Middle east and north africa is that a combination of a toxic mix of bad politics and bad religion has created a situation i in which a dictatorship has been cast off. There has not been the Institutional Capacity for states to govern themselves and reach a new dispensation for governments in their countries and as a result of that the people of these countries which is probably, by the way for decent governments, the rulebased governments, tolerant societies all of these wishes and ambitions have been squashed under the immense pressure of extremism, born out of a perversion of religion, and then combining with the fact there is these situations of instability insufficient capacity of these institutions to govern. Govern. There are three things relevant to consider. The first is this. Each one requires in a sense a decision about where we go. The first is this. When we face groups like isis boca harem, none of these groups are capable of being negotiated with. You have to defeat them. So we have to have the ability and capacity from the military stand point and utilizeing what we have learned to go and defeat them. And a whole series of questions arise from that and we have to be prepared to answer and have the will and commitment to fight them. That will be done in alliance with others and sometimes on our own. The second thing is this. My view is is that problem is not simply countering violence extremism. It is countering extremism. It is born from ideas and you can see the ideas represented by the burrocracy in the shiite side and on the opposite of the sunni side and those ideas have to be counted. And what my foundation is target these issues. We have to understand around the world, not just in the middle east and north africa but in asia, in central asia, in the far east even in our own societies within europe there is an ideaology of extremism that is being taught to millions of young people day in and day out. My point is very simple. If we want to deal with this extremism issue we have to tackle the immediate but you have to tackle the root cause which is the education of a war thought given to millions of young people and what is absolutely crazy about the world today is we spend billions of dollars on security relationships when inside the Education Systems of some of these countries we are incubating the very problem. We need a global com pact on education that all countries agree to and accept this as part of their Global Responsibility as a nation to promote religious tolerance within your Education System and root out religious prejudice. The world belong do is the people able to treverse the barriers of culture and face a nation. And that campaign for the open minded view of the world is what we need to have in the policy long term. The third element is what the west does. They adhere to one piece of good news. In each country, there are people that want to same things we do. As i said earlier, i think the majority is there. I would like to see us in the west, and we should learn the lessons of the last 1015 years but we need to recognize the struggle in our own interest connected and we need open minded people to succeed. They will not succeed unless we are prepared to commit to stand alongside them. Thank you. [applause] keeping the theme of dealing with radicalism. I want to turn to the state minister. You have the experience of negotiating or trying to negotiate, i think you learned in a difficult way what mr. Blair said and that is these are people you cannot negotiate with. You were negotiating with isis in jordan representing the japanese government during the crisis in january when isis held two japanese hostages and wonderful both were executed. Can you tell us state minister what did you learn about the new form of terrorism and tell us briefly who were you communicating with and what was that like. First of all, i would like to thank you for making this institute and thank you very much minister nakamura first of all i would like to thank you, the Milken Institute minister nakayama first of all i would like to thank you the Milken Institute for inviting me. I learned english from hollywood. From Beverly Hills cop i. My english is not so good. No need to apologize. Minister nakayama arigato. We had a very big terrorist impact post9 11. Osama bin laden did those kinds of things. After Osama Bin Laden type of terrorism, what is the difference compared to isis is terrorists meet High Technology and this time isis using an internet communication tool, as our tools. One of the hostages was mr. Goto , who was a journalist. I. S. Killed the journalist. Now it is different impaired to 17 years ago type of war. Now it is different compared to 17 years ago type of war. We had the war. If i make a sound in the 17 years ago war, it sounds like this [imitating gunfire] but now, only one click one click kills everything. So, what is the difference . The speed, no limit. No motor. So terrorists, even one terrorist can fight. 