momentum has broken. the international crisis, recovery of the global economy is very fragile. and we really face a challenge. the economic growth is the problem. and we must see the issue from the structure of the economy, and we must recognize that it is impacted by the geopolitical. so we see this as a real challenge for the global economy. that's the number one appointment i want to report to you. and number two point, i still worry about very much, after six

years after financial crisis broke out, the global environment level is still below the level six years ago. so fortunately we see the u.s. employment improved. in china, from january to august, new employment is 10 million. so the chinese and u.s. contribute to the global employment improvement. however, it's a real challenge. the global level of employment is a challenge. the employment in europe, particularly young generation

lost jobs. that's a real challenge. and it reminds us why we must keep growth and the environment, the employment as a key target for this year again. global efforts must be made to promote growth with a real increase in employment. we must make extreme efforts to global employment. the u.s. government, after world war ii, after several business cycles, this time, after six years, since that international financial crisis broke out,

global interest rate is at the lowest level. and this has never been seen before in a financial crisis, so low an interest rate. the debt of the u.s. is around $3.3 trillion. and in japan, also, the pension money supply. the u.s. federal reserve was very clear to point out that that's the most this year. and next year, they will determine the interest rates. that is a communication of the federal reserve.

and that's important. like market, we will see what will happen for the next cycle. so this is very important in the u.s. make transparency and make communication, particularly where the market stands. however, sometimes we see that the ecb president, mr. draghi, made a public announcement, of the 2017, that ecb will not increase the interest. so that's a very sharp comparison with the federal reserve policy, and ecb policy in the next two years.

we really hope that the policy to serve the domestic development progress, and the -- however, the real impact we must really closely watch. and determine the risk in the eurozone. so there's a new challenge. and 0.3%, 0.4%, indeed, is too low. that's a deflation threat for the euro development. and how to evaluate that interest trend in the u.s., in europe, in japan and the other players, and we should pay very

close attention to some change of policy. the fourth point is that we really need technology revolution, so we can see the history of the -- we see after world war ii, every time the business cycle is a real boom of the economy to the real technology revolution. renewable energy needs to have a real break-through. u.s., china, europe can play the leading role in this regard.

but with more effort. we really hope that the technology revolution can make the global economy keep on the right track of growth, and on the right track. so the final point i want to say about the global economy is the role of the u.s., the leading role. and we must recognize after world war ii, the current global political and economic level needs to be established. and you have to keep that very important leading role after world war ii. keep it on an even keel today. but now we can see the u.s. has

a leading position. it needs to include the political global security issue, and how to keep the system after world war ii politically. and economically, everybody knows that the economic order -- unfortunately, we see the reform agenda. u.s. administration, yes, indeed makes a lot of efforts, trying to convince congress to approve. but unfortunately, until today, the kind of reform, is not

approved by the u.s. so we really appeal to the u.s. congress to approve that. and quickly to realize the reform agenda. that's very important. we are very happy to see the u.s. economy back to the right track. and we really look for the u.s. to honor the commitment of the leading role in the international system, both in the security and the economic. it's very important for all the countries follow in the political, economic order established after world war ii. this is my fourth category comment about the global economy

and challenge we face. i want to report to you about our thoughts regarding economic relations between china and the united states. we do believe now there is a so close interconnection between the u.s. economy and the china economy. there's $520 billion in trade every year. $520 billion investment really reflects, the whole picture of the economic relations. that's indeed so close a connection between china and the u.s. it is so connected.

and it is so important relations. we must value that. and we appreciate very much the u.s. support of the development of the china-u.s. economic and comprehensive relations. we also know some key programs we must put together. in the bilateral treaty, between president xi jinping and president obama, it's a very important consensus. china and the u.s. will launch the negotiations on the b.i.t., based on the pre-establishment

class. it is so important. it's a big achievement of the ecb. and now all sides have that very deepening concern over that negotiation. i am glad to report to you that the pact of the treaty has made big progress on clarification. both sides, comparing each sides to the pact. based on the agreement by this year at the ecb, into next year, both sides should will show real

negotiation. and it is held to the highest standard. and it reflects each country's concern. there are real challenges domestical domestically, to have the highest standard, highest quality. that's a real challenge. but we understand this is a need to promote domestic strategies through negotiations. both for the american and chinese. and during the process of negotiations, both sides had very tough negotiations. we really hope with the high standard, the high quality is at

the core. and both sides can set up the framework to complete the bilateral investment treaty negotiations. and also, for the energy, we have a big potential. not long time ago in new york, president obama was meeting with xi jinping's reps, and both sides emphasized how important china-u.s., to work together to deal with the challenge of world climate change. we hope that discussions can be made more understanding, and to promote global efforts to deal with the challenge of climate change. and we do hope both china and

the u.s., as the largest of the developed countries, has really contributed independently to the next year paris -- important paris climate change meeting. and for more trade promotion, and china-u.s. have the big potential. we can see that china is going to increase that volume quickly and logically. we really hope that the china-u.s. treaty relations will be more enhanced. and we particularly will come with more high-tech, and export to china. and we would also like to see

