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  • U.S.-Russia Relations At The German Marshall Fund

    Scoop.co.nz (press release), New Zealand

    U.S.-Russia Relations At The German Marshall Fund

    Friday, 19 September 2008, 7:30 pm

    Press Release: US State Department

    Secretary Rice Addresses U.S.-Russia Relations At The German Marshall Fund

    Secretary Condoleezza Rice

    Renaissance Mayflower Hotel

    Washington, DC

    September 18, 2008

    SECRETARY RICE: Thank you very much, Craig. Thank you for that kind
    introduction. I would like to thank Senator Bennett for being here, as
    well as members of Congress and members of the German Marshall Fund
    Board. I want to thank everyone at the Fund for inviting me to speak
    today. The German Marshall Fund is an indispensable organization `
    especially for our transatlantic alliance, but increasingly for our
    partnerships beyond Europe as well.

    So thank you for the great work that you do in fostering unity of
    thought, unity of purpose, and unity of action. These are the elements
    that the United States and Europe need more than ever today. You have
    made an immeasurable impact in helping us to reaffirm and strengthen
    our nation's ties with Europe these past few years. And so, again,
    thank you very, very much. I'm honored to be here.

    Now, this is actually the first time that I have spoken at the German
    Marshall Fund as Secretary of State. And I venture to say, given our
    short time in office, that it is likely the last. Now, I'm glad that
    you recognized that that was not meant to be an applause
    line. (Laughter.)

    I have come here today to speak with you about a subject that's been
    on everyone's mind recently: Russia and U.S.-Russian relations.

    Most of us are familiar with the events of the past month. The causes
    of the conflict ` particularly the dispute between Georgia and its
    breakaway regions of Abkhazia and South Ossetia ` are complex. They go
    back to the fall of the Soviet Union. And the United States and our
    allies have tried many times to help the parties resolve the dispute
    diplomatically. Indeed, it was, in part, for just that reason that I
    traveled to Georgia just a month before the conflict, as did German
    Foreign Minister Frank-Walter Steinmeier, among others.

    The conflict in Georgia, thus, has deep roots. And clearly, all sides
    made mistakes and miscalculations. But several key facts are clear:

    On August 7th, following repeated violations of the ceasefire in South
    Ossetia, including the shelling of Georgian villages, the Georgian
    government launched a major military operation into Tskhinvali and
    other areas of the separatist region. Regrettably, several Russian
    peacekeepers were killed in the fighting.

    These events were troubling. But the situation deteriorated further
    when Russia's leaders violated Georgia's sovereignty and territorial
    integrity ` and launched a full scale invasion across an
    internationally-recognized border. Thousands of innocent civilians
    were displaced from their homes. Russia's leaders established a
    military occupation that stretched deep into Georgian territory. And
    they violated the ceasefire agreement that had been negotiated by
    French and EU President Sarkozy.

    Other actions of Russia during this crisis have also been deeply
    disconcerting: its alarmist allegations of `genocide' by Georgian
    forces, its baseless statements about U.S. actions during the
    conflict, its attempt to dismember a sovereign country by recognizing
    Abkhazia and South Ossetia, its talk of having `privileged interests'
    in how it treats its independent neighbors, and its refusal to allow
    international monitors and NGOs into Abkhazia and South Ossetia,
    despite ongoing militia violence and retribution against innocent
    Georgians.

    What is more disturbing about Russia's actions is that they fit into a
    worsening pattern of behavior over several years now.

    I'm referring, among other things, to Russia's intimidation of its
    sovereign neighbors, its use of oil and gas as a political weapon, its
    unilateral suspension of the CFE Treaty, its threat to target peaceful
    nations with nuclear weapons, its arms sales to states and groups that
    threaten international security, and its persecution ` and worse ` of
    Russian journalists, and dissidents, and others.

    The picture emerging from this pattern of behavior is that of a Russia
    increasingly authoritarian at home and aggressive abroad.

    Now, this behavior did not go unnoticed or unchallenged over the last
    several years. We have tried to address it in the context of efforts
    to forge a constructive relationship with Russia. But the attack on
    Georgia has crystallized the course that Russia's leaders are now
    taking and it has brought us to a critical moment for Russia and the
    world. A critical moment ` but not a deterministic one.