17 years ago, nation versus nation. This is a big difference between the warfare type compared to the old way. So, we in japan negotiate with isis i. S. This time, but it is very different to read because i have no cards. Nothing. You see, big countries, we gathered and we decided. We never pay the ransom for the victim. We never negotiate with terrorists directly. So with these roles, its difficult to negotiate with no rules people. We play chess with each other. I am a good guy. I have a rule. You have a rule. You can take king and queen immediately. So, this is a game against a terrorist. Right now. And i really think King Abdullah of the jordanian government strongly including intelligence with a group they have formed. In the middle east, israeli, beside and the other occasions that the most collaborated agency at the time was the cid. One thing i can tell you is if the jordan king said yes, other people said yes to me. It is negotiating between the king and i was the most important meeting at the time. And through the government of jordan, we can talk like a brother country. And so we stand each other. I really express my condolences to a pilot captured the 24th of december. Unfortunately it seems the lesson was proven you cannot negotiate with the terrorist in the end. They are only killers. They are not human beings. Because we have so much to cover in a short time i want to change gears. Thank you, state minister. Senator lindsay grahm, the United States senate will considering legislation regarding the president s negotiations with iran over the nuclear program. I know you have strong feelings about this. Tell us what you expect the senate to do. But more broadly the subject , here is global risk. The president says if we dont do a deal with iran and there is no deal, and negotiations break down, that could lead us to war. But the deal itself is risky. Talk about that. The first thing to our japanese friend i understand you better the Prime Minister. [laughing] thank you. Is it just me or does he talk funny . [laughter] so, what were we talking about . Iran. Number one, the senate will overwhelmingly approve the corker legislation this week that says for the president to lift congressional sanctions we created he is going to have to come to congress to get permission and that will get a lot of bipartisan support. As to a deal versus no deal. The president says if we dont get a deal it is the best chance of avoiding war. The consequences of a bad deal worry me more. If you like a bad deal, and a bad deal is if the sunni arabs felt like they needed nuclear ability to counter the persians army. The worst outcome is censoring the middle east into a nuclear arms race. Im convinced that if we give the iranians too much capacity and how many people believe they have been trying to build a Nuclear Weapons program not a Nuclear Power plant . Those that didnt raise your hand you should not be allowed to drive in california. [laughter] so you have to know who you are dealing with. These guys lie and cheat and want a Nuclear Weapon to maintain their regime because they believe no one will bother them in the future. But the sunni arabs, unlike friends in japan and south korea will not tolerate, they dont feel like they need to go down the road. What is a good deal . A good deal is one to end the Nuclear Ambition of the iranians so they can have a small enrichment program, and have a Nuclear Power program that can never be used to make a Nuclear Weapon. A bad deal will be too much capacity in the hands of the iranians so the arabs feel loch mike like they need to match it. At the end of the day, i think a good day is understood my israel and the arabs, and if they say this is too much capacity then it will be hard to get it through the senate. And so i would love a good deal. And i will outline very quickly what i think a good deal will look like. Any time, anywhere inspections including military facilities. If you do lift the inspection regime 1015 years from now, whatever the date might be there is a certification the regime at the time and place is no longer a statesponsor of terrorism. I dont think that is an unreasonable request. And they dont get a dime under sanctions relief until they start complying with the inspection regime. Here is my biggest fear. They will take the money and build hospitals and schools but put it in their war machines. Bottom line congress will insist , on reviewing the deal. A bad deal will be one that leads to a Nuclear Arm Race in the middle east and i hope that is not the kind of deal we get. Thank you. [applause] gentlemen clark i wonder if you want to pick up on that and elaborate on the question of what a deal could mean for irans role in the region. One school of thought you hear from the administration is a deal would put wind in the sails of the reformers, moderate the regime and open it up. Perhaps be the First Step Towards a relationship with the United States and the west. Another school of thought is the confusion of money and Economic Activity will go to iranian hegemonic activities in the region, go to hezbollah, allow iran to take sides in the civil war in the region. How do you see it playing out . I have to be careful how i answer because i am afraid graham will steal my license. [laughter] im very concerned about the agreement. But lets put it in larger context. Iran and turkey with facing off in a competition to see who can control the middle east. Under president carter one president perdue the turkish president there is a longing for , the glories for the real caliphate, the ottoman empire, and dominance of the whole region. As iran is more powerful, into syria, and now into yemen, they see the beckoning of empire. So you have to look at the Nuclear Agreement as one step in this. So i think senator graham is very right to be concerned about starting a Nuclear Arm Race in the region. But i think regardless of how the agreement comes out you will have the turkish competition. These nations are sly and clever and dont like the american definition of war. In america, we think it is war or peace. We are going to shake hands or drop a Nuclear Weapon and send in the marines in the 101st. In reality, this is Armed Struggle for regional dominance. It is playing out through the terrorist organizations. Isis for example, when the United States says we will destroy isis, i dont think that is going to happen because isis is supported by countries in the region to wage war against other countries