reform of the procedure of the exports to china. and we also see the big potential for cooperation in the energy side. and we can recall at the july ecb, emphasized in the energy cooperation between china and the united states. shale gas is one area. export to china is also connected. and now we are very happy to say that a private company plays a more important role to promote that. and in this regard, i particularly would like to report to you, under the format of the g-20, china and the

united states, it was announced of the fossil energy subsidy issue. now it's only two countries, but we hope more countries will join. this is very important for fossil energy subsidy peer review. it's really concerning the price of energy. and also the contribution to the climate change issue. and now in g-20, that's the china and u.s. that has the good coordination. we hope more will join us, in the g-20 efforts. and globally, to work together.

the forecast from the u.s. economy in 2014 there 1.7 to 2 2.2. and we are also happy to see the forecast for china, for 2014, growth is 7.4%. with these calculations, we can see globally the total gdp balance is $73.9 trillion, and china is $9.2 trillion. u.s. is $16.7 trillion. so china's total gdp of 12.4%,

and china is 22.7%. regarding the contribution from the new growth, china this year, according to mf, 7.4%. u.s., 2.2% growth. and that means china will contribute to the new growth for this year, 27.8, u.s. is 15.1. so that's the two largest contributions for the new growth in the world. now we talk about for five years, additional growth, 2%. and we really hope that the

china and the u.s. can contribute with our real capacity. we also encourage other members to contribute be their restructured reform for the global growth. now, according to to the trade investment, employment, the categories to the calculations of new growth contribution. we believe china in the next five years for new growth of 2% additional, is about 30% to 40%. that's really in line with the current contribution for china to the global new growth. we hope that the u.s. will be more productivity improvement and new growth. and there will be u.s.

contributions beyond the ten. and we really hope that our two countries kcan work together to contribute to the work growth. and that's very, very important. we look forward to see next month xi jinping and president oba obama's very important meeting in beijing. last year, they brought the global economy to the highest level. but we also recognize this year something happened. and we need that momentum to be building up. we hope that the china-u.s. relations will have real trust. and will contribute the global peace and global development.

we know the situation of the economics situation we face. and the political risk we face. and we need a china and u.s. that is more closely connected. adam tells me i only have five minutes lesmt. very briefly, i want to talk to you about the chinese economy. and, you know, since last year, at a meeting, we organized a comprehensive reform with president xi jinping himself. we had a reform with the economic and political cull tur. now, we marked step by step to

advance reform with a legal base. now this month, we will have another very important plan. it's very important. and the reform agenda is very clear, and now we want to make every reform the base of the law. every year we have introduced gradually some reform, including important household reform. fiscal, financial reform. and education system reform. it's already been published. so now we've got to go through the administration measures to promote those reforms. and we will see more reform the

following year. we have that timetable for the year 2020. and we also have that space period for real progress to be made before 2016. so now that's the tasked to the more than 300 in the ministry department. they will be in charge of reform. that is the comprehensive meeting group. and you can see that's so important reform. we really hope that the mission set up by the central committee to the 2020, our gdp growth will

be developed to the level of 2010. and to 2050 will establish, and build up china into the real comprehensive, real health country. that's the modernization. that's two stages. it's very important for the chinese people to realize the china dream. to enjoy a bright future. and better life. thank you very much. [ applause ] >> i didn't mean to rush you.

>> so, thank you very much, vice minister zhu. a truly epic and constructive talk. what should be done by china, what can be pursued bilaterally between the u.s. and china. climate change, avoiding it, mitigating. calling on the u.s. to do its job in terms of imf and governance reform, which certainly all of us in this building are have called for. and the whole growth outlook of the g-20. there are so many things to talk about. before i open it up to questions from the floor, let me pose two things, if i could. so, first you mentioned the

progress in the bilateral development treaty and your hopes for changes in some of the export requirements from the u.s. in terms of high-tech trade. we have a new study coming out next week by fred, and sean minor, where the three authors are setting out an ambitious road map for u.s.-china relations on trade. how far do you think the bilateral investment treaty can go? realistically, where do you think the impact will be over the next couple of years? will it mostly be over u.s. investment in china, are you hopeful that the people in the u.s. will become more receptive to chinese investment the way the u.s. was receptive to the japanese investment? will the investment be in third

areas, like africa, do you think the understanding of each other's views as a result of this? i think we're very sympathetic to the idea that you focused on this, but i would like to hear a little more about why you feel this is important. >> about the timetable, both sides need to have very close communications. and very good development in that we have big progress pacts of treaty clarifications. and both the u.s. officials and china think there is real progress. now, that's the key task, it's for early next year. >> right. >> so we hope that should be high standard, and high quality

with that. we hope that it's supported over the two years, with the obama administration with the legacy. and we also know that the treat y has 67% approval. and it also needs approval in china. so if we can conclude it in two years. and leave this as the next administration for the u.s. side. but it's subject to real discussion and real negotiation. we really hope progress for the president xi jinping and president obama negotiation.

