this is part of a pattern of dangerous and reckless behavior by the iranian government. one of the principles of international behavior is that our diplomats, we send them around the world and they are going to be protect it. they are not targets for threats or physical violence. and for iran to have been involved in a plot like this indicates the degree to which it has been outside of accepted norms of international behavior for far too long. this is just wanted ample of the series of steps that they've taken to create violence and to behave in a way that you don't see other countries doing. so with respect to how we respond, our first step is to make sure that we prosecute those individuals that have been named in the indictment and i will leave it to the attorney general the task of describing how that will precede. the second thing we're going to continue to do is to apply the toughest sanctions and continue to mobilize the international community is further and further isolated for this kind of behavior. keep in mind when i came into office i think iran saw itself as being able to play various countries against each other and avoid the kind of isolation that it deserved. since that time, what we've seen, whether it relates to its nuclear program for its state-sponsored terrorism that more and more countries have been willing to speak out and forceful ways, whether it's to the united nations or through other avenues to say this is not acceptable behavior. and it is having an impact. what we have seen is iran's economy is in a much more difficult state now than it was several years ago in part because we've been able to unify the international community in naming iran's misbehavior and saying that it's got to stop and they're going to be consequences we don't take any options off the table with how we operate from iran, but what you can ask that as we will continue to apply the sorts of pressure that will have a direct impact on the iranian government until it makes a better choice in terms of how it's going to interact with the international community. there's a great similarity between how iran operates and how north korea operates. a willingness on their part to break international rules, to flout international norns, to not live up to their commitment. and each time they do that, the united states will join with its partners and allies in making sure they pay a price. and i think -- i have to emphasize that this, this plot was not simply directed at the united states of america. this is a plot directed against the saudi ambassador. and i think what you're going to see its folks throughout the middle east region questioning their ability to work effectively with a man. this builds on the recognition within the reach and iran ran in fact has been hypocritical when it comes to dealing with the arab spring, given their underprice effect to be inside their country. they willingness to output the syrian regime at a time when they are killing their own citizens. this is a pattern of behavior that i think increasingly the international community is going to consider out of balance and is going to continue to punish iran for. unfortunately the arena people are the ones that probably suffered the most from this regime's behavior and we will continue to work to see how we can bring about an iranian government that is actually responsive to his people, but also following the rules of the road that other countries in the international community follow. [speaking korean] >> translator: thank you. to answer your question about north korea, first of all, president obama and i., for the last three years, we have maintained very close cooperation and coordination when it comes to north korea policy. we have consistently applied our principal approach towards north korea. for north korea, the only way to insure happiness for his people and to embark on that path to development is to abandon its nuclear ambitions. and so, we have tried through peaceful means or diplomatic means to strongly urge north korea to abandon its nuclear ambitions. and in this day and age, we realized that no single country can be effective in achieving its diplomatic or economic aim on it on. we know that cooperation is vital in order for a country to become a responsible member of the international community, which is something that we want for north korea. and so we would of course want north korea to abandon its nuclear ambitions and of course korea and the united states will continue to consistently apply a principled approach so that we can achieve our strategic objective. and when it comes to cooperation between the two governments, we speak with one voice and we will continue to speak with one voice and there is a chance for me to reaffirm this today. [speaking korean] >> translator: i know that president lee is talking about a south korea north korea brescia trilateral gas pipeline project. but north korea is also under sanctions and the international community and the united states and other countries. but having said that, at this gas line project proceeds as planned, then we would have to provide or compensate north korea with a substantial amount of money or other forms of compensation. so in your opinion, president lee, do you think that the gas line project will be able to proceed without resolving the north korean nuclear issue? [speaking korean] >> translator: yes, thank you. and i don't know if that's a question and i should be answering here in the united states, defense u.s. the question i'll try to answer. in the far east, we have been discussing this issue for quite some time trying to import russian gas into the republic republic of korea. now, we're discussing, right now with the north koreans, whether the russian gas -- which is quite affordable can travel through north korea and be imported and used in north korea. this is beneficial, first of all, for russians because they consult their natural resource. for north korea it is beneficial because they could use this natural resource and also beneficial for south korea as well. but let me just remind you to south korea, north korea and russia have it yet come together to discuss this issue in any detail. but from an economic standpoint of view, and it is beneficial for all parties involved. but i understand that this issue is not just economics alone. this issue, inevitably, involve security matters, which we will consider very closely. and also, let me remind you that this project will not be implemented anytime soon. of course we are mindful of the progress that we are making requires to the north korean nuclear issue as well. >> thank you, mr. president. first briefly to follow an ad if i may. on the iran's alleged terror plot, do you have knowledge or do you believe that the nation's supreme leader and president have knowledge of the plot? and if so, do not see that as an act of war? and if i could turn to the economy, yesterday in a campaign video you said that you will force congress to take up individual pieces of the american jobs act. which pieces of july to see take up first? givens of our you been unable to do an up or down vote on the entire bill and that new employment filings are not following, why not sit down with members of congress to see if you can't reach compromise on something that could pass now create jobs quickly? >> okay. first of all on the iranian issue, the attorney general has put forward the facts with respect to the case. and i'm going to let him comment on the details of those facts. but we can say is that they're individuals in the everyday government who are aware of this plot. and had it not been for the tin in intelligence work of our intelligence officials, this guy could've gone forward and resulted not only in the death of the saudi ambassador, but also innocent civilians here in the united states. we believe that even if the highest levels there were not detailed operational knowledge, there has to be accountability with respect to anybody in the iranian government engaging in this kind of activity. and so we will continue the investigation. we will continue to put forward all the facts we have available to us. but the important thing is for iran to answer the international community why anybody in their government is engaging in these kinds of activities are bush as i indicated before, are i think out of balance for not just a country like iran that has historically been engaged in effect committees, but violates basic principles of how diplomats are dealt with for centuries. now, with respect to the jobs bill, i have said repeatedly that the single most important thing we can do for the economy right now is put people back to work right now. and we have put forward a jobs bill that independent economists, not my team, not my administration has said would grow the economy substantially and put up to 1.9 million people back to work. these are proposals that historically have been supported not just by democrats, but also by republicans. as i've traveled around the country, i don't know when rebuilding our roads and bridges suddenly became a partisan issue. and i was at a jobs council meeting up in pittsburgh with ceos from companies across the board, many of whom have been traditional supporters of the chamber of commerce and the business roundtable and other organizations that republican party has claimed a lot of support for. they said for example it came to infrastructure, this is something anybody in washington should agree to. republicans haven't given a good answer as to why they have not agreed to wanted to rebuild our roads and bridges and goals. they have not given us a good reason as to why they do not want to put teachers back in the classroom. so what we are going to do is break each of these bills apart. we are going to say let's have a vote on putting teachers back in the classroom. let's have a vote of rebuilding our infrastructure. let's have a vote on making sure that we are keeping taxes low for small businesses and businesses willing to hire veterans, provide tax rates for further investment they can create jobs. each time we will ask republicans to support the bill. and if they don't want to