a dramatic impact on our economy. that is the american innovation system at work. it is a direct descendant of the research and development system the united states invented to develop the technologies including radar and the atomic bomb that won world war ii. presidents truman and eisenhower working with congress and died and by scientific advisers recognize that the strategy of investing and advanced scientific research that have produced incredible award winning results could produce the technologies that would win in peacetime as well.

these were stunning results. the real income growth everyone, the it wave was

transformative over the 1990's.

job generating companies. i am happy to report that our immigration system is alive and doing mostly well. i think there are many things we can do to be effective.

with hundreds of people in massachusetts and there was an ambitious research community. about 44 of them. innovation clusters are powerful and they get stronger as they grow. the manufacturing story is instructive as well. therror -- there were

universities that helped us with these innovations. united states lost market it's vintage. it went to korea, china -- china, japan. they knew it would be tough to get into areas dominated by those areas. power tools for black & decker. they would use this to master their technology and production. there new and sophisticated plans, batteries for electric vehicles, the largest lithium ion battery factor in america. this employs 800 michigan

workers. half of them are out of work before a13 came to town. we cannot just make ideas here. we have to make products here. that is the story so far. what can we learn from this? there is nothing that we cannot fix together. we have to work together. here are some rules. attracted brilliant scholars and help them get of of the education and hands-on experience they can handle. serve our homegrown factories and improve education and increased the number of graduates in this field. the united states trails many

nations in europe and asia. it is a in terms of getting bachelor's degree in engineering and the natural sciences. the number of american science and engineering ph.d. remains constant. it is flat. over the same time frame in the same field, ph.d.s in china went from 1000 to 12,000. the trend speaks for itself. i know there are a range of ideas for making public education more accessible. i want to call out and open course layer will be put material for almost all of our

courses online open to anyone in the world for free. there are some course materials designed for high school students. there is a particular focus on materials to help student and factory acquire information needed. we have to capitalize on the ability to attract talent from all over the world. this has been the secret of our success -- not a secret. part of our success for centuries. more than have of the silicon valley start-ups were launched by people born outside the united states. we are revamping the immigration lac highly educated workers.

we have to make it affordable for people with advanced degrees here to stay here and get great jobs. an entrepreneur culture helps them flourish. every university should build of that culture. they need mentor networks to teach them how. they need products into the marketplace. they want it seamless and fast. you can organize alumni the entrepreneur hours. and do it for free, and they thank you for it. there are was a service started

by alumni volunteers. less than $3 million in funding over 10 years. with that money, it has launched 142 ventures which raised dollars in financing. it also helped more than 20 other groups want their own rendering services. it has helped agencies in st. louis and chicago. it is important to take money from the right source at the right time. the truth is, we want breakthrough innovations to drive our economy. there is no substitute for strong and sustained a row funding for advanced research. it is that kind of funding that generates this.

new technology sectors are on the launch pad. a spurt near innovation waves. robotics, advanced materials and biomedicine and beyond. these are hanging in the balance. when we let other nations lead, we do not reach the potential for american workers. role for, innovation clusters are powerful and get stronger as they grow. and that -- innovation clusters do not pop up randomly. we make them happy -- we make them happen. one example is north carolina

and their research triangle park. this brings together corporate academic and government leaders. and employment in the region more than tripled over a certain time frame. if we want to make u.s. jobs, we cannot just make ideas here. we have to make products. no amount of innovation will be enough if the shift manufacturing abroad. america is the world's second- largest manufacturer. with the summit nations copping out model, we have to look at what the future demands.

the president asked me to co- chair and industry government task force in advanced manufacturing. there is a lot of enthusiasm. there is a lot of great work on this new frontier. the workers for this new era of manufacturing, will come from community colleges, high school and engineering schools in your state. i invite you to join us in making this new effort truly a national effort. in the report released today, america's companies are working closely with community colleges to make sure students are prepared for tomorrow's jobs. i welcome any ideas you have to. get the most value from our system. let me close with a reflection

on some of our cultural assumptions. i was a member of a recent panel on innovation. a moderator asked me why any entrepreneur would go to college. we know many people that have been successful as college dropouts. the innovation that find lasting economic growth emerged from the most advanced science and mathematics and technology. battery technology that it draws on chemistry and engineering that you just do not learn in high school. we need our brightest young women and men to buy you advanced education and innovation as much as they love of football and basketball. the smart phones and video games

and music players that they covet or invented by real people, just like them. science and engineering can offer them power to become not just world consumers and spectators, but the inventors and creator's the the that will restore america's prosperity. as refocus on the hard work ahead, when making education more affordable, reforming immigration, building and entrepreneurialism, i urge you to do something that i hope you would consider. please celebrate your state inventors and on trapunto hours

-- all entrepreneurs. make them your heroes today. your students can be heroes that turn on the light in america's factories tomorrow. thanks for inviting me and joining me here today. [applause] >> i cannot tell you how much we appreciate you spending a brief amount of time with us and then you are back on the road again. i personally cannot tell you how much i thank you for the message. thank you very much. the other side of the partnership, please join us, dr. brown.

[applause] >> well, what else can i say? i have to tell you also, though i spent most of my -- much of my time on the west coast, i end up walking through the mit campus and i love the excitement on the campus. it turns beyond to what is possible in america. i am interested in this issue of innovation and the changing game. it has changed a bit. it is worth the time to spend looking at methods and taking us

beyond the issues of just money. the first question you might ask is, what is changing? what does it mean for higher education and innovation? one chart has given a lot over the years. we call it the big shot. in the last few years, change has happened in terms of the long-term stability, brief moments of disturbance, changes in 60 years of stability. we reinvented work practices and other practices. what has happened now is in the last 10 years, we are moving to

a different kind of infrastructure proven by the digital loss of competition. now we find having a world in which we have constant disruption nearly every year. the challenge is how do you start to leverage that rather than fear that in terms of driving innovation in? it will not slow down for the next 30 or 40 years. let me say this personally. i can recapitulate the last 10 years of my life. it took me from this class to cloud computing come into graphic processing, that is

scientific computing a fraction of the cost, now into a very limited form of competing. i have had to relearn almost everything i knew as a computer scientist. dealing with the plains regarding amazon and microsoft. i had to think about how to move these processing units. there are single processed threats. now let me run the 12,000 threads simultaneously. almost everything has to be reinvented. we are moving to a different type of a world. the catch is to recognize the half life of our skills, which is shrinking. most skills you learn to run

this table, you could live with for 30 years. now you may have to retool yourself every five years. how do you not to rethink talent development? there is like learning. how do we create willing -- and our industries? how to remove to a world that is constantly driven by questioning? how do we drive collaboration across systems and between university industries? how do we create a new mindset of listening with humility? an ability to listen with humility.

those are the challenges. i think an interesting example going back -- going down the road 30 miles or so, but the notion of north carolina's anniversary and their efforts to reinvent the land grant university for the 21st century. we know this country was built around a land grant. somehow it has left our discourse. we do not talk about the reinvention of the land grants. there is an interesting case in the study of a school and the government that set out to think, can reinvent notions of spirit of the land grant? in north carolina, a state built

on textiles, being decimated. when i walked on the campus, they started hanging around. it has companies, government, all in the same campus operating shoulder to shoulder. i discovered some of the most interesting nanotechnology in the country. textiles, fiber, it would completely reinvent the entire textile industry around now. the answer is, yes, it is happening. it is leading to amazing technology, including building structural beams for cars out of

textiles. card capabilities out of these textiles. it is building some of the most amazing fiber you ever thought possible. this is happening with a spirit of engagement where the profs and the students think they can loot -- learn as much from the environment as the environment learned from them. stuff is passing from the brains of universities. stuff passes in one direction. now we can open up and ocean from shifting from one area to dialogue. there are operations in every single county of north carolina.

it is amazing to see graduate students doing a thesis on these aspects of the textile industry. it is fair to say the coupling with the university from the industrial base is not always easy innovation is about r.o.i. there are three kinds of that that we have to consider. there are two other, a return of interest, and a result of purpose. the industry concerns about

return on investment. the research turns on research of interest. there are three different ones that can be brought together in a magic way. we have to understand the different mind set that in the past made this very difficult. now there are ways to bring it all together. industry deals with licensing at the top. it goes to those of us outside of the university. i want to argue that in fact, it can be amplified by asking how do the roles of the early stage of a venture capital would have to get understanding as to what might be useful market probes.

how the sphere that certain types of venture capitalists could bring to the game are more aware than classical licensing opportunities. we have to understand how we will expand that knowledge spier. it is interesting because the real game here and we have seen the results, which are amazing. can we find the sweet spot across all of the different levels of around the university along with the sweet spot that of the industrial at the system. research of interest find a couple into a particular problem in the industry. the real question is can we find

new ways to build connections at every level in this game? in a world where so many people have access to education, keep tools of innovation, innovation that happens from the bottom up tends to be chaotic but smart. innovation that hopkins from the top down needs to be orderly and [unintelligible] the sweet spot is moving down not up. all of the people have tools to invent and collaborate and can radically change this gaininini. what does it mean to connect at all different levels of the industrial eco system?

the game is changing even more. this test -- cloud computing has come to the floor, which enables a lot of start-ups to not have to use their early stage funding to buy massive computers, which would be reduced to zero value in about three years. they have been able to shift at the one time that money is most expensive at the start up a base into saying, what can i do in terms of operating expenses and capital expense? i can take you to a set of companies that not only started with a credit card, but also made profits the first year, so you do not even need additional capital.

the companies like different variants of social networks. we can do a whole range of things we did not think about before. we know about the way that we can use clouds. we use cloud computing today to do materials science. you heard about a famous silicon valley garage. we do that by being able to build a major complex model, rent them out 1000 to 10,000 computers simultaneously. we can do something that usually would take me six months to do and get it done in one day. the cost of speed and innovation is changing. you have to think analytically.

