is the fact my right honorable friend had a meeting with police federation officers in his constituency where he gave a full account of what had happened to a left that meeting and claimed he had given them no account at all. fortuitous meeting was recorded and so he's been able to prove that what he said was true to what the police officers said was untrue. that is why the right honorablee gentleman is right, he's owed an apology. the conduct of these officers was not acceptable. these things should be properly investigated as the home secretary has said and and crucially absolute right for his committee to discuss this with the chief constables concern and try to get to the bottom of why proper address has not been given. >> can i congratulate the prime minister on taking 2 million out of income tax that noting that 1.3 million earning around 40,000 in families have been sucked into high rate. [inaudible] can i just urge him --

[laughter] >> here, here. >> can i just urge them to deliver it by cutting government spending so we can also ease the squeeze on the middle-class? >> i think my honorable friend is absolute right to make this point. we have taken 2.7 million people out of income tax altogether because what lifted the first 10,000 pounds of what you can earn before you start paying taxes. this means also somewhat on minimum wage working full-time -- someone on minimum wage has seen attacks will come down by something like two-thirds. yes, i want to see taxes cut for all but the only way we can do that is to continue to get the deficit down, to bear down on public spending and not listen to the party opposite who, even today, are making massive commitment to more welfare spending and more public spending which would mean higher taxes, higher borrowing and more of the same old labour.

>> thank you, mr. speaker. does the prime minister consider a source of shame that on his watch the red cross has announced that it will be distributing food to -- in 70 years of? >> what the red cross are choosing to do, it is their choice, is to work with fair share which is an excellent charity that make sure that supermarkets don't waste food but make the food available to people who needed. and i think that is worthwhile. what we need to see to repeat again is a raising living standards which will get if we keep growing the economy, we keep getting more jobs, we keep cutting people's taxes and we keep interest rates and mortgage rates low. those are the four things this government is delivering. for things that we never would have delivered if we listen to a word of the front bench opposi opposite. >> mr. simon kirby.

>> thank you, mr. speaker. yesterday i presented a petition to the department of health calling for 420 million pounds for redevelopment and brightened. does the prime minister agree with me that this money would make a real difference to patients right across suffix at my local hospital? >> well i understand that the business case for the 420 million pounds redevelopment of the regional center of teaching and trauma care of a hospital in brighton, that is currently being considered. we can only consider because this government decided not to cut the nhs budget put extra resources into the nhs and that show when it is presented an announcement will be made. >> tax cuts for millionaires, tax cuts for the wealthiest in this country, at the same time as millions are denied the right

to work and most people who are hard-working -- pay cut by 1500 pounds. when is this government, the privileged -- [shouting] millionaires minister going to do something -- instead of being the political goods for the hedge funds and the bankers. [shouting] >> we all know who did the most for the hedge funds and the bankers. it was the people who allowed the banks to go bust in the first place. it is this government that is cutting taxes for working people. taken 2.7 million people out of tax, compared with the disgrace of the government he was in the scrap the 10 be income tax. >> thank you, mr. speaker. we all appreciate the government requires hard choices about priorities. does the prime minister agree with me that generous basic state pension based on a triple

lock should have a priority and more generous wealth? >> i think my honorable friend makes an important point and a proud of the fact that last year under this govern the basic state pension went up by five pounds 30 a week. we have the inflation figures for september so we can say because of our triple lock the basic state pension will go up by the rate of inflation to point some% next year. of course, the party opposite committed to an earnings income wouldn't see anything like that. and yet at the same time they are choosing to operate welfare by to point some% when we think it should go up by one person. we have the priority to stand up for people who work hard, done the right thing, but said underlies the deserve dignity and recover. unlike the party opposite we will never let our pensioners down. >> thank you, mr. speaker. this week the office of national statistics supported the house price inflation in london was

running at 8.7%. does the prime minister agree that this was inevitable that his mortgage guarantee scheme will simply feast the property bubble of the price of individual low-cost homebuyer? >> i don't accept that for a moment and it's interesting flavor has now come out against the health provides king. so with we want to help people get on the housing ladder, as ever the labour party is standing against those people. i have to say to the honorable lady, you look at house price increases outside london in the southeast it is -- mortgage activity still way below where it was before the recession struck. will tell people get on housing ladder and receive and achieve the dream of homeownership. clearly the party opposite don't care for them. >> the prime minister will know that in my constituency some businesses are almost paying as much in business rates as they are paying in rent.