support the bill, they have to answer not just to us, but the american people as to why they wouldn't. i think this trade deal we just passed shows that we are happy to work with republicans where they are willing to put politics behind the interest of the american people. and come up with proposals that are actually going to create jobs. the free trade act will create a 70,000 jobs. it's a good deal of good strong bipartisan support. frankly, we have not seen a lot of ideas coming forward from republicans that would indicate that same kind of commitment to job creation. if they do, as senator mcconnell or speaker boehner say to me, you know what, we want to get some infrastructure built in this country or not we think putting construction workers back to work is important. i'll be right there. we'll be ready to go. if they are willing to e-mail the payroll tax as we worked on together in december, i'll be ready to go. i don't think the problem here, jessica, as i have not been on willing to negotiate with republicans. i shown repeatedly my willingness to work overtime to try to get them to do some pain to deal with this high unemployment rate. you know, what we haven't seen is a similar willingness on their part to try to get some and don. we're not going to wait around and play the usual political games here in washington because the american people are desperate for some relief right now. you know, i think that anytime and anyplace that they are serious about working on putting people back to work, will be prepared to work with them. but were not going to create a lot of theater at 10 results in them engaging in the usual political talking points and that results in action. people want action. i'm prepared to work with them, but again my status or the press conference, i said to show us the republican jobs plan that independent economists would indicate putting people back to work. i haven't yet seen them. eventually i am hoping that they actually put forward some proposals that indicate that they feel the urgency about people needing to put people back to work right now. you can't have for follow-ups. one is good. >> i have two questions to president obama. yesterday, u.s. congress ratified the korea u.s. fta, the korean national assembly didn't pass it yet. and korean opposition party is requesting renegotiation on the sta. with the future of the korea u.s. fta and my second question is about libya and north korea. and libya, there was a people's uprising and they change their government. do you think such an event will be possible and north korea in the near future? thank you. >> well, first of all, president lee assures me -- [laughter] but of course the fda will pass through the national assembly. my expectation is that we'll get done. because it's good for both countries. businesses will be able to prosper here in the united states as a consequence of learning many of these trade barriers. the same of the true and korea appeared our workers will benefit and i think this is a sign of the close cooperation and friendship between our two peoples. you're absolutely right that what we've seen in the arab spring, and libya, tunisia, egypt is this deep longing on the part of people for freedom and opportunity. and although the path from dictatorship to democracy is always uncertain and fought with danger, what we've seen on so is that human spirit eventually will defeat repressive governments. so i don't want to predict when that might happen. i think that obviously coming you know, the people of north korea have been suffering under oppressive policies for a very long time and none of us can look at a crystal ball and no wind suddenly that type of government collapses on it done. but we know though is what people everyone can the weather is can korea come united states are libya or africa, were people everywhere are looking for is the ability to determine their own destiny, to know if they worked hard that they will be able to be rewarded, that they can speak their mind. they can practice their religion and freedom, that they can enjoy the free flow of information and an increase in the carrot or is this the 21st century. and i don't think the people of north korea are an exception. i think when they see the extraordinary success and progress that's been made in south korea, i think inevitably that leads them to recognize that a system of markets and democracy and freedom is going to give their children, their grandchildren more opportunity than the systems are currently under. all right. thank you very much, everybody. hot not [applause] >> from earlier this evening at the white house, a look at the president, president of him and his wife, michelle obama welcoming the first lady as south korea and president lee myung got. ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> from about an hour ago the grand foyer area of the white house, the welcoming of the korean president and his wife will go to show you more from the state dinner this evening with the official toes just a bit later on. president lee earlier today became the first south korean leader in 13 years to speak to a joint meeting of congress. this is about 45 minutes. [inaudible conversations] i'm not >> mr. speaker, the president of the republic of korea. [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] >> thank you. thank you.congresshave [applause] >> members of congress, i have a high privilege and distinct honor of presenting to you his excellency, lim yong bok, republ president of the republic of korea. [applause] [applause] [applause] [applause] [applause] [applause] >> will you please allow me. [speaking korean]mr. speake >> translator: mr. speaker, mr. vice president, distinguished members ofof cong, congress, ladies and gentlemen,o it is a great privilege to speas to you from this podium in this great institution representing democracy and freedom. and i am particularly grateful to the leadership of both parties into law the esteemed members of congress for their support in ratifying the korea u.s. free trade agreement last night in a swift manner. [applause] in a swift manner, which i ammah told is quite unprecedented. around the world to be here today among friends, thinking about and deeply grateful for the friendship between our two countries. for korea, america is not a distant land. america is our neighbor and our friend, america is our ally and our partner. there is a korean expression that describes our 60-year partnership. >> translator: indeed. we have been going together for six years. [applause] for the last 60 years, remarkable changes took place in both of our countries. for the united states, it has been a journey to new frontiers on this planet and beyond. it has been a journey of achieving fan fantastic breakthroughs in science and technology which led to the advent of the information age. it was a gorpny of develop -- journey of developing new cures, making advances in machineries, and throughout this country, you served as peace and pros -- prosperity, the best the world has ever known. [applause] for the republic of korea, the last 60 years has been a time of transformation and renewal. it was a journey of poverty to prosperity, from a hermit nation to a global korea. [applause] ladies and gentlemen, korea's story is your stoor too, and -- story too, and that fact is clear in our capitol city of seoul. during the korean war, seoul was almost completely destroyed. today, however, seoul is reborn. where there was once rubble, now stands the seoul tower looking out over a thriving modern me -- me trap los. where women searched the street, soon magnetic strips will rule the street, and seoul is also the most wired city on the planet. as you can see, seoul is also one of the most dynamic and cosmopolitan cities in the world. last year, seoul was host to the g20 summit and next march, it will host a second nuclear security summit which will be attended by more than 50 heads of state and government. to mark this 60th anniversary of the korean war, we invited american veterans back to see the land they helped liberate, and when they visited korea, they found very few landmarks that they recognized from the war. instead, they saw, in korea, what you see here and experience in the united states today. the pace and the pulse of modern life, a creative entrepreneurial spirit that knows no bounds, a sense of self-confidence, optimism, and pride, and then the unshakable faith in freedom, free elections, of free press, and free markets. oh, and yes, personally, our love for fried chicken. [laughter] [applause] yes, ladies and gentlemen, these are the values that we share. your great president and statesman, thomas jefferson, said that the only safe place to locate the ultimate powers of the society is in the hands of the people themselves. these same values can be found in korea, too. one of korea's greatest kings, king sa jong, said approximately 600 years ago that the people are heaven, the will of the people is the will of help revered to people as you would in heaven. today, an ocean away in the people's house, these action words of our ancestors that calls us to revere our people still rings true. [applause] we also share a belief that political freedom and economic freedom must go hand-in-hand. during the 1960s, koreans demanded democracy and freedom. as one of the student leaders who organized protest calling for democracy, i was caught and imprisoned, but this only strengthened my conviction that universal rights such as democracy, dignity of man, and human rights must never be compromised. [applause] at the same time, the korean people yearned for another kind of freedom, freedom from poverty. back then, korea's per capita gdp was less than 80 u.s. dollars. university graduates roamed the streets unable to find a job. opportunities were scarce. it was difficult for people to have hope for the future. this is when i realized that even if we had political freedom and democracy, we would not be truly free without economic freedom. after i was released from prison for my political activities, i joined a small local company. this company, which had less than 100 employees at the time, later evolved