permanent, you're just increasing the uncertainty. >> you could resolve uncertainty a lot of ways, by providing clarity about the direction of the extensions. that provides certainty too. i will say, it is not a sensible way to run a country to have -- this magnitude of tax issues left to annual uncertainty about extensions. on the business side, many of you live with this, economically quite significant shifts in business tax treatment are left to a -- an annual process of extension, it makes no sense. that's one reason the president proposed in september, that we make permanent a more simplified and larger credit for research and development in the united states. that's just one example. if you care about the long-term competitiveness about the country, you should care not just about how we go about long-term deficits but providing can clarity in the tax code in way that is is good for business. >> is this going to be done

before the end of the year? >> it has to be done. it is very important that congress act on this before they leave town. again, it is not -- it is not rocket science, it is not complicated thing to solve. it has to be solved before they leave town. it would not be a responsible act of government to leave this uncertainty hanging over the economy going into next year. >> would that apply to the estate tax and a.m.t. -- >> yes. >> you think it is important before december 31st, we have a agreement, legislation on those pieces? >> i think it is self-evidently important. you're talking about what would be dramatic changes in tax treatment of individuals, at a time when it makes no sense for that to happen. >> the longer term fiscal questions. we had this very interesting kind of early report last week from the coach -- cochairs of the president's deficit commission asking -- bowles and simpson, which seems to offer a pretty plausible trajectory for

the fiscal position towards a position of long-term fiscal stability. you have had a chance to look at what they proposed. i know there's various other discussions and the commission have not weighed in completely. what they propose changes to social security and the retirement age and cuts to medicare, and significant broad reform of the tax system to -- to proden the base and reduce the manner nall rate. is that broad is that the kind of thing that you would favor? >> i should point out that alex reverend and dom men chi are coming out with a report later this week, with a set of what i suspect will be very sensible ambitious reforms for a long-term fiscal situation. the president -- the president set up this commission because he understands that our capacity to grow as a country depends significantly on our ability to rebuild some political consensus in the united states on reforms that provide gravity to our

long-term fiscal situation. he recognized then as -- as has been recognized in the past if you're going to do this right, you have to do it on bipartisan basis. he took a page out of the reagan social security commission and brought a set of very distinguished republican democrats together to ask them to find a consensus. we're going to let that process play out. we have seen the first step in the proposal that the two chairman of the commission have made. they're beginning that process of trying to -- to build consensus among the members. we're going to let the process play out. again, it is encouraging, that -- that you're seeing people across the political spectrum now recognize and understand that our long-term growth will depend significantly on our capacity to solve it. i think these are certainly -- certainly are five to 10-year fiscal deficits are a manageable challenge for the country. we can solve those deficits without ticking i think any significant risks that are going to hurt our long-term growth

potential. it is -- it is just a political challenge. but we're in a much better position to manage those challenges than for any other major economies, what -- what is more difficult of course is our long-term, the very long-term deficits driven and still by the combination of rapid health care costs and the aging of the population. >> the political challenge seems to be particularly acute for you. as why say president obama appointed the commission. the recommendation so far that commission cochairs cusm out with seem to be on the whole mildly favorably received by republicans and greeted with steaming hostility by democrats. they don't like the idea of increasing social security and the retirement age. they don't like the idea f medicare cuts. they think tax reforms will favor the wealthy. given the president appointed this commission and the direction they have gone, what do you -- what are you going to recommend to the president about how you handle this?

how are you going to handle this opposition from within your observe party? >> i don't think it is surprising. you're hearing people quick out of the box with views and observations on the merits on those. that's not surprising. we're going to let the process play out. out of respect for the people that lend their time to the commission and the complexity of the problem and recognition it is difficult, not going to be easy, we're going to let that process play out. >> i like to get some on. lots of people have questions in the audience. i like to come to -- anybody have questions in a minute. we talked about the impact. straight out, president obama maids his press confence and acknowledged he took a shell languaging as he called it. one of the most interesting part of the press conference is his relationship with business.

he hadn't handled things, got the balance right, to insure that business plays by the rules and the rules are right and insuring that people understand rblings what an important role the private sector plays here. and he committed himself in that press conference to try to get that balance better. what are you going to do to make sure that -- that there is a sense that business and this administration, business and government are working together and to repair what appears to have been quite a fractured relationship in the last couple of years? >> i think it is important to point out -- jerry that, if you look at the profitability of american companies, look at what happened to -- to the market's confidence and the future earnings, if you look at the strength of private investment growth in the early stage of recovery, if you look at the basic strength of corporate balance, the u.s. is in a strong position to profit from the extraordinary growth we're going

to see in -- in the most populace economies of the world. that's partly because of the basic underlying resilience and dynamism of the private sector and substantially as a result of the fact that the president working with congress and alongside the fed was able to break the back of this financial panic very quickly, very successfully and restart economic growth at a much earlier stage than any of us thought was possible. this perception, i think is very damaging. it is important that we work very hard to repair it. and what we're going to try to do, as you're seeing us do is make sure we're laying out proposals for economic policy that are going to be good for business incentives and good for the basic underhighing strength of the u.s., is this committee going forward. i'll give you three, four examples. stronger incentives for business investment, short-term, long term, have r-very important to the cometiveness.

and substantial investment in public infrastructure, fully paid for, fiscally responsible is important to the underlying strength of the economy and a sustained effort to make sure that exports are going rapidly, is going to be important to our capacity to grow in the future. now of course we're doing a range of other things too, to make sure the government is providing a lot of support for basic science, for basic research, things that have broad benefits over time. but i think the best thing we could do is make sure we're laying on the proposals that have had a hot of republican support in the past. and are unambiguously good for the capacity to grow. make sure we're working hard to spend political capital to get support for the proposals. >> could i open it up to any questions? i did want to ask, that we didn't discuss, very much in the news, europe. the debt death crisis taking hold there. there seems to be a division,

there is a division among the europeans. they're divided about whether the irish government should seek a bailout from the european union or the i.m.f. and the irish seem to resist that -- and what in terms of global financial stability, this has an affect, how should this e-be resolved? should there be an early move to resolve these, where the government in the periphery has huge debt problems or let the markets play out as they are now. >> out of defer rennes to the europeans, i don't want to speak to the details of ireland or port gal right now. i would say the following, europe put in place in the summer to -- took them a while to do it. they put this place in the summer a very strong set of financial instruments to help those countries manage through the very difficult challenges that they had on the fiscal side and financial side. that gives european leaders the ability to do what you normally

want to do in a crisis. you want to make sure you move very quickly and you have a combination of policy reforms that help, help resolve the problem with temporary financial support to let countries manage through them. you want as a gem lessen, you saw this over the last spring and summer in europe, you want to move quickly on these things. both with policy reforms and with, if it is necessary, kind of contingent back stuff assistance to help countri manage through it. again i would say the lessens of the experience are that europe learned a little painfully last 134er, you want to do this quickly and decisively and not wait. >> do you think the -- the euro can survive? >> do i think so. i think it is in europe's power to manage. they have made that choice. >> okay. yes. at the back there. thank you. there's a motor vehicle phone coming, sorry.

ted craber. on the quantitative easing, do you envision sometime in the future that you would unwind the quantitative easing? if so, what type of future are we looking at there? what is the indication you would use to unwind the qe 2. >> i would love to talk about that, the executive branch doesn't talk about with monetary policy or the actions of the binds fed. i want to honor that tradition. you should direct that to my colleagues at the fed. >> there's decision, there's no movement on fiscal policy right now. there isn't much movement in any other areas -- >> isn't there a sense that the fed is the only game in town here? when you're abroad, you're defending fed policy. >> i don't think -- you do not want to be in a position where you leave the burden for solving these problems on the central

bank. there's things they can do and can't do. you don't want to leave the burden of these things on the central bank of any country. but let me come back to your premise on fiscal policy. i think it is quite likely that you're going to see an agreement on tax policy and i hope you're going to see that followed by -- for individuals. i hope you see that followed by a consensus on a set of sensible changes to the incentives for investment in the united states. that will make odds likely that the fiscal policy is more supportive of this transition to the private demand recovery. i think that's more likely now. >> there's a strong belief among economists, the i.m.f. said this. the case right now is for -- for some more fiscal stim husband for the u.s., given the weak state of demand in the u.s. but accompanied by long-term man, plausible long-term plan for

fiscal consolidation. is that something, as the new congress arrives in january, is that something you will try to get from them, if it is, one thing floated is a payroll tax holiday, that's talked about, you could to that. that would be a significant boost for short-term demand. a really sthisket boost and it would be a-- significant boost, and it would cause maybe deficit changes, is that somebody you would discuss. >> you're right. the ideal mix of policies for a country like the united states is to combine a credible set of reforms that bring the deficits down over the medium term to a sustainable level to -- with a carefully designed action that could provide catalyst to recovery now. absolutely is the right mix. that's why the president proposed in the fall these series of -- of investment focused tax changes and public investment plans that will help reinforce that argument. it is absolutely right. i think that as you look at all

of these things, you have to make sure that you're not -- you're doing things that are good for long-term growth, not just short-term growth. as many people observed looking back over this period of time, you want to make sure you're doing things that add to -- to long-term growth prospects. that's why over the last three months, we put so much emphasis on investment related incentives. we proposed in september a -- a one-year period, 100% expensing offer capital investment by any american business. now that's true, that does pull forward investment from the future. if you pull forward investment, rather than spending on houses for example or consumption, you're more likely to be left with something that leaves the economy more productive in the future. that's where we still put the emphasis. there's other ideas out there. we don't have the monopoly wisdom on ideas. we want to come together with the new leadership and figure

out what is the best thing we could do for the economy near term that is good for long-term growth. how do we do that in a way that is physically responsible? >> yes. please wait for the microphone. it should be on. take it. >> nick from snap-on tools. you said some things that i think are very well rfed by the audience, i think. short-term focus on the economy, extension of the tax credits. the president proposing permanent extension of r & d and business proposals. if we went back a year ago, most people here would have said we heard very little of that. and i ask you what priorities sort of outranked those considerations and what could the business community have done to raise them in the mind of the administration. i like to look forward now,

rather than looking back over that period of time. i who say the fol. i -- let me speak from my perspective as secretary of the trishry, we did put an overwhelming focus in the first 18 months on the -- on the necessary essential challenges of making sure that we were -- we were fixing what was broken if the financial system, recapitalizing the american system and making sure the markets were healing and -- you know, restarting the process of growth globally and then -- then fixing the most glaring flaws of our basic financial system. we put an overwhelming focus of those in the early stage of the administration, which i think we had to do. nothing is possible without making sure that the economy was growing again and credit markets were functioning. nothing possible in the long-term without that essential basic achievement. but, you know, the challenges in the recovery changes over -- change over time.

after restarting the basic growth dynamic in the united states, the challenge shifts. to trying to figure out how you're sustaining it. you're transitioning more effectively to recover by private demand. that dynamic is under way now and it is very encouraging in its initial concept. it is important to get perspective on this. i want to go through it again. household savings increased significantly. private investment growing very rapidly. exports performing really quite well. by any measure, productivity growth, very strong. profitability and balance sheets in the american corporate sector, very strong. underlying dynamics in the corporate sector, across industries look healthy to us. that's fundamentally encouraging about our broad place in the world but -- you know, we're still not growing fast enough

coming out of this. where we have the capacity to provide an initial spark, an initial spark to private investment that is a responsible use of government and our capacity to borrow now. that's a good focus for attention. as you said and i said earlier, you want to make sure you're doing a mix of short-term and long-term things at the same time, again that's why we think this mix of private investment incentives and investment in infrastructure and export support is a good strategy. creating a more competitive america. what we're trying to do, part of that is about strengthening the incentives for investments -- investing the united states. we'll be a major part of the growth in the emerging world. we want to see as much of that as possible, supported by american imcongratulations.