    Russia's leaders are making some unfortunate choices. But they can
    still make different ones. Russia's future is in Russia's hands. But
    its choices will be shaped, in part, by the actions of the United
    States, our friends, and our allies ` both in the incentives that we
    provide and the pressure that we apply.

    Now, much has been said recently about how we have come to this
    point. And some have attempted to shift the responsibility for
    Russia's recent pattern of behavior onto others. Russia's actions
    cannot be blamed, for example, on its neighbors like Georgia.

    To be sure, Georgia's leaders could have responded better to the
    events last month in South Ossetia, and it benefits no one to pretend
    otherwise. We warned our Georgian friends that Russia was baiting
    them, and that taking this bait would only play into Moscow's hands.

    But Russia's leaders used this as a pretext to launch what, by all
    appearances, was a premeditated invasion of its independent
    neighbor. Indeed, Russia's leaders had laid the groundwork for this
    scenario months ago ` distributing Russian passports to Georgian
    separatists, training and arming their militias, and then justifying
    the campaign across Georgia's border as an act of self-defense.

    Russia's behavior cannot be blamed either on NATO enlargement. With
    the end of the Cold War, we and our allies have worked to transform
    NATO ` form ` to bring it from an alliance that manned the ramparts of
    a divided Europe, to a means for nurturing the growth of a Europe
    whole, free, and at peace ` and an alliance that confronts the
    dangers, like terrorism, that also threaten Russia.

    We have opened NATO to any sovereign, democratic state in Europe that
    can meet its standards of membership. We've supported the right of
    countries emerging from communism to choose what path of development
    they pursue and what institutions they wish to join.

    And this historic effort has succeeded beyond imagination. Twelve of
    our 28 neighbor NATO allies are former captive nations. And the
    promise of membership has been a positive incentive for these states:
    to build democratic institutions, to reform their economies, and to
    resolve old disputes, as nations like Poland, and Hungary, and
    Romania, and Slovakia, and Lithuania have done.

    Just as importantly, NATO has consistently sought to enlist Russia as
    a partner in building a peaceful and prosperous Europe. Russia has had
    a seat at nearly every NATO summit since 2002. So to claim that this
    alliance is somehow directed against Russia is simply to ignore recent
    history. In fact, our assumption has always been ` and it still is `
    that Russia's legitimate need for security is best served not by
    having weak, fractious, and poor states on its borders ` but rather
    peaceful, prosperous, and democratic ones.

    It is simply not valid, either, to blame Russia's behavior on the
    United States ` either for being too tough with Russia, or not tough
    enough, too unaccommodating to Russia's interests or too naïve
    about its leaders.

    Since the end of the Cold War ` spanning three administrations, both
    Democratic and Republican ` the United States has sought to encourage
    the emergence of a strong, prosperous, and responsible Russia. We have
    treated Russia not as a vanquished enemy, but as an emerging
    partner. We have supported ` politically and financially ` Russia's
    transition to a modern, market-based economy and a free, peaceful
    society. And we have respected Russia as a great power, with which to
    work to solve common problems.

    When our interests have diverged, the United States has consulted
    Russia's leaders. We've searched for common ground. And we have
    sought, as best we could, to take Russia's interests and ideas into
    account. This is how we have approached contentious issues ` from
    Iran, to Kosovo, to missile defense. And I have traveled repeatedly to
    Russia, the last times ` two times with Defense Secretary Robert
    Gates, to try to foster cooperation.

    Increasingly, Russia's leaders have simply not reciprocated. And their
    recent actions are leading some to ask whether we are now engaged in a
    new Cold War. No, we are not. But it does beg the question: Where did
    this Russia come from? How did the Russia of the 1990s become the
    Russia of today?

    After all, the 1990s were, in many ways, a period of real hope and
    promise for Russia. The totalitarian state was dismantled. The scope
    of liberty for most Russians expanded significantly ` in what they
    could read, in what they could say, in what they could buy and sell,
    and what associations they could form. New leaders emerged who sought
    to steer Russia toward political and economic reform at home, toward
    integration into the global economy, and toward a responsible
    international role.