into a global company with over 160,000 employees and as win of its youngest -- as one of its youngest ever ceos, i was privileged to be a part of korea's remarkable economic rise and korea's economy grew into being near the global top ten. along the way, i was able to escape poverty myself, but being able to contribute to my country's growth will always remain one of my proudest moments. [applause] as you can see, we have won the fight to win two very important freedoms, our political freedom and our economic freedom. very few countries were successful in their quest to win freedom from poverty and freedom from oppression and koreans are proud and they also know that your friendship and our alliance has been indispensable throughout this remarkable journey, and this is why all 6 you here -- all of you here should be proud of what korea and the korean people have achieved. [applause] nevertheless, i still get asked by many foreign leaders how did a country with no natural resources, no technology, no capital, and no experience manage to achieve so much in just one generation? my answer to them is very simple and yet power the -- the power of education. [applause] the korean war, as i've said, completely destroyed my country. the people had nothing to eat and nothing to wear. for years, we relied on foreign aid, but the korean people believed in one thing and that was education even if parents had to workday and night and drink nothing but water to chase away hunger, they spared nothing when it came to their children's education. my parents were the same. they were determined to give their chirp hope by -- children hope by giving them a chance to learn, and i was determined to learn. i used to be a street vendor selling anything and everything during the day and then attended night school. after night school, however, attending college was anything but a dream, and yesterday i managed to get in because of the help of many others around me. although i had to wake up every day at 4 a.m. to haul garbage to pay my way through college, i knew that learning was the key. my parents, all korean parents, believed that education was the best way to break that vicious cycle of poverty. these children later became the lead actors in this great drama. their sweat, their tears, these were transforming korea to being one of the poorest countries in the world to one of the most dynamic today. [applause] our desire for learning continues. currently, there are more than 100,000 korean students studying in your schools. these young students will become the leaders of tomorrow, becoming scientists, doctors, bankers, engineers, teachers, and artists. they'll continue to contribute to making both of our countries stronger, and they will bring our two countries closer together. [applause] distinguished members, today the united states and korea have one of the closest, most important economic relationships in the world. for both countries, it's brought untold benefits and opportunities. our trading goods, services, and mutual investments has grown dramatically. we invest in you, and you invest in us because we are interdependent. when we trade together, we grow together. when we build together, we rise together. when we work together, we win together. [applause] we see this in the towns and cities and states, this congress represents. we see it in west point, georgia where a new kia automotive plant is expected to create 1,400 new businesses and more than 20,000 new jobs nearby. we see it in midland, michigan as well where dow chemical, a distinctly american company and co-chem engineering, a korean company, joined together to make some of the world's most advanced batteries, the building blocks of a new era of electric vehicles. [applause] i understand that president biden has been to the opening ceremony of this plant, and we have more than 10,000 korean companies including global companies such as lg doing business and up vesting all across -- investing all across america, and, of course, we see such cooperation in korea as well. they are manufacturing and selling chevrolets to korean consumers. sales are up 27% in just the first six months since the brand was launched, and 55% of koreans say they would consider buying one. our cooperation is not just limited to automobiles. others provide similar examples of such cooperation, our mutual investment is yet another example. [applause] mr. speaker, mr. vice president, distinguished members of congress, thanks to all 6 you in this -- all of you in this chamber, our economic ties are becoming even stronger. the korea-u.s. free trade agreement was ratified by this congress here last night. here, where the mutual defense treaty was signed by korea and the united states in 1953, a new chapter in our relationship has opened. our relationship has become stronger. [applause] this agreement is a major step toward future growth and job creation. it is a win for our corporations. the korea-u.s. free trade agreement will be able to ensure continued growth and also create jobs. this is a win for our corporations. it is a win for our workers. it's a win for small businesses, and a win for all the innovators on both sides of the pacific. perhaps you have heard what the experts have said, that america's economic output will grow more due to the korea's-u.s. free trade agreement than from america's last nine trade agreements combined. [applause] and that the tariff reductions and many of the labor fair labor provisions, rigorous environmental standards, and strong protections for intellectual property rights will be beneficial for all of us. these provisions will improve our business environments. these provisions will allow us to widely share the benefits of trade more than ever. in this century, much has changed, but not this basic truth. open markets built strong economies. [applause] and in this 21st century, i firmly believe economies must be green to grow. unfortunately, this was not always our way. for far too long in my country, growth came at a cost. rapid economic growth cost a dark shadow on the environment, the air that we breathe, and the water we drink. that is why when i was near seoul, i considered it my responsibility to restore the stream that was kneeing legislated for decades -- neglected for decades. the restored stream revitalized the surrounding landscape. it revived commercial activity, and it enriched the lives of the people in countless ways, and as president, i announced a new national vision, one of low carbon green growth. [applause] it is our goal to become the world's 7th largest green economy by 2020. the benefits of green growth are real. this is why we are investing heavily in the research and development of next generation power technologies such as the smart grids. this is why we're trying to become the leader in renewable energy sources. this is why we have required our biggest carbon emitting companies to set greenhouse gases here, and they will, of course, work to deliver on their promise. [applause] i am also aware that the u.s. is also taking measures to sustain a future. some of those steps we are taking together. for example, in 2009, our government signed a statement of intention to work together on renewable energy, energy efficiency, and power technologies. the chicago smart building initiative is a good example of our cooperation between our two countries. during my visit this time, our two governments signed a statement of intent on the joint research project on clean energy. joint investments in cooperation will only increase. our work will lead to tangible results that will benefit mankind. as our country's move down this path, we will be moving even closer together, and we'll move forward together. [applause] distinguished members, ladies and gentlemen, the strength of a country is not measured in dollars alone our mutual defense keeps us strong, and it keeps us safe. ours is an alliance forged in blood. that is how we, koreans, describe our mutual defense treaty. [applause] fifth-eight years ago today in october 1953 here in washington, d.c., the republic of korea and the united states signed the mutual defense treaty. in the words of that treaty, we pledged our common determination to defend ourselves against the external armed attack so that no potential aggressor could be under the allusion that either of us stands alone in the pacific area. [applause] we know that defending freedom is never easy. it is never free of cost or free of risk, for this, i want to thank you. i thank you on behalf of the korean people for standing by us. [applause] we also want to thank the 28,500 american men and women who serve in uniform today in korea. [applause] we want to thank each and every one of you for keeping faith with the generation of your parents and grandparents defending freedom on the korean peninsula. we thank you for your service. [applause] [applause] [applause] today, i would also like to thank the korean war veterans who are here with us today. they are representatives john conyers, charles rangel, sam johnson, and howard -- [inaudible] [applause] [applause] [applause] we thank these gentlemen for their service. to these gentlemen and millions of others the korean war or division of peninsula are not abstract concepts, and they are not abstract concepts for me either. my older brother and younger sister, both just children, were killed in that war. i will never forget them. i will never forget how my mother tried so hard to keep them alive. with the war raging all around us, there were no doctors, and we couldn't afford medicine. all my mother could do is stay up all night and pray to god. many koreans still live with such pain. i recognize the reality that korea has been split in two, but i will never accept it as a permanent condition. [applause] the two korea's share the same lang, history -- language, history, and customs. we are a one people. 