however, what steps will be take to persuade local council to use the powers this government has given them to reduce those rates and make the right choices to support our qwest? >> well, i'm grateful to my honorable friend because i know he's a real champion for small business on this issue. obviously, the first thing that we need to do is to get the bill passed through the house of commons that will cut the national insurance bill of every business in the country, particularly helping britain's small business. it means a single traders will be able to take on three people earning minimum wage without paying any national interest at all. that is the most important thing we can do. we should continue to look at the business rates system, in courage counsel to make sure that they do everything they can to apply the discount whether a fable and continue to work on this issue. >> under this government wages in real terms have fallen in every region of the uk. given that those in power and across the rest of london are

now have 2200 pounds worse off future. when will the prime minister take personal responsibility? >> what he has to do is look at disposable income as well as wages. because this government has cut people's taxes, because what allowing people to keep 10,000 pounds what they earn before they pay taxes, disposable income went up last year and it is rising as we speak today. this is important for the labour party because he did go on attacking spending cuts and if you go on asking for more and more spending, everyone will know, repeat after me with labour, you get more bar become more spending, more taxes but it's the same old labour. [shouting] >> thank you, mr. speaker. is my friend aware that unemployment has fallen and job seekers are in college, could i ask my honorable friend to go one step further and look of raising the threshold which

always been no national insurance? >> i'm happy to look at what my honorable friend said. he is the real champion for the low-paid come of the people who want to work hard and improve their circumstances. clearly taking people out of tax issues, we should also get national insurance, the priority is to help small businesses to take people on. it is worth recognizing in the figures announced today that 1 million extra people in work, three quarters of those jobs are full-time jobs, not part-time jobs. what i think we can see is that country is getting stronger, the economy is improving but more people getting into work and when you do encourage that rather than set it back. >> order. >> here on c-span2 we will leave the british house of commons as they move on to other legislative business. you have been watching prime minister's question time aired live wednesday at 17 eastern while parliament is in session. you can see this week's question time taken sunday night at nine eastern and pacific on c-span.

and for more information go to c-span.org, click on c-span series for prime minister's question, plus links to international news meet and legislatures around the world. you can also watch recent video including programs do with other international issues. >> you are watching c-span2 with politics and public affairs, weekdays future live coverage of the u.s. senate. on weeknights watch key public policy events, and every weekend the latest nonfiction authors and books on booktv. you can see past programs and get our schedules at our website, and you can join in on the conversation on social media sites. >> now the chinese ambassador to the u.s. on u.s. relations with his country. from the johns hopkins school of advanced international studies in washington, d.c., this is an hour.

>> thank you very much for your kind words. and good evening, ladies and gentlemen. it's really nice to be back at sais. it brings back a lot of happy memories. when i was running up and down the stairs back there, the library, and every wednesday evening to this auditorium. at a time it was chaired by a professor. i have always wanted to have the opportunity to extend my appreciation to sais. thank you for giving me the opportunity today. and in my capacity as chinese ambassador, i would also like to thank you for your continued support for the relations between china and the united states. particularly, you are helping to train so many chinese diplomats

over all these years sais alumni association, i'm sure most of the people of the top echelon would be members. thank you very much your today i will talk about chinese foreign policy and the relations between china and the united states. this is really a very good subject. and i have to confess the moment i enjoyed the q&a session much better than the speech itself. so probably i will not take up 40 minutes. i will make it relatively short and we'll have questions and answers. first, maybe just a few words on china's foreign policy.

and i promise i will not repeat the official china line. rather, i was like to offer my personal points of view. on what is behind the official point of view and how all this could be seen in proper setting. because china's foreign policy has been the subject, that many people have studied, discussed, written about and lectured on. it is a subject that is very often misunderstood. so as we visit this policy, under the policy level for a closer look at china's history and culture, behind the

formulation of the policy, it is extremely important. and to connect the dots of history, culture and the foreign policy formulation is even more important. china's foreign policy could be summarized in a very simple and brief formulation. the independent foreign policy of peace. now here we have few words. independence and peace. and i believe these two words actually define the nature of the whole policy. first, independence. why independence is so important for china's foreign policy and for the country?