>> please join me in thanking secretary depitener for being >> i guess it is not right to call you the new nancy pelosi. i guess we are in the post- policy arrow. -- pelosi era. how important is it that congress does something? is it sufficient policy to just say no? what signals are you going to stand that this is going to be a

time of productive the activity? >> if we can take a lesson from congress in 1994 and in 1995. control of the house does not lead to control of the government. this has to be a partnership. republicans will be a majority to provide an oversight now, and the congress we are embarking upon is focused on the oversight authority we are given in connection with the appropriations authority, and it is the coupling of those two i hope will allow us to identify where things have gone wrong, how to follow up on regulatory

uncertainties on epa, on the issue of dodds frank and a number of agencies many of you have said, we cannot deal with this kind of uncertainty, and i do thi congress at says no to anti-business, anti-growth regulation is important, but at the same time, we have to put in place that are fo w ishat wve to lower the price of risk for all of you. >> one area of uncertainty is president bush's tax cuts, and if we were read to behind the lines -- between the lines of what timothy wagner told us, it is an extension for all cuts to a permanent extension for welfare recipients.

how does that give you something to bargain with? would you agree to an extension and use that to reform the tax system? >> the uncertainty connected with the tax rate was primary, and many of the folks who are looking at whether it comes from state planning or any small business, under standing whether the gains go up, they know good and well the danger of having the evidence go from 13% to 9%, so it is something hopefully we can resolve prior to the end of the year, something i think the administration understands,

cannot be done by decoupling the rates for those making under $200,000 to the higher earners. that is a direct signal higher earners are going to experience a tax hike, and the argument we've made on the election successful a when congress adjourned without dealing with the issue is that it is not only the likes of you in this room that are running the large corporations, but it is the small business people. 50% of those making over $200,000 get it from small business, and the electorate stopped even thinking about

raising taxes on anyone we knew we are facing these tough economic times. i hope we can get these resolved. >> if you are listening to the mood music, are you reasonably optimistic? >> mood music is an interesting way to look at it. i have heard this has to get done. he would not say the president has ever come off his insistence that we need to rescue the middle class. the middle class has been hard hit, but when you say temporary or permanent extension, you know we are talking about the budget window. now it is best to focus on

extending these rapes so the uncertainty is diminished, and that has to be the goal, and i hope we can work together towards that end. >> one thing that did not have been in 30-20 was bilateral. the mood music is positive and turned out not to be so. it is fair to say free trade -- what can be done to change the nature of the debate to broaden understanding of free trade? is it possible for congress to consider rescinding of banan? >> i think you can count on a republican-led house to push

free-trade bills. we believe there are jobs to gain if we can get on track to free trade. politically that means we have to address the sense of fair trade and making sure we are applying the rules under which the international community say engages in multilateral trade. that seems to be the political challenge, because somehow the electorate in the states that have suffered manufacturing losses seem to thank all this is happening overseas. we have to make the case that growth for them is good growth for all of us and means more

jobs at home. coupled with a free trade agenda needs to be a recognition that there is going to be a lot of temptation to engage in trade wars. we see this on the currenc discussions going on right now. the monetary policy evoked quieter response from our international allies. many of us have questions about how the monetary policy will have an effect on the economy, so i think in makes the point that we have to pay attention to our own house first. instead of focusing on just aiming towards currency policy in that country, we can do a lot

more if we focus on competitiveness, our regulatory environment, as well as our litigation environment. it continues to be a damper on the fact we cannot attract more capital. >> if you are on the fed reserve board, would you have voted in favor of it? >> one thing i am not is an economist. i have talked to the governor and tried to get as much input on where quantitative easing is hoping to take it. i am not convinced that it is going to deliver on the job creation or the wealth effect

perhaps the fed thinks they will. i think we need to be very mindful for the potential and structure of the debt that is something we need to take into consideration. i am not necessarily under the belief that cause and effect is there, but there are danger signs as we do that, and keeping our eye focused on what the goal should be, we got enough on the fiscal and in congress to take care of the agenda. we have some tough decisions to make. we had better start coming to the table on these, and i think as any investor would look towards a borrower to put confidence in, we have to

demonstrate we are determined to get back on a path of fiscal sustainability. all that we do will bear on whether we are successful. >> the commission report and -- did you see that there is some room to began reading did you see that? >> there is room to begin some adults discussions, some troubling issues. there are some problems with the entitlement we really ought to take a look bad. i think it was a positive saying -- thing. >> retirement age, are you in favor of increasing that? >> the discussion has to be that there is a difference between those nearing retirement and

those right now. the formula is such that benefits will be reduced. if we do not do something to extend retirement age, if we do not do something for me lately in terms of the top tier of income earners, you are not going to have this program. i am hopeful these suggestions will help facilitate some real discussion, and hopefully your news organization will treat that in the way it needs to be, which is to focus on the work we have got to do and promote productivity. >> are you for or against of that tax -- of the 80 tax? >> i have not come not -- are

you for or against an vat tax. >> i have not come not for or against it. some say it provides the incentive while providing incentives for investment savings. i think you have to deal with the year and now, and right now all the taxes associated with the current regime. i do not think any of us want to go the direction of the social welfare states around the world that we seem to be headed in right now, and unless we do something to drastically reform the tax code, you cannot put that out there assuming we will have it all in terms of the government ability to tax it, so i am not afraid of that. >> have you and the president had a conversation? >> the president talked.

i said, how are you doing? he said, i have had better days. we look forward to having further conversations, looking to the president to encourage the senate to work with us as i house. i think the blame game should be over. we have serious problems to deal with, and i know we will look forward to working with this administration. >> the earmark some which were agreed upon. it is already in the house you are in favor of such a ban. the president will veto things that come before him with such earmarks. >> the first thing he can do is call harry reid and say you have to join us now to putting an end on a practice that has been in place way too long. it is really about the oversight role we are going to play that

will help engender more support around the country for this new way of doing business, and hopefully the president will be successful in encouraging harry reid. >> we are privileged to have the congress man here. he will not take office until january 3. is that correct? we have a remarkable opportunity to supply him with questions. >> i have a naive question i thought i would ask related to earmarks. how much of this infamous stimulus fund have been spent, and is there were awa way to re-

prioritize the improved spending, in light of the sentiment? >> i am afraid to give you a number in terms of how much is on spent, because there are two different points. it could be a possibility for us to rescind some of that, end i think you are going to see a congress in january that is going to be bent a very much on cutting spending, saving dollars, rather than saying, we have a better way to spend, so we are going to spend this way. it is going to focus on bringing down discretionary levels. we have talked about bringing down discretionary levels the first year. if you looked at the growth of discretionary, it has been over 80% last couple years. we have got a job to do, but you

will see a weekly focus on bills brought to the floor that will cut spending. you look at the federal bureaucracy and the growth in the budget, the growth in pay scales, and how this is proportioned to the market. those are the kinds of fills you will see together with a look at stimulus. -- of bills you will see together with a look at stimulus. >> if you can introduce yourself. >> we look at making long-term decisions on things like job creation, etc. what possibility should we attach that there will be a long term and binding plan to balance the budget? >> there is every bit of commitment on us to get back on

a path to balance the budget, and i say that, because to say we will be on a balanced budget tomorrow is certainly a tall order, and you recognize we did not get to where we are overnight, but going back to reducing uncertainty, the sense that if you looked at the u.s. government as a borrower or an entity to invest in, we've got to be concerned about sending signals that we are serious about long-term viability and fiscal sustainability. with all the confidence i have asked you to have in us, given the situation we're in as a house under republican control in january and the white house under democratic control, hopefully the parties can work together to do that.

the prospect of a big election in two years may play in our favor. we will see. >> if you can identify yourself. >> my name is david crane. we own power plants and are trying to develop new nuclear power plants, and the nuclear renaissance actually started in congress in 2005 with the policy act passed by a republican house. i think the house recognize then that even before the financial meltdown, wall street was not in a position to events nuclear plants after a hiatus -- to advance nuclear plants after a hiatus. you have this overriding concerns about the budgetary constraints, but this is clearly

about nuclear, which of republican support. how are you going to balance the two? which is going to take president as you move forward? >> i think the underlying question is a priority. what is congress going to be about? congress is going to be about cutting spending. it has to be about fiscal viability and jobs. first i would say we are looking at the private sector as the answer for long-term job creation. you lay energy on top of that, and we have a discussion about the nuclear play being a jobs creator. i do not know what the balance is as far as that program and whether there are other things we can do better in the way of seeing an industry flourished, but i think the message is that

the nuclear component is imperative. it is from a national security standpoint and domestic demand standpoint. i think people have got that. hopefully those opposed have gotten the message as well. we will have to get there. i am well versed in having a home grown utility five k -- that i pay to as to what the costs are to expect companies as big as yours to undertake an $8 billion expenditure is unrealistic. >> the congressman is generous

with his time. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010] if i could ask you all to go upstairs, we are asking if he has any aspirations to be president bloomberg. >> the head of the transportation security administration was questioned about new security measures. that is next on c-span. after that, the groundbreaking ceremony, and then the defense secretary answers challenges at the pentagon.

and the alaskan senate races still undecided. her opponent joe miller has challenged more than 7000 right in votes. it is expected to be completed by wednesday night. if she prevails, she will be the first to win the campaign since strom thurmond in 1954. >> this saturday, tune in as we offer a daylong symposium on the civil war with prominent historians giving a new perspective. telling the american story, every weekend on c-span 3. >> ahead of the transportation

security administration defended new increase security and cutdowns. he testified before the security committee, chaired by joe lieberman. this is about an hour and 40 minutes. >> good >> good afternoon. our subject is air cargo security. beginning with the attacks against america on 9-11, are terrorist enemies have consistently sought to use airplanes as weapons of mass destructions and now. een in the aviation system a strategic choke point of international transit and commerce that could be brought to a halt or at least a stopped

through terror attacks. we -- we have seen shoe bombers and liquid bombers and underwear bombers. again and again, terrorists have sought different ways to blow up an airplane. in the most recent attempt of course, terrorists hid bombs inside the tauper cartridges of printers and -- toner cartridges as printers and sent them to the u.s. as air cargo. this plot as the others before it was thwarted in this case largely but of tra ordinary intelligence and here we give thanks and credit to our friends and allies in saudi arabia. but there was in this an element of good fortune, luck and look, of course is not a strategic to defend our nation from a threat of terrorists. as this most recent plot demonstrates good intelligence and strong foreign partnerships are critically important.

i think that the point that remains with us and it is -- it is that phrase that echos from the 9/11 report that -- the hamilton report this which they said 9/11 occurred because of a failure of imagination. our failure to imagine that people could possibly try to do what the terrorists did to us on 9/11. every time one of these events happens, it -- it compels us to figure out how we could better anticipate trysts next move. not just react to the last one. former t.s.a. administrator and secretary of the d.s. james roy said in an op-ed in the "washington post" that after the 9/11 hijacking we heartened doors and then we remove our shoes. then they try liquid explosives

in sports drinks and then we cracked down on liquids that could be brought on board. then the underwear bomber came close to bringing down a plane over detroit and now we have full body imaging. i support those steps. now they're going after a weak spot in cargo inspections. and -- we will respond to that as well we should but they are -- our enemies will keep looking for -- for new volenerabilities. we have got to continue to -- to try to think as they would and raise our defenses before they strike. we were lucky none of these attempt -- attempts succeeded but they will continue to probe our weaknesses attempting to detect our flaws and then -- then defending against them. we have to make sure that not only does our luck not run out,

but that we're prepared to stop whatever they try. here's some of the questions that i like to ask our -- ask our witnesses today. clearly both the gathering of intelligence and acting on it is crucial. i want to ask -- how we can improve our intelligence beyond even where it is now. intelligence is always -- is always important in war, never more important than in the particular war with islammist extremists trysts that we're fighting today for all of the reasons that i just talked about. threats come within the united states or from abroad. our ability to deter and intersect that foreign threat here is limited by our own sovereignty. we have got to depend on foreign partners to implement strong security programs and i want to -- i want to ask both of you

what we're doing to strengthen those relationships and implement international security programs. obviously, we have limited direct control over incoming passenger flights and -- and -- cargo flights. while our government has chiefed 100% screening of air cargo on domestic passenger flights which is a -- a significant accomplishment consistent with the 9/11 legislation we adopted, only about 60% of cargo on passenger flights coming into the united states from abroad is screened. there's a -- there's a kind of patchwork system on -- on cargo shipments on all cargo aircraft. i want to ask how we can prove that and convince our foreign countrys to expand and accelerate, their screening of -- of cargo coming either on

passenger flights or all cargo flights to the united states. right now we require air carryiers from europe, asia and africa and south america to provide manifest information after the plane has taken off. four hours before it is due too arrive. can't we move that timeline up? isn't there a -- additional or different information that may be helpful in identifying high richar go. finally, how are we preparing to identify the next gap terrorists will likely try to exploit? do we have an institutional way -- as difficult and unprecedented as this enemy is in threatening our homeland security to -- to try to think ahead of them? our witnesses today are of course ideally positioned, by -- by -- by the offices they hold now and by their experience to help us answer these questions,

t.s.a. administrator john pistol and customs com misser allen, i thank you for both of you being here and look forward to your testimony. >> thank you, mr. chairman. mr. chairman, your testimony particularly when you were quotinged a miral loy shows up that the terrorists remain up flagging in their determination to exploit scomploith vulnerabilities in the -- exploit vulnerabilities in the security systems developed since 2 september 11, 200 2001. the united states has narrowly avoided two mots against aviation, the first was averted by sheer luck and the quick action of the passengers and crew in the skies above detroit on christmas day. the second which we just

discussed was disrupted due it intelligence shared by our allies and -- and the hard work of federal law enforcement intelligence and homeland security officials. and several international partners. and i want to commend the two leaders who are before us today who i know worked around the clock once they were n-informed of this threat. informed of the threat. in these two failed attacks we see the fan natism and patience of our enemies. both thwarted, these plots should prompt us to reexamine whether our priorities are correct and our resources properly deployed. . .

