it starts live here on c-span3 in about half an hour from now at 5:00 eastern.

the hearing will come to order. madam secretary, welcome back to the committee. as always i think you know this it is a great pleasure for us to welcome you here, to have you here, and it is enormously helpful for us to hear your thoughts, especially at a time when we are facing so many different challenges and at the same time i think presented with so many opportunities. the demand for u.s. leadership, i think, has never been higher. whether because of the issues raised by the arab spring, by nuclear proliferation, climate change, particularly the challenge of iran and the middle east. budget realities, however, have

placed a premium on projecting u.s. power. not only effectively, but efficiently. i think that more than at recent moments we need a smart, coordinated and strong budget in order to safeguard the american people. particularly to fund the administration's pursuit of opportunities and to face the challenges that we are all too well aware of. obviously for anybody running for office, i know you know this, madam secretary, cutting foreign aid and talking about a comparison between some particular community at home where you're standing and our commitment abroad is a pretty easy applause line on the stump. and needless to say it is good foreign policy to correct an unsustainable fiscal course.

so we need to do what we need to do in order to put our house in order. but at the same time, it seems to me that our expenditures on diplomacy are really minuscule compared to the return on investment. our international affairs budget is, in my judgment, a smart investment that ultimately yields outside returns and saves us money over the long haul. there is nothing conservative about starving our foreign policy budget of a few billion dollars today in order to spend a trillion dollars later on when an otherwise avoidable crisis strikes or an armed conflict looms. this year's budget request reflects very difficult decisions and some obvious trade-offs. i commend the administration for identifying programs where we can save money, for deepening

reforms at state and u.s. aid and for leveraging u.s. funds and multilateral forums. we also all know how crucial our military is to our national defense and i think everybody on the committee and in the administration shares the belief that we would never hesitate to use force when necessary. but clearly smart and able diplomacy and development policy can neutralize threats before they become crises. and can manage crises if threats escalate. and assure security and stability after conflicts are resolved. and all of this can be done at a fraction of the cost of military deployment. diplomats and development experts support counterterrorism efforts at this moment in countries like yemen, somalia, pakistan, afghanistan. and programs to destroy small arms and shoulder fired missiles and deprive our enemies of the tools to attack us, teaching

foreign military officers american values and skills, creates capacity so that we can fight together and share burdens, training foreign law enforcement, counterterrorist officials and american investigative techniques, increases their capacity, their capability, and our security. and implementing stricter export controls, training international weapons inspectors, securing our borders allows us to guard against the most pernicious of threats and the threat of weapons of mass destruction and terrorism. so the stakes are enormous in the coming years. we will have great opportunities to build and redefine our relationships around the world, particularly in the middle east. the region is moving in many different directions, but one thing is clear, it is transforming before our eyes. as you know, madam secretary, i recently traveled in the middle east, a number of days in the

region, and came away more convinced than ever of both the opportunities that exist to help the people of the middle east seek their legitimate political and economic aspirations, but also a renewed sense of the fragility of this moment and the urgency of our engagement in that region. so i truly fully share your perspective and the goals in the middle east and north africa and senate fund, which will make sure that we have the tools and the flexibility needed to act proactively a lly and take adva of opportunities when they arise. i look forward to continuing that conversation with you to make sure you have those tools, and also to try to ascertain the best way forward with respect to the north africa fund in the middle east, to support lasting change and the continued hopes that we all share for a renewed effort in the middle east peace process. we all know the difference that

the united states can make. our efforts to vaccinate children, combat climate change, engage at risk youth, promote core u.s. national security interests, our global presence also does something else. it creates jobs. through opec lines and multilateral forums we both lift the economies of low income countries and simultaneously, and this is important for americans to understand in terms of our own interests, we open markets for american businesses and recognize the connections between promoting our business and creating jobs elsewhere. energetic global leadership is a strategic imperative for america. not a favor that we do for other countries. it is who we are. it is in the american dna. from the marshall plan to our response to the earthquakes in haiti, and the floods in pakistan. it strengthens our security and makes us stronger at home and in the world.