that's the b.i.t. for broad cooperation, with africa, we hope it will come. africa, china, u.s., will work in very close cooperation. in west africa, there's a big public health crisis. and the china and u.s. make contribution to the public health crisis. and we hope the u.s. and china can closely connect to make a real contribution to the crisis. >> thank you.

a second question which you sort of touched on, but if i could, i'd like to get you to expand on it a bit, is that you mentioned the g-20's ambitious growth goals, and the china and the u.s. seem to be the only ones who seem to be on track. one thing which we've been hearing a lot already this week, including from secretary treasury lew yesterday, and i was with managing director lagarde, everyone's talking about some sort of major initiative on public investment on infrastructure. is this something that you see at the g-20, or the imfc? is this something that can be achieved through international cooperation, or is that secondary? and how do you feel about everybody in the world trying to come to china and saying, give me your money? give me your money? that everybody wants the chinese

investor for their chinese partner. how do you see that playing out? >> for global investment in infrastructure, that is the very key topic for both parties. we hope china will host the apec summ summit, and the very important topic is connected to investment. of course, that's trade. there are two roles of apec. in australia, also, that's a very key topic is the investment in the infrastructure. we really hope this year we can make tangible progress in the infrastructure progress. and now regarding that, it's the

infrastructure stability. and both the u.s. and china support that. and we hope to make it global money for investment in infrastructure, and it can be strengthened. and china has that proposal to establish an asian investment in the infrastructure. also, australia will give a proposal to establish a center to promote infrastructure development. those proposals connect the investment infrastructure. we realize there's a big gap between the infrastructure development and financial supply to support infrastructure development.

we hope there will be big progress this year to be made. but we also understand the policy communication is also very important. >> great. i'm tempted to go on, but we have such a distinguished audience, i want to give them a chance to speak. just to recap the ground rules here at the peterson institute, we have a roving mic up front, which chris is holding. we also have a standing mic at the back. when i recognize you in either place, please feel free to ask a question. please make sure to at least pretend you're asking a question, not making a speech. and please identify yourself where you're from. so if the lady at the back mic goes first, and then the woman in the orange dress, or in the sweater right there. >> thank you very much, vice minister zhu. >> i'm sorry, who are you? >> i'm meg lundsaker. i was the u.s. director at the

imf for the past seven years, spending time on global growth, economic recovery. one of the things we always focused on is how to improve domestic demand generation in countries. of course, in china, the domestic demand emphasis has been on investment, and i was at the seminar this morning, adam, on the infrastructure investment. but if you're talking also about the long-run development of china and the long-run well-being of its people, you need to focus as well on the consumption side. and china is getting to be such a big economy, that generation will have to be the main focus of growth, not the export side. what i would like to ask you is, do you have policies in mind for promoting that shift from investment from export growth, to more domestic consumption, which ultimately would be a benefit to the chinese people? and of course, to the global growth as well? thank you. >> thank you. >> thank you very much.

that's a very important policy issue for infrastructure development in chib a. that's one thing we must strongly promote, domestic demand. also, we should handle the balance of our supply side. and we increased that strategy of overcapacity. we must emphasize the productivity issue. also, make the balance between domestic demand pand investment. that's the very key for the economy for development. now we make a big effort for implement of balance. in 2007, we have that imbalance of 10.1%. this year, it's 1.8%.

that's a big change on the balance of the payment. so there's a big effort already made in china. and also for the first half year, our industry contributed to the gdp growth. 46.6%. that's beyond the contribution by the industry, the second industries. so we must continue to make the restructure of the economy, continue with the industry. but pay attention to the peterson institute of research. development service industry, we must emphasize quality. because that's indeed, the soviet industry really

contributes to the employment. the gap between income from investment is big. the financial industry. now we must make effort to promote restructure and reform, including with the challenge of overcapacity issue. and these issues we must take very serious talks. and next year, i believe the reform will be more deepened,

because that's the chinese people's demands for much improved quality of life, including clear air, and enjoy the green mountains. that's a real demand by ordinary people. unfortunately we pay a big cost on the environment. president xi put the priority o to have a better life, improving the real clear air, and clean water and environment. thank you. >> thank you. china's green dream articulated. please? >> thank you. leea from voice of america. vice minister zhu, according to the imf, based on the partisan power basis, china is surpassing

the united states as the world's biggest economy. i wonder if you're happy to hear about that, whether you agree with that? in april, when the international comparison program came to the same conclusion, there were indications that china tried to suppress that report. if that were the case, can you tell us about why china is reluctant to be the number one in the world? and if i may, a quick follow-up. to many people, the chinese property market is overbilled, overpriced and overleveraged. if the chinese market were to collapse? >> you're allowed to answer that with a yes or no, if you want. >> you talk about the gdp. to be frank, to tell you the truth, i think people are more serious about -- that report

about gdp, anyway, my job is more serious than what the domestic people will see beyond the u.s. as the largest economy. because we really understand this gap in quality. it's the real quality of life. and we see we still have that big gap. and one gap is the environment. and for the chinese economy, with the 10% growth, but we really pay the cost in the environment side.