    All of this is true. But many Russians remember things differently
    about the 1990s. They remember that decade as a time of license and
    lawlessness, economic uncertainty and social chaos. A time when
    criminals and gangsters and robber barons plundered the Russian state
    and preyed on the weakest in Russian society. A time when many
    Russians ` not just elites and former apparatchiks, but ordinary men
    and women ` experienced a sense of dishonor and dislocation that we in
    the West did not fully appreciate.

    I remember that Russia, because I saw it firsthand. I remember old
    women selling their life's belongings along the old Arbat ` plates and
    broken teacups, anything to get by.

    I remember that Russian soldiers returned home from Eastern Europe and
    lived in tents, because the Russian state was just too weak and too
    poor to house them properly.

    I remember talking to my Russian friends ` tolerant, open, progressive
    people ` who felt an acute sense of shame during that decade. Not at
    the loss of the Soviet Union, but at the feeling of not recognizing
    their own country anymore: the Bolshoi theater falling apart,
    pensioners unable to pay their bills, the Russian Olympic team in 1992
    parading into the games under a flag that no one had ever seen, and
    receiving gold medals to an anthem that no one had ever heard. There
    was a humiliating sense that nothing Russian was good enough anymore.

    This does not excuse Russia's behavior, but it helps to set a context
    for it. It helps to explain why many ordinary Russians felt relieved
    and proud when new leaders emerged at the end of the last decade, who
    sought to reconstitute the Russian state and reassert its power
    abroad. An imperfect authority was seen as better than no authority at
    all.

    What has become clear is that the legitimate goal of rebuilding the
    Russian state has taken a dark turn ` with the rollback of personal
    freedoms, the arbitrary enforcement of the law, the pervasive
    corruption at various levels of Russian society, and the paranoid,
    aggressive impulse, which has manifested itself before in Russian
    history, to view the emergence of free and independent democratic
    neighbors ` most recently, during the so-called `color revolutions' in
    Georgia, and Ukraine, and Kyrgyzstan ` not as a source of security,
    but as a source of threat to Russia's interests.

    Whatever its course, though, Russia today is not the Soviet Union `
    not in the size of its territory, the reach of its power, the scope of
    its aims, or the nature of the regime. Russia's leaders today have no
    pretensions to ideological universality, no alternative vision to
    democratic capitalism, and no ability to construct a parallel system
    of client states and rival institutions. The bases of Soviet power are
    gone.

    And despite their leaders' authoritarianism, Russians today enjoy more
    prosperity, more opportunity, and in some sense, more liberty than in
    either Tsarist or Soviet times. Russians increasingly demand the
    benefits of global engagement ` the jobs and the technology, the
    travel abroad, the luxury goods and the long-term mortgages.

    With such growing prosperity and opportunity, I cannot imagine that
    most Russians would ever want to go back to the days, as in Soviet
    times, when their country and its citizens stood isolated from Western
    markets and institutions.

    This, then, is the deeper tragedy of the choices that Russia's leaders
    are making. It is not just the pain they inflict on others, but the
    debilitating costs they impose on Russia itself ` the way they are
    jeopardizing the international credibility that Russian businesses
    have worked so hard to build, and the way that they are risking the
    real, and future, progress of the Russian people, who have come so far
    since communism.

    And for what? Russia's attack on Georgia merely proved what we had
    already known ` that Russia could use its overwhelming military
    advantage to punish a small neighbor. But Georgia has survived. Its
    democracy will endure. Its economy will be rebuilt. Its independence
    will be reinforced. Its military will, in time, be reconstituted. And
    we look forward to the day when Georgia's territorial integrity will
    be peacefully restored.

    Russia's invasion of Georgia has achieved ` and will achieve ` no
    enduring strategic objective. And our strategic goal now is to make
    clear to Russia's leaders that their choices could put Russia on a
    one-way path to self-imposed isolation and international irrelevance.

    Accomplishing this goal will require the resolve and the unity of
    responsible countries ` most importantly, the United States and our
    European allies. We cannot afford to validate the prejudices that some
    Russian leaders seem to have: that if you press free nations hard
    enough ` if you bully them, and you threaten them, and you lash out `
    they will cave in, and they'll forget, and eventually they will
    concede.