the bombs ultimately found their way into the cargo space of the airplanes, including at least one passenger plane. if detonated, the results could have been catastrophic. this is the nature of the terrorist threat we face. it is dynamic. it is ever-changing. the terrorists counter with a different kind of threats using different means. the potential to plant an explosive in the millions of

pieces of cargo shipped around the world is of vulnerability. the department of homeland security must redouble its work with other country paused airline carriers and shippers to tighten the securities network. we must move quickly to shore up the defenses without interfering with the legitimate flow of commerce, and that is always the challenge we face. archive at is seeking to destroy our economy and way of life as well as to kill our people. we must not allow either goal to be accomplished. kesse should not decide how government should not use its

resources this could provide a road map for screening of the air cargo. currently the manifest information must be submitted at least 24 hours before the cargo container headed to the united states is even loaded on a ship overseas. using this information and other intelligence, the dhs target high-risk cargo for inspection prior to the departure. in sharp conference, air cargo manifest information is required to be submitted only four hours before the cgo arrives in the united states. that is a major difference. it needs -- it means that the information is transmitted well -- while the aircraft is in the

air. provided no opportunity to conduct further inspections of flat cargo before departure. that reminds me of the problem where he was flagged and was going to be stopped, but only after he are arrived in the united states. we have a similar problem in the case of our air cargo. customs and border protection have good knowledge that based on the shipping information, about the to package from yemen, the agency would have applied them as a high risk upon arrival in the united states. our whole concept is to push out our borders so that that screening, that the flagging of dangerous cargo occurs not when the cargo is a riding in our country, but before it is even

put on board a vessel or in aircraft bound for this country. i recognize that the tempo of air cargo supply chain is different from maritime cargo, but regardless, we have an obligation to examine vulnerability is in our supply chains and to manage risk to those systems. there are also opportunities to make better use of the private sector in securing air cargo overseas or screening efforts are now more limited. instead of attempting to screen almost all cargo at the airport, it could be screened at a warehouse for the package is sealed long before it arrives at an airport and kept secure until it is delivered to the air carrier. that is just one idea that would avoid the potential delays of trying to do everything immediately prior to loading packages.

dhs mustned that constantly read -- reevaluate the allocation of its security. i still remain concerned about the intrusiveness and effectiveness of the advanced imaging technology as a potential negative help a fact. this is an issue -- health effect. i believe the department should independently evaluate the help the facts of the technology end should consider -- health effects of the technology and should consider technology that respects travelers privacy by automatically identifying objects that could be a threat.

my department's response to inquiries have been inadequate. i know that he was on his way to view this technology when the plot from yemen was on coverage. i want to a knowledge that. obviously, our government's first priority is to protect our people against terrorism. the public will accept a certain level of intrusion and inconvenience. dhs should be using technologies and techniques that are as safe and effective as a possible -- as possible that minimize privacy concerns whenever possible. thank you. >> thank you, senator collins. we welcome your statement now. >> good to be here today.

to address the committee of the rolls in the area of air cargo security. i appreciate the committees' leadership and ongoing efforts to ensure the security of air cargo and passenger for the american people. three of weeks ago, as we have noted, we disrupted the attack when the individuals we believe to be -- concealed explosive devices hidden and toner cartridges. the two packages were shipped from yemen and destined for the united states. the incident began on october 28.

i got a call regarding specific credible intelligence as to exact packages that should be assessed. we worked through the night and over the next few days, staying in close contact with their colleagues throughout the u.s. intelligence -- u.s. intelligence law enforcement community. of course, the private sector. the first step, i immediately grounded all air cargo packages coming from yemen. we took additional steps in conjunction -- for example, would quickly identified and located all other u.s. bound packages from yemen that were in transit. we located and identified those packages.

we provide additional focus on current threats. there were a team of security inspectors to work with the authorities to provide cargo screening gardens -- guidance, expertise, and detection equipment. i leveraged a previously planned speech that i had to the aviation securities will conference in frankfurt to -- and gave that speech, met with counterparts from europe. i met with the international air transport association, a world recognized expert in the area. i went to examine five days after the plot became -- we became aware of the plot.

several days later, on november 2, we spoke with leaders of the international shipping industry, including ups and fedex. about enhancing air cargo security without its disrupting the critical air cargo supply chain. on november 8, we announce that air cargo from yemen and somalia would be banned from flights to the u.s. for the immediate future. we indicated no high-risk cargo would be allowed on aircraft bound for the u.s. all high-risk cargo would receive additional and enhanced

screening. we were to the postmaster general on some of those sues. these are just some of the steps we have taken. those steps will continue. we have required the 100% screening of air cargo transport on domestic air carriers. we have worked in large part to the certified card the screening program, or we have over 1100 private companies in the u.s. to do screenings away from the airport. it is done through these private screening facilities that we certify, we inspect. >> is that for passenger planes and cargo planes?

>> it is for passenger planes. we're looking at the possibility with cargo, recognizing that fedex and ups have their own screening regiment and do a very good job independent of what we would do. this security program keeps commerce moving without creating a screening bottleneck at the airport. we are looking at that as a worldwide model for implementation. a number of different issues that we are addressing, i would just note that in june of last year, the hazmat about the online targeting system to better target to high risk cargo. these efforts complement our continued diplomatic work with their international

counterparts. thank you for the opportunity to be here today. i look forward to working with the committee and as we consider these collective efforts, i will take to questions. >> thank you. commissioner, thank you for being here. >> thank you, mr. chairman. i acknowledge and appreciate the committees' leadership and support in exploring the gaps in the deficits that we have said that we can more effectively confront terrorism. i would like to address three dimensions of war work. first is the air cargo processing that we currently engaged and the second is building on the administrators testimony. the response to the october 29 event. the partnership with tsa and the steps we are complementary --

contemplating taking together. with regard to a cargo -- air cargo, a rise in this country into ways. -- it arrives in this country in two ways. in fiscal year 2010, we processed nearly 334,000 such flights and inspected and screen to over 57 million regular and express records. this is a massive part of our international trade policy and economy. currently, our systems and processes are designed to identify high-risk cargo for inspection after their arrival in the united states. they are not designed to identify dangerous cargo prior to take off as art -- as is our

regime in the maritime context. under the trade act of 2002, carriers currently must provide cargo manifest data four hours prior to the arrival of the aircraft. upon receipt of the advanced manifest data, cbp processes and deep data. the system identifies potential threats, hazardous materials, and other areas of concern to the agencies and the nation. ats is the primary platform used by the department of homeland security. it is used by our air cargo advanced targeting units at

local airports to conduct risk assessment. it is also used by our national target incentive cargo located in virginia, which conducts high-level sweeps based on intelligence and specific targeting rules but are written to reflect present and prospective threats that we perceive to intelligence or otherwise. these rules identify risk factors ever-present in the manifest did that we receive from the carriers. each of these risk factors receives a quantitative value or sce and give the shipment exceed a predetermined score or threshold for national security concerns, replace the shipment on hold. we conduct an examination upon arrival. once the cargo arrives in the united states, we conduct examinations of all such identified high risk air cargo where other cargo identified as

high risk by the local against targeting units. these examinations must include the non intrusive inspection equipment is available or physical inspection of the shipment as well as a mandatory radiations can. we also -- radiation scan. the customs trade partnership -- importers and shippers adopt minimum security standards, at which they must adhere to throughout their security chain. in exchange, we treat the shipment at slower risk and provide fewer inspections. as the illustrator indicated, when we began -- we became aware of the threat, we responded immediately by identifying all air cargo shipments from yemen destined to the united states,

aside from the two that were the subject of the increase in the emirates and the united kingdom. what we ask right away was, what more could be coming toward us? who could have been sending it to us? and how quickly can we mitigate or neutralize that risk? we ascertained at the location of each shipment and we held them to inspection. we've been completed inspections using x-ray systems, explosives detective canines and equipment. we can go into further questions and answers, 38 shipments in total, and we discovered an identified those shipments within hours of receiving the information. within days, we had located all those 38 shipments among millions of packages that arrived in the country. within a week, we've satisfied

ourselves and cleared those cargoes as a result of techniques of scanning that were applied to them. where do we go in the days ahead and the months ahead? with the help and guidance of experts, ever since the december 29 incident involving -- the partnership that has produced a valuable results for our nation and for the homeland security. we need to do the same now with regard to air cargo. what we believe is that this cooperation is the best source of the project -- progress we can make quickly. we're providing assistance to a gsa to fill out the mandate set forth in the recommendations of the 9/11 commission, to screen 100% of cargo transport on

passenger aircraft. we are collaborating to exploring the potential of utilizing the automated targeting system as a risk targeting tool in the air cargo context. it can be shared. this will allow us to leverage the data information already collected. we also acknowledge the importance of partnering with the private sector. with partners in that sector, they can assume a considerable assistance and let -- and lend us considerable assistance in securing the supply chain. we also recognize that we must receive information in the advance of what we are currently receiving and we are working with tsa in determining what the parameters of that car.

our private sector partners, to get their views as how they can most expeditiously -- expeditiously provide that information. let me abbreviate the statements that we can get on to the dialogue of questions and answers. we believe that we have the foundation in place to implement a more effective system. we can strengthen the system and do it relatively quickly. should do it cautiously and deliberately and i look forward to working with this committee and its staff in reaching a satisfactory outcome in building

the next level of security into our air cargo system. thank you, mr. chairman. >> thank you, commissioner. we will go to the questioning now. we'll have seven-minute questions. we're focused on air cargo security, but more broadly on the question of aviation security. the so-called pats' down procedures that follow and are associated with the use of the whole body imaging scanners, we held hearings on this subject after the christmas day bombing attempt. most of us were calling for you to go to the whole body scanners. i wanted to give you an opportunity to explain the pat-

down procedures that have troubled people and why you think they're justified. >> there is an effort evolving nature of the plots that has been described here. the challenge for the whole u.s. government's is to develop both the best techniques and the tactics enabled by the best technologies to identify those plots. it is clear that we have to be one step ahead of the terrorists. we are not always in that situation, as evidenced by these last three plots that could have been successful. it really comes down to a balance of where partnership on one hand, working with the traveling public, the safety issues on the other hand, and what is the proper mix. what we try to do is understand and we want to be sensitive to

privacy concerns and their personal being. but we have to ensure that everybody on every flight has been properly screened. we recognize that to reasonable people can disagree as to what that proper balance or blend is between privacy and security safety. that being the case, i think everybody who gets on a flight wants to be assured that everybody else around them has been properly screened and everybody else on the flight mixed -- wants to make sure that i have been properly screened. how do we reach that balance? that is the challenge that we go through. the advancing technology is the best technology that we have today to detect the nonmetallic devices that are well concealed. what i am concerned about and i know many share this concern is that we have an individual who

opt out of advanced imaging technology, thinking that, i will not receive a thorough passed down and i can get on that flight. what i want to reassure the public is that we are concerned about your safety and security and your privacy. let's work together to ensure that we can have it the best way forward. >> let me take a moment -- make clear, if you will, how does someone get subjected to a pat- down? >> there is a very small percentage that would actually have it. it would occur almost exclusively in situations where somebody has opted out of the advanced imaging technology or that they have alerted on that

because there is something in their pockets or they may be trying to carry some contraband. >> it did they have chosen not to go through the scanner or they have gone do it and there is some alerts. >> there is some basis for do that. even with that, there is a very small percentage of all the passengers. very few people -- because it is a new technique. i have been in europe several times over last few months and have observed it being done in many airports. it is very similar. our approach is very similar to what is being utilized in europe. >> you have the same gender person doing it.

i presume that are put the training. this is a difficult balance. this has to be a more intimate and intrusive investigation because they are instructed in a way that will determine whether somebody is potentially dangerous, but also when doing so, doing minimal harm to their privacy. >> correct trade if they go through training. the clearest outcome of that training is to be professional and to give clear guidance and a lot of clarity as to what they are going to do in terms of the actual path down -- pat-down. there has been a lot of publicity out there about a certain individual who traveled but did not want to have it. if people get away from just the

passengers to hear what the security officer was saying, very cool, professional, collected. they did this in a way that is professional. again, the bottom line is if you have to plan sadr getting ready to depart and one he said, everybody has been thoroughly screened on this planet. where we have another plan where we have not done a thorough screening because people did not feel comfortable that. i think, most of us would say i want to go on that plan that has been thoroughly screened. >> i agree with you. i think you are given the right thing. perhaps the reaction got ahead of the department's description of what you're doing and what you're doing it. -- and why you are doing it. if it had gone off on the plane

over detroit, the public would have been demanding -- not just the body imaging equipment -- but pat-downs. i understand the private see -- privacy concerns, of course. we get on those plans and we want to have the confidence that nobody on that plane has evaded security in a way that will allow them to blow up the plane and kill everybody else on it. this is unfortunately the world in which we live. it was not our choice. but we have to do everything we can to protect the travelling public. i think that what you are doing it here is difficult. it is sensitive, but it is necessary for the security of the american people. my time is up.