of course china has been an independent country for many centuries. we cherish independence very much. and it is one of our fundamental values. but from 1840, the 1949, china was invaded by foreign powers time and again. and lost much of its independence and sovereignty. for instance, china's customs service run 1861-1911 was controlled by a british official. and china was coerced into 343 evil treaties at some point which paid more than 40 million kilograms of silver

as war damages for wars fought on its own land. and china lost 1.6 million acres of territory. so during that period china had little say on its own fate, and was not treated with respect, justice, or fairness on the world stage. these 100 years also are remembered by the chinese nation as a century of national humiliation. this was the chinese revolution of the 20th century, and most of it, generation of chinese in the struggle to regain national independence. it is still a driving force

today behind a national effort for revitalization and modernization. all nations cherish independence, but for china, independence was almost lost and was regained with such a sacrifice. that explains why the chinese people hold independence so dearly, and it is only logical and natural that it becomes one of the fundamental principles in china's foreign policy. but i must emphasize here that when we talk about this century of national humiliation, we are not talking about seeking revenge. we just want to have our independence and sovereignty like the rest of the world.

based on her own experience of suffering, we know that two wrongs don't make a right. the world, some places are more equal than others is a horrible place for all. we want to take history as a mirror and guidance so that what was done to us in the past will never be done to anyone anymore. and that will lead me to my second few words, peace. how do we see peace in china? i think that peace is a policy goal for all the nations in the world. but at the same time, we have witnessed numerous breaches of the peace. to maintain peace everywhere in the global village, it is still

an unfinished business for the international community. then what is special significance of peace for china? how do we see it in china? there are, of course many considerations for peace, but today i want to focus on a factor that is not so material or tangible, but moral, profound, and lasting. and that is our culture. if we want to have just one chinese character to best describe the chinese value, it is this one. and this character in chinese could be translated into many

english words. peace, harmony, reconciliation, integrated and benevolence, and there are many others. we believe that harmony can and should be achieved by accommodating diversity. that's why i would say to people in english it means harmony without -- semi. we also believe the spirit brings good fortune to everybody. so even the chinese term for peace, corruption. that if we look at these two characters closely, i think most of you recognize these characters. i wrote them myself. if we look at them very closely, it actually means it is achieved

by following the spirit. [inaudible] together they make peace. that is why confucius said, peace is the most precious thing under the heaven. and, indeed, this concept has been the guiding principle for the chinese society over so many years. addressing all the issues within families, groups and communities. so it is not exaggerating to say that this is in our nation's dna. and it is only natural that it should find its way into our foreign policy. it is both the means and the end. it is both a matter of policy

and our way of life. so with the culture it would not be difficult to understand why china values peace so much. in its foreign policy and why it has been such a sight of peaceful settlement of international disputes. of course, we use all our sins to safeguard our independence and sovereignty, but this is just to make sure that our people can live in peace. we believe that active aggression must be confronted with force, in accordance with the provisions of the united nations charter. but other international disputes should be resolved through peaceful means, such as dialogue, negotiation,

mediation, and mutual accommodation. we never believed that military might can really solve the global problems. and it is to this independent foreign policy of peace that we develop our relations with the united states. and nothing illustrates our foreign policy better than our handling of relations with the united states. because this relationship is the most important, as well as the most sensitive. the most comprehensive as well as the most complex. the most promising as well as the most challenging. thanks -- over the past four decades or so, china-u.s.

relationships has been in negotiation inspite of some ups and downs. president keeshan being of china and present obama of u.s. met twice of issue. they stay in close touch by telephone. literally our leaders are just a phone call away from each other. and communication at the top level is highly effective. and as guided by the agreement between the two presidents, the two countries are now working together to build a new model of the relationship based on mutual respect and the win-win cooperation's. this new model is called for by the new realities of the world in the 21st century. it is in conformity with a lot of interest of both countries,

and with the expectation of the international community. the fact that china and the united states are undertaking this together shows the determination of both to break the old cycle of a major power rivalry, and open up new concepts for win-win outcome. during this new model of relationship, it is certainly no easy job. there will be difficulties and problems ahead. but we have no alternative. if we really do not want to have a lose-lose situation. this comment endeavor of hours requires wisdom, vision, mutual trust, determination and perseverance from both sides in order to succeed.