we have to make these models work. once you understand the amplification of doing this is simply astounding. i also want to mention that we do not talk much about innovation turning as much on crap as it does on deep science. the science is critical, but there is a spirit of tinkering that surrounds a typical craft that makes a big difference. most of the start ups i am a part of, tinkering is a massive part. it does not sound sophisticated, but it is. how do we nurture the spirit of its? whether it 15 years old or 35

or 65? it is something we should think about. what is happening today is now tinkering with residual tools. we can connect with other people tinkering. we need to share ideas in a collaborative spirit. that was impossible before. a simple example of tinkering not brought just at a high school and college level is something called the text shop. it has computer-controlled options. what you find in these tech shops is what is franchise around the country -- we are about to open one.

it couples entity that integration experiences of people that are not deeply trade in doctorate work. we can learn from each other. the amount of mentor ship that goes on it is truly amazing. if you have a chance, you should go visit one. the attempt to bring back the honor of making things with your hand is happening. the last one we had at the west coast had 175,000 people show up for it. here are the different cities now developing their own in terms of driving this kind of tinkering. what is the biggest picture here?

one does a great job of mentioning this. it seems like the mit open courseware. they are changing the "ap" program to get into some of these high schools and colleges. wrap them up in ways that colleges can use them. i think this is a pioneering one to look at. i would like to call attention to this for a personal reason. kobach to the big shift i told you about. after constantly in rejuvenating my own understanding, i discovered open courseware, because i needed a way to refurbish my own skills.

people are constantly finding new ways to look at the world. this is a fantastic scaffolding. if you have a mind to constantly pick this up. many ino constantly refresh their own skills by looking at this. it is i high leverage, low-cost opportunity. i am also struck by another major change that i likely see happening. a pupil, the.

i am talking about research university. we do not seek scientific paper anymore. i think this is a critical difference. if you are going after a solution, almost all social or technical problems require the many interactions with the outside world and the inside world. the key notion is, is this going to the root of the problem? creating boundary objects. if there is anything you cannot do, is tell many to come together and work together. that does not work.

you cannot pull them apart if they are excited about the problem. the last comments, going back to the manufacturing issue. we tend to not process research. the many of our technologies require major breakthroughs in order to build this stuff in a cost-effective way. we will not return manufacturing excellence without appreciating a power message. there is a certain kind of tinkering associated with it. this may seem strange.

there are people behind the scenes, tinkering with the program and capabilities of these robots. i was hired by general motors to study toyota. the eight groups said, see what we have done. people on the assembly line build of this themselves. everyone has a college degree on the assembly line. they had the opportunity to build what they needed to become what they wanted. there is a spirit of fair that we have to figure out how to restore. i want to call attention to the fact that we want innovation in our ecosystems.

the really technical stuff. see that stuff above the surface. it matters as much as what is below the surface. i cannot build a start up today if i do not know how to access design houses across the country or around the world. always needing public relations and advertising. how do i build a use for fermentation reactors. that is the stuff that does not get talked about.

we had to leave the 11 states to find the right kind of boundaries to build a new transistor. it was not meant to be a generic case. i am calling attention to the fact that this meets the water that often makes a huge difference in being able to jump-start a new kind of company back to the market can't spend the money where it matters. very few people final can run fermentation reactors unless they build the year. we have to be aware that 80% of this stuff is below.

and, we need to pay attention to this. there are a lot of resources around. how much time is spent connecting them to do new things? we talk about financial repertoire are, but not about leverage. what can be leverage together with the ability to do computing? there is an example. all of the capabilities of nyc where you can build programs, more importantly, after-school programs. how to build a network that connects these after-school capabilities in terms of museums, public libraries, all

of this stuff together? if you look at where our kids spend their time, it is constructing a chicago, constructing a huge room where they are inventing new ways to write in terms of digital media. more books, not digital books are being put out now and ever before. how do you say, this stuff is here? and how do we leverage these types of things? they of preparing themselves for arc of life learning and prepares them for, some learning how to become a fun.

thank you. [applause] >> thanks. that was insightful and challenging. we have time for some questions. gov. quinn from the state of illinois? >> we have innovation council from our state. we have a group plan that has grown to 6000 employees today. we have tried to put all about the datasets in the state of illinois, the information we have about anything online with the city of chicago and cook county as well.

we want to inspire this on the grass roots level to innovate this and create. this chaotic group are the ones that will create these changes. how can we expand upon it? >> i think your observation is right. we are finding more and more of the ability where it is where the investment really lies. groupon has clever ideas on how to do that.

when i heard the business plan initially, i thought they were kidding me. it actually turned out to be pretty damn interesting. and curious with 12 people starting that company. >> the person that started the idea was a music major at northwestern. he went to a public policy school for three months in chicago. he dropped out. in his first idea fizzled. he did have some capital. the second idea exploded. what i am interested in is using all of this data, this information, the government has, just sitting there. rather than waiting for someone to ask for it is putting it on

line. this information about highway accidents, where pot holes are, a million other things, that is our whole goal. to put all our data in one place. we want to figure out innovation. >> it is a pitiful example. when you are touching on something, how do you build smarter government not bigger government? information and? the amount of data -- we know what is sitting inside the federal government is astronomical. we are trying to find the gems in them.

>> there are certain states that are doing at. >> from the state of delaware. >> i thought the questions were great. i wonder with respect to comments about the shrinking half-life skills. one person has a common entitled the start up this year. he is making a similar case that our kids need to be focused on reinventing themselves, because innovation is happening all of the time.

we can do some of the structural and. so much of it seems to be cultural in getting people to understand that the world can change so dramatically, just in the last five years. suddenly, the kids and their parents need to understand this change is taking place and excel rating on a monthly basis. my concern is so much of the acceleration going overseas and making sure the immigrants can stay here after they get their education. i wonder if we make sure people can get it. >> i am supportive of your observations.

we have to celebrate the heroes of tomorrow. we do something called mass challenge in massachusetts. people love competition. i want to comment on the sense of need to reinvent yourself and the tools to do that. there was a comment about open course work where it was launched a decade ago. it was designed for college and university professors. that was the target. i think nothing has surprised

us. nothing has surprised us that most of those using courseware are independent learners, not faculty. who would say to their friend, i spent the afternoon loading up on magnetism. as a nation, we need to shift the focus on what we consider to be celebrated activities away from what we consider leisure activities to rebuild each of our own abilities. >> senator from mississippi? >> thanks.

i have to make an observation. we are in a global battle for talent. the competition for talent is unbelievable. thanks for making a point. every foreign-born child in the united states in engineering, math, science, technology, we should staple a green card to their diploma. otherwise they will go to mumbai and start a company. we would rather than start one in memphis. the constant learning -- one of the things that we are not -- some governors -- one person touched on it. this applies to people that work on the assembly line as well.

it is not just the guy or girl that will get a phd. we need to understand that workforce training is something that -- for our companies to keep up and to stay competitive by being more productive. the workplace changes of the time. we need people to work on those lines that always have access to that. both of you gave us a lot of good thought. thank you. >> building on your last comment, you have to get industry to recognize -- how did we change the work landscape itself so it becomes a constant learning escape? the training is in the way we

design work. i think that is so key. >> governor nixon, our last question from misery. >> in the amplification? i think all of us are in situations where we sense we can do that. they are talking to us about shorter supply lines. we are consumers in america. it is not hard to get the product to market.

[unintelligible] what advice do you have on making products here? >> i can speak on that for an hour. i am a professor after all. i call up process innovation. it is easy to assume that it can be made elsewhere. we have to be committed to process innovation. this new, advanced manufacturing partnership is done to see how we can accelerate that kind of thinking. there was a study about 21st century manufacturing. in years past, the japanese were eating our lunch.

some got together to think about how to be a man in american manufacturing. they do not have all of the interest, so you request them. there is a new study called production and innovation. half the people i talk to say, didn't you get a memo that america does not do manufacturing anymore. part of the goal of advanced manufacturing partnership is to raise visibility. i use an hourglass as my image. the manufacturing itself, the -- new manufacturing technology to develop, it is like the photograph he showed of the new

gm factory. it is kind of job free. it is a waste of the average class. there is a gigantic funnel of job and then another giant for rate of jobs and activities that flow out of it. we get off the entire hour glass of jobs and materials. a part of it is national orientation. part of it is how to redesign the process, such a to become economic, valuable, that and some of it is policy indestructible. the question in my mind that we have to start thinking differently. we have to let them over there do stuff. we all know that is not true. we have to figure out how to manufacture in a new ways.

there is this is celebrating rate of change. we have to take celebrate the entire price line from the genius conventions across the country. we have to get them into production and get it up around the world more efficiently. if we do not focus on it, we will never get there. thank you.