    The United States and Europe must stand up to this kind of behavior,
    and to all who champion it. For our sake ` and for the sake of
    Russia's people, who deserve a better relationship with the rest of
    the world ` the United States and Europe must not allow Russia's
    aggression to achieve any benefit. Not in Georgia ` not anywhere.

    We and our European allies are therefore acting as one in supporting
    Georgia. President Sarkozy, with whom we have worked very closely, is
    especially to be commended for his leadership on this front. The
    transatlantic alliance is united. Just this week, NATO Secretary
    General Jaap de Hoop Scheffer led all 26 of our alliance's ambassadors
    on a mission to Tbilisi to demonstrate our unwavering support for the
    Georgian people. The door to a Euro-Atlantic future remains wide open
    to Georgia, and our alliance will continue to work through the new
    NATO-Georgia Commission to make that future a reality.

    We and our European allies will also continue to lead the
    international effort to help Georgia rebuild ` an effort that has
    already made remarkable headway. The United States has put forward a
    $1 billion economic support package for Georgia. The EU has pledged
    500 million Euros, and it is preparing to deploy a large mission of
    civilian observers and monitors to Georgia.

    In addition, with U.S. and European support, G-7 foreign ministers
    have condemned Russia's actions and pledged to support Georgia's
    reconstruction. The Asian Development Bank has committed $40 million
    in loans to Georgia. The IMF has approved a $750 million stand-by
    credit facility. And the OSCE is making plans for expanded observers,
    though Moscow is still blocking this.

    Conversely, Russia has found little support for its actions. A pat on
    the back from Daniel Ortega and Hamas is not a diplomatic triumph.

    At the same time, the United States and Europe are continuing to
    support ` unequivocally ` the independence and territorial integrity
    of Russia's neighbors. We will resist any Russian attempt to consign
    sovereign nations and free peoples to some archaic `sphere of
    influence.'

    The United States and Europe are solidifying our ties with those
    neighbors. We are working as a wider group, including with our friends
    in Finland and Sweden, who have been indispensable partners throughout
    this recent crisis. We are backing worthy initiatives, like Norway's
    High North policy. We are working to resolve other regional disputes,
    such as Nagorno-Karabakh, and to build with friends and allies like
    Turkey a foundation for cooperation in the Caucasus. And we will not
    allow Russia to wield a veto over the future of the Euro-Atlantic
    community ` neither what states are offered membership, nor the choice
    of states that accept it. We have made this particularly clear to our
    friends in Ukraine.

    The United States and Europe are deepening our cooperation in pursuit
    of greater energy dependence* ` working with Azerbaijan, and Georgia,
    and Turkey, and the Caspian countries. We will expand and defend open
    global energy in the economy from abusive practices. There cannot be
    one set of rules for Russia, Inc. ` and another for everyone else.

    Finally, the United States and Europe, as well as our many friends and
    allies worldwide, will not allow Russia's leaders to have it both ways
    ` drawing benefits from international norms, and markets, and
    institutions, while challenging their very foundation. There is no
    third way. A 19th century Russia and a 21st century Russia cannot
    operate in the world side by side.

    To reach its full potential, though, Russia needs to be fully
    integrated into the international political and economic order. But
    Russia is in the precarious position today of being half in and half
    out. If Russia ever wants to be more than just an energy supplier, its
    leaders have to recognize a hard truth: Russia depends on the world
    for its success, and it cannot change that.

    Already, Russia's leaders are seeing a glimpse of what the future
    might look like if they persist with their aggressive behavior. In
    contrast to Georgia's position, Russia's international standing is
    worse than at any time since 1991. And the cost of this self-inflicted
    isolation has been steep.

    Russia's civil nuclear cooperation with the United States is not going
    anywhere now. Russia's leaders are imposing pain on their nation's
    economy. Russia's bid to join the World Trade Organization is now in
    jeopardy. And so too is its attempt to join the Organization for
    Economic Cooperation and Development.

    But perhaps the worst fallout for Moscow is that its behavior has
    fundamentally called into question whose vision of Russia is really
    guiding that country. There was a time recently when the new president
    of Russia laid out a positive and forward-looking vision of his
    nation's future.