234 both korea -- in both koreas, there's family members who have never spoken to their loved ones for more than half a century, and my hope is that these people and all 70 million koreans will enjoy real happiness and real peace, and for this, we have to lay the foundation for peace on the korean peninsula, and upon this foundation, we have to strengthen cooperation between the two koreas. we must seek the path that will lead us towards mutual prosperity and achieve unification. [applause] a unified korea will be a friend to all and a threat to none. a unified korea contributes to peace and prosperity, not only in northeast asia, but far beyond. [applause] we therefore must achieve the denuclearization of the korean peninsula. and north korea must give up their nuclear ambitions. [applause] [applause] korea and the united states stand united. we are in full agreement that the six party talks is an effective way to achieve tangible progress. we are in full agreement that we must also pursue dialogue with north korea, however, we must also maintain our principled approach in north korea policy that is firmly rooted upon such principles as the key that will allow us to ultimately and fundamentally resolve this issue. [applause] north korea's development has been our collective interest, and this is what we want; however, this depends on its willingness to end all provocations and make genuine peace. we will work with you and the international community so that north korea makes the right choice. [applause] our mutual defense treaty allowed prosperity to flourish, not only on the korean peninsula, but all across northeast asia. northeast asia today is a more dynamic region than ever, and economic change in this region brings geopolitical change, and it brings shifts in the balance of power that has long prevailed. the united states as a key player to the asia pacific region and as a global leader has vital interests in northeast asia. for northeast asia to play a more constructive role in global affairs, there must be peace and stability in the region. your leadership that has ensured peace and stability of northeast asia and beyond in the 20th century must remain supreme in the 21st century. [applause] the ideals that you represent and the leadership that allows for such ideals to be true, must continue. there remain many challenges in the world today, and your leadership is vital. terrorism, proliferation, poverty, and disease. these are a few that require your leadership. our free trade agreement has significance because it will be a force for stability because lasting stability, again, depends on economic opportunity being open and robust. our relationship can be the catalyst that generates growth and state all along the pacific rim and in doing so, it will make clear how fully our fates are connected. [applause] more than ever, korea is looking beyond the horizon. it will willingly embrace its international responsibilities and work to resolve global challenge, and since becoming president of korea, my vision in the coming decades is for a global korea. global korea has joined united nations peace keeping operation in lebanon and haiti. korea was the third largest contributor of troops to coalition forces in iraq. we have sent reconstruction teams to rebuild afghanistan. our -- [applause] our -- [applause] our naval vessels support the united states and e.u. in fighting against piracy off the coast of somalia. we will take part in the international effort in bringing democracy to libya and rebuilding its shattered economy. [applause] and we have pledged to double our overseas development assistance by 2015 and next month, the high level forum on aid effectiveness will be held in korea's second largest city. in these and our countless way, korea will carry out its duties as a responsible member of the international community as we face the many global challenges that lie ahead, we will promote universal values. in 2009, when president obama and i signed the joint vision for the future of the alliance, we agreed to work closely together in resolving regional and international issues based on shared values and mutual trust. [applause] during our summit today, we renewed this commitment. we also reaffirmed our commitment to face the challenges of today for the generation of tomorrow. our alliance will grow and it will continue to evolve. and it will prevail. [applause] mr. speaker, mr. vice president, distinguished members of congress, before i part, i want to thank you again for the honor of addressing this congress. i would also like to thank president obama and mrs. obama for their invitation. i also take this opportunity to pay tribute to the 1.5 million korean-americans who have. contributing to this great country. [applause] as president of korea, i'm proud that they are giving back to the country that gave them so much. i am also deeply grateful to you and the american people for giving them the chance to make their dreams come true. [applause] your ideal ideals and aspirations have been ours as they have been for much of the world. half a century ago, young americans served in the korean war for duties beyond the seas. today, our peoples hear the same. it may not always be combat, rugged mountains, or bitter winters, but it's a charge nonetheless, a charge to create a more peaceful and prosperous world. in the 21st century, the beauty and destiny calls us once again. and as before, let us rise to meet these challenges. let us go together, together and forward. thank you. [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] [inaudible conversations] [inaudible conversations] [applause] [inaudible conversations] [inaudible conversations] [applause] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> president lee myung-bak at 4 p.m. eastern today, the first korean leader in 13 years to speak to a joint meeting. from earlier this evening showing you the north port, the rival of president lee and his wife to the state dinner this evening. [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] ♪ [inaudible conversations] [inaudible conversations] >> from earlier this evening, the arrival of president myung-bak from south korea and his wife. the state dipper is still underway. we hope to show you this evening's toasts and remarks from the white house. in the meantime, arrivals of the dinner earlier this evening in the book sellers area of the white house. >> [inaudible] >> mr. lee rosenberg and mrs. nancy rose rosenberg. [inaudible conversations] >> mr. gibbson and mrs. margaret gibbson. [inaudible conversations] [inaudible conversations] [inaudible conversations] miss jay lee wong and mr. de lee wong. >> ms. cheryl einberg and ms. francine einberg. ambassador thomas c. hubbarrd and mrs. joan magnusson hubbarrd. [inaudible conversations] general james d. therman and mrs. delia lee-therman. [inaudible conversations] mississippi ju-ju chang and mr. neal shapiro. [inaudible conversations] [inaudible conversations] >> [inaudible] [inaudible conversations] >> mr. john martilla and mrs. nancy martilla. [inaudible conversations] [inaudible conversations] [inaudible conversations] >> secretary general ban ki-moon and mrs. ban su. [inaudible conversations] [inaudible conversations] >> the honorable howard koa and dr. claudia arad. [inaudible conversations] the honorable brooke anderson. [inaudible conversations] >> richard danny russell and mrs. russell. [inaudible conversations] mr. ji song and mrs. -- >> miss christina kim and mr. leeman meyer. the honorable anne brown and mr. don brown. [inaudible conversations] [inaudible conversations] mr. steve choy and mrs. lina choy. [inaudible conversations] [inaudible conversations] mr. william hite and mrs. patricia hite. [inaudible conversations] ms. song and ms. una song. [inaudible conversations] [inaudible conversations] [inaudible conversations] >> the honorable tom vilsack. [inaudible conversations] mr. rob salman. [inaudible conversations] dr. peter ree and mrs. emily ree. [inaudible conversations] >> [inaudible] [inaudible conversations] [inaudible conversations] >> [inaudible] [inaudible conversations] >> mr. bruce cohen and mr. gay -- mr. gabriel caton. general martin dempsey and mrs. dena dempsey. [inaudible conversations] mr. robert tompson king and mrs. katharine king. [inaudible conversations] the honorable mike angus. [inaudible conversations] [inaudible conversations] mr. howard coe and miss christie fischer. [inaudible conversations] [inaudible conversations] mr. andre lopez. [inaudible conversations] [inaudible conversations] mr. john chov and mrs. jay chov. [inaudible conversations] representative dave camp and mrs. nancy camp. [inaudible conversations] >> julian castro and mrs. erica lira castro. >> [inaudible] mr. blair efron and mrs. jer efron senator warren hatch and mrs. hatch. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> [inaudible] [inaudible conversations] >> dr. douglas goldman and mrs. lisa goldman. [inaudible conversations] mr. bobby stien and mrs. polly c. stien. [inaudible conversations] the honorable steven j. green and mrs. dora t. green. [inaudible conversations] mr. dee scott. [inaudible conversations] ambassador steven warren bosworth and mrs. christine h. bosworth. [inaudible conversations] mr. allen malowey and mrs. nicki malowey. [inaudible conversations] mrs. elaine schuster and mr. gerald schuster. [inaudible conversations] mr. david kim and ms. jay yung. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> [inaudible] [inaudible conversations] >> mr. scott a. nathan and ms. laura c. debona. [inaudible conversations] mr. mark nickels and ms. jane sienna. [inaudible conversations] .. [inaudible conversations] [inaudible conversations] senator richard lugar and ms. deb lugar. [inaudible conversations] mr. fred posada free and mrs. so southbury. [inaudible conversations] mr. rich koresh and mr. andrew cordes. mr. peter krause and mrs. lisa krause. [inaudible conversations] senator max hafez and mrs. melody haynes. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> ambassador mendon fear and ambassador luis. the honorable timothy gagner and mrs. geithner. [inaudible conversations] ms. carteret rabin's and mr. guy leota. [inaudible conversations] [inaudible conversations] mr. henry h. king and ms. kathy burns halleck. [inaudible conversations] [inaudible conversations] the honorable anna stock and mr. stewart stock. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> ms. janel monet and mr. nathaniel urbain. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> mrs. james burr and. [inaudible conversations] dr. robert colucci and ms. emily neustadt. [inaudible conversations] mr. spencer earth are over 10 and mrs. leslie collins over 10. ms. linda nathan and mr. roger h. brown. [inaudible conversations] [inaudible conversations] mr. james biden and ms. sir biden. that matched >> guests arriving at the white house earlier for the state dinner for south korean president lee myung-bak. secretary hewitt and his wife, senate finance committee chairman max baucus, treasury secretary tim geithner and in just a moment ago, janel monet who sings asante broke. we're going into the dinner now to see president obama and presently offered toasts. [applause] found that sometimes >> i also want to acknowledge to guests in particular, and other son of korea chief security, secretary general funky mood is here. [applause] and our first korean-american, ambassador to the republic of korea confirmed by the senate today, ambassador graham chip. [applause] [speaking korean] [speaking korean] >> now i'm going to be very brief tonight because president lee has had a very full day and a very wet day. [laughter] as well as extended meetings, press conferences, state department bank with an address to congress, which andrew stan went extraordinarily well. there's a reason why people call him the bulldozer. he is unstoppable. [speaking korean] [speaking korean] >> nestor president, today is spoken with great eloquence about what america and our alliances meant in your life in the life of your country. this evening i want you and your countrymen to know what korea and its people have meant to america. [speaking korean] [speaking korean] >> the essence of our alliance i think is body in a concept that is uniquely korean. it doesn't translate that easy, but it reflects a deep affection and bonds at the heart that cannot be broken and that grow stronger with time. our korean friends know it well. [speaking korean] [speaking korean] [speaking korean] >> and our country we felt this center by rick korean-american communities, including in hawaii where he grew up on a melting pot of cultures that made me to lie in and that taught me we can only together with mutual trust and respect. [speaking korean] [speaking korean] [speaking korean] >> i thought this during my visit to korea on veterans day, the 60th anniversary of the korean war when our proud veterans of that war, both korea and america came together two separate shared legacy of free democratic and prosperous republic of korea. [speaking korean] [speaking korean] and i thought the semi-friendship with president lee. mr. president, your life story of crushing poverty to the presidency as an inspiration. your success, career success speaks to the truths that with education and hard work, anything is possible. it's a spirit our country share. your discredited and korean and english to translate says yes we can. [laughter] [applause] [speaking korean] [speaking korean] [speaking korean] [speaking korean] [laughter] >> sounds good and korean, too. finally, i would note that in our lives, president lee and i have both been blessed to find our better halves, leaders in their own right, advocates for women and young people who we are proud to call her first ladies. mr. president come as a say in america, we both married up. [laughter] [speaking korean] [speaking korean] [speaking korean] >> and so, i want to propose a toast. to our friends, president lee and first lady can and to their delegation, most of all to the enduring alliance between our nations a partnership with just the heart that will never be broken. [speaking korean] [speaking korean] [inaudible conversations] [inaudible conversations] [applause] [applause] [speaking korean] [speaking korean] >> translator: first of all, mr. president and madam first lady can distinguish guys, please allow me to thank you from the bottom of my heart for this warm reception extended to me, my wife and i delegation. thank you area match. [speaking korean] [speaking korean] >> translator: mr. president, madam first lady, my visit to washington d.c. this tends especially special because before you are the president are the president of the united states of america, you're a very close friend of mine and this is how i can tutor you madam first lady so that is very, very special for all of us. [inaudible [speaking korean] [speaking korean] [speaking korean] [speaking korean] >> translator: ladies and gentlemen, the president just spoke about the korean emotion that we call job in korean. i think indeed president obama knows that deep inside his heart he understands the essence of what we call joan. john can be explained in many different aspects, but one aspect of that is an individual that is humbled and very strong inside. an acting president president obama exemplifies his treat of what we call sean and that is why we have a special type that we feel that every think about president obama. [speaking korean] >> ladies and gentlemen, and a very, very honored guys. so when i say it, every link in. [laughter] sub 10 and also mr. president, i must thank you for one thing because you have spoken so highly of the outstanding educational system that korea and dedication of its teachers at the determination of our korean parents when it comes to educating their children, you have so many new teacher fans in korea and i have to be honest with you, i think you have quite a number who like you more than they like me. [laughter] [applause] [speaking korean] [speaking korean] [speaking korean] >> translator: mr. president, seriously coming of a lot of teacher friends in korea. the real reason why you are so popular among many koreans is because everyone, including myself are deeply impressed by your has passion for turning and this is very much reflect good in your life story. [speaking korean] [speaking korean] [speaking korean] [speaking korean] [speaking korean] [speaking korean] >> translator: mr. president, man of her spady, ladies and gentlemen, when everything about the united states and people america have a very personal story of mine from which i would like to share with you briefly tonight. he has 60 years ago kariya city one of the poorest countries in the world and my family was exceptionally poor and we really had nothing to be, nothing to wear. we had to rely on foreign aid for many, many years. i was about nine or 10 years old in my village there came an american missionary lady with boxes and containers full of used clothes that she would come to my village and handout. to be in a boys only wish at the time listed to own and wear a pair of blue jeans, i decided to stand in line along with many people, but i was a very small and shy boy, hard to imagine. [laughter] a lot of people were pushing and jostling about. i ended up way it at the last. when my turn came, i went to the american missionary lady and i asked for a pair bluejeans to which she just looked at me and said, well i'm sorry i'm a lot of bluejeans. and of course i was devastated. i was heartbroken and this kind american missionary lady takes one look at me and understood at the hands me something out of the box. she handed me a small rubber ball. now this did little to console a boy who was crashed. because after all, what was i going to do with a rubber ball? [speaking korean] >> translator: and so to this day, and i share this story was president, and when i finished the story i remembered the president laughing a bit nervously. but i told them, mr. president, as you can see, i junot does the united states anything, except maybe for a rubber ball. [laughter] [applause] [speaking korean] >> translator: ladies and gentlemen -- sub 10 [speaking korean] [speaking korean] [speaking korean] [speaking korean] >> translator: so ladies and gentlemen, mr. president, madam first lady, although half jokingly i say i junot of the united hates anything, but in reality make and she can make people you tremendously. which other country, no country came to be the republic of korea 60 years ago when my country was being attacked by communists. no country sacrificed more than 37,000 lives defending freedom for the people of my country. so for that, for many, many years onwards, we will always be grateful to the american people. [applause] [speaking korean] [speaking korean] >> translator: mr. president, ladies and gentlemen, last night's yankees congress passed and ratified the u.s. free-trade agreement. i said this before, but please allow me to say it again. i am deeply appreciative and grateful to the leadership of congress, members of the united states congress who support this measure and the steadfast leadership of president obama for pushing this through. [applause] [speaking korean] >> translator: i know that there are those in the united states congress who did not vote yay for this very important agreement. i think i see a few faces here may be. [laughter] and confident in one year or less that these people who may be a little critical of this agreement will say that they made a mistake because they will see the visible result of this very important agreement. [applause] [speaking korean] >> translator: and the thing i want to hurt the most, ladies and gentlemen, is that many of those critics are saying the fta would somehow going to make people lose their jobs. but really, of course fta is going to create a lot of good decent jobs for the people of america and this is the point i want to prove by implementing this agreement. [speaking korean] [speaking korean] [speaking korean] >> translator: ladies and gentlemen coming you see mr. king at the table here. as i was receiving guests and when he came up to me and i were shaking hands, i thought to myself, this is my chance to explain to mr. king that of course fta is going to create a lot of good shots to force people and the members of the union. [applause] [speaking korean] >> translator: the fact that mr. king accepted the invitation to be her snide just goes to show that he believes in the essence and the core values so i have no worries. [speaking korean] [speaking korean] >> translator: mr. president, madam first lady, ladies and gentlemen, relationship between our two countries began 130 years ago. 60 years ago, our mutual defense treaty began what is considered to be one of the strongest military and political alliance that the world has ever known. of course we are here today to celebrate our journey at the last 60 years, one that has always been marked by triumph, sometimes hardie, but always full of hope. we are gathered here to reaffirm our friendship and renew our common commitment towards a shared goals. i know relationship will grow strong. it will become more mature and complete. [speaking korean] >> translator: mr. president, as we talked over the last few days, we have many, many challenges that are facing a as a nation and as an or the international community. we do know not when the type of former howard is going to strike us. there's a lot of uncertainty out there, but i believe in our friendship because if we are faced with challenges, i know we will overcome them and even come out stronger. [speaking korean] >> translator: i want to emphasize once again our alliance between the republic of korea and the united states ensures us that we are not alone. neither is korea alone or the united states. we can have confidence we will be able to overcome many challenges that they face us. [speaking korean] >> translator: ladies and gentlemen, i see that the gas today and i think a lot of you are people who are very much liked by the president and the madam first lady. i also see a few of you who i always wanted to see. and so i'm very happy that she's to see and meet tonight. [speaking korean] so once again, mr. president, madam first lady, thank you so much for this honor in thank you for your invitation. [applause] [applause] southtown [speaking korean] [speaking korean] [speaking korean] >> translator: ladies and gentlemen, please join me now in a toast, first of all, for the health and well-being of president obama and madam first lady and of course for our everlasting friendship between our two countries. [inaudible conversations] [inaudible conversations] [inaudible conversations] >> in addition to the guest arrivals and the toast at the state dinner tonight, we also cover president leaves arrival at the white house today, his press conference this afternoon with president obama and president lee's speech before a joint meeting of the house-senate. you can see all of this center overnight programming on c-span tonight and on c-span.org. tomorrow president obama and presently will travel to lake orion michigan about where they will tour a general motors plant and give remarks on the new trade agreement with south korea. here on c-span 2 tonight, a senate aging committee considers possible sanctions against iran. the house foreign affairs committee holds a hearing on national security threat >> high-ranking military officials plotted to assassinate the saudi arabian ambassador to the u.s. the senate banking banking committee hearing consider possible sanctions against iran. members heard testimony from state commerce and treasury department officials. this is two hours. >> good morning. i called this hearing to order and i welcome my colleagues and their witnesses. in the wake of the announcement this week of an iranian government linked plot to assassinate the ambassador of saudi arabia to the u.s. and announcements of criminal policy patience coupled with the treasury sanctions against key plotters are once again our continued support for terrorism, which has now reached our own chores. today we will hear from key administration officials, implementing u.s. policy to minimize potential threats for iran, including rue rigorous enforcement of the comprehensive iran sanctions accountability and investment now act, developed by this committee and enacted last year. that bill strengths and current u.s. sanctions law, with respect to iran provided for voluntary displacement from firms active in the energy site very strengthened implementations and frailties on illegal diversion of sensitive technologies to iran. when he took office, president obama took an aggressive dual track approach to iran. offering high-level engagement coupled with sustained pressure through economic sanctions. since then, a rand has continued to defy the demands of the international community to halt this illegitimate nuclear activities or even to answer questions about them. it is continue to support terrorist activity throughout the world in response to president has focused u.s. policy to intensify pressure on iran's government through new u.s. sanctions and multi-overall sanctions adopted by the u.n. security council. iran's leaders confront the same choice today that they have faced for some time. they can agree to end our illegitimate nuclear program and stop supporting terrorists around the world or it can continue on the present course, ignoring the legitimate demands of the international community on their nuclear program and supporting tourists, deepening our isolation and further threatening their economy. today we are fortunate to have before the committee undersecretary of state, wendy sherman. undersecretary for terrorism and financial claims an assistant secretary of commerce for expert impressment, david mills. undersecretary sherman will elaborate on ongoing diplomatic efforts with chances for success and survey policy options. undersecretary cohen will discuss the nature is in against iran and explore with us other pressure points in the global financial system that could be employed again korean. assistant secretary mills will update us on the progress to combat black-market networks throughout asia and the middle east, which helped to illegally supply iran with sensitive technology. with the enactment of new iran sanctions last year, congress equipped the administration with new tools to confront the threats quote by iran. it is clear that u.s. sanctions as well as those imposed by the u.n. european union and others have further isolated iran and had some impact on its economy. so that has been mitigated by continuing high crisis. but it is also clear that the sanctions imposed so far has not deterred iran from nuclear ambitions. i am eager to hear a description of the full range of u.s. efforts to pressure iran. i hope our witnesses will also discuss any challenges in implementing the new law, the status of ongoing consultations with allies on this issue is and any additional legislative tools they believe will help to increase the pressure in the governments of iran. our person meant you to be targeted in the economic leverage of the u.s. and our partners and allies in u.s. and international investors. but make no mistake if iran were to acquire nuclear weapons capability, but it would pose a significant threat to peace and security in the middle east and especially to our close ally, israel. we must continue to do all we can to apply that result. if new tools are needed, i think there are -- and i think there are, then will provide them. we must not let up until the government of iran comes clean under its nuclear program and start support for tourism. i want to thank all of our committee members for their interest and commitment on this issue comes especially senators menendez, brown, moran, schumer on the appropriations subcommittee partner, senator curt. i look forward to working with all members of the committee on our way forward. i recognize senator shelby for an opening statement. >> thank you, mr. chairman. two days ago the department of justice is closed that iran has been plotting to carry out an assassination, an embassy bombing against saudi arabia and ended israeli targets on american soil. this plot which is the latest in a long series of violent actions attempted by a rand around the globe underscores iran's role as the leading state sponsor of terrorism. it is against this backdrop that the committee will examine this morning the global impact of the iran sanctions regime and evaluate the effect of myth of the comprehensive iran sanctions, accountability and investment act enacted by congress last year. despite her to years of progressively more stringent economic sanctions, korean remains one of the more serious threats to the national security of the u.s. and our allies. iran continues to support authoritarian regimes, terrorist organizations and radical militias in iran and in pakistan. for allies such as israel, this week's revelation shows why iran's threat to its very existence i believe cannot be ignored. more than one year has passed since congress, the u.n. levied the most by the grander sanctions in an attempt to derail. unfortunately the heightened sanctions have not yet produced any significant change in iran's behavior regarding its nuclear program, international terror or its human rights. one problem is the white house and the state department have carefully manage to avoid labeling it a major russian, chinese or other u.s. trading partners companies as violators. china, russia and others are expanding trade with iran, continue to provide adequate banking assistance in investing in its energy site care. additionally, china and russia have further undermined u.s. sanctions by supporting iran's military programs. for sanctions against iran to this effect it is possible, i believe the administration needs to do a better job of securing cooperation of the global community. another growing problem is the islamic revolutionary guard corps, which has developed a global financial and terror network. the islamic revolutionary guard is not just an elite military unit within iran. as we've seen this week, it can operate even here in the u.s. it has hundreds of companies, front companies and affiliates spread throughout iran in the world to facilitate general trade and its oil exporter. it can finance in the world while adelaide to the poll coppers of the iranian treasury. accordingly, the islamic revolutionary guard has become the primary means by which it can avoid the global sanctions regime. the question now i believe is what else can be done to further enhance the effectiveness that the iran sanctions regime, especially with regard to the islamic