>> we have much to talk about.

let's go ahead and get started. we're going to focus on four major themes. trade and investment, energy, environment, and education. following are open and points, we will have a question and answer session with oliver governors. i would like to start with trade and investment. u.s. governors and chinese provincial leaders, as the chief executive officers of our respective states have a strong mutual interest in harmonious bilateral economic relations. our economies have become interdependent. according to the u.s. department of commerce data, china is the third largest u.s. export market, second largest export market for u.s. agricultural products, and has been our fastest-growing market for a decade. with u.s. exports growing by more than 450% since 2000. u.s. exporters have lost market share to competing nations

during the same period it, according to the american chamber of commerce of shanghai. the u.s. population -- a growing chinese class of consumers that offers u.s. exports is exciting to create investment opportunities. likewise, u.s. states and territories stand ready to encourage and facilitate business investment in this country. u.s. affiliates of foreign companies employ 5.6 million people in 2010. importing an annual payroll of $408.5 billion. an average salary per u.s. employee of about 70 prague -- $73,000. that is 33% higher than the average compensation level for domestic based companies. through ongoing dialogue and interaction, we must strive to

develop mutually beneficial long-term relationships between u.s. states and territories and chinese provinces to trade and investment opportunities. it should capture not only traditional business to business relationships, but also travel, tourism, and cultural exchanges. such opportunities and exchanges facilitate relationship building in trade and investment, which include securing partners to help parties navigate transactions. strong bilateral relationships among the u.s. and chinese public and private sectors also help us appreciate the riches we each rain and it would support a more predictable market environment where access to capital is strong, workforces are skilled and educated, and regulatory practices are transparent. a predictable market environment improves dab, improves trust, --

depth, improves trust. >> thank you. the chinese delegation is headed by a party secretary and the major members include the following. these provinces are located in the southeastern coastal area of china.

they have their own strengths, a distinctive characteristics. to enable the audience to have a better understanding of those four provinces, they have made short films about their own provinces. trade and investment, the governor has made an introduction about the topic. for this topic, the chinese speaker is the party secretary. before his remarks, please watch a three-minute short film. >> located in the south of

china's delta region is known for the cultural heritage and the beautiful west lake. more than 30 years rapid development has seen -- is one of china's strongest and most economically diverse economies and manufacturing powerhouses. it as much of its reputation to a private economy. more than 6 million people across china are doing business with 1.5 business meant realizing their ambitions abroad. it is also a standout for its modern manufacturing, clothing and textiles are enjoyed a worldwide.

they are the newest engines of the economic growth. the province is famous for its commodities markets. largeste world's international market place. in 2010, the total market turnover reached $196 billion. it is best known to some for its exports oriented and economy. the total exports and imports is currently over $250 billion. for the past two years, the superport rent and the top, the world's four cargo volume. the development is owed it to the depth and strength of cultural heritage here.

kolter and community blossom. -- culture and community blossom. it is a beautiful place to work, live, and a visit. the environmental law and attracts millions of international visitors every year. the vitality and its rapid ongoing development is the consequence of the help investment and business environment here. the flourishing trade, modern infrastructure, a modern masterpiece and success story. >> working hard to promote trade

relations and closer investment relationships. >> of governors of the united states, france from the media, ladies and gentlemen, good afternoon. the chinese navigation have come to this city and we have stayed here for three days. in the past three days, we have experienced friendship and cooperation and hospitality. the first chinese-u.s. governor for on the initiative by leaders

of two countries are being held in salt lake city. please let me extend our heartfelt thanks. warm congratulations on the opening of the forearm. -- forum. it is a step for words between china and the u.s. and promoting international cooperation. in our delegation, we have representatives from an eastern coastal area of china, central china, and western china. we could use this opportunity to work together with our friends in the united states for, and investment and to promote greater progress between the two

countries. we will introduce to you about our respective provinces. i want to take this opportunity to brief you on trade and investments. it is located in the western coast of pacific and southeastern coastal area of china. it is one of the most developed provinces. we have contributed to more than 7% of china's economic growth every year in 2010. our exports are $185 billion. 11.5% of the china's total. that means of all the exports

made in china, one time comes from our province. -- one-tenth comes from our province. it is also the third largest import. over the past 10 years, our trade with the united states has increased by at 6.9 times an annual increase of 21.4%. the u.s. is also important for investment. most of these enterprises have become the major profit makers of the company'ies.

merck established in 1994. in 2010, the market turnover exceeded $380 million. in july 2010, it opened a new plant and it is estimated at $1.4 billion. the u.s. has become the host of the most investments by april 2011, it has established a total of 410 enterprises and institutions in the united states.

15% of our enterprises investing abroad. it is based close to chicago and it has been the most successful chinese enterprises investing in the united states. it has 28 subsidiaries in the united states, implying more than 5000 people -- employing more than 5000 people. these companies are the beneficiaries of business exchanges. they represent -- demonstrates the achievements made in the fast economic growth in china and interconnection between the two economies. it demonstrates the need for the two countries to work together

to build a partnership based on mutual respect and mutual benefit, a corporate agreement, we have every reason to believe that as we work together, the business exchange and investment cooperation will lead to more fruitful development in a larger scale. there is a comprehensive framework agreement providing strong balanced growth. we have seen a new milestone in our economic cooperation. we are paying more attention to develop economic growth pattern.

we are paying more attention to the biological industry, manufacturing, and new energy. more and more enterprises are working toward a larger investment and working overseas to lay groundwork for further multinational development. they have an indispensable role to play. we are ready to work together with the u.s. to work together for a bright future for our business cooperation. we should step up efforts. work together to expand our trade and promote a more

balanced china-u.s. trade relations. there will be for topics. they are very important topics. we have reached consensus, but what matters most. it's about implementation. one of them is to promote china-u.s. trade cooperation. we have been seeking opportunities and development in a global restructuring to >> we are balancing our trade with the united states. we will take a holistic approach to promote further liberalization of trade and investment, to lift restrictions on exports and promote more

balanced development of trade at the international level for people in the two countries. second, let's work together to create more open and borrow investment in ireland. these governments of the two countries should work together with our legal system to provide full international treatment to the other side and make our investments more transparent and predictable and create a level playing field. we have already established national level and trade cooperation zones in the vietnam. we have set up 4654 trade institutions in more than 130 countries and regions.

we hope we can have such similar cooperation with the united states. it was our pleasure yesterday. we signed two intergovernmental documents. there were six corporative projects. they work for our sister cities and a number of cooperative projects. we signed 40 projects worth several billion u.s. dollars. this will be a good outcome of our business. to furthertogether substantiate the china-u.s. cooperative partnership in terms of high-speed rail and

education. china and the united states have common interests and great potential of cooperation. our national governments should work together to tap potential in these areas. we should further substantiate our cooperative partnership. at's work together to set up bridge for our friendship. economic cooperation is based on mutual trust and friendship between the people. to expand our trade and investment cooperation is not only about making profit. it is about forming understanding friendship and promoting dialogue among cultures.

i believe it is more important than anything else. i have stressed one point over again and again on many occasions. we should have direct links in terms of cladistics, information, and transportation between the two regions. we should have these direct links between the hearts of people. with these links, we can overcome any difficulties and solve problems. we should use the opportunity to promote people to people exchanges to win more public support for the growth of china- u.s. relations. the u.s. has a saying, let's make trade while the sun shines.

we should seize these valuable opportunities. we have seized opportunities for development. we have a blueprint of development. we have the process of development. i will be expecting our friends in the united states -- thank you. [applause] >> mr. secretary, thank you for your presentation and for the big deal to introduce the providence to us. -- the province to us.

the governors of the united states understand that with mutual respect -- mitchell respect, with student exchange, that gives us -- with mutual respect and student exchange, that gives us the confidence to move fall with the way you speak up. movew move-- mo -- forward the way you speak of. we now will to energy and governor fortuno of puerto rico will speak. >> thank you. if we want our economy to grow, energy is the issue we need to address. it is important to our lives.

our countries have the largest economies in the world. we both have significant environmental interests in developing cleaner and cheaper energy resources. each of us are extremely dependent on fossil fuels. 1/2 of u.s. electricity is provided by coal. china uses coal four 3/4 of its electricity. in 2009, china became the second largest oil importer in the world. the united states is the largest. each of our country's are taking countries areoun

taking positive steps. we are recommending comprehensive energy reform to replace excessive dependence on fossil fuels. we want to replace oil with cleaner, cheaper, and safer alternatives including natural- gas and wind energy. the need for alternative energy is acute, especially for hawaii and the u.s. territories. in puerto rico, we realize 69% on foreign oil. a why and the -- hawaii and the u.s. territories are not connected to the u.s. power grid.

it debilitates our respective economies and a facts consumers and businesses alike. -- and effects consumers and businesses alike. in the case of puerto rico, we have energy policies that focus on renewable energy generation and natural gas. in 2010, we passed legislation setting up renewable standards . it requires that 15% of our energy be produced by renewables forces by 2020. we also created a green in a refund -- a green energy fund to jump-start these markets and create jobs. we are diversifying our fuel

resources to include natural gas, which is abundant in our country. a key part in our diversity -- our diverse indication strategy is building a natural gas pipeline to access cleaner and cheaper natural gas. it will allow us to lower our emissions into the environment by 2/3. we are also developing a market for electric vehicles. i have signed an mou to incentivize the creation of zero emission vehicles. we have enacted a renewable fuel standard package. it requires that 7.5 billion gallons of renewable fuel be

blended into the nation's gas supply by 2012. two years ago, we increase that amount to 36 million gallons by 2022. china issued a five year plan that propose to generate 11.4% of electricity from non-fossil sources. 27 states, puerto rico and the district of columbia, have enacted res. other states have enacted clean energy standards. our countries are making great strides to diversify our energy supply. through a joint $150 million investment, china and the u.s. are collaborating on clean energy research for the implementation of clean coal

technology at the university of west virginia. clean vehicles at the university of michigan and at the berkeley laboratory. we are working together on the electric vehicle demonstration projects in los angeles and shanghai to share data and consumer preferences. we are developing standards for charging stations and battery testing. congress established the 10 year framework to facilitate the exchange of information in six key areas, electricity, water, air, transportation, conservation, an energy efficiency. the framework includes partnerships between china and american cities. there is a partnership with a

chinese city focusing on implementation of plus again hybrid vehicles. as governors, we look forward to enhancing both of our country's economic security. [applause] >> thank you, governor fortuno. >> my talk will be on the development and cooperation of new energy. the governor gave a comprehensive briefing on the new energy situation in the states. both china and the united states are the biggest energy consumers and producers. other countries are highly complementary in the buildup of energy. there is a prospects for

cooperation. we have a province which in energy cooperation. now let's watch a video on this prior events -- this province. >> this city is located in a plateau called the roof of the world. it plays a crucial and irreplaceable role in protecting china's environment and water supply. based on its resources, it has undertaken strategic action in the area of green development and environmental protection. the largest ecological protection project in history has been carried out here over

the last six years. the goal is to stop ecological deterioration in the rivers. places dry out for years appear to be glittering once again. in the western province, the ground has one of the highest densities of multiple mineral resources in all of china. the experimental recycling zone for china is also located here, opening another avenue for green development. the development of hydro power and solar and wind energy stance in the front line of china's energy development. new energy and material industries are developing rapidly. in the near future, this city will become a low carbon and

clean energy state. the original primitive culture and more take at the environment cultivates screen products, such as handmade -- the result primitive culture and environment cultivates products such as hantavirus made products. they share the opportunities and achievements of brain development. these are the grand promises that the -- and green developed. development. >> now may i and by the governor to make a presentation. -- invite the governor to make a presentation?