in the region. It is simply using terrorist and recruiting extremist. But it is an agent of government. Now it is an agent in the same way frankenstein was created by human beings. So it has its own will and intent. In that context, we have to figure out now in this window of time between the announcement of an agreement to agree, and seeing the details, we have to hope that secretary kerry and president obama take hea heed of take heed of the concerns being raised about this agreement. It is not too late to stand up and demand the kind of details that would help us restrain the nuclear arms race. It may not be too late to try to do something more in terms of bringing iran back in. But and this is my theme on this panel, i tell you i think we are , greatly underestimated gos strategic risk. The idea that this is going to an agreement is going to open up iran and investment will pour in and these countries are going to get along well, well yeah investment will pour in and iran will use its wealth as it sees fit. For selfaggrandizement. It will support aside in syria bashir assad in syria, it will develop deeper ties with Vladimir Putin in russia, it will further squeeze the Saudi Arabian regimes in yemen and oman. We are looking at decades of Armed Struggle using the symbols of religion going after the politics of identity, using the misshapen ambition of misled young people who believe they can find justice by killing young people. All of that is in play. This Nuclear Agreement is just a small part. We have to be wise enough to use the agreement to not only deal with the Nuclear Issue but try to address and shape the larger issues. This is not a region you can handle by u. S. Forces. We put forces in and in my view it is the biggest error every made by the United States of america. Saddam hussein said if we attacked he would open up the gates of hell. Well since he told us 15 years earlier we would have the mother of all battles lasting four days we didnt believe him when he said the gates of well, but when dashing gates of hell, but when you look at the consequences of the opening of iran, the clash going on, the rise of sectarianism and civil war you , realize these are issues that are much deeper, much stronger and more powerful than we can resolve with a hundred thousand men. To that point, hand on the question of diplomacy, mr. Blair, i know you spend a lot of time trying to get what is left of the middle east Peace Process back on track. There was a time, if we were sitting 1015 years ago, when we talked about the roots of these problems, we would come back to the idea of some solution between the israelis and palestinians. Now there is so much more happening, perhaps that alone would be a small step. But my question to you is does this remain fundamental to stability in the region . Quite simply isnt the peace , process dead at this point . It often seems that way from the u. S. It remains fundamentally important. In my view, i am out there in the middle east twice a month now, so i am looking and studying it the whole time. It is important for reasons relevant to the broader conversation. The one thing, i agree it is going to be a long generational struggle, this process of change, but i do think we are looking at the middle east wrestling with the demons that at some point it was always going to have to wrestle with at , and the one thing i personally think is the right way of looking at the middle east today, is yes, you can look at it as a power struggle between interests. I think it is also important to look at it as a struggle between different sets of values. The truth is if you take a country like egypt, where the Muslim Brotherhood came to power, and then like it or dont like it, but 20 Million People came out in the street and put them out. And now the new president is having to try to plan a way forward for the future. The truth is, the only recourse for a country like egypt is to reform its economy, reform its Education System, to open up to the world and encourage a Good Relationship with all of its neighbors, including israel. So in the end what has to happen , in the if there is a sunni is any future, is people are either going to have to take an open minded view of the world or not. Into that as it were, cauldron comes the israeli solution. Why is that important for obvious reasons, and for another reason. At the heart of the israelipalestinian issue in my view is not a debate about where you put the borders and how you make the territories, or howdy how do you deal with the issue of jerusalem. It is also a fundamental issue of culture acceptance. In this tiny strip of land are two peoples prepared to live side by side in peace recognizing they come from different cultures and faith. That is why for me it remains fundamentally in arent good important. I think in the end the only solution is to have two states for two peoples. But i think the key to resolving the Palestinian Issues today lies in the region. And the one thing i would say that is fascinating and i put this thought out there. In my experience of the last month particularly. You will have to same conversation in jerusalem and the same conversation in most of the arab capitals and what is the worry that all of those governments have . The worry is extremism. The worry is the people who once one instability and chaos and terrorism, to prevent that cultural acceptance. Many have to go through the process of reform. That is true. But i say to you, for the first time i am finding in the middle east, is there are people in those middle Eastern Countries within islam, who are prepared to stand up and say we have got to go in a different direction for the future. And that is the one thing that gives me