    This was a vision that took into account Russia's vulnerabilities: its
    declining population and heartbreaking health problems; its failure
    thus far to achieve a high-tech, diversified economy like those to
    Russia's west and increasingly to Russia's east; and the disparity
    between people's quality of life in Moscow, and St. Petersburg, and in
    a few other cities ` and those in Russia's countryside.

    This was a vision that called for strengthening the rule of law, and
    rooting out corruption, and investing in Russia's people, and creating
    opportunities not just for an elite few, but for all Russian citizens
    to share in prosperity.

    This was a vision that rested on what President Medvedev referred to
    as the `Four I's': investment, innovation, institutional reform, and
    infrastructure improvements to expand Russia's economy. And this was a
    vision that recognized that Russia cannot afford a relationship with
    the world that is based on antagonism and alienation.

    This is especially true in today's world, which increasingly is not
    organized around polarity ` multi-, uni-, and certainly not bi-. In
    this world, there is an imperative for nations to build a network of
    strong and unique ties to many influential states.

    And that is a far different context than much of the last century,
    when U.S. foreign policy was, frankly, hostage to our relationship
    with the Soviet Union. We viewed everything through that lens,
    including our relations with other countries. We were locked in a
    zero-sum, ideological conflict. Every state was to choose sides, and
    that reduced our options.

    Well, thankfully, that world is also gone forever, and it's not coming
    back. As a result, the United States is liberated to pursue a
    multidimensional foreign policy. And that is what we are doing.

    We are charting a forward-looking agenda with fellow multiethnic
    democracies like Brazil and India, and with emerging powers like China
    and Vietnam ` relationships that were once colored by Cold War
    rivalry.

    We are transforming our alliances with Asia ` in Asia with Japan and
    South Korea, Australia and the Philippines, with other countries of
    ASEAN and expanding them for platforms for our common defense to
    catalysts ` as catalysts for fostering regional security, advancing
    trade, promoting freedom, and building a dynamic Asia-Pacific region.

    We are rebuilding relations with countries like Libya, whose leaders
    are making responsible choices to rejoin the international order.

    We are deepening partnerships, rooted in shared principles, with
    nations across Africa ` and to support the new African agenda for
    success in the 21st century. We've quadrupled foreign assistance to
    promote just governance, investment in people, fighting disease and
    corruption, and driving development through economic freedom.

    We are moving beyond 60 years of policy in the broader Middle East
    during the Cold ` which, during the Cold War, led successive
    administrations to support stability at the price of liberty,
    ultimately achieving neither.

    And we are charting a hopeful future with our friends and allies in
    the Americas ` from whom we were, at times, deeply estranged during
    the Cold War. Here, we have doubled foreign assistance. And now, we
    are pursuing a common hemispheric vision of democratic development,
    personal security, and social justice.

    Anachronistic Russian displays of military power will not turn back
    this tide of history. Russia is free to determine its relations with
    sovereign counties. And they are free to determine their relationships
    with Russia ` including in the Western hemisphere.

    But we are confident that our ties with our neighbors ` who long for
    better education and better health care and better jobs, and better
    housing ` will in no way be diminished by a few, aging Blackjack
    bombers, visiting one of Latin America's few autocracies, which is
    itself being left behind by an increasingly peaceful and prosperous
    and democratic hemisphere.

    Our world today is full of historic opportunities for progress, as
    well as challenges to it ` from terrorism and proliferation, to
    climate change and rising commodity prices. The United States has an
    interest in building partnerships to resolve these and other
    challenges. And so does Russia.

    The United States and Russia share an interest in fighting terrorism
    and violent extremism. We and Russia share an interest in
    denuclearizing the Korean peninsula and stopping Iran's rulers from
    acquiring the world's deadliest weapons. We and Russia share an
    interest in a secure Middle East where there is peace between Israelis
    and Palestinians. And we and Russia share an interest in preventing
    the Security Council from reverting to the gridlocked institution that
    it was during the Cold War.

    The United States and Russia shared all of these interests on August
    7th. And we share them still today on September 18. The Sochi
    Declaration, signed earlier this year, provided a strategic framework
    for the United States and Russia to advance our many shared interests.