>> madam vice president and ambassador, governors from the united states, friends from the media, ladies and gentlemen, good afternoon. it gives me great pleasure to join the other governors from china and the united states to discuss a few topics related to development and cooperation. the financial crisis broke out three years ago. it is still exerting an impact on the world economy. although my city is invested in a far western part of china and is high on the plateau, it went through the heart time of the crisis. -- hard time of the crisis.

prices entails new opportunity. in history, each economic crisis gave birth to new industries and a revolution in science and technology. bringing the economy and low carbon technology -- green economie and low carbon technology are leading the way in this round. how should we respond to the global climate challenge? we are looking for a way. to seize this new trend of grain development -- green development. it may not be known to people, but my city is an important eco city for china and the whole

world. it has a strategic application to protecting the safety of the. >> environment and tackling -- it has a strategic application for protecting the green environment and tackling climate change. we have put our commitment to action. we have found an effective way to achieve green development by developing being secular economy. we have set up a secular economic pilot zone.

it is the largest such pilots in china approved by the chinese government. we will focus our efforts on developing an industrial chain of oil and gas recycling, the comprehensive utilization of coal and a biosector with cattle futures. all of these will help us form an industrial framework with a circular economy with unique advantages and intensive use of resources. our objective is to build the biggest industrial base for the

economy of china and achieve a better life for the people at the same time. this means strenuous efforts on our part. just now, governor fortuno shared his insight in the utilization of new energy. new energy is also a topic i will talk about today. it is an important part of developing a green economy. my city is well equipped to develop a new energy sector. we offered the best sunlight, and land resources, power grids,

transport facility and conditions in developing the pb sector in china. it is one of the best areas to develop the pb sector. the network develops 50 megawatts. it is expected to reach 2,000 megawatts in five years and 2000 -- and 5,000 megawatts in 2020. a second city is emerging as a base of solar power in china. on wind power, we ran third in china in total resources. our capacity can stand well above 12,000 megawatts.

in five years, 1,500 megawatts megawatts will be completed. we are rich in carbon it of high quality. -- carbonate of high quality. there is 100 million tons of recoverable chloride, accounting for 90% of such resources in china. in a moment -- at the moment, we are using advanced technology to extract lithium from the lake. this provides us with key support to develop lithium related to new energy vehicles.

the huge potential of the circular economy in my city offers development opportunities and corporate mission -- cooperation opportunities. we are trying to address the lack of talented people. we worked with the china academy of sciences to develop a demonstration base and cooperated with germany and japan to develop pb projects. together with the state of utah, we set up a science innovation coalition and a strategic alliance of industrial technology innovations. i also want to tell you that given our preparations over the past two days, institutions of

higher learning, companies, and research institutes have signed eight agreements with their counterparts from the united states in about 18 projects. most of the projects are located in the state of utah. of course, the path for cooperation is broad and open. we welcome more cooperation partners, particularly american companies with advanced technology. we are preparing for the development of the pb industry meeting this august. i would like to extend a warm welcome to all members in the audience who have an interest in this sector. we have noticed that in recent

years, the u.s. government has put in is a reform high on its agenda and has introduced a new energy plan, which has attracted a lot of attention. we work hard to develop an energy system that is stable and clean. before i came to the united states, i had an interview with low carbon every day. thearned from them bacthat family of an american architect from california has lived in a solar powered house for five years. the sunshine has given them much happiness. this tells us that new energy is not just a plan pursued by the

government. it is an expectation of the people. it is the common choice by all. let us join hands to develop green energy. that the bright sunshine like up every corner of the world so that we can create more opportunities to enjoy green development and for the generations after us to live in a better environment. this is the common pursuit of us all. thank you all. [applause] >> thank you, governor. thank you for introducing us to your province. with that, our third topic is that of the environment. i will call on the governor of the great state of iowa to lead the discussion.

governor? >> thank you, governor gregoire. thank you to the chinese ambassador, potential -- provincial governors and madam li. the united states and china enjoy a strong trading partnership in agriculture products which china. that is the united states' second largest export market. economic development for rural areas is important for both countries. we value products as safe and reliable. agriculture-related machinery and value added manufacturing products compose an important part of the trading relationship that we have. china exports wood products

and fruits and vegetables. we are appreciative of this important partnership we have in trade. i have set a goal in the increasing exports from our state. the president has a goal of increasing american exports by 100%. i recognize that both of our countries can benefit from trade. we should support international engagement. fast-moving advancements in technology are increasing crop yields and allowing the development of new opportunities in biosciences. many governments are seeking ways to further energy development in agriculture and rural communities. they are the key beneficiaries of this. technology advances allow for the production of biofuels and

state and reliable food. we can have the efficient production of traditional biofuels and ethanol provide additional opportunities for the future. china is interested in the development of biofuels. in the second quarter of this fiscal year, there were six initial public offerings for chinese biofuel companies. we need to remain committed to buy oil field development in both of our countries to it reduced the -- by a fuel -- biofuel to reduce the dependence on fossil fuels. wind energy is important to our rural communities. iowa currently has the second- largest number of installed

capacity for wind generation in the united states. we are second only to texas. texas is a much bigger stake. there has been tremendous growth in china. mr. party secretary, in your province, we saw the wind turbines. if you fly across the state of iowa, you will see a lot of those as well. with china and the united states combining to use 40% of the world also energy and being overly dependent and reliant of imports for fuel needs, biofuel and wind energy are mutually important and beneficial in areas where cooperation -- for cooperation between our two countries. i am interested in working with the chinese leaders to advance by a fuel -- biofuel and wind

energy and to produce low-cost energy that is environmentally beneficial for both of our countries for our economies. we can improve the standard of living for people live on the land in rural communities. we have also overcome the challenges. we have had our individual challenges with natural disasters, disasters that and that people live in rural communities. floodwaters have caused widespread damage in the united states and china. both countries can work together to build more resilient communities and avoid some of these disasters in the future. i encourage continued partnerships through a variety of avenues, including sister

states. we established our first sister state in my first visit to china in 1984. i have fond memories of that trip. we came through beijing by rail. we met with a band and they presented my wife with a bouquet of flowers. the friendship has existed ever since. we have had wonderful exchanges over the years. our lieutenant governor just visited the province in june along with other locations in china. in 1984, i was a young governor. i wanted to develop cultural and economic partnerships. i continue to be excited about the province that was made. there were improvements in the lifestyle in china that have

occurred since that time. we are appreciative of the opportunity to sell our soybeans and corn in our marketplace. it has made a big difference to the farmers in our state. we worked with you in developing corn sobrieties that meet the needs of china and the chinese farmers. i look forward to working with my fellow american workers and with you the chinese provincial governors to find additional avenues for partnership. thank you very much. [applause] >> we heard about environmental protection and cooperation just now. the governor of iowa has made an

excellent speech. the chinese government has attached great importance to environmental protection. in southwestern china, the beautiful scenery is unique. we will watch a short film about that province. >> after 60 years, a pilot recognize this farmer. -- recognized this farmer. he rescue him when his plane crashed. after all of -- he rescued him when his plane crashed.

this is the starting point that serves as a -- served as a lifeline during the second world war. it has a modern communication network linking china to other countries. yunnan is china's gateway to this part of the world. the beauty of the city takes everyone's breath away. several rivers pass through yunnan. a diversified climate makes it one of the richest places or flora and fauna on the planet. it is a living museum of human wonder.

26 ethnic peoples have lived in the city for numerous generations. there is a balanced relationship among different people and between people and nature. in yunnan, ecological balance takes priority. yunnan tries to be a leading province, striking balance between environmental protection and economic development. yunnan is where colorful cloud appeared. colorful yunnan. yunnan welcomes you.

>> having watched the film, you will fall in love with this place. we would like to invite the governor of the yunna prov ince to make some remarks. >> ambassador, governors, special representative, ladies friends, wen, defenddear have heard the exciting speech made by the governor of iowa. the state has made good use of its resources to promote environmental protection. you are a few is governed in the

united states. i had the opportunity to sit beside you and your wife during dinner last night. you left me with a deep impression of your outstanding leadership and your excellent wife. gentleman and dear friends, in 1933, a book witwas a big hit in the world. it was written by a british writer. it was called "lost horizon." it describes the eternal place in china called shangri-la. people enjoyed prosperity, harmony, and immortality.

since then, shangri-la has represented things that are beautiful and the eternal. in 1997, a group consisting of a geologists and tourists discovered that shangri-la is located in yunna province, china. this has attracted attention. as a representative of yunnan province, i am privileged to take part in this forum and to follow up on the speech made by the governor of iowa. i would like to explore with

you environmental protection and conservation. we have contributed to the magical attraction of general law and the beauty of yunnan. we have worked with a grateful heart and a sense of responsibility to protect the environment. in recent years in particular, we have stepped up our efforts in environmental protection. we have launched the protection project to raise awareness of our people about in by mental protection and encourage -- people about environmental protection and encourage people to participate in this process. we have introduced an action plan to protect diversity. we want to protect 1/10 up

world's fishes. we have introduced the program to protect the lakes and the river systems. and to restore the river systems to their natural state. we have worked hard to build sewage treatment plants. after 2012, we will have sewage treatment and garbage disposal facilities in all areas. in energy and resource conservation, the energy consumption per unit of gdp and the admission of -- the mission of co2 has been reduced from five years ago.