>> let me start with a fundamental question. but for the intelligence tip that was provided by a car allies, would our current security system have detected these packaged bombs? >> my professional opinion, no. >> that raises the issue of what can we do to make sure that in the future, if there is another attempt to exploit the gaps and the air cargo security, that we have closed those gaps. in many ways, we're lucky that we had an ally with extremely specific intelligence information that allowed us to target these packages before harm was done.

what is the single biggest change that you think we should be making. >> we have high confidence and indeed known shippers. we have high confidence in those international shippers with established records. the challenge because -- the challenge becomes other hot spots around the world where there is not a known relationship. the challenge of screening those packages in the same way that we would require here in the u.s., there are several challenges what is the capacity of some countries.

some countries, like yemen, and they have an x-ray machine that they use for cargo. but they were not using explosive trace detection or 100% physical inspection of packages. there are a number of issues and challenges there. >> i would be worried about the people doing the screening and whether they share our goal. >> you raise a very good point. the insider threat, if you will, what kind of biting and validating of those individuals is being done? that is done even around the globe. >> -- uneven around the globe. >> we have a pretty well defined system for the screening of cargo that comes by the maritime system. 24 hours before the cargo is

even loaded on the ship overseas, we have a manifest that is combined with other information to allow us to identify the cargo and target that which may be of high risk. why can we do that -- can we do that with air cargo? a system that says, we want to know four hours before it arrives at our shores provides very little protection. the flight might be already on routes. -- en routhe. te. >> one that the to deal with this is to segment the traffic. the other method of doing this is the risk management that we

have applied in the maritime context. the three elements are -- receiving the information in infanta, sufficiently in the ban so that we can apply are targeting rules and attempt to identify any high-risk cargo. scan or screen and using appropriate technology. in effect, we should be looking at the same techniques and we have begun that process. it we will want to customize its given the nature of the trade. the differences between the maritime and aviation context. the broad categories can give us good guidance. >> are you looking at increasing the am out of time -- the amount of time before cargo a ship to our country where you receive a listing of the cargo?

the four hour strikes me as something you could change immediately. for example, in response to the times square bomber attempt, the tsa acted immediately to change the update will on targeted individuals. are you looking at the four-hour rule? >> we are and we are looking -- we are working with the private sector, the airlines, the cargo carriers, to reach a determination of how we can advance that a deadline for providing information. we expect that we will be coming up with a revised recommendation in the near future. >> it is as much as a pragmatic

issue. if we could -- if i could issue a security directive today saying 24 hours, whenever it would be, the question is, are the carriers capable of implementing that today? that is what the commissioner is referring to in terms of working with them. what can they do electronically? all of these smaller carriers around the world are not released electronic. how do we make it happen? >> we will call on senator levenson, senator brown. >> i want to presume senator collins questions again. right now, the rule is that you have to have your manifest to four hours before the arrival. is that correct? >> for those destinations that are less than four hours from our shores, it is upon wheels

up. >> what are the practical problems of increasing that? >> the first is the electronic systems to get the information to us. >> that is the same whether it is four hours or six hours. there has to be an electronic system. so you could do 8 hours with the same problem? with're trying to work out the carriers that can do that. what would be the system that would provide us with the information? >> that is not a practical problem. >> the problem of making sure that we are getting it as

quickly as we can and getting information back to the carrier, putting a hold on certain high- risk cargo. >> why would 12 hours help you do that? >> it would help you. >> so that is not a practical reason. there are practical problems and i have not heard one yet. >> the practical problems -- there are airlines that simply do not have the capacity to electronically transmitted to the data to us. >> part of it, senator, is that the carriers themselves do not have that manifest data. sometimes it is only two or three hours.

>> if it is required that a 12 hours, then they will have the manifest data. that is not a practical problem. that is the same that you have to have been manifest in data. >> if there is a last-minute shipment or something, they are out of luck. >> one hour before our arrival? what are the other problems? >> the small carriers around the world, and we are not talking about ups and fedex, we are working with them to provide notification when they receive the manifest, whatever the time line might be. >> that is not a practical problems yet. i have not heard a practical problem yet. it is paul bowers, whatever.

why can you do that right now? -- it is 8 hours, 12 hours, whatever. why can't you do that right now? >> those packages, they would not have the capacity to provide that information more than four hours and events at this time. i would have to differ -- >> the lumber number of hours, the greater number of hours prior to arrival, it seems to be the easier it is to get the information. you have more time. i do not get it, folks. i do not see the urgency in your testimony here. i do not get it. it is such an obvious question.

i do not know why we do not have a direct answer. >> the practical problem is the one from the situation from the status quo to where we want to be. no one is saying that we should not move there. >> it is a matter of issuing a directive. >> the practical problem is that it has not been done because it has been perceived that it would unduly interfere with the commerce in the world. we have come to a situation like this, there is an urgency. we overcome a lot of the practical problems that we are keeping the situation from being handled that way in the past. >> i read your comments about --

about the length of time. use a security cannot bring business to a standstill. i do not think that anyone is suggesting that business be brought to a standstill. is it reasonable to tell people, you have to have your package enter document in 12 hours before the plane lands? that does not bring it to a standstill. that slows it down. will the public of the world except the delay in getting something out to where it has to go in order to have greater security? my answer is, -- this is easier than pat-downs. i was worried about your comment about the delicate balance.

rather than you telling us, yes, you do not see any practical reason neither. we are trying to overcome practical problems, which you have not been able to identify. >> in terms of your risk management and assessment contract, the issue comes down to, if we would impose on all cargo worldwide the same mandates that we have here. the cost of doing that would actually exceed the revenue from that cargo. >> increase in four hours to a hours -- >> a different issue. >> i think he should get your experts to provide for the record what does practical problems are. my time is up. >> i accept that suggestion.

>> good to be back. thank you for putting this together. my concerns are pretty simple. what tools and resources do you need to better do your job so we can figure out to -- god forbid that this happens again. as someone who flies and family members to fly, i want to make sure that when i or my family or friends get on a plane, and that the cargo -- how common is it to have a full flight of passengers and to have some extra room on a passenger plane and have that cargo then be filled?

>> would under% it originated in the u.s. are screened. 100% are rigid in the u.s. our screens. >> we are not there yet because we do not have either the civil aviation authority is not put on the same procedures that we have. their estimates anywhere from 2/3 to 80% of all the cargo is being screened. the one takeaway is that we say it was under% of the high risk. we do not provide that publicly. how does that work? it is a good point. >> toner cartridges from yemen

-- did that have a red flag go off? did not raise a red flag. >> it absolutely did. >> how did even get on the plane? different protocols, for example. it was separated in the box -- segregated in the box. they had identified it as suspect packages. when you ask for the cooperation of the various carriers, did you get the cooperation of all of them? >> absolutely. >> there were no questions asked. >> they had been very capable as partners. they're looking for solutions that make sense. >> is there going to be an updated screening and inspection

plan when it comes to those transfers? is there something that you are proposing more working on? >> how do we work with our international partners? international civil aviation organization, part of the un, under 90 countries signed up under the declaration last month in montreal. they're trying to leverage their resources in a way that builds capacity in some of the areas of the world that need additional screening protocols or actual trace detection. >> i lived in two other countries and you see the cargo. -- i have lived in other countries and you see the cargo. it will take a commitment to ensure the partners aviation --

aviation partners, people who fly into the united states and delivered goods, they take their jobs seriously. i recognize the comments of the two previous questioners regard -- regarding the timing. is there a way to ensure speed and accuracy when it comes to x- ray and inspecting? do we have the technology to do that to make sure that we do not slow down this to a crawl? >> generally, yes. it comes down to known shippers that are trusted partners. the problematic ones are those individual shippers that we do not have any history on. we do not have any intelligence about who this person is, what they are shipping. if someone is printing -- shipping a computer printer from yemen to chicago, that is the

kind of information that we need. >> how much of your cargo is being screened today? he touched upon it earlier. >> wonder% in the u.s.. -- 100% in the u.s. they use a variety of those that clearly? rate, it explosive trees detection, -- explosive traced protection it -- detection. they transport its a few miles and a secure fashion to the airport to put on the cargo flights. >> in conclusion, i want to solve a problem. i want to figure out what you need to get the job done and whether -- we have a private

meeting, or whatever works. we have identified -- at some point, we're not going to be lucky. i gave you the tools. this is not about party politics. this is aut t safety of our citizenry and to keep commerce moving. if you could just post testimony at some point. that would be a big help. >> good idea, senator brown. it will arrange for that. >> from the beginning of your service in the senate to this, your last week with us, you've been a most faithful member of this committee. probably attending more than anybody else. so thank you.

>> thank you, mr. chairman. it is because of the interest in this committee and this topic here has caught my interest because i may not be on point for all my quick questions, but i am concerned about travel across this country. you canr. kespistole, answer this, what is the definition of a high-risk package? >> the do not define a publicly. -- we do not define it publicly. >> we have to stop putting everything out there. i'm sorry, go ahead. >> it is generally outside the known shipper trusted arena. generally, individuals who are shipping packages with no

history, perhaps from some hot areas such as yemen, horn of africa, things like that. it is all intelligence driven. what do we know about the shepard? was the package physically inspected? what do we know about the cargo carrier? how thorough is the airport at the facility? a lot of criteria goes into the planning. >> those packages were headed to synagogues allegedly in chicago? that is another concern. on the past downs -- pat-downs, we have some airports that are staffed by contract screeners. is that correct? >> 17 airports are staffed by contract employees. >> how do you deal with those in

these airports? do you have jurisdiction over those individuals? >> absolutely. they to follow the exact same protocols that we put out for all employees. >> have they gone to the same training? >> they have been to the same training. they are identical to beat security officers -- to the security officers. >> what are their contrt employees? >> congress decided that that should be an option, that there should be the opportunity to have paralyzed airports or to the private security done. some members of congress still very strongly about that. >> you say that is written into the law. >> i do not have much longer and

the senate, but we should look at this private contractors. i am concerned about the number of private contractors. i am wondering reliability is going to be if one of those passengers feels like they've been over screens. what would the liability there be? in terms of the underwear bomber, would patting down would have caught him? in your estimation? >> yes. >> not the machine. >> yes. >> it was a diaper type of arrangement. >> yes. >> of their going-deep in terms of individuals. >> they are based on the latest

intelligence and the information that we have. >> he was on the plane. >> that is right. that is why we change the policy. >> ok. our personnel have received adequate training? do we know what will happen if -- is their litigation coming out of this? the pilots association is getting ready to bring some type of action. because of the excessive patting down a flight attendants and pilots. >> that has been the case. pilots do not go through the advanced imaging technology. they are allowed to keep their shoes on.

we are actively exploring options as it involves pilots because we're using a risk based approach and it begs the question, if you have somebody was in charge of the aircraft and can put the aircraft down, then why do we have a screening for them? in the near future, i will be announcing some new policies on that. >> there is also questions about the degree of x-rays that these individuals have to go through in the course of their day-to-day work and what that will do to their physical health. >> that is one of the concerns that has been raised. what i rely upon is the scientific literature and studies being done using these kinds of machines.

they have all done independent assessments of the advanced imaging technology. going through one of these machines is similar to receiving about three minutes of radiation that you would receive that 30,000 feet on a normal flight. we are also trying to update and balloted others to have opinions about that. >> how about the protection of the personnel? if i get accused of grabbing a lady's breast -- how are they protected now? >> it is only same gender security officers that would do it.

people can request a private -- >> would there be a witness? >> you are welcome to have a witness. county personnel requests a witness to be there? -- ken a personnel requesting a witness to be there? >> it is not our current policy, but unless it goes into a private screening area, the closed-circuit tv would capture virtually all of that. every checkpoint has cctv enabled. >> i am also concerned about our tsa personnel. i am listening to these complaints. as an administrator, i am counting on you to take care of those people who take care of us. we cannot have disgruntled personnel.

>> i could not agree with you more, senator. >> thank you. he becomes the oldest member of the delegation. we will treat you with a lot more respect. [laughter] >> thank you, mr. chairman. i think. i want to second the motion that was expressed by air chairman about your service here in the united states. he is a terrific subcommittee member and i have been privileged to welcome him to our subcommittee since the last three years. he is always

a lot of challenges in moving parts. we are impressed with the quality of the work. the leadership is outstanding. it is a vital mission that we are focused on. thanks. >> do you think the legislative branch should be doing more or less? >> thank you. i know there have been several issues that have been teed off. we are working on that. thank you. >> what about the most recent plots, and the failure of attempted attacks of the years, is it becoming increasingly difficult since 9/11 -- at the

same time, some aspects are some worrisome. [unintelligible] they follow similar rules over the years recognizing that the terrorists are still targeting aviation and constantly adapting and changing their methods, what are we doing to make sure that we are current as they are. we've always talked about fighting this war. we have tried to learn to fight the current war. what of retooling about making sure we do not spend too much time responding to the last disaster?