hope. If you could result the israelipalestinian issue, think about the huge boost you would give to the forces of cultural acceptance and the blow to extremism. That is why it remains important. Senator graham, do you think the Peace Process is dead . If you for president how would you talk about it . If you do run for president. The conservative view is the Obama Administration pressured israel more than what is appropriate to reach a deal. Do you agree with that assess assessment . Do you think the Peace Process is a top priority . Or is the larger conflict that has arisen taken more priority . For the Prime Minister and john kerry klein john kerry quite frankly, works very hard to get the sides in a good spot to move forward. You have a decided community with hamas under control and the west bank economy doing better and the Security Force is more reliable. And i dont know how you put the palestinian back together but Palestinian People back together again but i would be a good start from negotiation point of view. You have a group of palestinians you could live in peace with, a group that want to drive into the sea and that is tough for israel. Let me say this, if you had a clever hesitant president about 57 [laughter] there is a historic moment shaping up in the middle east where the arabs and israelis are aligned unlike any time i have seen. They have two common threats. Isil will cut their throat before they cut ours. The leaders in the middle east are in harms way from radical islamic groups. Anything named al over the you need to watch for. The king of jordan, the king of saudi arabia, all of the gulf arab states, isil hates them as much as they hate you. And they are realizing this, general clark, that they have been feeding the beast. The idea of a shiitepersian march scares them. You got to come in and raise two common enemies to the arabs so you have radical islamist one shiite and one persian, with the ability to take down the region. Come together, start in syria. If i were president , the first time i would be after is assad. You will never have an arab army going to syria just to fight isis. They are not going to give syria over to lose irans public. They want him gone. Ill health follows when he leaves, but it was there anyway. All hell follows when he leaves, but it was there anyway. Unique processes that one day could translate to restarting the Peace Process anew. Elsisi is an interesting cat. The member member mubarak model wont work. Those whoern for saddam to come back, were americans. Im never going to ask a young muslim, arab, to live in a dictatorship for my convenience anymore. Im not going to ask your kids to live in a dictatorship for my convenience. Theres two things going on in the mideast, a fight for the heart and soul of islam, and i am going to take sides. Im going to take sides with those who went kill us. Thats most. There is a fight for how you govern the mideast. Im taking sides with young people who are upset about the fact theyre living in a country where a few get everything, on the day their born their fate is determined. In the middle is the vacuum created id american lack of leadership. How do you start the Peace Process . Go to the arabs and say, listen, well be with you in syria, well integrate our forces. Youll have the main battle force but well give capability to supplement your forces so we take isil, and assad down. Heres what we want in return. Stop paying these guys. Cut off their money. By the way, let women drive. And sit down with the israelis and see if we can patch this up. Elsisi has done a good job in closing the tunnels, so every mistake has a consequence. We made plenty of the republican and democratic side, but i say this, theres a historic opportunity here to create an alliance between former foes that could be transformational and jump start the Peace Process unlike anytime ive seen, tell hamas, knock it off no more arab support. Thank you. I want to change gears in just a second go to europe, and i have a question for general clark i have looking forward to hearing from him on. I want to give the state minister an opportunity to add any concluding thoughts particularly on the question of what more we can do to fight these extremists that you have had the firsthand encounter with. You mentioned their use of information technology. Do you think the world has caught up to that . Has a strategy to deal with it . Do you have any recommendations . I think of course we have to strong ties, we have to harmonize strongly against isis or other extremism, and the important thing is how do you say i sorry. I forget the english. How do you say an alliance, a Strong Alliance between does japan have a role to play with the west all right. Ok. For example, like you talking about iran right . And i saw on the news, some drone or unmanned vehicle, over the sky, above the sky of iran and he dropped and they took the body and they copied it, and they already made really hightech drone. And one thing i worry, i have a neighbor country called north korea. If the north korean, iranian and also pakistan if this triangle has the same kind of level of technology we have, then it will be our very big fear. I live in osaka city, the second largest city in my country. In my house, even i sleep, even i eat, even i taking a shower, only seven minutes if the kim jongil push the button, the missile reach to my country. So, now the Prime Minister abe visiting washington, dc id you to hold that thought. Well come back to asia and a minute. Thank you for the contribution. Well come back to that subject because theres a lot to say. General clark, i want to ask you what i think is one of the hardest Foreign Policy questions in washington right now, how to