Well, thank you very much, Mr. Chairman.

And I apologize to my colleagues, but as we're in the midst of all of

this, it's sort of a New...

Chelsea, for sure. (Laughter.)

Thank you, Mr. Chairman. And it is a true honor to be here. I

want to thank you and Ranking Member Lugar,...

Mr. Chairman, it is, as Chris Dodd

mentioned, a New York day, and I have to go introduce Shaun Donovan at

the --

(Cross talk.)

Thank you, colleagues. I appreciate it very much.

Thank you very much, Mr. Chairman, and as he's

leaving I want to thank Senator Schumer for that generous

introduction, and even more for...

Thank you, Mr. Chairman. And obviously, the

incoming administration views with great concern the role that Iran is

playing in the world,...

You know, it's kind of like the experimenter's

bias, in a way. We won't know what we're capable of achieving until

we're actually there...

Well, the president-elect has said repeatedly it

is unacceptable. It is going to be United States policy to pursue

diplomacy, with all of...

Mr. Chairman, we are looking at a range of

possibilities. One very important aspect of the decisions we make is

that we engage in consultation...

Well, again, Mr. Chairman, I want to wait to

determine the exact contours of how we proceed until we're actually in

office and have a chance...

Again, Mr. Chairman, these are matters that are

part of our policy review, and we will turn to them with great

diligence and attention as...

(Laughs.)

I think I got your drift, Mr. Chairman.

Thank you, Mr. Chairman, and, of

course, my warm congratulations to you on your new position.

I look forward to working closely with you...

I am very pleased that Senator Hillary Rodham

Clinton has been nominated to be secretary of State. She's an

excellent choice for our most...

Thank you, Senator. Let me turn to another topic

that we covered. You've been an outspoken advocate of U.S. action to

stop genocide in Darfur...

Thank you very much. Obviously you and the

president-elect recognize the importance of our efforts in

Afghanistan, and given the serious...

Thank you, Senator. Thank you, Mr. Chairman.

Thank you, Mr. Chairman.

Senator Clinton, I'm so excited to see you here today! As you

know, I was very much in favor of your saying yes...

Well, I couldn't have asked for a better answer.

I wanted to note, Mr. Chairman, that even the most conservative

historians have said that...

Senator Boxer, thank you. Thanks for that important

line of inquiry. And let me just say that Senator Boxer has talked to

me personally...

There you go.

Well, first, Senator, I thank you for your

emphasis on workforce issues, management issues, better utilization of

resource issues. That's...

Right.

Well, the president-elect and I could not agree

more with your point of view. It's one of the reasons why the

president-elect has talked...

Well, I think the chairman, who's had a

longstanding interest in this, knows that as we move toward Copenhagen

and attempt to craft a climate...

Thank you very much, Senator.

Senator Nelson.

Well, Senator Nelson, you've covered a number of

important issues, and let me start with your question about Latin

America. I have a lot...

That's right. And, you know, Senator, on

contractors, this is going to be a big issue for this committee. We

have seen the abuses by contractors,...

Well, first, Senator Kerry, let me tell

you how proud all of us are to serve on this committee, particularly

with you as our chairman. We're...

-- and your entire family. I know it was a

difficult decision. I know how much you loved being a senator from

New York. And we just thank...

And we will -- that's one of the highest priorities

for us to evaluate how we can modernize the Helsinki Commission and

the OSCE process...

Well, thank you very much for that answer. Many of

us have been asking you questions on energy. Energy is a huge issue

internationally and...

Thank you very much. I look forward to working

with you. Thank you.

Thanks a lot, Senator Cardin. Let me just say that

given the time here we're going to have two more rounds -- two more

questioners before...

Now, fine, but we are going to try to proceed

forward so we'll try to get those answered in the next 24 hours for

you, Senator --

-- because we do have a business meeting scheduled

for -- for Thursday.

Well, Senator, I appreciate very much your posing

this question because I think it's a real opportunity for us if we can

figure out how...

Well, I think that the absolute bottom line for

any agreement or undertaking by the United States government is that

it has to be, in our...

Let me just shock your troops by telling you that,

unfortunately, we have to -- in order to move forward -- close the

record by 12 noon...

So we'll get the Starbucks out tonight.

Look at those smiles over there!

I'm confident.

What we're going to do is Senator Menendez will

close out the morning questioning and then we'll come back. Senator

Isakson, you'll lead...

Well, you have my commitment that it will be

pursued vigorously. It is an area that I care deeply about. It is

where, you know, much of...

Senator, we will be looking very closely at those

and other challenging issues with the eye of moving forward and being

effective in responding...

Thank you, Senator Menendez.

Thank you, Senator Clinton, for a good morning of testimony.

You've displayed one of the assets necessary for...

Thank you very much, Senator Isakson.

Senator Casey.

Well, Senator Casey, it's a tremendous honor for

me to be working with Secretary Gates. He has a very long history of

service in our country...

Well, Senator Casey, I know you expressed to me

your deep concern about this and your desire to get very involved in

helping us craft an...

Well as I stated in my opening remarks, Iraq,

Afghanistan, Pakistan, the Middle East, remain on the forefront of the

challenges that the...

Thank you very much, Senator Casey.