>> thanks. i try to use a risc based intelligent approach. we want to make sure that we are aware of prior actions and attempted attacks. we want to make sure there are no other printer cartridge as out there -- cartridges out there. we have to be informed about that and cost -- box cutters in liquids that can be explosive. when want to be forward looking to make sure we are not acquiring the technology today that it deals with yesterday's threat. we want to use this so that we can work on where we should be going. i think we are doing that. >> to add to the administrators

comments, it seems that we need to develop a deeper partnership with the private sector. given the number of parcels that we deal with, last year, at the opening statement, we dealt with 334,000 flights. 57 million packages. we have to recognize that we cannot do this without the help commercial airlines to carry the cargo as we have enlisted their support. with the express carriers, we need to make the grand bargain with them that would give them an early release on cargo to help us deal with a smaller percentage that we do not have sufficient information on to make good judgment. >> thanks.

tsa has received negative attention in the recent days due to some, some airline passengers that we have heard. it is with regard to using the full body skin. there has been considerable discussion on this already. i do not want to get into a specific discussion. but i do want to talk about this. it could possibly limit to more intensive screening. i learned a lot in recent months about this. one method uses agency personnel to identify passengers who might post a higher risk. before your confirmation hearing, we may have talked about this. the legislation the senator

brown and i have introduced is aimed to build on the and expand this program. can you discuss with us the behavior detention training and the increased use of intelligence and how we can target these efforts at airports? >> the use of behavior detection officers is a key component in our over all layers of security. it is one of those multiple layers that we used to help try to identify someone who may be acting suspiciously or something may not be quite right. i have seen behavior detection work. i think it is a valuable resource. the question is how do we show

the outcomes -- we have identified one person because he was sweating or acting adversely in response to questions. we saw a k-9 and we decided to go this way. any number of indicators can be helpful. the israelis to quite a bit in terms of how they screen passengers. i am a strong proponent of it. i'm looking to expand the program. >> thanks. we invite your questions now.

there have been reports in the media that certain religious groups want to be exempted, because of religious reasons. can you address that? are you going to allow certain groups to be exempted from that because of their religious beliefs? >> we tried to be sensitive to each individual and the group's that have their sensitivities for those that have to wear head where were certain garb. we tried to be sensitive to those issues. at the same time, the bottom line is that we have to insure that each person getting on each flight has been properly screened. we have options that if they want to go through the advanced

screening technology, that is optional. there is a pat down that would idtify the a certain item so they can have a private screening instead of being screened in public. we tried to address those concerns. we tried to do that in every way possible. everybody on that flight wants to be assured that everybody else on that flight has been properly screen, including everybody. >> i realize this is a different question for you. are you going to make no exception of then? >> i know you are trying to reasonably accommodate everyone, but -- >> my religious but effort does not allow me to be touched by somebody else or go through that screening. what happens in those cases? >> may have received pat downs.

-- many have received pat downs. >> unless they opt out for there are other problems, they would not receive a pat down. >> maybe i am not being clear with my question. if somebody -- a random screening. my never comes up quite often for whatever reason. if that happens and either the imaging is one of the options or the path down, i do not want either of them, because of religious reasons, what happens? >> we respect that person's belief.

there will be no exceptions. >> that was the answer i was looking for. going back to cargo. i know this was addressed earlier. i want to go back. when it comes to cargo planes and passenger planes, that seems to be the biggest potential concern. thought a day of a target to take up a fed explained as a passenger plane -- fed ex plane as a passenger plane. what would be a better question is, if you are working on our hearts of being screened eventually. when will we get to that point where cargo is screen. >> all cargo going on passenger

planes. there is a debose between 80% -- there is a difference between 80% and verifying that. the all cargo is largely unregulated. what we have done since the printer cartridge incident is limited those with final destination to the u.s. those are the areas. in terms of time frame, we are going to -- we are building capacity in areas of the world that does not have what we have here. >> i understand that you are

dealing with some of the most difficult issues on security. terrorists are always looking to get tourists -- ever security system we come up with. there are dogs with a very sensitive noses, but there are ways to get around those depending on how you wrap packages. explain the role of canines versus other types of detection techniques. >> they do play an important role overall in the u.s.. it is under even around the world. we are the leaders here.

if someone is carrying a bomb like those in london of 2005, if they had explosives in a backpack, and dogs would be able to pick up the trail after they have walked by. those are the main approaches. we would have enough dogs in enough locations with train handlers with terrific technology to improve its capability. >> last week i was in afghanistan to visit our troops.

these dogs are really extraordinary care. they are saving lives every day. >> they get outstanding veterinarian care. >> i was -- i had no idea i was being set up to set you up. going on the basis of published reports of this public hearing, it appears that the bombs shipped from yemen last month were screened in cleared perhaps more than once. i want to ask you as a result are you be evaluating what types of screening uses in light of that tough reality? >> it is a key point with these

instances in dubai and the uk. we have reviewed the forensics and the screening that has been described to us. we are doing that. because of the sensitivity of that, i would prefer to a closed hearing to give details. >> understood. in this coming budgetary round, do you feel you need more funding support to develop better technology for screening? do not hesitate to ask us.

>> in terms of the -- we are aggressively testing that currently at reagan airport. we are cautiously optimistic of the advanced imaging and technology. the issue is the high rate of a false positives. i am not ready to request funding for that. if there are high false positives, it is not a good result. we do not need a separate

screener and a separate room if that is the case. we are working with this department and the it ministration to move forward in this area. >> how to use leverage other countries and influence them regarding screening cargo coming in? this next generation of imaging systems, in the original imaging portion of it, the process is more protective. >> yes. >> if an alarm goes there, there are still certain requirements. >> yes. it would show a box in the area

of the body where there is an anomaly. >> it may limit the pat down. the concern now is there may be a higher rate of false positives. in the end, there may be more pat downs. >> right. >> on november 8, tsa issued something to reduce on the aviation network by limiting the ability to transport ink in toner -- and toner. i know that one of the ways we have talked before about this.

one of the ways to balance this against the interruption of congress is to have higher standards. we look at cargo coming from certain countries. the question arises what do we do if the terrorists understand that and start to move cargo to interim points in europe or asia? >> in terms of the risk management, it is unlike the passenger context. it is as far as we get advanced

information. what we need to do is get more information, more specific information so that cover targeting wills can adapt. the high risk packages that usually come from europe or the persian gulf as they did in this particular case, we need to adjust the targeting roles to pick a high-risk cargo wherever it comes toward the homeland. >> are we intending to do that? >> yes. that puts an emphasis on good intelligence. we need this information that we had in this case to move those packages out. i know we have work very hard in the post-/11 reform approach.

we are doing much better than we did before. we are gathering information and sharing it. what about from the perspective of your agency's that you have fast the intelligence community -- it relates to information related to carve a. is there something different regarding intelligence gathering that you are looking for? >> [unintelligible] >> if i understand this intricate world, what information about inbound tigger carver is given to one physician dan tsa -- air cargo is given to one organization van tsa.

-- than tsa. >> the information comes to the targeting center. it is fair to say that one of the great developments -- we have been fairly seamless and will become even more seamless in terms of that information to inform tsa activity. >> that was my question. are you cooperating sharing information between the two? >> absolutely. >> you are getting what you needed? >> absolutely. we have a great relationship. >> the final question goes back to something i asked in the beginning. it goes to the evil imagination. institutionally, is there someone now the with these agencies where we are trying to

think like the terrorist. in and open society like ours, but still, we seem to respond -- i am grateful that we do, but is there some way we can have the system so that we get ahead of what they are going to try to do? >> the nation of the targeting enterprise requires an attempt to do that. typically better informed when there is intelligence. we look at the risks and the gaps that exist now. we have not talked about it at

great length here. international mail is not such a -- not subject to the safeguards that we have. to that extent, we try to keep ahead. we recognize the difficulty of that challenge. >> were they specifically doing that? >> we have people doing that all of the time. there are people within our intelligence and our explosive group and i can share more in a closed setting, the whole issue of what is the next target and working within the entire

community. what is the next possibility. what do we do with that? what if, and how can we deal with that given what we know? all of those things, we look at what is next. >> you are saying red selling, but it is the same basic idea. please respond as soon as you can to the few questions. perhaps when we come back after

thanksgiving, maybe we can do a closed meeting with the two of view. >> with thanksgiving and all of the people going home to see family and friends in traveling , those security officers are there to work with you to ensure that everybody on that flight is properly screened. try to be patient and work with our people. they are there to protect you and your loved ones. >> well said. thanks for saying that. i will keep a record of the hearing up for several days. without anything else to say, the hearing is adjourned.

coverage on c-span2. >> please welcome to the stage the senior minister of highland park united methodist church. the sn used to the -- student

body president, jake torres. the archivist of the united states, david ferriero. the president of smu, doctor r. gerald turner. the chair of the george w. bush foundation board of directors, and former secretary of commerce, don evans. the present of the george w. bush foundation, ambassador mark langdale.

the chair of the george w. bush institute advisory board and former secretary of state, condoleezza rice. and the 46th vice president of the united states, dick cheney. ♪ >>t has been the privilege of a lifetime to serve as your president. there have been good days and

tough days. but everyday i have been inspired by the greatness of our country, and uplifted by the goodness of our people. i have been blessed to represent this nation we love, and i will always be honored to carry a title that means more to e than any other, citizen of the united states of america. >> they will put a presidential senator down in southern methodist university in dallas. it will be a policy institute, a place to promote the ideals of freedom, and personal responsibility.

>> today, through our commitment, to a world without malaria. and with partners across the world they are helping the people of africa turn the tide against malaria. ♪ >> you see, ours is a country where citizens decide to help somebody in need, one heart and

one soul at time. ♪ >> and now, please welcome the 43rd president of the united states, george w. bush and mrs. laura bush. [applause]

♪ [applause] [applause] >> ladies and gentlemen, please remain standing for god bless america, and our national anthem performed by solo was lower

smaller and smu's bell tones and southern gentleman under the direction of doctor pamela l. rod. the colors are presented today by the third corps, fort hood sergeant audie murphy club. ♪ god bless america, land that i

love ♪ ♪ stad beside her and guide her ♪ ♪ through the night with a light from above ♪ ♪ from the mountains, to the prairies ♪ ♪ to the oceans white with foam ♪ ♪ god bless america ♪ my home sweet home ♪ from the mountains, to the prairies ♪ ♪ to the oceans white with foam ♪ ♪ god bless america

♪ my home sweet home ♪ god bless america ♪ god bless america ♪ god bless america ♪ my home sweet home ♪ oh, say, can you see ♪ by the dawn's early light ♪ what so proudly we hailed

♪ at the twilight's last gleaming? ♪ ♪ whose broad stripes and bright stars ♪ ♪ thro' the perilous fight ♪ o'er the ramparts we watched ♪ were so gallantly streaming ♪ and the rockets red glare ♪ the bombs bursting in air ♪ gave proof through the night ♪ that our flag was still there ♪

♪ oh, say, does that star-spangled banner yet wave ♪ ♪ o'er the land of the free ♪ and the home of the brave? [applause]

[applause] >> please welcome the senior minister of highland park united methodist church, reverend mark craig. [applause] >> let us pray. we rejoice, o god, for the george w. bush presidential center and smu. we pry, our lord, that it will be a place to answer the call to action. in order to make this world a better place. we pray that it will be a sanctuary to enhance learning, inspire patriotism, and offer

insight into the world's futu. we pray a very special prayer of thanksgiving for the leadership of president george w. bush, and laura bush. we thank you for their shared commitment to our country, and to the tenets of democracy. we pray that this center will be an inspiration for those who choose public service as a life's location. moreover, we pray that those who study and learn in he context of this great institution will have a deeper appreciation for the hitory, for the very future of the united states of america. god bless us now, and bless the very fabric of this presidential center, and your holy name we pray, amen. >> please welcome the chair of the george w. bush foundation board of directors, secretary

don evans. [applause] >> mark, thank you for the blessing and inspiration of your words. what a wonderful crowd for an incredibly joyous occasion. good morning to all of you. welcome to the grodbreaking ceremony of the george w. bush presidential center, and the beautiful campus of southern methodist university of dallas, texas. [applause] >> what a thrill to be here on this historic day, joied by more than 3000 friends, supporters and the bush-cheney alumni. [cheers and applause] >> i would also like to send a word of welcome to several hundred names of the smu community who are watching down

the block at must do them all, as well as, as well as supporters from around the world who are participating by live website. today's celebration represents a culmination of a lot of planning and hard work by literally thousands of individuals. it began with a library selection committee, whose efforts led to our partnership with smu and this incredible piece of property. the design committee, chaired by mrs. laura bush, created a plan for a beauful and allegan and forward-looking building and grounds that will come from it is campus. the foundation board has overseen the establishment and development of the bush center and its many components. the institute advisory board members provided counsel resulting in the launch of several initiatives and hiring of distinguished fellows. and the national finance committee and donors whos hard work and sacrifice have built a

solid financial foundation for the bush center and the activities moving forward. while much has been accomplished in a short period of time, today marks another major mileston as we turn our sights to the future. we break ground on a center that will serve as a resource for thousands of visitors, each and every year. and as an epicenter for research,innovation, and action that will result, to borrow the words of a fearless leader of ours, will result in a freer and better wold. today as it is ideed a celebration, a celebration of president and mrs.ush and their service to our country. of the enduring principles that motivate their life's work of the future, the bush center will help make possible. and, finally, and finally a celebration of each and every one of you for the love that you have for president and laura

bush, and the love that you have for america. thank you. [applause] thank you for your friendship, for your service, your generosity, and your commitment that has made this wonderful and glorious day a reality. and now, please join me in welcoming to the podium my good friend, the president of the george w. bush foundation, mark langdale. [applause] >> thank you, don. we ae gathered here today on the campus of smu to celebrate the start of the construction of the george w. bush presidential center, an important institution for this nation, and the world. it will include the 13th presidential library in the national archives and records administration system.