now, president xi specifically emphasized that it's important for the environment issue, and makes that wish for more people, so that we must emphasize china as a developing country. we know that's a gap. there's progress already made. we need to continue to make that a big reform and open up our policy, and make the china economy with growth, with real quality. and we will make the chinese people enjoy a much better life. the second issue about the market. that's a new challenge, because before, every year you just try to control the price of things. but now we understand that we must let the market play the

role. and maybe too much control, and make the problem more serious. and now we see that the market plays a role. we need some time to see. but generally, we think that the chinese economy will keep a stable development, including the real estate market. but the market plays the role, and needs more time to show the result. >> terrific. thank you. so at the back, then in front here. and then the lady there. >> thank you very much. christian guha, vice chairman of isi here in the u.s. and former member of the national community of the new york fed. i wanted to ask you about recent currency developments. as i'm sure you're very much

aware, the strengthening of the dollar in the last several weeks has also resulted in significant strengthening of the nb, relative to the euro, relative to the japanese yen and so forth. and i wanted to ask you first of all, is this appreciation of the rnb problematic with respect to the cyclical position of the chinese economy? and secondly, if we were to see very substantial dollar strength going forward over the next several years, given the trading relationship between the rnb and the dollar, how do you think you and your colleagues would approach that? >> that is again for chinese reform. last month, china went from 1%

to 2%. that means a full percent. that's very big. very frankly, china-u.s. has the policy communication, particularly in treasury and with us. we understand that a full percent float, that's a big one. and there's a concern about the ncb lower value. but very frankly, recently secretary lew and our prime minister had a phone call. i can report to you that the u.s. position is that it will come after the july float with the market.

that's why the u.s. dollar now is 86 points. so it's strong. and the euro is also lower. but anyway, we will keep in very close communication. and we will continue our reform. but globally, the g-20 policy coordination to the economic policy will become more important. so the 3.3%, particularly a

3.1%, how to deal with this challenge. and we hope that all of them will have a responsibility. >> in front, and then the lady at that table. >> fred berk here at the institute. mr. minister, thank you for i visiting the institute. you stressed in your remarks the potential for greatly increasing the trade and investment relationship between china and the united states. adam mentioned we are about to publish a study which has the very ambitious goal of suggesting that the two countries start talking about the long-term possibility of a free trade agreement between our countries. we know it's a long-term proposition, but we think it's time to start thinking about it. and we spell out why that is.

two yes to you. one, from a chinese perspective, do you think it is worth starting to concern a far-reaching possibility like that, either through bilateral negotiations, or possibly through extension of the transpacific partnership to include china, and then the second question is, how do you see the economic reform program of president xi jinping relating to trade issues? would the kind of reforms you have in mind permit trade liberalization, and might they even be promoted by trade liberalization the way president xi jinping, where to years ago it was used to promote internal economic reform in china? >> can i just point out, fred,

gary and sean's study, which we're seeing next thursday, it represents one path. not all of us here -- this is silly we should be leaping to an fta -- but i want to emphasize to fred's comment, which is a number of us here as well besides those authors, including jeff and myself, have come out very strongly that there should be efforts made to get china involved with the tpp negotiations, to increase the transparency of tpp. and that's obviously going to be at the same time that you -- president xi's going to be dealing with apec, president obama is going to be dealing with tpp. so i was wondering, picking up on fred's sort of long-term view, you can also say a couple things about how you see tpp playing out in china's potential

role. >> that is a strategic view to promote the long-term relations for the china and u.s. economic relations. and, also comprehensive. policies for free trade between the two largest economy. and i do believe we need doing something in that regard. we know that's a long term real. but that's very important to take that serious consideration. >> why tpp or ttip can be rarely in place. including chinese and americans work together. because we do believe that's two countries, great nations, great

peoples can mold the development and better life for chinese and america. we know that's a long term strategy. specifically about tpp. actual lu actually, there's two, in fact. china is very open for the global economy. reform and opening up never stop. we must keep global on the way. for chinese staff instruction, we must promote domestic restructure reform and we must keep china's door more open to the outside. that's very clear policy.

and particularly for tpp here very frankly, we have debate. now, after this debate, it's very clearly opened up policy and opening up economy with the global treat system with the higher standard. and now we understand it's concluded tpp with the 12 members and not open to any new members. but we also sign very clear. that's not incomplete. so large economy, asia, and asia pacific, china-u.s. is very key player.