revolutionary guard in its nuclear aspirations. although sanctions have held to limit iran's military capabilities, the events of this week demonstrate, i believe, that iran remains determined to find new avenues to carry out actions. moreover because iran continues its efforts to develop nuclear weapons, failure to effectively enforce sanctions against iran could have catastrophic results in just a few years. i believe we cannot afford to be one step behind iran. thank you, mr. chairman. >> thank you, senator shelby. are there any other members who wish to make an opening statement? senator menendez. >> thank you, mr. chairman. mr. chairman, i want to thank you personally on the effect of our sanctions policy and he told me he would and i appreciate you calling this hearing today. the thank you very much. and you call this hearing well before the incidence of the last few days, so this was obviously in response to a broader issue of our sanctions, but certainly handset being far more timely. we meet on the on the plot to assassinate the saudi ambassador to the united states and attack the embassy israel in washington d.c. a plot believed to be traced back to the highest levels of the iranian regime. the revelation of the foiled attacks, one which reportedly was to take place at a popular restaurant less than five miles from this very building points to the impact and importance of this hearing to ensure that the united states is doing all that it can to enforce existing legislation to fill the loopholes that exist in current legislation to work with our european allies and others to ensure that they step up and aggressively enforce their own sanctions and to use all possible mechanisms to put pressure on those countries and companies which are providing revenue directly or indirectly here to the iranian regime and its islamic revolutionary corps or for that fact refined petroleum products. i applaud the white house for its quick action this week and imposing new sanctions against iranian elements responsible for the planned association -- assassination, including iran's air, which reportedly carried members of the military force accused of plotting to kill the saudi ambassador. and while i believe there is more that we can and must do, we should also recognize this administration has done more to isolate iran than any prior administration, republican or democratic alike. iran is the history of it when he terrorism against coalition forces in pasadena lebanon and this week in washington. this week's events underscore that iran will not hesitate to advance its interest regardless of the political costs. i ran straight to advance its nuclear weapons program has been slowed by u.s. and international sanctions but remains undeterred the iaea recently confirmed that iranian program is moving ahead and they are putting centrifuges at home. the centrifuges will allow iran to significantly enhance iranian enrichment capacity. it is time to take the next step. to further isolate iran politically and financially. i look forward to working with the administration to achieve this goal is to advance legislation that i along with others in a bipartisan effort introduced earlier this year the iran, north korea and syria sanctions consolidation act, which has 76 bipartisan cosponsors. our efforts today has been transformative, but iran has adapted to the sanctions unanticipated loopholes allowed the regime to adjust and circumvent and drive for his effort to achieve a new program. we had to be just as to adjust and adapt. iran and north korea sanctions act as a perfecting legislation and not simply an additional fat and that i am looking forward to asking the witness about both china and oil free iranians that i think is crucial to our national interests and national security goals. thank you again mr. chairman for holding this hearing. >> are there any other members who wish to be recognized? >> senator curt. >> thank you, mr. chairman. i want to go with senator menendez because it's well-timed as is this hearing, when we look at iran, we see an accelerating nuclear program and expanding ballistic missile program, iran being the first country in wholesale disregard for human rights. i read with interest attorney general holter's announcement on this plot and with no page 12 of the complaint from the justice department come westerlies if not, restaurants hit it. it's okay but which i understand it meant that if controversial source one could not assassinate the ambassador has said the restaurant, he should hit or bomb the restaurant. in response, confidential source one been noted that there were from 100 to 150 people in the restaurant and buildings on the side and senators, u.s. senators dined there, all of which i'd see are dismissed as no problem in a big deal, meaning the potential for such casualties should not dissuade source one from killing the ambassador. i note david cone and i respect very much his work, designated tout le monde ahead of the reigning revolutionary guards corps. it does and i must get any than that for the government of iran seeking to kill american citizens on top of foreign targets that we see. earlier this summer, senator schumer and i bonded together 92 senators. it doesn't even get more unified than that on a bipartisan cooperation in this chamber to call for the united states to collapse the central bank of iran, the paymaster and financial source of funding for the iranian revolutionary guard corps and for the m. ois, intelligence service that iran. and since it's now public way identified the leaders of the circuit of patients as sanctions activity it's necessary now to cut off their funding source. it should be the policy of this letter outlines an overwhelming partisan turn to collapse the currency of iran. i am worried that there is some talk and say the administration, not david but others who said we should have the multilateral limit on our policy, but this is not a multilateral attack on the united states. it was an attack at the governments of iran on the people of the united states. and so the united states should act unilaterally, when necessary, multilaterally when possibly, but this is in no means a multilateral attack on the united states. we should accelerate the current designations under the law and specifically we should reference the august 3rd government accountability office report, which designated 14 companies have continued to conduct activities in iran and potential violation of u.s. law, including the china national offshore oil corporation, china national petroleum corporation, sign a pact of china, thailand and south korea, edison of italy, hyundai heavy industries of south korea, imf croatia, the indian oil corporation ltd., natural gas corporation of india, oil india ltd., omb austria, i went i went to see british ltd. from india, facile of south africa and think of no other go. i would hope that he would make the commitment to investigate these entities is clearly identified by the government accountability office. also i think we need to accelerate sanctions with regard to individuals who are systemic abusers of human rights, including first and foremost the president of iran, mahmoud ahmadinejad and his chief of staff the saudi under executive order 13553, obama administration is so far designated only 11 iranian officials for human rights violations since september 2010. in comparison income and the union has designated 61 such individuals are systemic violators of human rights, including 29 additional one, over five. there were over 100 members of the basij including seven basij members called that you iran in prison since 2008. just this week, iranian actress, the sorry, here was sentenced to not just a year in jail, but 90 lashes because of her appearance in an australian film without the cut during as headgear. i think as we see the struggle of the iranian people for the human rights, we need to remember that there were many people, especially in the state department that wanted to pull back on fundamental u.s. values with regard to the reviews meant that the soviet union. buckley president reagan did not. in fact, he reached out to them and it was one of our proudest moments where they refuse to survive the soviet union and a collapsed. it should be our objective here. i commend you for holding the hearing and i look forward to your question. >> mr. chairman. >> senator brown. >> thank you, mr. chairman. and echo senator menendez's words and thanking you for responding to his request and others to hold this hearing. the government iran as we know must not be permitted to obtain weapons of mass destruction. recent allegations about iran's efforts to assassinate the saudi ambassador only underscored the threat that iran poses not only to our security, not on the security of israel, but also security of iran's neighbors. we've heard from members of the committee about the dangers of nuclear armed iran would pose to the united states and israel global community, preventing this threat requires an all hands on deck approach. we worked on pressuring, worked in persuading iran to approach the issue politically, diplomatically and economically. i agree with this pressure approach first because it's a responsible way to carry out diplomacy. sure, there's no good options for efforts to pressure and persuade phil. that's why it's so important we speak with one voice in the united states senate when it comes to iran. for years, this committee has been at the forefront of sanctions. last we pass a comprehensive iran divestment act. this act requires that sanctions be imposed on companies determined to have made certain investments in iran's energy there. it's repressive government relies on the energy sector for more than half of its revenue as we know. that was last year. today we know iran's march towards nuclear weapon production capabilities. that's why this hearing is so important, mr. chairman. we need to hear from the in thank you for joining us good which are doing to implement the sanctions, what additional tools, resources and support you need from us. we only have the opportunity to get this right once. thanks. >> senator moran. >> senator