 Ladies and gentlemen, we've had a very rich day of presentations and when you have a good cake you always put the icing on the top and we're, I think, ending our day and the presentation will shortly follow and then our reception with what I think is going to be some very nice icing. We've tried to avoid having too many introducers introducing introducers but let me take just five seconds to introduce Rita Hauser, President of the Hauser Foundation and Chairperson of the International Peace Academy. Rita is an international lawyer whose real passion is foreign policy and I won't go through a very long list of institutions that she's been involved in other than the note. It bridges the Aspen Institute, the IISS in London, the RAND Corporation, work on various congressional or, sorry, State Department panels that make her eminently qualified for a whole range of internationally oriented activities, not the least of which is to introduce our honored speaker this afternoon. Rita, please. Thank you very much, ladies and gentlemen. When Dick Solomon called and asked if I would introduce Kandee Rice, I accepted with a lacquery because it would give me the opportunity to tell you a good bit about her personally and I'll leave to her to tell you about her views on foreign policy as she will this weekend assume the position of National Security Advisor to the new president, the first woman to hold that position. But before I do so, I want to make a very perhaps astounding confession. Kandee and I share a man here in Washington. And we share someone's deep friendship, affection, his wise counsel. He's always there for both of us and I think we mark much of our career by it. I hope I don't embarrass him by saying it's our dear friend, Brent Scopar. Now as I said earlier, Kandee will be the first woman to achieve this position and it's never easy to be a first in anything, particularly the first woman. In an era when there were not many mentors or role models or people to look to for how to behave when you are the first, you have to rely on your own inner resources of which Kandee has an abundance. Intelligence, life, competitiveness, great determination and a willingness to do what's necessary to accomplish what everyone sets out to dream about in life. And she certainly will be reaching that apex this weekend. During the course of the campaign, I saw on numerous occasions the deep affection that President-Elect Bush had achieved vis-a-vis Kandee. They are really not only comrades and colleagues but buddies and good friends. Kandee is a loyal and deep friend, one whose commitments are very personal and one whose friendship everyone cherishes. She was a very devoted daughter and a very, very deep and affectionate person to those who were close to her during her life. Her accomplishments are known to you publicly. She's an academic of distinction. She served in the first Bush Administration under Brent Scopar and then went on to become the youngest provost at Stanford. Being very much in the Harvard crowd myself, I always believed it was important to snoop out the opposition. And when I did call around at Stanford, I found that they were flicking because of this new provost who was doing a most effective job in not only administering but in setting the tone for the university. It is a true honor to have her with us this evening to talk about the new administration's view of foreign policy. And I know you all join me in wishing her the best of luck as she assumes her position this weekend. Thank you. Thank you very much. Thank you, Rita, for that wonderful introduction. You've had decades of service to our country and in the service of international peace and cooperation, and so it is especially wonderful to have you introduce me. I am very much looking forward to joining the fraternity of national security advisors. I don't know if they're going to have to change the rules of admission or not, but it is delightful to follow in the footsteps of a great group of people who serve the country selflessly. And I just want to add no more, with no one more selflessly than my former boss, Frank Skokrop, who I expect will still be on the other end of the phone to tell me how to really do the job. I'm also very glad to be here with all of you. I see a lot of friends in the audience, a lot of people whose wise counsel I've had over the years and whose wise counsel I hope I will have over the coming years. And I'm especially glad to participate in a conference that is organized by the United States Institute of Peace. This is clearly one of our country's most successful new public-private partnerships. I'm grateful to the Institute for its work. I'm grateful to its visionary director, Richard Solomon, with whom I've had many, many interesting and important discussions about foreign policy and about Asia in particular. And I'm very grateful to you for giving me the opportunity to speak about passing the baton. Now, that's an image that I particularly like because passing the baton evokes an image of a relay race run by a team. And indeed, I like that image because Sandy Berger and I are teammates in important ways. We may compete against each other when we're in races at home, but I can tell you that when the United States tries to pull together a foreign policy that is good for Americans' interests and I hope good for the world, that we have both had the pleasure of representing Team USA. This has been, as most of you know, a very curry transition for reasons