we have increased the florida coverage from 53% -- forest coverage from 53% to 60%. global warming and over consumption of resources has sounded an alarm to the people of the world. we should pay more attention to him by mental protection and take more measures to protect -- attention to environmental

protection and take more measures to protect nature. we need to review the relationship between man and nature. industrialization has estranged us from nature. nature is so profound and rich that knowledge of man is limited. we should get closer to nature and hold nature in awe and promote harmony with nature. we should make sound environments an important force for development.

we should make the environment into a productive force and develop an ecosystem for the benefit of people who have worked in protecting our environment. we should change our lifestyle. we have taken too much from nature. this has posed a threat to the? >> environment. -- this has posed a threat to the indictment. -- to the environment. we should save electricity, oil, and paper. we should pursue an environmentally friendly lifestyle.

we should improve environmental protection. we should set up a global environmental protection system and coordinate our efforts in this area. developing countries should have more support and assistance from developed ones in the area of in bimetal protection. -- area of environmental protection thank you. [applause] >> thank you for introducing us to the yunnan province. thank you for your expression of your environmental ethic and our mutual commitment to environmental protection. we look forward to working with you. our last substances --

substantive area is education. we have the chair of our education committee, who is from the great state of missouri. >> it is an honor to join everyone on this historic occasion. as leaders in our states and provinces, we know that educates is since represent the backbone of a strong -- we know that educated citizens represent a strong economy. we want them to be prepared for college and careers. the primary responsibility for education rests with governors

and states. we spent $425 billion on education. total u.s. spending on education comprises 5.5% of gdp. collectively, the miners have embarked on two recent groundbreaking initiatives. -- governors have embarked on two recent groundbreaking initiatives. we have developed, and education initiatives. we are setting the bar high for future generations. these standards focus on the knowledge and skills of our young people need for success now and in the future. second, governor gregoire is

leading governors in an initiative to dramatically increase college completion and productivity. her leadership is having significant effects in states across the united states. y's economiesuntrie become more independent, strengthening the ties between students in our countries will be an important component to success in the global economy. our relationship is not just about exchanges between leaders of our governments that we have today. it is also about relationships between our people, between our business leaders, scientists, and the young people. the highest number of exchange students in the united states are from china. more americans are studying in

china than any other foreign country. these exchanges are critical. in the more our people learn to cooperate and collaborates, the more china and the united states will have the cultural and language skills to underpin effective diplomacy and war policy that will enable us to find solutions to many -- diplomacy and foreign policy that will enable us to find solutions to many global problems. china is our number one country of exchanging students between our two countries. we thank you for your continued confidence and investment. we expect to continue to grow bilaterally in that growing enterprise. the united states and china are cooperating closely to achieve the goals and initiatives agreed

to by president obama and president hu to increase dramatically the number and diversity of composition of american students studying in china as a means to enhance our people to people ties between our two nations. by reaching across borders, we can share knowledge and research, and generate promising and growing partnerships, and leverage the power of innovation to create jobs and expand opportunity to make sure our children are winners in this changing, growing global economy. thank you for being with us today. [applause] >> our last topic is young people and youth exchange. governor nixon made a good

presentation. people to people exchange is a new highlight in china-u.s. relations this year. the next projects -- province is a place that has traded many people. now let's watch a video on its people. >> it is located in the eastern part of china. it has the third largest river in the world. it has an area of 140,000 square kilometers. it has a population of 68 million. it has beautiful mountains and rivers and a rich culture.

the river basin in the northern parts of the province has influenced china for over 2000 years. it is one of the nation's great producers of energy. its exports totaled 1/6 of the country's. -- of the country. the province has rich education and strong innovation capability.

it has over 100 institutions of higher learning. emerging industries are developing fast. there are six pairs of sister cities. there are 18 american cities in the top 500. >> now let's invite the

governor of anhui to make his presentation. >> honorable governor gregoire, ambassador, governors, ladies and gentlemen, dear friends. education concerns the destination of the nation. young people are the future of the world. education and the youth exchange have always been a lively topic of the national governors' association. -- national governors association. thank you for the opportunity to discuss this topic on young people and education. anhui is located in the eastern part of china. it covers 130,000 square

kilometers. among the more than 30 provinces in china, we are the most dynamic. the economy has been growing at about 10% for 10 consecutive years. president obama once said that the vacation is the economic issue of our time. -- education is the economic issue of our time. we have 12 million students in school and more than 2000 institutions of higher learning. looking ahead into the future, i can feel they have the task on my shoulder. education concerns the destiny of the country and each and

every one of the people. our goal is to ensure equal educational opportunity for all of our children and build a lifelong learning tradition in china. anhui is the first province to make compulsory education universal and ensure that all students from rural and urban areas have equal opportunities for education. we are pushing forward in education to reasonably allocate our resources in the education and to give equal access to education to all our kids. ladies and gentlemen, education must be an open and inclusive process. we need to reinforce each other in our interactions.

100 years ago, young people came to study in the united states, becoming the front-runners in the china-u.s. exchange. in the new era, we are increasingly interconnected. education has become one of the pivots. 20 institutions of higher learning have exchanges, including maryland and ohio. anhui has more than 10 universities, such as howard, that carry out exchanges with a number of american universities. a number of young people from howard are studying chinese

language and culture. there are some young people and american teachers teaching in american universities. these present good foundations for our future cooperation. we have every reason to believe that as we build cooperative partnerships between our countries, the educational cooperation between our two countries hold even greater promise. we would like to work with you to create a brighter future. i would expect the following. one is that we would beat and cooperation in higher learning and to make such cooperation and engine in our -- we would be cooperative in

higher learning and made such cooperation and engine in our relationship. we need to work hard to encourage more students to study in anhui and provide them with scholarships. innovation cooperation should become an important part of our educational cooperation. we need to seize the trend of science and technology. we have always taken innovation as a priority. we will strengthen our cooperation in energy, and based on the protection of our pr, we are ready to strengthen cooperation with the united states. in terms of qualitative research, we expect to expand our cooperation with the united states in setting up a research center, and third, i believe the

government's at the national level need to play a very active role in educational exchanges. we need to take the lead to four new platforms for educational corp. and the exchange of young people and work towards new steps and bigger steps. our governors can be very important players in this process. ladies and gentlemen, education helps us better understand each other. we hope that more american students and teachers will come to china to experience the chinese culture and civilization. as i conclude my remarks, i wish to sincerely wish this forum will success. i also wish to say to you, are very famous cultural heritage, a

geographical garden, a well- known place. there is a welcoming tree that welcomes all the guests coming to the mountain. it has defined tough times and the weather, and it tells the whole world that china's people are real friends, ready to embrace the world and ready to work with all friends from afar, and we welcome you. [applause] >> governor, thank you for introducing us to your province. thank you for your commitment to the education of our children in both countries. that is our future. president who didn't tell him to visit the state of washington -- president hu jintao came to

visit the state of washington, and as a result, we have emphasized knowledge of china. thank you each for your presentations. we are out of time, but i do not want to take away from the opportunity, so madame li and i have agreed to limit the questions to two. . you're sorry sorry. we will rotate from one side to the other. if we could keep the questions short. orry.am sar we could keep the questions short, meaning no more than two or three minutes, because we would like the opportunity to take questions. i will ask if a u.s. governor has any questions you would like to pose, our host from the great

state of utah, governor herbert. >> thank you. i think it has been enjoyable new mexico formative for all of us to hear the comments from the presentations. i question is simply this -- we talk about we want to have better relationships with each other, to foster economic opportunities, and i just want to ask the question -- what is the obstacle that you see or the challenges which are going to get in the way of us accomplishing that? and mr. secretary -- >> mr. secretary. >> governor, you have raised a very good question. between, the exchange's us are based on a very broad basis. many examples where given by the

previous speakers, and we value these exchanges and cooperation, but we have encountered problems or challenges. i would have to say that even in a family, there is some displeasures or frictions, but as long as we properly handle them, we will properly resolved. as i said, if we have better communication and a better understanding, we will be able to address these differences. in terms of trade, the topic i was talking about -- in trade, we may face something, particularly difficult. for example, the barriers. trade barriers. or can we remove some of the barriers so that trade is done more easily?

what did the americans need? what can we produce for the americans? we can look at all these demand and supply and address these demand and supply. you can tell us what you need, and we can tell you what we want. i think these exchanges are very helpful for our corporation at the national level, and that is why i believe it is important that we need to make our policy is open and transparent and advanced power corp. in a wide range of areas. >> thank you. can i ask if one of our colleagues from china has a question they would like to ask of the governors of the united states? >> i have a question on education.

actually, the institutions of higher learning have too your tasks. one is to cultivate talent, and the other is to do research and development. after the students graduate from universities, they will come into the industrial sector, and the government has done a lot in assisting them, but how can we better translate the research results into real productivity? i do not know whether or not the united states has a similar problem. and what is your experience? we are very interested to learn from you. >> it is a constant challenge for all of us. we have a number of methods in which we are trying to join up education, jobs, research, and business.

two of those -- one is our community college system, which is designed to have worker training directly contacting the jobs that are there, so the people that employ people come to those schools, say what they need as far as workers. we customize that training right to them so that the workers are literally working that job before they are joining the business. on the research side, what we're trying to do is begin to get a series of innovation centers where research and then turning that into a business model touch each other. all of us in some way or another have incubation centers on our universities, which tied directly the thought processes and ideas to more capital for business ventures, but to say that we have this problem completely solved would be to

overstate where we are. it is something that all of us spend a great deal of time trying to do much better. >> governor, i have to join with my colleague and say this is a mutual issue for us. in my state, we have one of the largest numbers of start up companies in the united states. that is a nice reputation to have. you do not want to know how many fail. but we foster it because we believe only if you continue to push for startups in cooperation with your research institutions, will you have the opportunity to create the company's of tomorrow. we struggle with it. not only how to make the startups flourish and grow and be successful. so, thank you. last question from the american governor from the great state of hawaii. >> thank you.