Senator Vitter.

Thank you very much.

Well Senator, I appreciate your concern and your

question. And I recognize that these are unique circumstances, to say

the least. I am very...

Well, I guess -- I mean it's fair to say that if you

ask a question, you deserve an answer, and the answer traditionally

comes out of the...

Well, I think you need to give the Senator an

opportunity to give you answer, and if you need additional time --

Well, I think that the MOU and the other

undertakings that have been worked out between the president-elect and

the transition and the foundation...

All contributors will be disclosed, and all

contributors to the Clinton Global Initiative are disclosed in public

as is now anyway.

No --

That's right.

Well Senator, I believe that all the answers that

are relevant to these inquiries are in the record. There is no

intention to amend the...

-- you know, the money of any donors to put on the

Clinton Global Initiative are public and there is no ongoing, you know

-- foundation...

Well again, you know, this is an agreement that

has been worked out between all of the parties and the fact is that

the concerns that were...

Well Senator, can I just -- this won't come out of

your time but let me make sure the record is clear here. As I

understand it, abd I think...

Well I think the Senator has appropriately said that

they'll answer that in the addendum.

Thank you very much, Senator Vitter.

Senator Webb?

(Laughs.)

(Inaudible.)

Well, Senator Webb, as always, you are not only

eloquent but extremely useful in your quick summary of all these

issues because every one...

Thank you, Senator.

Thank you, Senator Webb.

Senator Lugar.

We're going to start the second round now for Senator Lugar.

It'll be the first round...

Well, Senator Lugar, I know that you come at this

issue in good faith, as I do, and I agree that these are matters that

have to be handled...

I do, and I respect you so much, Senator, and I

can certainly guarantee to you that I will remain very sensitive to

this and I will work...

Thank you very much, Senator Lugar. Let me take a

moment to welcome Senator Shaheen. This is her first official formal

appearance with the...

Well, Senator Shaheen, welcome to the Senate and

welcome to this committee. I think your joining this body will be an

incredible addition,...

Well, I don't know anything about that specific

case -- we will look into that and educate ourselves about it -- but

more generally, I think...

Thank you very much, Senator. Senator Barrasso.

Thank you very much, Senator.

Well, Senator, I appreciate very much your

interest in these issues, and I have enjoyed my relationship with you

since you arrived in the...

Well, this is another priority of the president-

elect and I know you'll be speaking with the permanent representative

to the U.N. designee...

Well, Senator, there is a policy review that is

being undertaken by the incoming administration. We are still being

briefed by the outgoing...

Senator, the president-elect is committed to

lifting the family travel restrictions and the remittance restriction.

He believes, and I think...

Well, I think that's a very good point. You know,

the history of arms control with first the Soviet Union and then

Russia I think it's fair...

Thank you very much, Senator.

I'll take a round now and then -- I see Senator Feingold is here.

I don't know if there are any other folks...

Senator, as you and I discussed, Somalia is

strategically located. I think it was you who asked me if I knew how

far Yemen was from Somalia...

(Laughs.)

Twenty miles. And so the idea that Somalia is

just failed state, somewhere over there where people are fighting with

one another over heaven...

So, I think that this is going to require an

enormous amount of thought.

Now, complicating it, as you well know, is the piracy issue.

There's...

Yes, indeed.

Well, Senator, this issue was brought to my

attention during the transition. I've asked to have more briefing on

it because I think that...

Thank you very much. Thanks, Senator.

We're sort of getting to that point now where I think we can

address some loose ends, and maybe even,...

Well, I really appreciate that. I don't expect you

to be able to lay out that strategy now.

I would say that I think it's important, perhaps,...

Correct.

And this is going to take a very significant hands-

on effort, as I think you know. We've been obviously reading about or

hearing about...

You know -- I just noticed Senator Vitter is back.

I don't want to -- I've gone over my time a little bit because we

were sort of in a wrap...

Right. Right. Well, Mr. Chairman, these are

among the challenges that we intend to take on: trying to create more

of a regional perspective...

-- so that they can be encouraging that. I've

been reading up on George Marshall, who made it clear he didn't ever

want a memo longer than...

Well, you know, we are at a point where the

current administration is working very hard behind the scenes and in

front of the scenes. And...

Yes, General Dayton was on the ground.

There is so much more we have to do. And obviously we do support

Israel's right to defend itself,...

Well, Mr. Chairman, you will have it, because I

share your deep concern. You are eloquent in describing it, and

you've been a leader in...

Thank you, Mr. Chairman.

I was listening to some of the previous questions, and I just

want to make sure, since I made a statement earlier...

And those contributors have been listed --

(inaudible) -- from press releases to event materials to a whole host

of other ways in which...

Now, it's my understanding, too, when I looked at

this, which is why I didn't dwell upon it in my first round of

questioning, that the determination...

Well, Mr. Chairman, what I would hate to see is

some who would put in doubt what I think is an incredibly important

opportunity here, and...

Mr. Chairman, if I may, just very briefly. My

concerns, since you couched it in the context of Senator Lugar's

questions, is not so much...

Oh, okay.

Thank you very much, Mr. Chairman. Thank you

Senator Lugar.

We stand adjourned.