that we all know. But Sandy has done everything possible to make this transition a smooth one. And I want to take this opportunity to publicly thank him because when we get off to a start on Saturday, if we get off to a good start, it will be in large part because Sandy has performed that task so well. And I would like you all to know that. I'm going to try to keep my prepared remarks relatively short because I'd like to leave some time for questions for dialogue. I think that dialogue is a part of the tradition here at the U.S. Institute for Feeds. But I want to offer some thoughts about the challenges that we face and a little bit about how I think the National Security Council staff and its advisors need to think about those challenges as we face them over the next several years. Now, as you all know, I had the honor of serving in government for the United States at the end of the Cold War and in 1990, I saw events that I never thought I would behold. I, like most specialists in international politics, went into government expecting to return to Stanford University with a Europe divided with a Soviet Union intact, with a Germany divided, and with a world that had been pretty static since 1945 largely unchanged. Well, to my great surprise and indeed my great honor, I had a chance instead to participate in the unraveling of the Cold War, a largely peaceful unraveling of the Cold War that came about because of great statesmanship on all sides. And I really do want to say on all sides, on the side of the United States, of the Europeans, but also on the side of the Soviet Union, statesmanship that saved the world from what could have been a conflagration. It was also a time when values mattered, when values of individual liberty and freedom that had been suppressed in one part of Europe for almost 50 years emerged unscathed because it turns out that they are incredibly powerful values that can, regardless of the circumstances, endure. I remember particularly one moment when I stood in Moscow at the Akober Sky Hotel and witnessed the signing of the document that reunified Germany. And it struck me that it was remarkable that it was done really with very little ceremony. Quite unlike the scores of arms control agreements that had been attended by major summits and great fanfare, this moment was taken to place in a hotel in Moscow. The only head of state who was there was Soviet President Gorbachev. In some ways, it was as if the world tired of the Cold War had finally decided that it should end with a whimper, not a bang. To that, we should be very grateful. But in thinking about that moment, we should not underestimate how remarkable it was. And I want you to know that I do know that you don't have to hear a band playing to signal that one era has ended and another has begun. For the first years of the new era, after leaving the government, I had the privilege of helping to manage one of the world's great educational institutions, Sanford University, parked right in the heart of the Silicon Valley. In fact, Sanford University and the Silicon Valley are symbiotic. This last week, one of the last remaining fathers of the Silicon Valley, Bill Hewlett, died. Bill Hewlett and David Cassert built a little company called Hewlett-Cassert with a $500 loan from the Dean of Engineering at Sanford University, Brad Terman, who somehow believed that these two young graduate students that he had had a good idea and that that creativity ought to be rewarded and that they ought to go out and give it a try. Well, I'm going to tell you that's still the story of not just the Silicon Valley, but the story of Route 128 in Austin, Texas and many, many places where knowledge and smart people that come out of the great American University go on to create whole new realms of knowledge that become whole new areas of the economy. I can tell you that during that time, the subjects that were familiar and of great luck to me, Kremlin debates and nuclear throwaways to be true, were displaced by some new topics. Believe me, when you talk about the rivalry of the great powers in the Silicon Valley, they don't mean east and west. They look toward Redmond, Washington. Now, no foreign visitor to my office ever wanted to talk about nuclear throwaways or Kremlin debates during my time as provost. They wanted instead to talk about how to become the Silicon Valley, how to use the creativity and innovativeness of their people to create whole new areas of knowledge and to spur the kind of economic miracles that we have seen in this country. I'm grateful for the opportunity of having had that experience because it taught me something very special about the United States of America. And indeed, unless you understand the specialness of the American experiment, it is hard to understand what America can mean in the world. First of all, it taught me that creativity and openness and risk-taking, the willingness to let a free people and their laborers be rewarded is really the engine of economic growth. It taught me, too, that we are one America out of many background and ethnic heritage because California and the Silicon Valley in particular is an ethnically diverse place and she will ever find. And in fact, one of America's great strengths has been that it has been open to waves after waves of immigration, constantly rejuvenating, constantly strengthening the pool of people already here. And that is something that if we ever lose, we lose something that is very vital to the United States.