just a quick comment as a follow-up to governor herbert's question. two words -- visa waivers. i mean it. i am very grateful to our guests for their courtesy and the polite and reflective way in which they answered that question, but it is up to us. visa waivers. we have these waivers, everything opens up. trade, conversation, education, environmental exchange, investment -- it all comes. it is up to us to make this reaction to the courtesy and openness of our chinese friends, and if we do that, i think you will see everything else opens up. these waivers. >> thank you, governor. [applause] >> do we have a second question from a u.s. governor? i will ask a question. i have done trade missions to

china. i most recently did one last fall, largest in the history of my state. i have some measure of what i consider to be success whether we have been able to sign an agreement like the 20 you signed yesterday. agreements not just with business, but with higher education institutions, but from your perspective, what would you like to see in a trade mission from an american governor to your province or to your country? >> just now, the governor raised the very practical question.

we do want greater cooperation with the united states. we hope that more american delegations will come to china, in particular to the western part of china, to the western provinces. we also hope that you will bring more investment to our provinces. >> last question from our chinese colleague. you have a question, as i understand it? >> we all know that the united states is one of the first countries to formulate a pv policy. then at launch a one-million

grew initiative. china is immensely interested in developing the sector, so i really want to know what measures you have taken to push forward the development of this sector. >> please, governor o'malley. >> first, we need to have a renewable portfolio standard. second, it entertains within a certain requirements [inaudible] and increasingly larger portions of energy from renewable sources. within that, we have a requirement for solar. and that is probably the most important thing that we have done is to create that predictability, if you will, and that car about within the middle

portfolio standard that is now starting to inspire larger portable tape installation. as far as the broader question of advanced manufacturing and how we inspire that here in our country, that is an issue that we are all wrestling with right now. on the demand side, we believe that the renewable portfolio standard as a solid way we have been able to see that industry take off a bit in our state. >> if i may add to what governor o'malley just said, in the case of pr, we have extremely attractive tax incentives, and we are part of the united states market. so whatever you produce in pr can be sold within the u.s.. that is something we are doing, and it is again extremely attractive tax incentives for the production of affordable

tick and other technologies. in terms of the actual installation of this technology, in our case, to jump-start it, we created the green energy fund. actually, the green energy fund, what it does is that we assist private sector investors that wish to develop wind and solar energy alternatives. we assist them, and they have to compete for the amount of money that is in that fund. every year, there is a competition. we just closed the last one. next year, there will be a new one. >> well, thank you. again, thank you to all of our participants, all of those who have come to join us today. it has been a wonderfully good exchange. it is a historic event.

yesterday with the 20 agreements signed was a historical event. this has been productive, and i want to thank all of our participants. i also would like to thank some special folks who made this first ever historic forum possible, which includes our host governor from the state of utah. thank you, governor herbert. [applause] joe louis from the state department. thank you for all you have done. [applause] the chinese embassy. thank you very much. ozzie madame li, mr. secretary, governors from china, our fellow governors from the united states, thank you all for all your participation, and, of course, a big thank-you to the staff, without mean, this would not have been possible, as

usual. thank you very much for all you did. [applause] let me just say, we have a lot of work to do. let's make hay with the sunshine. those involved in the press conference, could you please go immediately to grand ballroom be because we are late. [laughter] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011]

in the journalism right now there are a lot of stories looking for data. i think one of the things that comes from is people are transparent in what they believed in before the right things. that is something we would like to see in the future -- more transparency around journalist and what they believed in before stories get written. they may be controversial, but it does something we talk to consumers about and they like. the business model going forward

-- there is a giant debate about the business models in the contents base. i think the business models in the content going to like the current business models in the long haul. as an industry, i think that debate is important. what is more important is what we deliver. what is the part that we put out every day? we have a maniacal focus on journalism. what is journalism 2 4 billion people? when you get up in the morning, do we think about journalism for that space or do we think about it the way we think about it? i think that is an important piece. i will finally end -- a lot of journalists have lost self- confidence in what journalism is.

a journalist is not a single entity. a journalist is a network. every time a bit -- every time i meet a journalist -- andre stone has taken been in power. there are few can convene the most important information and get it out in a way that is very manageable and focus. i think journalists cannot lose confidence in the value they bring to the world. you've got to separate business models and technologies because the most important thing we have in this country that other countries have and can't -- and some countries need is journalist who care, ago for the truth, and to focus on that. the secret sauce of what we are investing and why we are investing in content comes down very simply too great content from great people. i want to turn it over to

auriana huffington. it is a pleasure to be here. we will be hearing comments and questions as we go forward. thank you. [applause] >> thank you, tim. it is great to be here. i cannot think of a better place to be on my birthday. i am delighted to be sharing the stage with tim and walter. i work with them every day and love it every day. i have known walter ever since the '70s when he was working for rupert murdoch. i left cambridge and was in london at dreaming up one day becoming a blogger in america. [applause] contrary to walter's new book -- it says that right now walther is the only man in washington

who is making [unintelligible] [applause] i also loved his biography on henry kissinger, partly because he was the first man to reassure me when i moved to new york that having an accent was not a problem. [laughter] he said to me you can never underestimate the complete advantages of utter in copper and stability. -- and copper instability. -- incomprehensibility. i was in london when the phone hacking scandal started. it is amazing to see two things. first of all, how old fashioned

an incredibly irrelevant the debate between old media and new media is. 168 years on paper. an incredible institution in the british press that was acting in ways that would have been utterly disgusting coming from anywhere in the immediate universe. it is new media that played a huge part in bringing the news of the world down so fast part -- . -- news of the world down so fast. it is amazing what is happening on twitter. they started getting thousands of tweets. i was watching as advertiser after advertiser was tweeting. at the same time, to see that

the story was broadcast by another major, almost 200 year- old institution, "the guardian." it was broken at a time when they had announced it was going to embrace a digital's tragedy. this is an institution that has completely embraced new media. it does what new media does best, which is effectively saying on the story -- the story is years old. most publications have moved on. but the unique ability of new media is to stay on a story and doggedly stay on a story until we break through. that is what "the guardian" did -- demonstrating that the future belongs to those who bring together the best of all the media -- fact checking, accuracy, transparency -- and

the best of new media -- interactivity, engagement, and real-time information. that was in demonstrated over the last week. the story is still unfolding. social media is about accountability. the reason rupert murdoch withdrew his bid for the british sky broadcasting is because the entire parliament, the last three leaders of major parties, urged him to do so. they did not urge him to do so because they suddenly had an epiphany about news corp.. they were getting pressure from their constituencies. it happened so fast. everything is a celebrated in the brave new world of media. this is rarely white i am excited about the fact that

social media, new media is all about engagement. we are now at almost 850 pounds. we have a lot 33 journalist to be able to cover the elections. together, we lost a citizen journalist administration last week. we had 600 people signed up to be citizen journalists, bringing the news to all of you. bringing the voices into the national dialogue. one of the things we are excited about, being able to have a ... of 1300 professional journalist working with us while, at the same time, providing

distribution channels to thousands of people to blog abot anything they care about. that is the future we are betting on. there could be thousands of professional journalists with the best understanding of how to break a story, how to stay on the story, all and mentoring other journalists. it is really that universe that sometimes people in the mainstream media have trouble understanding because they do not quite see what has happened. it has become the new entertainment and a major source of freedom. in the past, nobody ever wondered why people are watching bad television for hours on end and not being paid. does anybody ever ask that question? [laughter]

people are constantly asking the question why are people updating which libya -- wikipedia injuries or writing on the huffington post without being paid? it shows how much people want to be part of the story of their times. they want to bear witness. that brings me to my last point, which is -- i read a book that was written because the author wanted to capture the imagination of the people in the country, to help them understand the social injustice that was going on. here is the part that is beyond left and right -- you do not

have to be on the left to care about social injustice. you do not have to be on the left to care about what is happening to the middle class. benjamin disraeli in the 19th century used a novel to touch people's hearts and minds and to bear witness to what was happening in his eyes. today, new media are arming tens of thousands of people around the world to bear witness to what is happening in their country, to what is happening in their time. ultimately bearing witness is the highest responsibility for journalists. bearing witness is the highest responsibility we have as citizens. we have never had more and better opportunities to bear witness at a time of crisis and at a time when millions of people are living lives of extreme deprivation. we should be grateful that we

are living in this extraordinary time of transition when all of us had the opportunity to bear witness. thank you. [applause] >> thank you, very much. i was wondering why i was chosen -- chosen to put in perspective, and then i realized i had written about ben franklin, albert einstein, and now steve jobs. that is the perspective we should view marriott in. one of the things about the hybrid of all media and new media i think we have to remember is that all media is not really that old. it is only 60 or 70 years old in this country. at the beginning of the country, there was a social, vibrant media. when benjamin franklin arrived in philadelphia as a 17-year-old runaway, there were 11

newspapers. he started the 12th, representing the market street middle-class. he also relied on contributions. people were riding because they wanted to bear witness to the struggle that was happening in the 1700's in america. they also occasionally wrote anonymously. and benjamin franklin often used the pseudonym "silence do good." the values of journalism were then emerging. they would slit their contributions under the door anonymously. others work reporters to have

big names. they also though, and this is what town is trying to do, had a hybrid of the business model as well. one of the things benjamin franklin did this at great advertisers in the newspaper. he said if he was totally beholden on advertisers, the freedom of expression he had would sometimes be cramped. he said it hard to be an advertising only model. it started the model in america of having a variety of revenue streams. when i was president at the creation of many aol milestones -- i was at time magazine in the early 1990's. aol was just getting started. it was the fifth largest service at the time behind prodigy, delphi, compuserve, and many

others. i was the deputy editor of time magazine. i made a deal that we would try this out. we put time magazine online. we had to deal with steve case. they only had to enter thousand users. i finally said that the final deal point was i want my name at aol.com. i still have it. part of that arrangement that we made was great for time magazine because for 60 years there had been this monopoly-type of mainstream media where information was handed down. in the broadcast media, any 17- year-old to start a press in