think about the nato article 5 selfdefense provision or the collective defense im sorry provision of the nato aliens alliance in the context of what Vladimir Putin has been doing in ukraine. In particular the scenario which ive seen first hand, a couple of very senior Foreign Policy advisers to republican candidates who i thought did not have quite an answer that i could summarize for you. What happens if there is a sort of plausibly dedeniable russian deniable russian intervention in the baltic countries, which are nato members. In which Vladimir Putin stirs up ethnic russians and you have a replay of what is happening in eastern ukraine, maybe not a fullfledged invasion but its clear to anybody that can drive a car that Vladimir Putin is staging Something Like that is tantamount to invasion. Does that trigger article 5 of the nato treaty . Does that drag the United States in . Can you see a plausible scenario where theres a military conflict between American Forces and Russian Forces in the next several years . The direct answer to your question is, if theres an attack on one nation that is a member of nato, its view under article five as an attack on all. Thats the treaty obligation. We brought this baltic nations in in 2002. I was very happy we did that. It was done in a big swoop and done without a whole lot of debate in the United States. It sort of got rolled in after 9 11, and they wanted to be in because they have seen the movie before. They know russia is going to come back and know russia is clever. Russia is already undercutting their will to resist. It could start exactly as you suggest there would be a demonstration, statue is taken down in latvia. They dont like that. And russian citizens of latvia protest this. And then they say, well, the decision was made in the Administration Building. Lets take over the Administration Building. Some of the people who take over the Administration Building are in camouflage, green camouflage, and their carrying little green men. Little stick men, who actually belong to Russian Special forces. And when you go to evict them, they dont get evicted because ordinary police dont do well against delta force, or the russian equivalent. So, nato has to think this thing through. You have to have in the Reaction Force not a bunch of armored cavalry guys who can parade through eastern europe, although im all in favor of that right now. You need some special forces people on the sort of twohour alert who can happen this, handle this backed up by the equivalent of the Italian Police and you need have rehearsed and gone through a nato exercises the kind of automatic triggers that will let our political leaders quickly come to terms with the legal issues that will bring this forward. If we dont have this rehearsed, if its not done in nato planning and so forth there will be lots of confusion and questioning, are these really russians and cant we do something . When i listen to people talk about ukraine today, and i hear this from my many of my european friends, feel like im sitting at the league of nations in 1935, when if where are a the leader of ethiopia was asking for assistance, and people couldnt make up their mind and did nothing. Today i hear people talking about president poroshenko trying to hold ukraine together in the face of russian aggression, with 9,000 Russian Troops inside ukraine, 55,000 on the borer. Its 21st century warfare with three levels of uavs, massive jamming, tanks we dont have any comparable equipment for. Our armored antiarmor equipment doesnt go through their armor, and we need a real wakeup call to get us back to 21st century warfare where the russians are today. I hear people talk about this as, we have to give Vladimir Putin a way out. He is such a nice man, and he really just got trapped into this by the evil people behind him and if he doesnt look really tough, maybe hell be overthrown. No. Vladimir putin is right today and russia is right where someone like Adolph Hitler was in 1936. Hitler reopened the ryan a reoccupied the reinland and if britain and france had followed the dictates of the versailles treaty he wouldnt have gotten air with and it away with it and maybe world war ii would have averted. Putin crossed the greatest red line in post World War Ii International diplomatics. He has invaded another country and and seized its territory by force, and even though ukraine is not a member of nato, this has enormous implications for nato and nato security. We in this Business Community are not understanding geostrategic risk. Right now, Angela Merkel and the president of france, mr. Hollande, are standing up for the minsk to agreements. But that is not being implemented. The Russian Forces have the densest air defense array ever seen in modern europe deployed in eastern earthquake. They are training and organizing the socalled separatist units which are 85 russian anyway. And theyre building the capacity for a third wave of russian attack. Crimea is not economically sustainable without a land bridge connecting it through ukraine. So, we have major forces moving. This is so urgent for nato to come to terms with this. Well, another really hard question is not just for nato at large but for washington, right now for president obama, senator graham, i want to ask you about another interesting policy debate. Should we be sending lethal arms to the ukraine . Theres a school of thought that you can send javelin antitank missiles which you could call extensively called defensive but , putin would see them as offensive. I have had people in the Obama Administration tell me and i think you understand the argument those missiles would rates the cost for putin and you would have to put it bluntly, as they say, more dead