so in this regard i would also like to suggest three key words. first, respect. china and the united states differ from each other in many ways. we have a few more people in china than you do here. [laughter] and our country as a little bit older than the united states. we speak different languages, enjoy different cultures, and even the different styles of food. we have very different -- were at different stages of economic development, and certainly have different forms of government. acquiring a comprehensive and object knowledge of each other is not easy. surely, understanding the differences is even more

difficult. because of these differences, we sometimes see things in different light. our approaches to some of the global issues may not be exactly the same. it is important to keep in mind that these are the products of history, and cannot be changed at will. to respect these differences is to show respect for each other. to appreciate why there are differences will lay the foundation for constructive and productive relations. my second keyword is cooperation. despite all our differences, our common interests far outweigh them, and are still growing. economically with our each other's second largest trading

partners. our trade almost reached 500 billion u.s. dollars last year, an increase of 200 pounds over the earlier days of our diplomatic relations. besides the high degree between our two economies, which offers great potential for mutual beneficial cooperation. at the fifth round of strategic and economic dialogue held here in washington, d.c. last july, the two sides agreed to start negotiations on a bilateral investment treaty. on the basis of reestablishment national treatment, or the i.t. once concluded we lost tremendous opportunity for

american business. in addition china has just set up a pilot free trade zone. it is not just a business opportunity, but also a new signal of china's reform and opening up. our two countries also share an important international responsibilities. we are both permanent members of the u.n. security council. and together with other members we share the primary responsibility for international peace and security. moreover, we are confronted with so many common changes. it is one of the biggest and -- [inaudible] also food security, disease prevention, and even poverty,

national crime, counterterrorism and nonproliferation are all calling for our joint efforts. even our differences could be turned into rallying points. economic -- [inaudible] cultural and educational exchanges are also areas where diversity means opportunities. in this regard i would like to commend the contributions made by the china-u.s. high level consultation of people to people exchange and we look forward to the forefront of this high level consultation to be held in washington, d.c. in november. my third key word is responsibility. we are two great countries. our relationship not only

affects the future of our two peoples, but also has a major impact on the asia-pacific region, and the world as a whole. so the stakes are really high. we have to manage this relationship with a strong sense of responsibility. responsibility means being prudent and conscience. each needs respect the other majors interests and concerns. each should act cautiously with issues of concern to the other. neither should allow itself to be taken advantage of by any third party, and let other people's troubles become our problem. responsibility means acting

positively. there are always difficulties, but a positive approach will produce positive results. we should always make our best effort to extend common interest and manage the differences in a constructive way. responsibility also means taking the long-term view. immediate gains are very often tempting, but too much focus on them is shortsighted. for a country like china and the united states, we should have the capability to look forward and show the responsibility to work for the long-term interest. so these are a few of my observations of this new model

of the relationship between our two countries. now, the goal is set, the direction is clear, but the real test is still before us. i have full confidence in our two great peoples, and i have full confidence in our common future. if this is a new -- [inaudible] there is already no turning back. let's move forward today. thank you. [applause] >> i would like to give the honor of the first question to our dean. you want to come over here so that the cameras pick up the sound? well, first of all, thank you very much for that

thought-provoking speech and laying out some of the issues that the two countries have. you pointed out in your remarks the importance of not only deepening the relationship between china and the united states, but also to cooperation between the two as both are now viewed in the context of the current global order as the main stakeholder. we often think about the war, global powers between china and the united states. so i was wondering whether you thought that the existing international institutions are appropriate forums and venues for china and the united states to cooperate in, resolving jointly global issues? are whether there is need or new international institutions and new frameworks to be created for

the reality of the global order today between them? >> thank you very much for your very good question. i think there are two types of international institutions. ..