and we want to see the real development here. we want to see more integrity with the global system. we also will come with many new proposal for u.s. and china and we work together to promote asia pacific area also in the global. so that's very important. also, in china's side, we have the icep talk. that's ten numbers plus china, korea, japan, also australia, new zealand and india. so we hope that something can be yaeted. we have the highest standard greemt and we hope that's more

sbeg ri. so i believe that's the president. i think that's a very, very clear instruction and to domestic staff, also, very, very clear to the outside. china is more open. so we will import more and we will continue to export. we also encourage chinese press outside of china. >> great vision. the lady in the white jacket and then two questions in the back. thank you for going on and taking all of this. this is wonderful. we didn't have quite as many q&a yesterday. >> hello. i'm a reporter within u.s. trade. you mentioned the importance of

technology to economic growth. so my question is about the information technology agreement. specifically, it's the u.s. goal to try to include the expansion technology agreement by apec next month. so my question, fist, is that china's goal, as well? and, second of all, is china interested in showing more flexibility? is the u.s. showing more flexibility? how realistic is that? >> i think that's a very important agreement. and in the war, we look for wto and encourage the system playing the role. unfortunately, we see some very difficult precise. so this month, we hope you can

work together with other members to have the family deal on that. and very frankly, everyone was making big efforts. china, as a developing country, we do make efforts accounting to our real capacity. now that's very, very close to the final deal. but it is time and i hope that's every side shows flexibility and because big portion already agreed with everyone. so that's the final judgment and final stage.

everyone hope before impact medium that it can be the real deal. so, again, china is a developing country. >> thank you. >> thank you. >> and the back mic? >> thank you very much, mr. vice minister. i'd like to ask you sort of a broad question about debt. i think it's one of the most hotly contested issues in the advanced economies during the crises and certainly the recovery period of it. i guess you can say some choose to emphasize government debt, some choose private debt. there's a lot of contention about this ironic outcome that you need more debt in order to get out of a debt crisis. what is the chinese government perspective on that? obviously, the chinese government owns a lot of government debt from other countries. but, more importantly, at least some of the metrics that i've seen suggest that you have a

very rapid build up of debt in the chinese economy, as well. some suggests that debt grows by three times the rate of gdp in china and have done so for some period. is that a problem? and if so, what can be done to fix it? >> yes, that's a global gco. and gcl is discussed fsb. now that's setted down. many focus on that in china.

not too much, but that's increased amount. so that's why we take serious action to deal with that. and now local financing is very strictly controlled. and just a few weeks ago, congress passed a budget that's opened the front door for provincial government based on approval to council. so that's less. the budget is low. so we hope close the front door and open the back door.

same time, we must avoid regional and financial risk. we must be very, very careful of that. we believe, so far, we balanced that. basically. and that is the control. but we know the risk of continuing. so we must continue a moment of that very seriously. >> can i just follow up on jacob's question and your reply in just one way? one of the things that a number of us working on here with the fsb process, is that there's a tendency to view every financial institution as a bank, or be treated as a bank whether or not it's a bank. and that there has been a sort of one size fits all process in

what works for the u.k. and frankfort in europe works for everybody. on the other hand, mark carnie, for example, would say there's good reason we're doing that. we want standardization and high standard. and if you don't get everybody under the tent, you'll just get more shadow bank. but can you say a little bit about how satisfied or unsatisfied you are with the fsb's approach to including people beyond frank ford, london and europe? >> that's final report. that's a real document of wasabi.

so it's really important for fsb law. now, indeed, inside fsb, you have some debate. so you agree with all numbers, fsb. at the same time, they're going to show some to develop the country. in china, we are most serious. more than some developed country.

so we have that support inside of fsb. but, in generally, we support fsb. >> got it. thank you very much for clarifying that. the lady in the back and then the jentle mgentleman in the li here. >> thank you for your speech, vice minister. i have a question regarding china's recent inside monopoly efts. so it is said that the u.s. secretary wrote his counter part saying that this will have serious implication for the u.s. china relations. i wonder if you can comment on that? or is there going to be a discussion between you and jack lu? and i also wonder, do you think why the chinese government

officials has stated many times that they don't target foreign companies? but the u.s. still sponts negatively. >> they convert, often, communication, with lighter phone call medium. everything they put out on the table for a frank discussion.

we can work together. i mean, china and u.s. can work fogt to deal with any challenge. that's universal and standard principle. suddenly, china is foreign investment. and you can see that's the detail status.

7 0 % against the chinese. for america and foreign companies, same law and same principle. i believe very frank conversation with continue. >>. >> i'm teaching chinese economic courses at johns hopkins. i got to know china in the early mid 90s.

my question concerns a subt we talked about earlier. if i understood that amendment correctly, it opens the way to significant domestic capital market development in china, in the sense that local governments, provincial governments, will have the authority to issue without central government permission. that is a hugely important capital market institution. i wonder if you could say a little bit about it, particularly the international aspects of it. china is also in the process of gradually opening its capital amount. and it seems to me that the huge potential for the bond development market in china, if you were to open this up to international purchases, primary and seco secondary markt, you have a very

significant proten shl and introducing control over domestic, row kal government debt. >>. >> so can you put this as a question? >> can you link it to international markets? >>. >> so far, china still remain banking lending and banking borrowing. so you made every effort to improve that.

so people really understand there is a risk. >> we questioned hong kong direct connection.