and as we carefully watch our expenditures, we also need to scrutinize the cuts that have been proposed. so we look forward to your comments this afternoon, madam secretary, and to talking throughout the year about the state department's priorities. senator lugar? >> mr. chairman, i join you in welcoming secretary clinton to the forum oasis committee once again. we look forward to discussing the administration's foreign policy priorities, and budget requests for fiscal year 2013. since your visit last year, the american economy remains under great stress. the unemployment rate stands well above the standards at 8.3% nationally and 9% in my home state of indiana. at the close of 2011, nearly 14 million looking for work and millions more were underemployed. the united states national debt

has risen above $15 trillion, posing extreme economic risk for our country. american families continue to bear the brunt of these economic uncertainties. within this context the administration's request for resources must be prioritized to meet the requirements of budget austerity. while addressing the vital national security objectives, the chairman has so well outlined. this past year has also brought further uncertainty overseas. people in north africa and the middle east are marking the anniversaries of their protests. their protests for democracy and accountability from their leaders. for some these anniversaries have been celebrations of a break of a troubled past. for others, a reminder that progress remains very elusive. in syria, the world continues to bear witness to the violent

repression by the assad regime against the syrian people. as tragedy unfolds daily, bringing with it an increasing death toll. after the regrettable veto and the security council by russia and china earlier this month, the u.n. general assembly voted overwhelmingly as did the united states senate to condemn the syrian regime's brutal use of force against civilians. during this upheaval, our government must pay special attention to serious weapons of mass destruction. in egypt, the difficult transition to a democratic civilian government has been marked by changing timelines, protests and sectarian violence. given this tentative transition, when resources are -- or what resources should be spent on building institutions, certainly our debate and the egyptian authorities would choose to harass the work of the civil

society organizations, focused on elections and government transparency. i look forward to secretary clinton's update on efforts to secure the release of those facing trial for their work on behalf of democracy. amidst these changes in the region, we face the ongoing threats to peace and the global economy posed by iran. as iran government continues to fight the will of the international community for a verifiable end to its nuclear weapons program, the most recent inspections by the iaea failed. but iran refusing to address the iaea's questions on -- or to grant inspection access to the sites. the iranian nuclear program is a grave threat to our close ally, israel and to our own security interests. growing understanding at this crisis may lead to military

conflict has helped push oil prices well above $100 per barrel and increasing number of americans are paying $4 or more per gallon of gasoline and most analysts believe prices will go higher. for years i talked about the risk to united states national security of our dependence on foreign oil. i appreciate secretary clinton's recent reorganization in the department in this regard, which elevates the prominence of energy security within the state department. and i compliment you on this really remarkable endeavor. given the intensity of multiple crises in the middle east and the uncertainty and the threats to our oil supply, these are not limited to the current crisis with iran. it is incomprehensible to me that the president has rejected approval of a keystone xl pipeline. fewer national security decisions in the past several

o oaks more clearly at odds with core united states interest than the present pipeline delay. the prospect of iran could disrupt oil flowing from the strait of hormuz underscores the importance of having safe and secure fuel supplies for the united states. the iranian threat is intensified by its growing alliance with the chavez regime in venezuela which supports iran with its own oil supply disruption during a conflict. our government should explicitly warn venezuela the united states would regard such a disruption as a threat to security interests. today's high oil prices are difficult for american families and american businesses. yet without action, the worst is likely to be months or years down the road. even if the iranian nuclear program is halted without resort

to warfare, middle east oil supplies will remain at risk from political manipulation, conflict and terrorism. a serious sustained oil supply disruption could cripple our economy. overtime we know rising oil demand from china, india, and other emerging economies will reduce their capacity and stress global oil supplies. the keys to an xl pipeline is one of the best means at our disposal to help overcome future difficulties now. moreover, the decision to delay sends a signal to markets and our overseas enemies that we are not serious about ending the united states energy dependence. pricing today incorporates expectations of future supply. we new must not leave any doubt that this country will break its oil dependence on stable and friendly regimes. and that requires the united states government the support

domestic drilling, it requires stronger supply relationships with reliable allies like canada, it requires more alternative fuels and certainly requires innovation to do more with less fuel. while bolstering energy security, the keystone xl 20,000 new jobs for americans. reduce at virtually no cost to american taxpayers. the administration, in my judgment, should reverse course and i would encourage secretary clinton to recommend to the president so that our national security interests to immediately approve the keystone xl pipeline. in closing, i would like to express my appreciatfodecated m in roles within the state department and u.s. aid. in an era of declining resources, we're asking them to deal with very difficult and wide ranging challenges, often at even greater risk. we're asking them tofrom weapon