russian soldiers coming back across the border. My sense is that the president thinks that putin will escalate, the conflict will get worse, spill over, cross borders, and the germans are adamantly opposed to chance la Angela Merkel, as you well know. How do you think about that and where do you come down . Theres bipartisan support overwhelming in nature for arming ukrainians. Remember the budapest protocol even though theyre not a member of nato, in the 90s we said if youll give up your 2,000 plus Nuclear Weapons we and russia and everybody else will guarantee your sovereignty. For the rule of law to be meaning anything, it has been trampled on. The consequence of letting someone do this, history tells you eventually where this goes. Im not saying putin is hitler but your put in a motion a dangerous moment. Yes, id arm the ukrainians and create a cost benefit equation that putin doesnt have today. But lets get right to the heart of the matter. Without American Leadership all of this wont get fixed. I love our friends in britain but we have to lead. And natos response to a world on fire is to reduce our budgets. So heres one thing you need to understand, for us to be effective against putin, against china, against isil, against iran, were going to have to have the capability, the capacity and the will, under sequestration, by 2021, were going to have the Smallest Army since 1940. The Smallest Navy since 1915. Were going to gut our intelligence community, the fbi the cia are losing people as i speak. This is insane. Nato nations who spend over two 2 of gdp on defense is down to 5 . Our best friends in the world, the british, are debating how big their army and how capable their military should be. Why in the hell should putin take anybody seriously . So heres what i would suggest. Buy back sequestration. Dont forgive the 540 billion. Put it back into defense and nondefense programs like the cdc and the nih, which help us all and go to the plan to keep america from becoming greece. A Strong America means it has to have a sound economy. 80 million babyboomers will retire in the next 25 years and we are going to wipe out Social Security and medicare. If you dont do what Ronald Reagan and tip oneill did, then our best days are behind us. If you cant do what reagan and simpsonbowles calls for youre not going to have the capability to defend this country. Here is my advice about. About putin. Rebuild your military. Get republicans and democrats acting like adults, not teenagers, and put this country on a sound economic footing and let the enemies of this world know america is back and to our friends, you can count on us starting with the ukraine. Thank you. [applause] i like that. Good job. Mr. Blair, i reckon i just come to 99 . [laughter] look, first of all, have to be very clear about this, what happened in ukraine is the first time that territory has been taken like that since the end of the second world war, in europe, and i think there are whole series of things that have just been talk talked about that need to be done in order to demonstrate our will and commitment and the fact that we have alliances were going to adhere to and all of that i agree with. I just want to make one point about europe. Europe also has to understand its got a responsibility to deal with this issue properly and seriously and strongly. The fact is, one of the things that always troubles me about the world is when america and europe are not standing together, clearly and firmly, in defense of the values they believe in. The world then becomes a less safe place, and you feel this wherever you go. And the truth of the matter is we know what the strategy of president putin is. I will say its not very complicated. Its very simple. There is a desire, when he says he thought that the collapse of the soviet union is the worst thing that happened, that is what he meant, its what he believes. Now, what is necessary this is why i feel deep american let me talk someone who is british but also believes in a strong europe. Europes job is to be standing alongside america and facing up to this threat, and if we do not do that now and today and with urgency, it is going to get a lot worse than the time to come and we will endanger a world order that we have put in place painfully with much sacrifice over men decades. Many decades. This is a moment to be strong, to be determined, and to recognize what our values are and be prepared to stand up for them. Can i just say one thing . Please. What would the world be like if putin had no gas . Or we didnt need his gas . What would the world be like if fossil fuels were less influential than they are today . A Rational Energy policy where we find more here at home, buy oil from canada because it makes sense, but eventually go to a lower Carbon Economy could do , more to reset our Foreign Policy than almost anything. So, the reason the germans and the french are being at best indifferent and naive is because theyre locked into having to get their gas supply from a really bad guy, and putin has a pair of twos. And we got a full house. And i would make the purpose of my presidency, if i ran, to get an Energy Economy started in this country and throughout the world that would be less rewarding to thugs, dictators and killers. You wanted to add . There are measures we can take of the next few years with an Immediate Impact around Energy Supply that would relieve some dependence on Russian Energy and that is undoubtedly the big damage into this whole issue. Well, can i just come in sure. Follow something senator graham said. I really think youre absolutely on the right track on this thing. Weve got all the Hydrocarbon Resources we need to be totally Energy Independent and to export and lead