>> they need that for several levels. and you're right, that's a bond issue. eastern asia already discussed. >> from the center half this year to 7% in 2015. thank you. >>. >> rather than just a figure for gdp. it's indicating this year.

but that's anyway, a little lower. we already have less employment. imcolludes 10 million employment tally already. it's obviously complete. so we have less confidence. and we also have less confidence for the next ten years. potential in china keeps us 7-8%.

labor force, particularly laborization. >> the vice minister has been incredibly generous with his time and answers. i know he's willing to go on and on, but i think after bill, we may make this the last question. so at the back, please. >> william pline here at the institute. i'd like to know what is your vision of the role of the state banks over the next several years. china's state-owned banks have a

remarkably high 90% to the banking system. the good news is that we don't have bank panics. the bad news is the state banks have a bad reputation for channelling money to the special tonals or lowering interest rates for special clientds and are generally less efficient. so is there a plan over the next decade to reduce that 90% to 50 prnt, case a. or is there alternatively some mixture of the two? >> yes, that's banking reform.

that's skill-dominated banking system. you can see private banking already being approved. so far, that's new establishment of the fact. approve private bank is real for promote. that's banking reform. that was brief enough that we can probably get in one more question. wait, the microphone is coming to you. >> i teach at a university back in china. >> what's your name, please? >> john. jo john shaltone.

my question is, vice minister, you just mentioned what you need. so far, we are a little disappointed that the u.s. shies away from the conquest blocks, the imef reform package. so my question is if the u.s. can't find leadership, where can we find world leaders? >> also, that's systematic building up. it's playing the leading role. i don't think anybody can replace that.

>> and congress can see it's a real global picture and strategic deal. we open. >> let me just piggy back on that for a second. i think one of the things that the vice minister did in his opening remarks that i thought was very important and i believed to be very sincere based on passed confers, is he framed a lot of the u.s., china and global war systems in that it's not just about system. and i think that that's actually

a very useful way to put it. it makes it feel not so idealistic at the time. i take a certain amount of pride that, at least for some decades, when the u.s. was so large, it was very generous and thought ful but its main legacy was to build a speech. just to say i and all of my colleagues at the university i know don't always agree. the good of the global economic

system finally approving the imf reform. we said this yesterday, we supported him pushing to that. and i support the vice minister. it's about maintaining the system in which we have a common interest. >> all right. the vice minister has been exfreemly generous. we are very grateful to have had him with us today during this very busy week. and we hope this is a prelude to continue structural progress between u.s. and china relations. thank you very much. >> thank you all for coming. [ applause ]

>> an we'll have some baseball-related programming in advance of the world series, which starts tomorrow tonight on our companion network, c-span 2. speakers include avid philadelphia philly's fan cedo oledo and george will. some first ladies also expressed a love of the game. >> one of the letters that she

wrote to one of her friends, yes, i was much excited over baegs ball and terribly disapointed that the red sox lost the world series. i had a fwrand time at the games and met many of my old time friends as well as some new ones. this continued on. in our collection, we have a number of the season passes that she was given by the american league.

usually, they were given a water or a pocketbook. one of the items in the exhibit is the certificate she was given by the boston red sox and the washington nationals, as they were called in 19505. another object is a very fine baseball signed by both babe ruth and lou gehrig. >> catch the form on baseball and american life at 9:30 p.m. eastern on c-span2 and any time with c-span.org.

>> and then on weekends, c-span3 is the home to american history tv with programs that tell our nation's story. the civil war's 150th anniversary. visiting battle fields and key events. history book shelf with the best-known american history writers.

>> i want to thank everybody for coming today for what should be the kind of e vechbt sam lewis, himself, would be a major player in. this is an event that rob satlaw, basically, thought would be appropriate for sam lewis. we all lost sam lewis this year.

one thing about sam is having people eulogize him is the last thing he would have been interested in. rob satloff, to really honor sam's memory, he wanted to make this event a substantive event. an event that would look back, but also look forward. we'll have a panel later on that will look ahead and focus on events of today and think about how sam would approach it.

sam's wife, sally, is here. and sam's son, richard is here. thoo's why, as i said, we're looking back but are also going to be looking forward. i want to begin this national panel. as i said, rob satlov is the person who conceived today's event. for circumstances beyond his control, he unable to be here, and i've been asked by rob to stand in.

we're going to start with not so much looking forward, but looking back. it won't surprise either one of them that he's up in new york here as the prime minister was also in new york doing what american ambassadors to israel do. they perform their functions. but perhaps the thing he was most known for is being america's longest ambassador to serve israel.

in keeping with that, it's not surprising that dan shapiro would send a long message it's such an eloquent message, i would like to read it before i introduce our two opening guests. >> sally, i deeply regret being unable to join you in person as i had planned. i believe sam, who was ever faithful in filling out his duties would have understood, while i never theless beg your forgiveness. permit me to share a brief story

about sam and his observation as an amazing tenure. i made if prounds of many of my predecessors, illustrious names that you all know. i had treasured sam's friendship for many years. like others, he was generous with his time and insights. the secret, he said, is to be there when a breakthrough happens. that was typical sam. modest to a fault. he described his role almost as an accidental bistandard as history was made.