destruction, help mitigate epidemics and food insecurity, watch over the united states business interests and travelers, promote democracy, and assist in combatting terrorism. we're asking them to achieve these united states foreign policy goals and enumerable others in a global environment as increasingly dangerous for diplomatic personnel. we're very willingness to serve their country, we're grateful for your willingness to serve our countr. >>you. >> thank you, senator lugar. madam secretary, the floor is yours and we welcome your comments. >> thank greatly appreciate cha kerry, ranking member lugar, members of the committee to be here once again to have this opportunity. and i want to thank you for the support this that this committee has given to the state department and u.s. aid over the

last three quite consequential and unpredictable years. and i especially am grateful for the very kind words about our diplomats and development experts who are serving around the world, some in very difficult circumstances. you have seen the world transforming right before your eyes from arab revolutions to the rise of new economic powers, to a more dispersed but still dangerous al qaeda and terrorist network. and in this time, only the united states of america has the reach, resources, and relationships to anchor a more peaceful and prosperous world. the state department and u.s. aid budget we discuss today is a proven investment in our national and economic security. but it is also something more. it is a down payment on america's leadership. when i took this job, i saw a world that needed america, but

also one that questioned our focus and our staying power. so we have worked together to put american leadership on a firm foundation for the decades ahead. we have ended one war and are winding down another. we have cemented our place as a pacific power. we have also maintained our alliance across the atlantic. we have elevated the role of economics within our diplomacy and we have reached beyond governments to engage directly with people with a special focus on women and girls. we are updating diplomacy and development for the 21st century and finding ways to work smarter ficitly. and after the first quadrennial diplomacy and development review, we created two new bureaus, taking the work we were already doing on counterterrorism and combining it with other assets within the state department to create a much more focused effort on counterterrorism and on energy. and i really commend senator

lugar because it was his idea, it was his talking with me when i was visiting with him prior to my confirmation that made me determined that we would actually accomplish this. and we have reorganized our assets into a bureau focused on fragile states. now, like many americans in these tough economic times, we have certainly made difficult trade-offs and painful cuts. we have requested 18% less for europe, ish ara iseurasia and c asia. we're scaling back construction of our embassies and consulates, improving procurement to save money and taking steps across the board to lower costs. our request of $51.6 billion represents an increase of less than the rate of inflation and just over 1% of the federal budget. and this is coming at the very

same time that our responsibilities are multiplying around the world. today i want briefly to highlight our five priorities. . first, our request allows us to stain our vital national security missions in iraq, afghanistan and pakistan, and reflects the temporary extraordinary costs of operating on the front lines. as president obama has said, the tide of war is receding, but as troops come home, thankfully, civilians remain to carry out the critical missions of diplomacy and development. in iraq civilians are now in the lead helping that country emerge as a stable, sovereign democratic power. this increases our budget but state and are asking for wun hif tenth of the $48 billion z ut government spent on iraq in 2011. the 2013 u.s. government wide request for iraq including defense spending is now $40 billion less than it was just

two years ago. so we are doing what must be done to try to normalize our relationship at a far lower cost than what we have been expending. over time, despite the tragic violence of this past week, we expect to see similar government-wide savings in afghanistan. this year's request will support the ongoing transition helping afghans take responsibility for their own security and their own future and ensuring that this country is never again a safe haven for terrorists. we remain committed to working on issues of joint interest with pakistan including counterterrorism, economic stability and regional cooperation. second in the asia-pacific, the administration is making an unprecedented effort to build a strong network of relationships and institutions because we believe in the century ahead no region will be more consequenceal to our economic

and security future. as we tighten our belts around the world, we're investing the diplomatic attention necessary to do more with less. in asia we are pursuing what i call forward deployed diplomacy. strengthening our alliances and launching new dialogues and economic initiatives, creating and joining important multilateral institutions, even pursuing a possible opening with burma all of which underscores america will remain a pacific power. third, we're focused on the wave of change sweeping the arab world. alongside our bilateral and securities support, we are proposed a $770 million middle east and north africa incentive fund. this fund will support credible proposals validated by rigorous analysis and by congress from countries that make a meaningful commitment to democratic change, effectively institutions and broad-based economic growth. in an unpredictable time it lets