philadelphia, but it is hard to start a tv network or a radio network. metropolitan newspapers consolidated said it would generally be just one or two newspapers. it became mainstream and people in the media headed down the words as if they were in grave. when we went on aol -- the information, the people challenging our facts, the wonderful bulletin board culture. the other thing we had back then was the deal we made, which is when you went on aol in the early 1990's, he paid a certain amount per hour. i cannot remember exactly what it was, but your charts for an hour -- by the hour for being on. they wanted to help our content. they would pay us for the amount

people stay on line. if we get people's eyeball stayed on aol for another hour, we got a percentage of that revenue. that was undermined when the web came along and everybody could put up all of their content on the web. many people started creating danes and the internet service providers, not a l l, but the people did you on the web service said it did not make any difference to them if they paid the content creators at all because they would get more money. you're paying your phone company or your cable company to get you on line. that was all right, but time passed by and we moved away from aol to be online for free. we felt we would eventually start charging. people on madison avenue came with large baskets or money --

of money, so we get it for free. the problem is that business model is not totally sustainable in the long run. we need the hybrid business model we heard a little bit about today where most of is free, but if you want a special type of information, it will be good to find some way to have consumer at the news -- revenues rather than having it be advertising only. when we were in new orleans after the storm, we try to get everybody involved in social media. people in the wealthier neighborhoods wanted to put a set of eyeballs. in the poor neighborhoods, it was hard to get people to blog. they kept saying to us, you want us to do this for free? that tension that arianna huffington mentioned that people love to do this because they are part of the conversation, but i do believe we have to develop some sort of hybrid model.

i will end by saying the that the broadcasting board of governors, we look back over 60 years in which authoritarian regimes control their people by controlling the free flow of information. radio free europe was invented to break through the censorship. so was voice of america. we had a meeting yesterday of all of our boards. we had a new strategic plan in which we are shifting large amounts of our resources into social media, and to breaking down the fire walls in iran, china, and other places so that many people around the world can have the same freedoms we have in this country. freedom to process thoughts, share information, and accelerate the free flow of ideas. if you look, this is truly a noble cause. whether or not we figure out the business model in this decade or the next decade, the move

towards digital media and more people having access and less control and fewer gatekeeper's is a great thing whether it is in iran or the united states. if you looked at history from pittsburg to arianna huffington, the free flow of information and ideas has always tended to bend the art of history towards democracy and towards freedom. you are saying that with the tweeting coming out of tahrir square. iran is the fifth largest per- capita user of the internet. in the end, people do not control -- who do not control the free flow of information, will not control their people. i covered the fall of the berlin wall. i was in a hotel and one of the people working there said, "can

you open up your room in the afternoon because it is the only place kids can see satellite tv." i came home early. students were using the room to watch, but they were not watching music videos. most recently i was -- actually, it was 10 years ago. steve case started talking about emerging aol and time warner, but i was watching in the internet cafe in this tiny part of china help people were using the internet. i would go up to them and type in an address and it would be blocked. one of them elbowed me aside and cnn popped up. they need that to get through proxy servers in hong kong said the sensors could not find out. people get to be part of the

discourse are around the world. that is why i want to congratulate area on a huffington and jim armstrong. thank you. -- adriana huffington and -- arianna huffington and tim are strong. -- armstrong. >> but we will begin with questions that were given to us over the internet or from our audience here today. the first question is, and you can decide among yourselves because many of these are for both of you, or related to the murdoch scandal. i think this question stands alone without that. how does the government post and the entire a l l media landscape

draw the line between the interests of the public and the public interest? >> the interest of the public -- i suppose what the question means is that it -- is the fact that the public is highbrow and lowbrow we are finding the public wants to hear about lindsay lawn and charlie sheen, which we have concluded are not in the public interest, but they are in danger with the public. that is human nature. in fact, we discovered when we made a deal with facebook that would make it possible for our readers to be able to see what their friends were reading and what their friends were commenting on, that they often did not like they're france to know they were clicking on lindsay lohan and charlie

sheen. we had to add a button so that people and their friends thought there were only looking at stories on hildegarde. >> how much of the highbrow stuff -- where you cut the line of for the liberal stuff? >> if you go on any of our sections -- you have over 50 different sites that cover everything from politics, boats, style, entertainment -- this week we've launched three new sections. we are doing a lot of regional sites and are working closely with our partners around san francisco.

stories can surface from the local level to the regional level and then to the national level. by covering the entire waterfront, you basically immediately know -- that the world know what you think is important. on the left-hand side you that the blocks. in the middle east at the serious stories. on the right-hand side yet the lowbrow stories. if you got the -- if you do not like them, you can ignore them. >> how you decide if something is too liberal. -- to lowbrow. >> some of this is in the eye of

the beholder. we regularly review our standards. >> with the recent acquisition, how you plan to balance the two editorial brands simultaneously? is it unreasonable to say that at some 0.1 will be phased out? >> we spent a lot of time on brands. we went down to 50. we will continue to go down to a few more powerful brands. what we basically program each site for and what the site audience is -- it is very different across different areas. we are working on that. one of the things that is beneficial is that it will use scale technology platforms and scaled journalist platforms to

populate all these different sites. when chris christie took his helicopter to his son's baseball game is an example of how we could combine programs. within a couple of minutes, we had it on huffington post. i ran into crisscross the last week and i asked him about it. -- chris christie's last week and i asked him about it. the second thing he said was, "i read patch every morning. it is a powerful way to connect with the local community." from the standpoint of how we program the brand, i think we are just at the beginning of how all these plans will be in the future and that we will use

these platforms. >> it is one of the most exciting things for me, we -- to see what we now have at our disposable. about 1000 professional journalist on the ground. one came to us for the new york times. he is leading this integration. whether it is a story about governor christie or a story about the unemployed. the latest unemployment numbers came out. we had an amazing story that put flesh and blood on the data. they will surface and bring them together, connect the dots, and right national stories. it is an incredible opportunity for journalists. if you bring in the bloggers, we now have over 7000 at the local

level. it can range from the mayor to the high school kids. we are about to create 100 million comments. that, for me, is what we are betting on. it is about engagement. people increasingly want to be part of the conversation, part of the story other times, and not just a few news passively. >> do you feel like you want to draw engagement in at a higher rate than what you are getting now or do you feel like you're pretty good with the number you have? >> we are incredibly happy with the engagement we are getting, but we always want more. i feel that there will be more and more engagement. those of you who blocked, those of you comment know how exciting it is to be part of the conversation. we are finding new ways an

interesting new tools to make our content more engaging. we call it more addictive in a good sense. >> i spent time with steve case when i was coming to a 0 l. one of the things they said was aol lost its way now because of the business model, it lost its way because of the community and ability for people to comment on what is happening. as i have travelled around, people are commenting on articles they saw or things that they did. what the most disappointing things was not having the ability to comment on stories. all the comment technology was stripped of a big company. he went from the most ingates community in the world to the

least engage community in the world. i think arianna has brought that back to the country. look at facebook. a lot of people are on facebook. mark zuckerberg said publicly that they are things he used on aol. >> "for those of us old enough, we can remember the time we dial on modems. to get back to the peace that, in some ways, yet they start up incubator that you are within a large corporation. is it important for the user to know that ngadget is part of aol.com? >> we get a brand study last year. most major brands in the world at three attributes.

aol only has to at this point. the two attributes or trust and awareness. the brand people came back to us after the study and said, "we have never seen anything like this before. you have over 95% trust with consumers and you have 95% awareness with consumers. and you have no other attributes." the secret sauce for us, as they said, if you can connect a third attribute to that experience you will go back to being one of the most powerful brands on the planet. what we are hoping the third attribute of aol will be is content. maybe like disney were you do not know necessarily that disney owns espn, abc, or some of those brands. over all, we hope aol will stand for magic and information

communication and entertainment space. a big interest of mine personally with arianna is i like the obsessive nature of huffington post. that third attribute will come from the voice. i think that is a really key experience for all of our users. >> in fact, that is out my conversations with tim before the acquisition started. i remembered listening to tim at a conference in new york making his point about brand awareness and identity. the next day he and i met and talked for hours. that is the kind of conversation that went on for a couple of months. not a conversation about buying the huffington post, a conversation about this feature a media.

it is amazing how his vision and night-vision were unbelievably aligned. i had an e-mail from him saying he would like to come to los angeles and meet with me and discuss some things. i invited him to lunch. >> he likes wants all lot. [laughter] >> before we started eating, he said he wanted to buy the huffington post and bring the huffington boasts and aol content together. for those of you who may be read the story, which closed the deal at the super bowl. >> at halftime. >> at halftime predicted [laughter] -- at halftime.

[laughter] >> we had corporate video conferencing. we didn't arianna's -- we did arianna's first conference call. >> a lot of members came to me before this event and ask a question about the value of professional journalists, the ones to participate for no financial benefit. how do you balance that? how do you decide where the value comes from having a professional? for those who, like me, or professional journalists who worry that people can work for free might push them aside, are you ok with that? how do you preserve the added value that a professional can bring to the table?

>> as i said earlier, we are very committed to professional journalism. since the merger, we have added over 160 professional journalists to the team. we are a robust journalistic enterprise. that does not mitigate the fact that we are also a platform the that is simply a distribution mechanism for people with something to say to be able to use it. some of them are posting what they are posting on their own personal blotgs. we had many academics. we have many students.

every possible profession and you get imagine is represented. we would like all of you here to blog. we love having people write whatever they want for as long as they want. if you decide to for us -- if you decide to blog for us, nobody is going to ask you what you are doing. we have an incredible team of professional journalists. that is all in tandem with our platform. >> i just realized as you were speaking that i write a blog for

free. i am speaking at a bus size of my mouth. what are you most concerned about right now? >> the biggest one is internal. i do not mean that from having issues internally. i do not think anyone is spreading as big an investment in the areas we are investing in right now. when we take a step back and look at the competitive landscape, you have silicon valley and data getting more to modify. i think the future of that will be about content. there will be content platforms to track users. facebook, bugle, those things. the secondary underlying thing i do not think is being looked at enough is bugle being focused

on real time and quality. i think you'll see they have done eight focus on quality in real time. they will have a platform to do that. instead of focused on each other, how do we fulfill real needs for real people with real content every day? i would give you one thing vicky's me away at night right now. -- keeps me awake at night right now. my relationship with journalist that i follow -- they are with me all day. if you can be the person who is connected with somebody all day , that is a significant opportunity.