    We will continue, by necessity, to pursue our areas of common concern
    with Russia. But it would be a real shame if our relationship were
    never anything more than that ` for the best and deepest relationships
    among states are those that share not only interest, but goals, and
    aspirations, and values and dreams.

    Whatever the differences between our governments, we will not let them
    obstruct a deepening relationship between the American and Russian
    people.

    So we will continue to sponsor Russian students and teachers and
    judges and journalists, labor leaders and democratic reformers who
    want to visit America. We will continue to support Russia's fight
    against HIV/AIDS and tuberculosis. And we will continue to support all
    Russians who want a future of liberty for their great nation.

    I sincerely hope that the next president and the next secretary of
    state will visit Russia and will take time to speak with Russian civil
    society, and will give interviews to Russia's diminished but still
    enduring independent media, just as President Bush and I have done.

    The United States and our friends and allies ` in Europe, but also in
    the Americas, and Asia, and Africa, and the Middle East ` are
    confident in our vision for the world in this young century and we are
    moving forward. It is a world in which great power is defined not by
    spheres of influence or zero-sum competition, or the strong imposing
    their will on the weak ` but by open competition in global markets,
    trade and development, the independence of nations, respect for human
    rights, governance by the rule of law, and the defense of freedom.

    This vision of the world is not without its problems, or its setbacks,
    or even its significant crises ` as we have seen in recent days. But
    it is this open, interdependent world, more than any other in history,
    that offers all human beings a greater opportunity for lives of peace,
    prosperity, and dignity.

    Whether Russia's leaders overcome their nostalgia for another time,
    and reconcile themselves to the sources of power and the exercise of
    power in the 21st century ` still remains to be seen. The decision is
    clearly Russia's ` and Russia's alone. And we must all hope, for the
    good of the Russian people, and for the sake of us all, that Russia's
    leaders make better and right choices.

    Thank you very much. (Applause.)

    MODERATOR: Thank you so much, Secretary Rice. That was a very
    compelling and thoughtful speech. The Secretary has agreed to take
    three questions. Where is the first one? Over here.

    QUESTION: Madame Secretary, Russia is a petro-state, and its level of
    assertiveness pretty much correlates to the price of oil. The price of
    oil is down by 30 or 40 percent, and the oil markets look like they're
    going to get softer. Would you expect Russian behavior to be at all
    modified because of the price of oil and its importance to their
    economy?

    SECRETARY RICE: Well, I don't know if their behavior will be
    modified. I do know that there are significant vulnerabilities for
    petro-states that do not diversify. And there are significant
    vulnerabilities for petro-states that depend on their ability to
    engage in monopolistic behavior during good times, when those ` when
    the price of oil is down and that monopolistic behavior doesn't pay
    off in terms of customers. So those are facts that I understand and
    realities that I understand that are independent of Russia in
    particular.

    I will say that there had been a time when Russia talked a lot about
    the diversification of its economy because of its ` this period of oil
    boom. But again, half in and half out. It's difficult to diversify
    your economy if rule of law and transparency and predictability of
    contracts is not available. And so whatever the future of the price of
    oil may portend, I think that the problems in the Russian economy are
    ones that are there structurally, and they will, of course, be more
    vulnerable or made worse when commodity prices are, as they are,
    headed south.

    But there are just certain structural problems with being a
    petro-economy. And if you look at places that have handled it well,
    for instance like Norway, they have taken very different course, and
    of course, as a democratic state, have had to take a different course.

    MODERATOR: Next question. Over there.

    QUESTION: (Inaudible) German Marshall Fund. About the G-8, I just
    wonder what your thinking is of the G-8 now. Is it time, perhaps, to
    reinvent it, to make it larger? And how do you see Russia's role now
    in the G-8?

    SECRETARY RICE: Well, I think that Russia has called into question
    whether it shares the goals and aspirations of many of these
    institutions. And what has happened thus far ` first of all, there's
    never been a G-8 finance ministers, and so the G-7 finance ministers
    have been the ones that have been working on the Georgia package and
    so forth. We have also met at the level of G-7 foreign ministers
    meeting telephonically a couple of times because issuing one statement
    that said that it was unusual for G-7 foreign ministers to criticize
    the behavior of another ` of a member of the G-8. So there is a lot of
    activity that has taken place outside the context of the G-8, and more
    in the context of the G-7.