us respond to unanticipated needs in a way na reflects both our agility and our leadership in the region. it this budget request would also allow us to help the syrian people survive a brutal assault and plan for a future without assad. it continues our assistance for civil society and arab partners in jordan, morocco, tunisia and elsewhere. it provides a record level of support for our ally, israel, and it makes possible our diplomacy at the u.n. and around the world which has now put in place with your help the toughest sanctions that i think any country has ever faced against iran. the fourth priority is what i call economic state craft. in particular, how we use diplomacy and development to create american jobs. we have more than 1,000 state department economic officers working to help american businesses connect to new markets and consumers. we are pushing back every day against corruption, red tape,

favoritism, distorted currencies and intellectual property theft. we help create the trading partners of the future. we have worked closely on three trade aagreements that we believe will create tens of thousands of jobs in america. we hope to work with congress to ensure that as russia enters the wto, foreign competitors do not have an advantage over american businesses. finally we are elevating development alongside diplomacy and defense. poverty, disease, hunger, climate change can destabilize societies and so the seeds for future conflicts. we think we need to make strategic investments today in order to meet our traditional foreign policy goals in the future. through the global health initiative and the feed of foout initiative, we are consolidating programs, increasing our partner's capacity, shifting responsibilities to host countries, and making an impact in areas of health and hunger

that will be a real credit to our country going forward. as we transform development, we really have to deliver measurable results. our long-term objective must be to empower people to create and seize their own futures. these five priorities are each crucial to american leadership, and they rely on the work of some of the most capable, hardest-working and bravest people i've ever.met, the men of state and u.s. aid. working with them is one of the great eps honors i've had in public life. with so much on the line from the arab world to the asia-pacific, we simply cannot pull back. investments in american leadership did not cause our fiscal challenges, and retreating from the world will not solve them. let me end on a personal note. american leadership means aa great deal to me personally. it is my job everywhere i go. after three years, 95 countries and over 700,000 miles, i know

very well what it means to land in a plane that says the united states of america on the side. people look to tus to protect allies and serve as an honest broker in making peace, to fight hunger and poverty and disease and to stand up to bullies and tyrants everywhere. american leadership is not just respected, it is required. it takes more than just resolve. it takes resources. this country is an unparalleled force for good in the world. we all want to make sure it stays that way to make this strechlt in strong, american leadership. the more peaceful and prosperous future that i believe will result. thank you.

>> ron paul will be in springfield, virginia and that goes for newt gingrich as well. he's holding a rally at the university of west georgia. we'll have the candidates plus your phone calls on the c-span networks tonight. the senate has been debating a bill that pays for bridges, roads and transit programs for a couple of weeks. while negotiations have continued off the floor on what amendments will be allowed to the bill. today majority leader harry reid and republican leader mitch mcconnell spoke about it on the senate floor. >> i sfoek wipoke with the pres last evening at an hour set aside at the request of prior and alexander. a good debate took place on the

senate floor. senator prior and snore alexander are exemplary in trying to work things out. they are good legislators because they understand that no side gets their way. i've been here a long time, and i've been fortunate to get a piece of legislation passed that i sponsored and worked toward, but i've never, ever had a piece of legislation that i introduced that wound up with that piece of legislation. always, there are changes. that's the legislative process. and that's what senator pryor and senator alexander talked about yesterday evening. it was important. any talked about the need to bring bills to the floor. they focused on appropriation bills and rightfully so. i'm a long-time member of the probation committee as is the republican leader. we understand the importance of

working on these bills. in the last number of years we haven't been able to do individual appropriation bills except on rare occasions. we've done these omnibus and minibus, and we're trying to get away from that. i think that framework laid last night was extremely important. the republican leader and i have talked individually, personally away from everyone about the need to get this done for the integrity of the senate. the speech last night really helped what i think the republican leader and i want to get done. we need the agreement of senate republicans and democrats that we worked together to complete this important work. they talk about appropriation bills. senator warner, senator haguen joined senator pryor and senator isaacson and boozman and graham joined senator alex er