well aware the opportunity had to work towards historic achievements. he was never the less already to bestow the credit on others. in particular, he took the extraordinarily brave and difficult decision required to reach an achievement like the camp david accords. aappreciabluated that kind of leadership. numerous other achievements in the u.s.-israeli relationship during his tenure. but his remark revealed an important truth. the result in the middle east depends on the various actors seeking to play a different tune.

expert analysis and reporting, tough-minded advocacy for interest. this last element of american leadership, he knew toe be another critical ingredient to privacy in the middle east. he never stopped advocating for it. ever-summoning his creativity. challenging some on theirs. and whatever the role he was in, ahead of policy planning or whatever, the trust of israeli leade leaders. >> sam helped guide the israel peace treaty negotiations. he understood something fundmently important and able to

see it strengthen throughout all the ups and downs. he remained deeply invovmed. until the end of his amazingly productive life. anesthesia qualities made him able to feel the united states. particularly in the face of their genuine security threats and simultaneously made it possible to challenge on assumptions and encourage them to make the hard decisions that their peace and security acquire.

sincerely, dachb shapiro, u.s. ambassador. >> thank you to dan shapiro. and i want to now briefly introdu introduce my two colleaguings up here. i could give a long litany of their respect to career paths. l.a.rubenstein i first knew here in the etch baa sill in washington.

because he sew leao learned, hee a judge. . i first knew bill as the deputy chief of mission in our embassy in tell vooef. i later knew him as our ambassador to israel. he, too, has had a long career. i can't think of two people who are more appropriate to remember sam's views. elliot, why don't we start with you.

>> thank you very much. bill's claim to fame is the only person who sell twice his investment to israel. friends, i'm sorry this event is without sam. i also have a jacket, so i'll just take it off. >> when rob, who is not guilty here today, asked me to come, i felt it was my honor to be talking about sam. in my current position as a justice you can't speak politics. so i will only speak history.

i'll speak about sam and his period as ambassador to israel from my recollection. i told the old joe cisco story who many of you know, who was the only survivor of a flight in johnstown, pennsylvania, back in 188 9d. fie finally, when he got there to the all mighty, the angel in charge says we've a club of the newcomers who want you to do this stuff. want have you been talking about? >> i've been talking about how i survived the flood back in johnstown, 189.

he says why don't you pick something more present. >> he said that's all i know. i've made my living on that. but he's not going to be in the audience. plenty of people were happy to meet this morning and were qualified for the description. i knew sam from june, '77. he came to israel -- he and sally came to israel one day after the elections of may 17th, 1977. it seemed to be a change in israel leadership. after one party being e let the record reflected to govern and the vice prime minister sthen is like a blessed memory.

here, there's a new prime minister being elected. of course, a few months earlier, there was a huge, awesome job to be done. >> and i knew sam from june, i said. in june, the new government was formed and the late position of foreign minister.

i moved from the defense ministry to the foreign ministry. and then he read from the remarks and is totally reliable. sam has a place of honor in israeli-american relations. i think israel was the focal period of his career. i believe the egyptian piece were the focal part of those years. sam was the ideal model of an ambassador you can think of. wonderful person.

smart human being. i don't know if it's true or not guilty, i think everything is always more complicated. not only people of his own mold, a liberal democrat, but people who represented the whole israeli society. he was not an arabist, as they used to calm them.

and i'm not being unnice to anybody. he had -- he understood how the government works. and kissen jer, he was very swift in learning the map of israel. and he also made a point to open doors to various parts of society. everybody knew him. in the newspapers, they used to call him the high kmigtser.

it remained with him ever since he left israel and was here in washington working on peace and working in other areas.

i believe an ambassador has a role to play in this particular situation. jefferson telling washington, for three years, we don't hear from him. if we don't hear from him this time, he's fired. public diplomacy and it was mentioned by shapiro, that he

served two presidents, reagan, a conservative republican for two secretaries of state. very honest and respected lawyer. sam did not like lawyers. schults, a frernd of mine with the agreement.

and, in israel, three prime minister for the first six years. and then for less than a year, privileged to work with all of them. and two foreign ministers, a privilege to work with them. dianne and shamille. and he -- i'm sorry sam didn't finish his memoirs. if you go on the web, you'll see his interview with jessup, mr. jessup. 400 pages interview. it's fascinating. it just needs a little bit of editing to become a book.

seriously speaking, the role of lawyers, every country wants agreements, it's dpien to be professional. and we are both in legal igsic societies and the role of flow, they say you should pray for the peace of the kingdom. without its fear, everybody would be eating the other person.

and the rule is to keep the peace. nowadays, you don't want to go into definitions. they love rk they fight, occasionally. and then the uncle who had to paci pacify between the two. and there were good times, there were kra vis times, there were ups and downs. the bottom line, he has an honorary place in this fascinating history. then he told he he was writing a book. i mentioned may of '77.