it will contain the archives of the official records of the 43rd president, a museum that will tell the story of the two terms of president bush, and uniquely presidential library, the bush center will include a policy institute. this project has been many years in the planning that would not have been possible without the service to country that so many of you gave and the support of so many of you here have provided throughout. we thank you for that. we start with an incredible sight, 23 acres on the campus of a respected university that is on the rise in a world-class city. we are grateful to smu to provide -- for providing this site, and for the deepening partnership that we are developing in so many areas of mutual interest. laura bush has chaired our design comittee. her team high and gracious style reflected in the building and the landscape that will come up on this site.

robert stern, one of the greatest living architect in america today has designed the building that is human in scale and appealing and approachable. the design is not a monument making a statement from the outside, bodybuilding reflecting the important message that is within. a classically proportioned courtyard ith an appealing fountain beckons the visitor to come inside. and freedom hall, the centerpiece of the building says it all. this place is about the message inside, the message of enduring universal principles that are important to all of us. this project is design to attain lead platinum designation, the highest statement of sustainable building and design practices. the sustainable design example will be an important message to send you future visitors, but it is also a reflecion of what the first couple have always believed. many of these sustainable design elements reflected in this project, judicious use of the

footprint of the building to preserve green space, reusing storm water runoff or irrigation, attention to shade and sun, use of native landscaping, are all techniques that laura bush used 11 years ago in the design of thir proper ranch house. there is a lot about the bush so that reflects the values, substance and roots of george in laura bush. there will be touches of piquant, the state official treaof texas and mesquite. the unofficial tree of west texas. [laughter] >> a tree that is as tough as nails and can put up with just about anything. limestone quarry near midland, texas, were george and laura bush grew up with an bearish and the architecture. all of this will be set within 15 acres of texas native plant landscape design by michael and pays homage to the texas landscape that george and laura bush love so much. but it will fit perfectly right

here in the distinguished capital of passionate campus of smu. china's limestone, the bill wil reflect the essence of the element of america's george. and a forward-looking way, appropriate for the first presidential library at the 21st century. inside the building will permanently house the official records of our 43rd president. to consequential terms comprised of a long list of key decisions, difficult decisions. these records will be available to scholars and historians to research and reflect upon the challenges this nation faced, now president bush handled them. the records have already been transferred to dallas and are being cataloged by 15 archivist under the direction of our low and laura. this will also contain a pemit newseum what those the winner with the challenges of the first decade of the 21st century and students are learning about them for the first time will experience in one sace the challenges that president bush

faced, from 9/11 to the financial crisis of 2008, the story will be told through the key decisions that president bush made dung his presidency to advance the ideals and principles that are so important to all of us. prident frankn roosevelt dedicated the first presidential library in hyde park, new york, in 1939. at the dedication he said the purpose of presidential library is so that future generations can study and learn about the decisis of our presidents so they can make and learn how to make better decisions in the future. we have kept that vision in mind as we've designed the center, and believe it serves that worthy purpose right here on the campus of smu. but we will do more than that. president bush commission us to develop a policy institute alongside the library as a place for world-class scholars and leaders to gather and work together to improve peoples lives. they will do that here in the

offices and conference facilities that will contain the latest technology for connecting and disseminating the good work of the bush institute. and always, the principles that guided president bush and his presidency wl guide our work here. in fact, they already are. programming began last year, we had 20 scholars and fellows and practitioners working on education reform, advancing human freedom, enhancing economic growth and global health. we are all privileged here today to witness a small part of american history, and the continuing history of the ameran presidency, the groundbreaking of the 13th presidential library and the george w. bush presidential center. on a beautiful spring day in 2013, we will return here to dedicate its opening. another presidential election will have taken place, and by tradition, all current and

former presidents, a very exclusive club, will come here to commemorate that occasion. the official records of the 43rd president of this nation we placed here, just like to consequential time, and american history. a history that president bush and laura bush will continue to shape through the work here at the bush center. it is now my pleasure o introduce to you our partner in this project, the official custodians of the historic records of america, the 10th of archivist of the united states, david ferriero. [applause] >> thank you, mark. president and mrs. bush, vice president cheney, and other distinguished guests on this platform an in the audience, on behalf of all of us at the national archives, sharon foster, thiss a archivist of the presidential library, the director of all the presidential

library, at all and low, direct of the george w. bush library and his wonderful staff, i want you to know how proud we are to be in dallas today. the presidential library system was created along with a national archives during the administration of the presidential roosevelt and 10 from the beginning was to the presidential libraries throughout the country for scholars and scholchildren to learn about their government, the presidency, and perhaps inspire to public service. the george w. bush library is th13th presidential library to be administered by the national archives. the other 12 libraries have created a foundation upon which this library will build in the years to come, but this library will be the best yet, and will have features the others do not have. and a nod from this library to another librarian, laurabush, for your fine work in making this the best ever. [applause]

>> first, in addition to the artifact and digital photos, the bush library has nearly 80 terabytes of electronic information, including more than 200 million e-mails. and as you told in june when we met, mr. president, not one of them is yours. [laughter] >> this is the first presidential libraryith a major digital collection, a collection that is larger than the whole passionate holdings of all the other presidential library's combine. having an achive of electronic records of this size and complexity and poses new challenges to us. these challenges will require new solutions and innovations because of this information is of tremendous value, and would be of interest to generations of researchers and the general public. second, the museum at the bush center will be quite unique engaging the audience directly

in the experience. the galleries will be arranged by examining key presidential decisions, and exploring the four principles of freedom, responsibility, opportunity, and compassion that president bush has enunciated. within that framework, the exhibit will also show the decision-making process the president followed when the many challenges of his administratn were before him. the museum will employ interactive digital technology to reach our diverse audience, both on site and virtual. and, finally, the library will benefit greatly to its close partnerships with the bush institute and with smu. with the institute we look forward to working with its fellows on research, taking part in its programs and joined te students who come here to work the institute is doing around the nation and the world. at the same time, we are proud to be in and of the smu family, and we're greatly appreciative of the wonderful welcome we have received from the faculty and

students here. under the leadership of president gerald turner and with great students like jake torres, smu has reached out to the library in so many ways. we look forward to the many partnership opportunities ahead with students and faculty. throughout the presidential library system, we seek to educatand to inspire. we believe that from civic understanding comes engagement at the national archivist is proud to be part of that important effort. now i would like to thank president turner for his leadership, and bring him to the podium. [applause] >> on behalf of the board of trustees, the faculty, staff and students, and alumni at the university, i welcome all of you to our beautiful campus, the home of the george w. bush presidential center. and we thank you, president and mrs. bush, for making this day

possible at smu. thank you. [applause] >> if this is your first visit to campus, that we hope that you will stay with us long enough to be able to experience the energy and vitality of our campus, well as the beautiful oaks and stately collegiate georgian buildings. but having the bush presidential center on our campus provides a unique opportunity to develop joint programs involving the faculty, staff and stuents at the university, with the fellows and visitg scholars of the bush presidential center. last year, for conferences of the bush institute on important global issues resulted in a partnership between the institute and the university, and gave us a glimpse of the tremendous potential that is available for the future. in addition, groups of students have already visited the

temporary library side that alan lowe has made possible and they enjoyed classroom visits by president bush. some of them barely survived that experience when he walked in. [laughter] but having the historic resources of the library and the, will provide remarkable opportunities for research, not on for our faculty and sudents, but for scholars worldwide. and close to home, these resources will provide educational experiences for the almost 200,000 k-12 students who live in the metroplex. but it is the joint programming and intaction with fellows, visiting scholars and leaders at the institute that will constitute most of the intellectual dialogue and debate that will carry the impactof the bush presidential center far into the future. today, is another milestone. along a timeline that began for us in the summer of 2000, when we determined to try to bring

the bush presidential center to smu, the alma martyr of the first lady. although the process at times was challenging, we have never wavered in that quest. we knew that smu would benefit from the presence of the presidential center on a campus. and we believe that the pridential center wod benefit from its association with smu. because of the academic resources, vitality of dialogue and research, programs and our location. in the heart of on the most dynamic regions in the united states. this groundbreaking foretells the great celebration of the center's opening i 2013, and the development of a vibrant educational partnership, both now and for generations to come. so it is an honor to have the bush presidential center on the smu campus. and now to bring greetings from

our students, it's a privilege to introduce the president of the student body, jake torres, a senior from merson, texas, majoring in english and spanish. jake torres. [applause] >> thank you, doctor turner. it is a wonderful day to be a member of the musang family, and a special privilege to be here representing the 11,000 students of southern methodist university. it was a great day when we are chosen as the future home of the george w. bush presidential center. educational opportunities and partnerships have are to be made available to he students of smu come and will continue to benefit the smu community for years to come. over the past two years president bush has made surprise visits to classes as dr. turner mentioned, and students have attended bush institute conferences and even served as interest for president and mrs. bush, and for the bush foundation. many of us chose smu because of

its location in dallas. it's a small class sizes and its excellent faculty. but we also selected smu because of its commitment to provide experiences outside of the classroom that benefit and enrich what we're learning inside of the classroom. the factthat i'm here today and am joined by several hundred fellow mustangs is a pfect example of how the bush center is enhancing our smu educatio and experience in a way that none of us will ever forget. thank you for allowing us to share in this special moment and president mrs. bush, on behalf of the smu student body, welcome home. [applause] >> gthank you, jake. it's now my honor to introduce the chair of the george w. bush institute advisory board, former

secretary of state and what we really like, an academic, fomer provost at stanford, dr. condoleezza rice. [cheers and applause] >> thank you. thank you very much. thank you very much. thank you. thank you very much. thank you. thank you. well, thank you for that warm smu welcome. mr. president, mrs. bush, mr. vice president, and my fellow members here, i could not be more delighted to be with you, and more honor to serve as the chair of the george w. bush institute board. on behalf of my fellow institute

of boa members, the advisory board looks forward to continuing the great work that has already begun under the excellent leadership of jim glassman. i want you to know that the institute looks forward to continuing to be a place where smu students feel welcome to, where they can participate in the work othe institute, and where faculty from smu, from around the country, scholars and practitioners from all over the world, can come together to explore powerful ideas, and to find ways to put them into action. the hallmark of the presidency of george w. bush was the fundamental bedrock belief in the inherent works of every individual. and because every individual s worthy, every individual deserves to live in freedom. the president and mrs. bush

believed that america had a special responsibility to use its power and its generosity and its compassion, to advance freedom for those at home, and for those abroad. a belief that free people are most creative and most fulfilled in free economies, where their activities and their creativity can lift millions out of poverty. a belief that every individual has the right to be free from ignorance, and that the transforming power of education is owed to every child, because every child can learn. a belief that human beings also need to be free from disease, and that healthy societies are more likely to be partners in peace and in prosperity. a belief that societies that do

not fully bring the potential of their women to be will be poorer for it. and ultimately,that societies that treat women badly are dangerous societies. and abc's that no man, woman or child deserves to live in tyranny. that tierney must be soken of and broken down in every corner of the world. a belief that the voices of the so-called power can be incredibly powerful, that they have brought down walls and that they have brought down dictators. the institute will seek the best ideas to put these principles into action, and then go about the work that is left to us. the institute, and my fellow advisory board members, believe very strongly that we are all doing this in he belief that while we have to deal with the

world as it is, we do not have to accept the cynical notions that this is the best that we can do. president bush was sometimes considered an idealist, nd at the very least, an optimist. but i would say that president bush, and mrs. laura bush, were more than that. they were optimists and idealists, but they were realists, too. becae they realize that we have seen soman times, even in our lifetime, with the impossible one day seems inevitable the next. and so we will do our part to advanced towards the world, not as it is, but the world as it should be. am really excited, nd look with great anticipation,o the for the rk of e instituteas a part of the george w. bush

presidential center. it's going to be a great futu. thank ou. [applause] >> i had the honorof inviting to the podium and absolute,sk you to join in hooring the 46 vice president of the united states, richard c. cheney. [applause] >> thank you. thank you verymc. well, i've often been overlooked during my two -- to was a vice

president. [laughter] so i'm delighted to be here today. i want to thankcondi and president and laura, and ll the restf our friends who are gathered here on this historic occasion. it's great to be back in dallas, the city that my wife, lynne, and i called home foive years. flying down here yesterday, as i got to thinking about my time as a texan, we loved dallas. we miss it, sometimes. and happily we now have another very good reason to come back often and see america's newest presidential library and the man whose names on it. [applause] >> of course, the george w. bush presidential center isn't much to look at it just yet but the workers are ready, construction will move fast

after today's groundbreaking. this may be the only shovel-ready project in america. [applause] >> my congratulations on the start of the center, mr. president, as well as the success of your new memoir. the robust sales it has only had don't surprise me in the least. two yearafr you tour in the white house nded, judgments are little more measured than they were when times have been tough and the critics have been loud, you always said, you had faith in history judgment. and history is beginning to come around. [applause]