    I think that we will have to see. The jury is still out on a couple of
    elements about Russia, and I hope that Russia will, frankly, stop
    digging the hole that it has dug by recognizing Abkhazia and South
    Ossetia. One of the things that Russia could do to show that it
    understands that a different course is necessary would be not to try
    to alter the status quo in Abkhazia and South Ossetia. So no permanent
    military bases. Don't start exploring for resources in territory that
    is clearly within the international boundaries of a member-state of
    the United Nations.

    I think these are the kinds of issues that people are going to be
    looking at. Is Russia going to block the entry of observers and
    monitors into Abkhazia and South Ossetia itself? Is Russia going to
    actually withdraw its forces fully and go back to the status quo ante?
    So there is a lot to still look at here, but I think that the last
    couple of months have clearly ` or the last month or so, has clearly
    cast a pall on the question of Russian engagement with the diplomatic
    and economic and security institutions that were built on certain
    premises about what kind of engagement and interaction Russia wished
    to have with the world.

    MODERATOR: Final question. Okay, way over there.

    QUESTION: (Inaudible) visiting fellow at the Brookings
    Institution. Thank you for excellent speech.

    There are a few things I would like you to elaborate if you
    can. First, you didn't talk about unintended consequences of a
    strained relationship with Russia. You mentioned the cooperation on
    terrorism and nonproliferation. But what ` if they don't collaborate,
    that would be a major setback for everybody.

    The second point is: Don't you think that we as Western democracies
    have somehow lost our moral force in invading Iraq and now we have
    difficulty at making ` Russia understands that invading is not such a
    good thing and, you know, you're breaking international law? Thank you
    very much.

    SECRETARY RICE: Yes. Well, let me ` on the first question of the
    consequences, look, I think we still have an interest in cooperation
    on terrorism, and I think Russia still has an interest. Russia, given
    its problems with extremism on its periphery, has always understood
    that it had an interest in cooperating on terrorism. I might note,
    too, that separatism and terrorism, in some of that area around the
    south of Russia ` the southern flank ` go somewhat hand in hand. And
    so, the recent moves by Russia, I think, have consequences also for
    the way that those regions will develop. And we will continue to do
    what we do with every state, which is to share information, to share
    whatever intelligence we have. Because none of us have an interest in
    another terrorist attack, and I expect that to continue.

    If you remember, the United States was most ` probably the most
    supportive country in the world of ` with Russia after Beslan. And I
    don't think that that is going to stop. And I think if there are those
    out there who would wish to exploit what they see as tensions in
    U.S.-Russian relations, they shouldn't do it. Because the common fight
    against terrorism is one that I expect to continue.

    As to Iraq, I think we have to be very clear here. Saddam Hussein was
    an international outlaw by numerous, numerous, numerous Security
    Council resolutions which Russia itself had voted for, including the
    last resolution, 1441, which called for consequences should the Iraqis
    not carry through on the demands of that resolution. This was a state
    that had attacked its neighbors, used weapons of mass destruction both
    against its own people and against its neighbors. It was a state that
    had started two major wars and that frankly was an outlaw state. And
    it was a brutal state to its own people. What the United States and
    the coalition of states that liberated Iraq did was to give the Iraqi
    people an opportunity to build a new and decent kind of society.

    Now to be sure, it has been harder than any of us might have
    dreamed. But if you look at where Iraq is today, reemerging as a
    strong Arab state in the center of the Middle East, but a multiethnic,
    democratic state with a functioning parliament, with a functioning
    government whose neighbors are recognizing that and going back in
    important numbers from places like UAE and Bahrain and Jordan to
    reestablish embassies there, if you look at an Iraq that will not seek
    weapons of mass destruction like the Saddam Hussein regime, that will
    live in peace and security with its neighbors and that will give its
    own people a chance for democratic governance, I don't think that that
    bears any resemblance to invading a small democratic neighbor whose
    only crime, apparently, was that it wished to be a part of the
    emerging transatlantic world.

    And so I just don't think that there is any comparison, and we
    shouldn't allow the Russians to make such an argument.

    MODERATOR: Thank you so much.

    SECRETARY RICE: Thank you very much. (Applause.)

    ENDS
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