the world forward, and take over these Energy Market that exist right now. We also have the technology to move away from hides crow hydrocarbons as we have to do in the future. And we desperately need a National Energy strategy. It is not about the oil industry. Its really about the future of the United States of america. From when president eisenhower created the National Defense but and everybody quotes him , saying, be ware of the military industrial complex, but it gave us the technology we needed to be safe during the cold war. We need a military Industrial Energy complex that will make us safe in the 21st century. The greatest commodity traded in the world is oil. Its done more to build civilization and conversely destabilize civilization over the last 40 years than any other single factor, and if we could get our democrats and republicans to Work Together and put together a sensible policy that would let us exploit hydrocarbons now, all else, take over these markets, 50, 60 oil, still making money on fracking. Do it. And then put the benchmarks in in the tenyear, 15year 20year period to move us entirely away from hydrocarbons. Woe wouldmark the 21st under a we would make the 21st century a whole lot safer for everyone. If we have time at the end well come back to Climate Change itch want to talk about asia where theres less violence and extremism than we sunny some then we see in some of these other regions, but a whole lot of risk. It may be the place where theres the most potential for mayhem, but fortunately so far not realized. State minister, your Prime Minister will be addressing the u. S. Congress on wednesday. Were at the 70th anniversary of world war ii. Clearly what looms large in the japanwashington relationship, the tokyowashington relationship right now is china and uncertainties about chinas ambitions. Its territorial claims, the tensions its had with japan over disputed territories, the air exclusion zone that really raised tensions a couple of years ago. Talk about, if you would, what is your assessment of chinas intentions right now. . What is the threat that you think it poses to stability and security in the region . I think thank you very much. I think in fact Prime Minister abe visiting d. C. Right now, but also he met with xi jinping. The chinese Prime Minister. Yes. We talked a lot, and it was very steady meeting. And really kind of like very peaceful meeting compared to military issue. Compared to a couple years ago the relationship is better. Exactly. And we also focus on their budget for military budget, defense budget, for them. The increasing 30 times the budget of 30 times. Of armament and the budgets of defense, of the pla, and also they are maybe you already know, they launched their satellite to space base and then they also destroy the satellite. Its already done. They already made the technology. Even we in the japan, and the u. S. The Strong Alliance, and we , a lot of rely on the space field, using satellites, without using satellites we cannot launch a missile or move the soldiers. If the china poa missiles to our satellite, then what is happening . China is already preparing for space war. I think. Also we have to create the technology, maybe we can launch the not the big satellite but the small satellite within three days. Not using a rocket but using aviation, and then fly through over the space, and also even china doing cyberattack to all the world. So, even the nation using a country using the Fiber Technology to attacking the other states. So, not just isis, not other territories. Terrorists. So in that sense we have to reset our minds, ourselves, there is a new type of war or there is a semi war already begin. And i attend the meeting of the netherlands, which is cyber conference, and i heard there is a new type of cold war in cyber space. In 1970s, 80s we had the cold war against soviet union and the u. S. , and we western countries. But now in the cyber space there is another cold war beginning. One is internet field is free and very convenient to our marketing, economy everything. , but china and russia, they want to control more precisely as a citizen level, and that is a freedom, world of internet, or a communist again. So theyre clamping down on their own societies and also threatening other countries through cyber war. Pardon me for interrupting but we are running out of time. Right. I want to transition to north korea which has according to the u. S. Government conducted one of the most dramatic Cyber Attacks we have seen against the Sony Corporation and all the emails that came out. Very briefly because were running out of time, what is your assessment of north koreas intentions. Some i days its seems kim jongun is throwing temper tantrums for attention. And there are days where it seems like he is capable of starting a cataclysmic event. We had an abduction issue. They take our citizens, they kidnapped, and we get them to release our hostages to north korea. And also, i told about the missile issue, and also the Korean Peninsula is still cold war is going on. Even 89, has destroyed, but not 38degree line. There still exists. So i personally want to represent the United States or have party talks, have sixparty talks, big country have to more focus on 38degree line, how to make real peace in korea peninsula, and also you think real peace is possible. I hope so. I hope so. And we have to ask the north korea, would you like if you like to open your door, which side are you going through . U. S. Side, democratic side, or the china, communist side . Which way you going to choose . We need to and can be stick and carrot. To get the real answer. Because we dont know what kim jongil is thinking. And we just worked through the media, what