>> to be reaffirmed that for my wife when i am on the laptop? >> i agree with everything thames said except the part about him being kept awake at what -- kept awake at night. we have a commitment to sleep. this is one of the things that we write about constantly. what the first things i did when i moved into the area is install two bathrooms. because we own mapquest, we call them mapquest one and mapquest two.

walter had a fantastic -- every day at the aspen institute idea it festival, psychologists, doctors, scientists were debating that issue. we are also debating that issue, discussing it, and covering it every day. we believe that increasingly this will be a very important in conversation that people want to engage in. >> tim, quick question for you and then we will have a little announcement and ask arianna the last question. google report an earnings last night.

it has a market capitalization of $190 million. aol was once the leader in its space. its market cap was less than what bugle earned in that quarter. is google getting too big? >> i do not know whether or not they are too big or too small, but i take we need to make our market cap bigger. the reality is, i think, google's market cap reflects real consumer interest, use, and revenue behind them. the secret to our success -- there are three things that really matter. the number of consumers you have on your properties, the revenue you're able to generate per consumer, and what is our brand stand for. google has stayed very focused

on those three things. those earnings are spectacular. we are still in the midst of our turn around. we have a clear vision of where we are going. we have a very googlesque vision. our vision matches very closely to consumer growth, revenue growth, and great brands. >> now is the time at which we present our guest with our truly token of appreciation of your presence here today. i will have one or both of you. that is the npc coffee mug for both of you. do not have coffee before you take them out. you can blog that. in my last question for arianna.

you were so gracious in appearing here today for your birthday. the cameras did not show our audience sang happy birthday to you before. my question is, did you have a wish and if you cannot share with that which was, can you share with us another wish? [laughter] >> first of all, as anybody here with children knows, it is all about your children. they say that you are only as happy as released at the child. i had two dollars in college. -- two doctors in college -- daughters in college. my first wish on my birthday was about them. it was about their lives. as you know, no matter how old they are -- one will graduate

next year -- they never stop being a baby. i have pictures of them on my phone when they were babies. they are they may -- they are my name is joey trigger. i love my work. i do not make a separation between my work and my life. [applause] >> how about a round of applause for our guests here today. thank you so much. tim, walter, arianna thank you very much. i would like to thank our press club staff for organizing the event. we are adjourned. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011]

>> next, we will hear from house republicans and democrats and present at obama on the debt and deficit reduction talks. live at 7:00 a.m., your calls and comments on "washington journal." >> this weekend on a booktv, in "hesitation kills" jane blair we lisser experiences in a rock. the transcontinental railroad in the gilded age. in eisenhower 1956, we look at the suez canal crisis. eisenhower faces a change in the cold war's balance of power. but for the complete schedule at booktv.org. >> every weekend, american history tv on c-span3 highlights

the 150th anniversary of the civil war. this week, historians on the events that led to the attack on fort sumter. in two weeks, marked the battle of bull run with 48 hours of civil war programming. the civil war, every weekend on american history tv on c-span3. >> house republican leaders tell capitol hill reporters that the budget they passed this year would put federal spending on track to keep the government from defaulting on their obligations. they said the obama administration has not yet put forward their own plan. this is just under 15 minutes.

such an agreement should include a deficit trajectory that leads to stabilization and a decline in the ratios of federal debt to gdp and debt to revenue beginning as soon as the next few years. there is no more road left to kick the can down the road. we have a debt crisis, not because the debt ceiling is too low, but because the debt is too high. event. our president and the previous

congress has been on the spending binge. if they want an increase in the debt ceiling as the speaker has said, they have got to cut up the credit cards. they have got to have the president -- the president needs to put a plan on the table, not a speech. we cannot estimate a speech, which can only estimate a plan. it is time for the president to put his plan on the table. >> all year long we have looked at the big issues facing our country. the house-passed budget written by paul ryan and the budget committee i think sets the standard for serious debate. we have passed or pushed for bill after bill that would create jobs by easing the burdens of regulation, expanding exports, and increasing the supply of a minute -- of american energy.

i in the debt limit debate, our goals are simple. no one was big united states to default on our obligations, but we will not see real economic growth without a serious plan to do with our deficits and our debt. yesterday at the white house, secretary geithner echoed both of these points. our stand on the debt limit has been clear there can be no tax hikes because tax hikes to destroy jobs. we need real spending cuts. real spending cuts that will exceed the amount of increase in the debt limit. we need real reforms to restrain the growth of spending in future years with spending caps and a balanced budget amendment. we are in the fourth quarter here. time and again we have offered serious proposals to cut spending and address these issues. i think it is time for the democrats to get serious as well.

if we asked the president to lead it. we asked him to put for a plant, not a speech, a real plan. he has not. we will. >> good morning. there has been a lot of tall, a lot of reporting about what has been going on in these discussions surrounding the debt ceiling. let's take a step back for a second and look at where we are. as the speaker indicated, the house put forward its budget and the house passed its budget. that is our vision. if we were in control of washington, we would be trying to push our agenda it through both houses and to see it that could be implemented. we called for $6.20 trillion in cuts over 10 years. in the current discussions with the white house, the president and the democrats are offering,

perhaps, $1.50 trillion. the number keeps moving. that is a big difference. so they talk has indicated that somehow republicans have not given. that is not true. we are at $6.20 trillion. they are at $1.50 trillion. that is just the way it is. what we want and what we said as the speaker continues to set out there, we want to change the system here. we want to be about to go home to the people who elected us and show them we are not want to allow this kind of spending to continue. we do not have the money. they do not have the money. if we need to get the economy going again and control spending in washington. we will bring a bill forward last week. it is called the cut, cap, and balanced bill. it will provide a balanced approach so that we can demonstrate that we are getting things under control and that

the people who put us here can gain some confidence that we are going to begin to live like they do around their kitchen tables and their businesses, stop spending money we do not have, and began to manage this debt and deficit down to balance. we hope that our democratic france on the other side of the aisle will join us in this balanced approach. >> as the speaker a leader just said -- and the leader just said, the president did produce a budget, but did not get one vote. not one democrat vote. the house produced a budget, a ticket out of the house, the debt for, and talk about serious issues. we talked about job creation. energy policy for america. we will continue to lead. the speaker and the leader has

sat in room after room, meeting after meeting trying to put america on a path to actually pay off the debt. we just walked out of a very strong conference. next week, the republicans again will show that they can lead. we welcome every democrat to join with us. we will take the bill out of the house. this is an opportunity that people can join together. it is a path different from what we have seen. it will build a strong america and not leave this debt for the next generation. >> four months the president has been asking to raise the debt ceiling $2.40 trillion to get us to the next election. just to put that into perspective, we are talking $20,000 in additional debt per

american family. every american family in america is being asked to shoulder another $20,000. we believe it is very important that any increase in the debt ceiling be accompanied with spending cuts and changes, reforms in a way that the federal government spends money. house republicans are united around a balanced budget amendment. 49 out of 50 states have to balance their budgets. the question is whether or not the president recognizes that there must be a game changer. there must be a change in the way the government spends money. i am please that we are moving forward on cut, capped, and balance. it is our plan to get us back on track. >> the american people know that big changes are needed here in washington. i am proud to stand with the leadership who represents a united conference that understands and has been

listening to the american people that there are short-term, mid term, and long-term solutions that have to be put on the table. next week will propose short- term solutions which decreases in spending. mr. solutions that would cap the amount spending coming out of washington and long-term solutions that will embrace a balanced budget amendment that the american people support, and thereby, to get the job situation and economy back on track. it is a great opportunity for the congress and america. >> mr. speaker, does this mean you think the white house talks are coming to a close? >> i do not want to preclude any chance of coming to an agreement. but they have been unwilling to put a real plan on the table. without serious spending cuts, without real reform of our entitlement programs, this problem will not be solved. >> mr. speaker, there are reports emerging that a plan

combining senator mcconnell's plan and some other elements are coming together as a possible resolution. is that what you're prepared to embrace and put forward? >> i am not prepared at this point to pick winners or losers. senator mcconnell pointed out that his plan was being put on the table as a last ditch effort. we are far from the time for a last ditch effort. >> my understanding is that the increase would be contingent on transition of the balanced budget amendment. you know the balanced budget amendment does not have the votes to pass the senate. >> i do not know that. i would be hopeful. i always remain hopeful. >> democrats in the house at indicated the provisions -- they will not vote for it.

it will be dead on arrival in the house. is there any wiggle room on that? >> < -- the cut, cap, and balance plan will vote on last week is a solid plan for moving forward. let's get through that vote and then we'll make decisions about what will come afterward. >> jay powell laid out a detailed description of exactly what would happen on august 2. many members of your caucus and said that they do not think the debt ceiling would need to be raised that point. >> i do not know, but i thought they had a very good conference this morning. there was solid information provided to the members. the analysis provided by the bipartisan policy center closely followed a lot of information that has been developed by the joint committee -- joint

economic committee. i think the information was very helpful for members. >> if you have this vote next week and it will not move forward in the senate, would you be more open to something like what senator mcconnell proposed? >> i am not going to answer. if ads and buts or candy and nuts, every day would be christmas. >> shortly after the republican news conference, house democrats met with members of the media to voice their support for president obama concerning the debt negotiations. this is just under 20 minutes. this is just under 20 minutes.