here's the carter administration. it's just begun its journey and looks for a solution to the palestinian issues. i don't think there was so much thinking of egypt. and we have a meeting which wasn't great, i understand. and, idealogically. committed to the notion of jewish sovereignty, to the linkage, to the whole area which includes the whole area west of the jordan river.

a person who fought for the establishment of the state of israel. a person immersed in the jewish holocaust where he lost his family. and a lawyer. and, after 30 years of opposition. the foreign minister was not from his party. he was a former chief of staff. former war hero. former minister of defense. but, also, with the sad chapter, in the public eye of what happened, it's a surprise. i -- i worked with him in the committee after the wrar.

and dianne was a person of deep commitment to the country, of course. proven international experience which did not have at the time, pragmatic and a person who believed there is a chance for peace with egypt. he said that publically but he gave -- i was involved with him on that. the first week of the new administration, the new government, june '77 he gave an outline of what he thought and how we don't have the time to go into that, what could be done on the peace front with our neighbors. egypt was a major part of it.

he thought that if the president was rebuilding the suez canal cities meaning bringing millions of people and putting in a lot of money into the new ly built city he must be thinking of peace because if there is war again -- remember we are '77. the last war was '73. if he would think of war again -- this is -- he wouldn't put all of this effort into the canal area which was opened, of course, after the kissinger agreements of the mid '70s. and so the other major figure

all of them are not with us anymore who was a pilot and commander and deputy chief of staff person full of energies who came in as a kind of right wing partner. he changed his approach later on after the visit. so here you have this american administration with its approach and you have the new israeli administration. and here is an ambassador who has a tough job. for the first month, summer in the fall of '77 the u.s. was pushing for the geneva conference. some of you may remember it was a renewal of a concept that was briefly used after the unkeepable of '73 which is kind of a -- later on madrid had the

idea of an opening round of negotiations where all the arab partners would sit together. it wasn't easy to achieve anyhow but the main obstacle was how will the palestinians be represented. and there was a lot of -- we don't have the time but you should know that or remember that in the fall of early october of '77 there was a -- the u.s. began with some kind of a joint segment with the soviets which is supposed to be co-sponsors of the geneva conference. so this was something which we didn't like obviously because the soviets -- things change and but in those years we weren't

exactly the friends of soviet union, not exactly our friend. and the -- here it got involved with the question of the palestinian because u.s. was pushing at the time to appear into the picture. president carter saying we have a not very well known representative and said the moment he entered the conference he would be a very well known member. the question of can we screen, it was agreed between us and the u.s. would be able to screen because we didn't want to bail out working people and other people and a bunch of very, very sensitive negotiations. here we do it in the states and

he is in israel with his eyes open not to give up something which is very important. so it was -- also in morocco did they [ inaudible ] that they met a representation. this is in september of '77. and it seemed that there is kind of maybe a movement towards something but we didn't know what the something will be because the egyptians said that they will -- they condition their approach or commitment to evacuation. now, there is a myth as if diane

promised and that was the incentive to come to israel in november. that is not true. diane was cautious. said will bring the point to prime minister. i read the -- i didn't attend this meeting but the next meeting. i read the report by an israeli representative. i spoke personally on that. and this is just not true. it was promised and having been promised while the negotiations. i am just mentioning it as a foot note in history. in any case here comes -- you

know -- that biggest speech to the egyptian parliament and said i am ready to go all the way. the next day or so there is a meeting between the two and i attended the meeting. they spoke geneva at the end of the meeting said it is an interesting speech. it wasn't in the cards. and here the visit takes place. for me at this very moment and becoming an old man but many events took place ever since cht the first in the letter of excitement was being at the airport welcoming sudat. saturday night in november. there was -- it was not in the

cards. and i shouldn't have been there protocol wise. he was at the meeting in the afternoon. sam was speaking maybe you should do one of those steps to -- because the egyptians have been criticizing the arab war. calls me and says join me to the airport. i said you better say that again and i joined him. i came back squeezed between the driver and the security guard. and in fact found out and called me -- in arabic is the father of girls. i'm not sure it is a compliment. for me it was a compliment. it still is. and whenever i came to him

after -- if anybody came with me you will hear in a minute. anyhow, the -- you can't believe the excitement that was there. and at night that the president of the most important arab country, the foe, we had 48, 56, 67, war of attrition and then '73, five years in 30 years. and here it is. and i want just to jump and say that thank god that's the strategic miracle if you want to say. it is 36 years now and no wars in those 36 years. little problems but no wars. so the visit took place.

and right after that a number of things started developing. first of all, we had a meeting with tohami and started talking about ideas. and i remember one was a manual of what we had in mind. and syria was included. you know, u.s. was -- he tore the piece on syria and gave it back and said i don't know if he said none of my business. i'm sorry i didn't keep it. in any case, then there was a meeting between the two. it was hosted as a reciprocating the visit. he 't