is guessing at his intenses, we have three minutes for two subjects. Forgive me for interrupting. You could spend an hour each on. Very briefly, mr. Brer you said in 2013 theres mr. Blair you said in 2013 , theres no longer any serious doubts in the mind of serious people that Global Warming is a serious problem. There are any Serious Solutions or serious action being taken in your view . Are we doing enough . There is an immense amount being done, and the solution very simply is the development , of the science and technology that allows us to consume sustain blue. Sustainably. Theres no way that these hundreds of millions of people who are emerging from poverty in africa and fray some china are and india and china are not going to consume. They want a High Standard of living, the same standard of living as us. The only answer to doing that is to be able to devise a solution through science and technology that allow us to consume stain ably. The paris negotiations taking place, instead of trying to make the best enemy of the good, we get together the best possible deal we can at the moment, given the obligations the countries like the u. S. , like china and others are entering into voluntarily put that together , and set a clear framework for the future where business and industry are able then to develop the science and technology that is going to allow us to consume in a different way. This issue is a longterm issue and remains absolutely fundamental and important for the future of the worlds. World. A quick question for each of you. Senator, do you agree with the assessment, there is no longer any serious doubt that Global Warming is a serious problem. The friends in brian are backing off the cap and trade. It is driving up energy costs. I think Greenhouse Gas effect is real. I dont think it is the biggest red to mankind. A nuke the in the hands of the ayatollah trumps Global Warming. But having said that, would like as a republican, to come up with an environmental policy that does what basically general clark talked about, find as much fossil fuels win our reach from friendly sources as possible but over time set emission standards that are probusiness in nature to move the economy one day from fossil fuel dependency to more cleaner sources of fuel. Theres the place for coal place for gas. But from a Republican Point of view, were this is we need to be better stewards of gods planet and need to have a rational and environmental policy thats probonus. Probusiness. From a Republican Point of view, young people buy into the fact that the planet is heating up and manmade emissions are causing harm to the planet. To the american young people, if youre worried about the environment, count me in. My goal is to pass on to you a stronger economy, clean air and clean water and create jobs in the process. Thank you. Forgiving me for tubbing this into a lightning round. But general clark we talked about systemic financial risk. I wish we had five minutes to devote to this. Were basically out of time, but you talked about a book you wrote that discuss this and maybe you can give us the kind of elevator version of it. Dont wait for in the next war. We create an awful lot of debt in the Financial System and we havent addresses the systemic issue. Still hundreds of trillions of dollars of derivatives based on Interest Rate and if you ask the inside banking crowd, when are we going really raise Interest Rates . When are we going to get away from quantitative easing, the answer is, never. And its only a matter of time before some smart young Hedge Fund Guy says, you know what . This debt is not sustainable and will spread like wildfire through the Financial Community and well be back in some trouble again. We have to take our Financial Resources and invest in real projects. We need petrochemical projects. We need energy projects. We need Infrastructure Projects and highway, highspeed rail aviation. These are things that create jobs. Derivative trading is great and you make a lot of money if youre a banker. Im a banker. I know something about it. But its not creating jobs, and wealth in a real economy. If wore going to do what Prime Minister blair says, we have to use the Financial System to fund and drive the economy, not the opposite. And what has happenedder is whats happened is theres too much of the opposite right now. It takes from the real economy and plays the financial gains. So dont wait for in the next war. Its my book. Please read it. Ok, great. Thank you for that. Thank you for coming. We have to wrap up. [applause] the state minister would like to make a concluding remark, very briefly. Last word from me, yes. And i am general for Parliamentary Friendship League between japan and israel and i went to simon center yesterday and i really touched by what she said. By anne frank. She cannot say anything right now, so through me i will send a message. She said, how wonderful it is that no one has to wait but can start right now to gradually change the world. This is what she told me to us. A great nose to close on. Thank you, minister, thank you note to close on. Everyone for coming. We appreciate it. [applause] [inaudible] conversation ] the european trade commissioner will be in washington dc monday. He will he got the center for strategic and International Studies about trait on the including ongoing negotiations over the transatlantic trade and industrial partnership. That is at 9 00 a. M. Eastern on cspan two. Later in the day we take you to the Cato Institute for the future of south africa. Speakers look at the political and economic developments in that country since apartheid was abolished. Begins at 12 00 eastern live coverage on cspan two. Monday night on the communicators,