>> ten years have passed since governor bush asked me to be his running mate. and the days right before that decision, we spent some time getting to know each other better. i suppose he was aking my nature, i know i was watching him pretty closely oo. there are some basic attributes to look for. in a fella who may become president. dust off a phrase from the 2000ampaigns, i sa those traits in this guy, big time. [laughter] >> one of the things that struck me from the beginning and that continue to impress me throughout our time in office was george bush's refusal to put on airs. it's a happy experience, and everyone, to find the most powerful person you know it's among the least preteious, that at the commanding heights,

a man can be so respectful of his office, so serious in his duty, and yet so unimpressed with himself. kipling made a fine virtue for one to walk with kings, yet keep the common touch. and nobody has ever done it quite like our 43rd president. [applause] >> i've seen him hit with the various august figures who come to the oval office. icing and dealing with folks who look out of the presidential household, and it's always the same. we could all forgive a president for tearing himself with a certaiexpectation of privilege, b with this president, no such allowances were necessary. there were no aspect nation's about them at all.

he meets everyone as an equal. and attitude you don't expect to find in government, much less at the very top. but it's a classy way to operate. very american, and wonderful to see in the oval office. it's also quite to anyone who knows the family. is courteous, fair-minded and kind, capable of great strength and great gentleness and of all this, very much his father's son. mr. president, when you and i started our association in office, we knew that big responsibility awaited us. and though of course we couldn't have imagined all that was to come, somehow your life had prepared you for some of the most serious decisions in a president ever had to face. when the worst game, you did your j with coure and clarity, and with the strength of our. when i think of september 11, the days that followed, one of

the images that always comes to mind is the president standing on a flat firetruck throwing his arm around every country worker saying through a bullhorn that the people who knocked these buildings down would soon hear from all of us. [applause] >> far into the future, visitors here will still see that bullhorn. when they do, i hope to picture the world as it was that day and realized how it was transformed in the months and ars ahead. america went from being on the dense against terrorists going on offense against uzbek history is always an account of what happened, but sometimes the greatest story of all is what did not happen. and because you are dtermined to throw back the enemy, we did not suffer another 9/11, or

something even worse. [applause] >> i had a few more thoughts on the man and his prsidency, but i will save them for what we're all back in dallas again for the grand opening of the library. enough for now to say that it was a privilege to serve beside him for tho eight years, and a daily pleasure to share in the journey. i know that all the lumps here he'll just the same. i know the american people will always think highly of him becausthey can tell a decent, goodhearted, stand stand up guy when they see one. and i know that all the texans in this audience are ready now to lead the cheers for our friend, the 43rd president of the united states, george w. bush.

[applause] >> thank you all. thank you all. okay, thanks very much. thank you for those of you who are not privileged to live in texas, welcome to the great state. [applause] >> and welcome to one of the finest universities in the hold united states, southern methodist. [applause] >> i can't thank big enough for

coming. i've been doing these interviews, trying to peddle my book -- [laughter] >> i am asked about dick cheney. is what i say. dick cheney was the right pick in the year 2000, and as i stand here, there is no doubt in my mind he was the right pick them. he was a great vice president of the united states, and i'm proud to call him friend. [applause] >> i want to thank all the people who made this event possible. i want to thank my pal, mark langdale. and secretary don evans for the leadership. i do want to call out an smu columbus, ray, for being such an efficient and effective leader

in this effort. [applause] >> i appreciate ambassador jim glassman's leadership at the institute. i want to thank my pal, the former secretary of state, condoleezza rice, for joining us. [applause] >> one reason that smu is such a superb university is because its leaderip is superb, starting at the top with rald turner. [applause] >> i thank david for joining us and alan lowe, the archivists. i am grateful that our preacher, mark craig has joined us. and i want to thank the student body president, jake torres. [applause] >> now mr. president, a word of advice.

[laughter] >> it is not too early to start thinking about your memoirs. [laughter] >> i am proud to be associated with you and the student body. it is a great group of future leaders or our country. [applause] >> with us today is a man i have befriended during my presidency, one of the really courageous leaders in the world, someone who understands the importance of democracy andfreedom, someone who understands you cannot negotiate with terrorists. and that is the former president of colombia, have ever read a. me amigo. [applause] >> we are proud that a lot of soldiers from fort have joined

us today. i -- [applause] [applause] [applause] >> i really don't miss much about washington. [laughter] >> but i do miss being your commander in chief. [applause] >> i want to thank all the people from our administration who have joined us today, and i thank you for your noble servi

to our country. [applause] >> and i appreciate the 160,000 donors whose generosity has insured that this building was fully paid for before we broke ground. [applause] >> and i thank all the people joining us via webcast. it is hard to believe that there's this much excitement about sholing dirt. [laughter] >> today's groundbreaking marks the beginning of the journey. we take the first step towards construction of this presidential center, which will be a dynamic hub of ideas and actions based upon timeless principles. truth of the matter i, this moment is a continuation of a journey that began many years

ago. just over a decade ago the american people went to the polls to choose their president in the 2000 election. just under adecade ago, they figured out the results. [laughter] >> and a lot of us believe i the only present to have won the same election five times. [laughter] >> bacthen, no of us could have predicted what would lie ahead for our country. we witnessed our nation attacked, and our country united and results. we felt the grief of war and the jury of liberation. we remember vividly young girls going to school in afghanistan, and voters waiting purple fingers in the air.

we saw that, with clear purpose, and accountable action, we could help aids patients to live, struggling societies to develop, and storm victims to rebuild. through the trials and the saunas, the good days and the bad, the decisions we made together for guided by certain principles. we believe that freedom is a universal and the hope of every soul and the ultimate path to peace. we believe in free markets are theest way to empower individuals at home and to lift people abroad out of poverty. we believe you can spend your money better than the united states government can spend your money. [applause] >> we believe that america's interest and consciously meant engagement in the world, because

what happens elsewhere in gatively affects us here. we believe the call to serve and the admonition to whom mh is given, much is required. and i believe that the ultimate responsibility of a leader is to not do what is easy or popular, but to do what is necessary and right. [applause] >> the decisions of governing are on another president's des and he deserves to make them without criticism from me. [applause] >> staying out of current affairs and politics does not mean staying out of policy. i solemnly believe the principles that guided our service in public office are the

right principles to lead our country into the future. these principles don't belong to any president, or any political party. their fundamental american ideals that arise for a founding and have expired -- inspired millions aroun around the world. all three outlets of the presidential center will play a role in advancing those principles. .. apply these principles to the problems of our time, demonstrating with measurable results how they can transform and improve to lives of people at home and around the world. last november i presented an outline for the institute and am

pleased to report we had a productive inaugural year. a team of world class scholars. ambitious plans for our areas of focus. education reform, global health, economic growth, and human freedom. for example, we launched an innovative effort called the athrines reform education leadership which tos on improving the quality of school principals and administrators. e continent of africa. we've srted compiling a repository of documents and interviews from freedom advocates around the world which will spoight the triumph of dissy dents and inspire others to join their cause. one of the most exciting parts of the presidential center is the institute's

women's initiative. laura and i believe women are often society's most effective agents of change and one of the institute's core missions will be to support the efforts of women to lead the freedom movement in the middle east and in other parts of the world. we are fortunate to have laura overseeing this initiative and i ha been a lucky man to have her by my side for 33 years. [applause] it is now my privilege to bring to the podium a fabulous woman and great first lady. lara bush. [applause] >> thank you so much. and thank you, george.

thanks everybody. thank you all. thank you so much. thank you all and thanks to everyone here for joining us today. george and i are thrill to share this moment with so many good friends, so many cabinet members and white house staff. vice president cheney, thank you so much for joining us. dr. rice, thank you very much for being here. i also want to recognize president uribe from colombia. thank you so much for joining us as well. ambassador lgdale and dale turner. ambassador jim glassman will be executive director of the george w. bush institute, thank you all very much. you just heard about some of the bush institute's goals from fostering economic opportunity to improving access to health care and education and to expanding

freedom around the world. the reason we've included women's initiatives at the institute is clear. the success of each of these important goals will depend upon the contributions of women. viant economies rely on the creativity of women entrepreneurs. free political systems, require the insights of women in government, journalism, and the law. healthy nations dend upon wives and mothers to make informed decisions that will keep themselves and their families safe, and every successful society depends upon women who can read. mothers are our first teachers. which means that educating women yields rewards for generations to come. as the great egyptian poet ibriham said, when you educate a woman, you create

a nation. over the past decade i've been inspired by the examples of strong women that i have met across the world. in africa i met hiv-postive women who educate other women so that their babies will be born hiv-free. in saudi arabia where cancer carries a stigma, dr. almode works with the komen global initiative to raise awareness about breast cancer. in the remote jungles of thailand dr. cynthia mong runs a klain i can -- clinic to care for fellow refugees who are fleeing oppression of burma's dictatorship. as ambassador the u.n. literacy decade i met women around the world who met other women who lead healthier and prosperous and fulfilling lives by giving them access to basic quality

education. this past march george and i hosted a conference on the u.s.-afghan women's council here at smu. the council's work is a powerful example of the strides that have been made by women in afghanistan. under the rule of the taliban women were routinely subjected to unspeakable degradation and tomorrow meant and shut out completely from their society. today afghan women now lead as provincial governors and as elected members of the national assembly. they work as entrepreneurs, as lawyers, and community health workers. many also serve in a profession that is close to my heart, teaching. these inspiring leaders remind us that investments in women are always worthwhile and they remind us that laws and customs that deny womenheir basic

rights and that deny society's of women's contributions are never acceptable this is a message we need spread. this past summer americans were horrified by the "time" magazine cover featuring ayisha, the afghan teenager mutilated by her taliban husband. last year the murderer of an iranian music student and peaceful protestor nada sultan, who was gunned down on the streets of tehran during protests, showed that other women often pay the ultimate price in pursuit of freedom worldwide. and for most of the past two decades the leader of burma's democracy movement, a nobel lawyer rat, was a prisoner in her own own home. the free world rejoid this

week at her release but came only after she was banned in participating in burma's recent elections. and she has been released before only to be placed back under house arrest by the military regime. this time we hope that she is freed without conditions and she is allowed to continue her peaceful work until the day when all of burma's citizens live in free freedom. [applause] around the world all of us who live in freedom have the obligaon to condemn barbaric acts against women because an electorate that shuts out women is not a democracy. in a population that belies, denies the rights of women is not a free society. the goal of our women's initiative is to stand with the women who despite these

challenges, are determined to carry on their courageous work, to promote democracy and freedom in the middle east, we'll join with political and civic leaders, faith-based organizations, corporationing and foundations to help women become me engaged and better educated and be participants in government, business and civil society. through a partnership among african nations, western nations and ngos, the institute will lead an effort to deliver integrated health services to expectant mothers, hoping to protect their own health at a crital time and to keep their babies safe from hiv and malaria. today nearly 800 million adults are illiterate 2/3 of them are women. if we want women to be the bedrock of stable, democratic society, they mu

be able to read. here at the bush institute the women's initiative will champion literacy and will keep working to improve the education that girls and boys receive in school both here at home and around the world. at the u.s.-afghan women's council meeting held here at the bush institute, one of e participants wasn ghan woman. during the taliban years, dr. ukube operated ped ground literacy centers at great risk to her own life. today she runs more than 40 women's centers across afghanistan teaching hundreds of thousands of women to read. at the conference dr. sakubi asked participants to inves in the future of afghanistan and to support the ongoing progress of women. yes, it's difficult she said but be patient with us.

don't be sorry for us. be with us. through the women's initiative the bush institute wi stand with dr. sakubi and all who are working to guaranty equal rights for women. thank you all very much for yo support of the bush institute and thank you for joining us here today. [applause] >> and now, ladies and gentlemen, thank you for coming. the speeches are over. it is time to shovel dirt. >> joining president and mrs. bush at this time, to break ground, we welcome the coordinating co-chair of the george w. bush foundation, national finance committee, ray hunt. building architect, robert a. sternl. landscape architect, michael van vuklenberg. chair ofhe smu board of

trustees, sharon prothro, director of the george w. bush presidential library, alan lowe. ♪ . >> there you are, dick, right there. you got it. thank u, sir. okay. everybody ready? time to shovel dirt. hold it up, look at the camera, turn it. ♪ .

♪ . >> thank you for attending today's groundbreaking ceremony. for the george w. bush presidential center. please exit at the rear of the tent, and please travel safely.

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♪ >> robert gates talks about the threat of cyberattacks against the u.s. secretary gates was also critical on proposed military cuts outlined by a budget deficit commission. we'll also hear from treasury secretary tim geithner. you who do not realize it, bob gates' career started in 1976 when he

[captions copyright national cable satellite corp. 2010] and n for six different products -- six different -- the pentagon for six different presidents. there must be in a war for that. -- an award for that. he will be leaving the government next year but you should note that you can check out any time you like, but you can never leave. [laughter] i thought that what bob and i would do is talk about the security situation around the world for a few minutes and then talk about the management challenges at the pentagon, which must be at least as frightening as the securities their tuition around the world. let's start with the most obvious and the pressing, afghanistan. president karzai over the weekend said some startling statements, the need for the u.s. to rent back military

operations, to stop special operations in the south, which have been very effective. and general petreaus among others -- we question what the relationship is with president karzai is right now. >> president karzai is our partner. he will meet the president in afghanistan until the second term as out. 2014, i think. we will continue to partner with him through this conflict. i think that president karzai is reflecting the impatience of a country that has been at war for 30 years. being in this war for 10 years, and was at war for 20 years before that. i think what president karzai was articulating was the desire

to see afghanistan get to the point where is he referred to in his interview, the way that it was in the 1950's and 1960's when the primary american presence was a development presence. we were building roads, we were putting in irrigation systems, and so on. we share that desire. the problem is, we cannot get from here to there tomorrow. i think if you will see nato next week or this coming weekend tackle the issue of transitions, probably embrace president karzai's un stated goal of having a security transition and responsibility for security complete by 2014. i think he was -- my own view he was expressing the frustrations

of the leader of the country whose people have been at war for so long. i think the reality is, he understands what we have to do to get afghanistan to the point. the reality is, the afghans are playing a significant role already. there has been dramatic improvement both in the numbers and in the quality of the afghan security forces over the last year. 60%-75% of the forces and a can of our operations are afghan, and that as an afghan lead operation. the counterterrorism operations are led by afghans. we will continue to work with them as a good partner. >> is there a cap emerging between the approach the u.s. wants to take over the next eight to nine months and what president karzai's political needs seem to dictate?

>> i think that we will be ok. . afghanistan would have 140,000 troops on its western border fighting the taliban and the various other terrorist groups that are in that area, i would have thought that -- basically withdrawn six divisions from the border to deal with this problem. is it as fast as we would like? no. but if you had told me again two years ago they would have occupied slots and be going after these people and be working with us, partnering with us as we coordinate on both

sides of the border, i just thought that was reach, but i think the strategic dialogue we had with the leaders of pakistan when they come here and with secretary of state clintonon going to islamabad this summer i think has enhanced the relationship. >> it is clear they require the ability to move across the border to deal with issues on the pakistan side. are you -- will the u.s. military continue the have the freedom to move back and forth across that border? >> well, we don't have combat troops on the ground in pakistan. what we are seeing is the

pakistani government, the pakistani army taking action against some of these -- disrupting them. increasingly coordinating with us in -- not in cross border but on either side of the border, operations against these groups. i think that -- i think that the pakistanis taking it on is clearly preferable. >> are they doing that in as aggressive a way as you week like? >> as we said all along, they got to where they, they need to be. it is -- we're pretty impatient people. we want everything done yesterday. again, they're doing things that frank le we would have been skeptical they would do even a year, year and a half ago. >> what is your view of the wilings willingness of the

government to go further. pakistan is happy to go after them when they threaten pakistan less happy when they threaten afghanistan. is that phase over? do they understand both versions of the taliban pose threats they ought to deal with? >> the highest priority is to go after those that try to overthrow them when is the pakistani taliban. but they're increasingly, i think, moving -- and working with us against other groups. >> the other source of of terror threat is from yemen. they turn out to be something other than ups packages. how serious is the terror threat in yemen? what kind of tools do we have in the u.s. government to deal with the terror threat from yemen? >> the truth is what we have seen as we brought pressure on

al qaeda and north waziristan, the terrorist movement has mes that sized in many ways. so we see them in somalia and yemen and north africa. our biggest tools can respect to yemen are the partnership capacity of the yemen ease themselves and enabling them to go after these guys. we don't need another war and the yemenees have shown a willingness to go after -- after -- what we call aqap, al qaeda in the arabian peninsula. they're working with us and the saudis and others. one of the themes over the past couple of years for us has been building partnership capacity, which is giving them the

equipment and training so they could do the job themselves. this is a theme behind a lot of efforts in africa as well as in the middle east. that's our -- that's our best tool in yemen. >> in yemen, is there a g. that you could actually work with -- a government you could work with, unlike somalia? >> yes. >> do they the attitude to dealing with the aqab problem? >> this the case of a lot of cases, the president of yemen has a tribal and management -- management challenge that he has to deal with. i would say in terms of going after the paris, they have it. >> let me ask about iran. it seems likely there will be renewed conversations with the evan government in coming weeks. anything you see that that

suggests that the path toward nuclear weapons capability is anything but straight and narrow for the iranian government. >> i personally believe they're still intent on acquiring nuclear weapons but also the information that we have is that -- that they have been surprised by the impact of the sanctions. this latest round, not just the -- the -- the last u.n. security council resolution but the actions taken by individual countries, using the u.n. security council resolution as a platform or as a foundation. those measures have bitten much harder -- harder than they anticipated. we have evidence that come mainy is wondering if ahmadinejad is lying to him about the impact of the sanctions on the economy and whether he's getting the straight scoop in terms of how much trouble the economy is

really in. i think that -- the sanctions are having an impact. whether -- look, the only long-term solution in avoiding an iranian nuclear weapons capability is for the iranians to decide if not in -- it is not in their interests. everything else is a short-term solution, is a two to three-year solution. if it is a military solution as far as i'm concerned, it will only make them -- it'll bring together a divided nation. it'll make them committed to obtaining nuclear weapons. they will go deeper and more covert. so i think that the political economic strategy is the one that we have to continue to pursue and ratchet it up. and create -- create a -- an exit -- an exit for them.

if you agree to do these things that give us confidence that you're not building nuke here weapons, then there's a way out of the box you have gotten yourself in to. >> you're saying the imperative is to find a nonmilitary solution. >> i think that's the only long-term solution. >> let me talk to you about a subject that occupied conversation this evening and china. it is chinese has become more aggressive. at the same time you have attempted to renew a dialogue with the chinese government, which i assume is a positive sign. what is the sense you have that role china wants to play and the extent to which that may or may not bring it in conflict with the u.s.? >> you give me too much credit. from the first meeting, president ooh and obama have talked about the military to

military relationships a being underdeveloped of the overall chinese relationship. i think that -- i think president hu has reemphasized that. i that's the reason that -- of course he's -- he's coming here next year. i will be going to china. and i'm confident that the reason i got an invitation to go to china early next we're is because president hu thinks this is an important part in the relationship i happen to think it is a very important part of the relationship myself. i'm hopeful in addition to exercises and joint efforts in humanitarian assistance and disaster relief and a variety of other things like that, that we could broughten this relationship to -- broaden this relationship to a strategic dialogue so we get a better understanding of each other's strategic intentions, the way we

see the world and so on. i got involved in the strategic arms talks with the soviets 40 years ago. i'm not sure when most of those negotiations ever much led to disarmament but the william thing i'm confidence of -- confident of is over the period of decades, we came to a very clear understanding of -- with the soviets of how each of us thought about things. i think that dialogue helped pre vent many mystical clages and mistakes. i like to have the same dialogue with the cline niece. >> let me turn -- turn to your very big organization. you got management and budget challenges that are significant. you essentially told the defense department, the budget greavey train is probably coming to an end sonner than later. get ready for it. you basically said, we have to

find $100 billion if savings over the next 10 years or so, if -- the next five years, if we're going to keep the forced structure that we have in place. you also tell the shareholders that you're -- they have to learn to live with that as well. how are those messages going down? >> i think that within the building i have gotten an incredible cooperation -- this has been done in partnership with the military and i think -- the challenge we face is that -- that the growth rate that we are likely to encounter over the next four or five years, or the absence of a growth rate forces up to look inside because beneed to maintain about % real growth in terms -- in the capabilities part of the department of defense in order to sustain the forced structure that we have

today. i believe as i look around the world, given the first 15 minutes of this conversation and the other promise we didn't talk about north korea or other challenges, i believe the challenges the u.s. is likely to face and the unfortunate reality that most allies are reducing their militaries that the burden on us and the security chalrention going to remain unchanged -- security challenges will remain unchanged and increase in the future. there was the need to sustain forced structure. that means taking $100 million out of overhead and invest it in the tooth, as you say. one thing we gotten the cooperation of the services is basically telling them, instead of the usual budget cut routine that it is a zero 0 sum game, i basically -- i basically assured them all that they can find if

the overhead, they could reinvest. sao what the navy finds in overhead, they can apply to ship building or drones or whatever. same way with the other services. in addition to that, i hope to find somewhere between $15 and $20 billion in savings outside the military services. that i can then reinvest in the services. i'm asking what are your priorities? where are you going to invest this money and what are your priorities if i find more money that i can give to you? i think that -- that incentives the services it really look very hard at the way they do business. this is not a matter of doing the same things we're doing with 10% less money. it is figure out new ways to do business. >> your political problem is the

chairman of the deficit commission, have essentially said that's great, we'll take your $100 billion and raise you. what is your message back to the deficit commission? >> i'm -- i met with -- i met with -- with allen and withers stin bowles two or three weeks ago. i described the security situation that we have. i'm sympathetic with the challenges that -- that we faced in terms of the deficit. the truth of the matter is with, when it comes to the deficit, the department of defense is not the problem. if you cut the budget by 10% which would be catastrophic in terms of forced structure, that's $55 billion. on a $1.4 trillion deficit. we're not the problem. i think in terms of the specifics that came up with -- that is essentially math, not

strategy. what we're trying to do in the department of defense is figure out how do you -- how do you kill programs that aren't with working or are way overrun, are way overdue. how do we develop the broadest range of capabilities for the wide e-range of accept narrows and sustain the strength this country needs. that means going in with a scapal and a -- instead of a meat ax and figure out how to change doing business. frankly, the idea that defense would take half of the cut in discretionary spending, particularly in terms of what we're trying to do in terms of security is a problem for me. >> let me stop there, allen and see if there are questions from the audience about either the security or the management.

>> tom from reuters. let me shift the attention from the geographic hotspots to cyber. i know you recently created a cyber command. how -- howe do you vute the threat assessment and what we -- how do you view the threat assessment and ho do you we do we help the homeland from cyber attack? >> i think there's a huge future threat and considerable current threat. that's just the reality that we all face. i think the challenge -- we have taken steps where we have -- we have arrived at pretty good protections for -- for dot mill. we are working with -- with our partners in the defense industrial base. to bring them under that umbrella has, to provide them with protection.

just -- just a few weeks ago, the president approved a memorandum of understanding that secretary napolitano and i worked out, the key is that the only defense the united states has, i think, defense nation states and other potential threats in the cyber world is the national security agency. you can't replicate the national security agency for domestic affairs. there isn't enough money or time or human talent. so, how do you let the domestic side of the government have access to the -- to the asset that n.s.a. represents while at the same time taking into account the concerns for privacy and civil liberties. what our memorandum of understanding does is create a department of homeland security cell in -- in n.s.a. that has the authority to task n.s.a. but to do so with that you are own lawyers present and so on in terms of -- of way that is will

protect privacy and civil liberties, so you have the domestic security agency, the d.h.s. being able to roach into n.s.a. in a real-time way to get the kind of protection that is we need. by hope is that over time, that this will ahead to a better protections for both.gov and dot-com. >> my promise to secretary gates is he would get out of here at 9:00. thanks for coming by. one more quick question. right there. >> secretary, you talked about the necessity -- ness toy eliminate programs that are overdue or wasteful. i think you and i share the same fashion for example on what a program is an ultimate engine or extra engine for the fighter. our company builds blackhawk helicopter which is a single engine, which is t 700s.

i think there's an erroneous perception that everybody one needs a backup engine. why can't we eliminate some of this wasteful spending? >> well, that's a little loaded. i would put it this way. and it goes to -- it goes to a question that jerry asked that i didn't answer, how about my overseers on the hill? the truth of the matter is the congress has been remarkably supportive of what i have tried to do. i went to the hill with -- with 33 program i think decisions last year and the hill supported me on 31 of them. the 32nd was stopping protection of the c-17. i think that will happen in this

year's bill, and so the one remaining issue is the alternate engine. well, one of the things in our acquisition reform is -- is to rely more on competition. but real competition. too often competition in washington is everybody wins. that's not my idea of competition. my idea of competition in the acquisition arena is winner takes all. so, i want to structure these things in a way where we do have competition. i think we have competition for the -- for the next generation tanker, another sore subject. but i think the more we could do this and the more we can -- we can cause industry particularly on relatively low -- low technology risk programs to

share the risk with the government, in terms of timeliness and cos, the better off the taxpayer is going to be and at the end of the day, theport off business will be. >> thanks. i forgot to mention the most important part of his background, he had the great good sense to be born in kansas. i think the -- the -- his stock rises to the top. thanks for coming by. i appreciatet. [applause] >> could & voting thing? >> i like the golden share is what i really like. thanks. good morning, everybody. thank you so much indeed, secretary geithner. cullen, your colleague as here