johnson committing an act relating this hearing for the implementations of sanctions on iran. in july, i and others requested the opportunity to exercise its oversight responsibility and a thank you for giving us a chance to review u.s. policy towards iran. i know that you and the ranking member recognize the gravity of this issue and understand what is at stake. more than a year ago, congress passed and president obama sign in to the iran sanctions accountability and divestment act of 2010. i certainly welcome this legislation is i believe the pursuit of nuclear weapons is one of the greatest dangers to global stability in our country that we face today. however, and president obama sign the bill i stated clearly active duty to say that its success will depend upon enforcement. since the enactment almost 15 months ago, 10 firms have been sanctioned under the iran sanctions that. the sanctions and that of others have yet to achieve the fundamental goal, which is to compel iran to change its behavior and abandon its pursuit of nuclear weapons. september 2nd, the international atomic agency released its latest report on iran's nuclear program. like similar reports before, the september report shows that iran is continuing to build up the stock pile of low enriched uranium. since the may iaea report on iran has produced additional low enriched uranium raising its total stop pile to more than 4500 kilograms. on top of that, iran continues to increase the amount of uranium enriched to a level of 20%. enriching uranium to a level 20% represents 85% to 90% of the work needed to reach weapons grade fuel, also the demand for enough enriched uranium that upon further processing could fuel three nuclear bombs. last month, iaea's report also indicates that iran is moving production of uranium enriched to a level of 20% to a military facility buried underneath a mountain. in june, a rancid would triple its production of higher enriched uranium. if all of this was not alarming enough, concerns about the possibility of military dimensions of nuclear programs, including activities related to development of nuclear payload for missile remain unresolved according to iaea. clearly, more mess began to pressure iran to change course and we cannot afford further delay. september 30th 2010 the united states made its first sanctioned determination under the event sink should not buy one from a sanction that day, for energy companies were deemed eligible by the administration to avoid sanctions by pledging to end their business in iran. in total, the administration is who's the specialist of a sanctions against five companies. >> i look forward to hearing from the witnesses. i thank them for their endeavors in regard to making our country safe, and seeing that this administration has every tool it needs to stop iran, and i thank the chairman. >> thank you, chairman johnson. thank you for convening the hearing. i want to thank the witnesses for being here. the regime in iran represents an incredible threat to american interests and not in a good way, and stability -- instability in a volatile part of the world. they're thumbing their news at the international community. they supply weapons to our enemies in iraq and afghanistan and directly responsible for attacks on our troops. they incite violence and israel and they help prop up murders like assad in sir -- sir ra. -- syria. they're trying to kill foreign dep employments -- diplomats on our soil, and -- it's outrageous and we need to put a stop to it immediately. business as usual is not going to cut it. there has to be a greater sense of urgency here and i hope you all agree, and i think you do. i look forward to the hearing. >> thank you, all. i want to remind my colleagues the record will be open for the next seven days for opening statements or any other materials you would like to submit. now, i'd like to welcome the witnesses, for our panel today. our first witness is wendy sherman. the undersecretary of state for political affairs at the state department. the next witness is david cohen, the undersecretary for terrorism at the department of treasury. the final witness is david mills, expert enforcement at the u.s. department of commerce's bureau of industry and security. i thank all of you again for being here today, and i look forward to your testimony. i will ask the witnesses to limit your remarks to five to seven minutes. your witness statements will be submitted for the-over -- for the recordment undersecretary sherman, plea employed. >> thank you verlander and much, mr. chairman. thank you verlander and much for inviting me to appear before you to discuss obama administration strategy to address the continued threat posed by the iranian regime. its support for international terrorism, it's uke near weapons amibitions, it's destabilizing activitiness the region and its human rights abuses at home. this hearing could not be more timely. but before i address this week's news and the broader sanctions discussion, i'd like to say a word about a dear colleague. i want to dedicate this testimony to filo kibble. who passed away unexpectedly two weeks ago. filo what an exceptionally well respected career member of the foreign service who devoted most of his career to the middle east. the past year he dedicated his deep regional enter expect to as vaning our policy on iran. the loss of his wisdom and leadership is a profound one for the department and for our country. before i get to the substance of this hearing, prior to the events of the last couple of days, i would like to address the conspiracy to assassinate the saudi ambassador in washington that was directed by elements of the iranian government. as the secretary of state and the president of the united states have said, this plot was a flagrant violation of international law and a dangerous escalation of the iranian government's long-standing use of political violence and sponsorship of terrorism. this conspiracy also violates the convention on internationally protected persons, including diplomatic agents which iran has agreed to as well as u.n. security council resolutions. iran must be held accountable for its actions. undersecretary cohen well discussion our reactions. we will hold iran responsible and the law enforcement and intelligence professionals who worked on this case deserve our highest praise. their dedication and professionalism likely saved not only the life of a foreign diplomat but scores of bystanders who would bev -- would have been killed or injured. with the case public, there's much work to be done. within the last less than 48 hours we instruct everyone of our ambassadors to inform their owes governments about the facts behind this plat in contrast with the iranian regime's rapid and unsurprising denials. we're rationally laying out the facts of the plot. the 21-page long charging document is remarkably comprehensive and i encouraged my foreign court counter parts to read it for themselves. ambassador rice in new york is hard at work engaging her colleagues. this plot, was in fact a plot against all diplomats, and we will be asking all countries to consider appropriate actions, including denying force offers any platform to operate in their country, working closely with domestic and international partners is fundamental to addressing all the challenges we face with the iranian regime. i'm agreedful to be seated next to david cohen and david mills, state, treasury and commerce work hand in hand to implement a whole government approach to address continued threats from the iranian regime. the world today is unified to an unpress departmented -- unprecedented degree in its concern that a nuclear armed iran would destablize the global economy. in defiance of the iea board of governors resolution, lawns continued to expand its sensitive nuclear activities and refuses to cooperate with the iaea, raising strong concerns about the purpose of the nuclear program, and is a already discussed, iran continues its long-standing support or terrorism through the quds force and his islamic jihad and proxy mill late ya groups in iraq. american policy regarding iran remains unambiguous. first we must prevent iran from acquiring nuclear weapons. its nuclear activity is one of the greatest concerns we face and we will continue continue crease the pressure until the iran regime engages the international community with seriousness and since sirte to resolve these concerns. let me talk about the toughest sanctions package in three decades and what it looks like, we have imposed sanctions on a growing list of individuals and entities responsible for iran's expanding scope of unauthorized activity. the sanctions have raised the costs, time, and energy required for iran to pursue its current course and provided a platform upon which the u.an union, norway, canada, switzerland, south korea, and japan, implemented measures of their own. the rule gave us the flexibility and leverage to persuade shell, state oil, eni, to tall, and intex to withdraw from all significant activity in iran. iran is increasingly isolated from the international financial system. as undersecretary of treasury cohen will detail. sanctions are finally shining a spotlight on individuals and entities perpetrating egregious human rights abuses against iranian citizen. we have designated 11 individuals and three entities for human rights violations and continue to compile more evidence that will allow us to identify more murders, torturers and religious persecutors. we have taken a firm stand on iran's violation of rights, including the death sentence against the pastor. simply for following his own religious belief, and had it not been for the immediate condemnation from world leaders, from the u.s. senate, religious groups and ngos there would not be in the his addition on -- hesitation on the part of iran. in my new role i look forward to working closely and as transparently as possible with members of congress to prevent iran from obtaining more weapons, make it more difficult for iran to interfere in the region and defer the regime from committing human rights abuses against its own people. i included a long detailed testimony. i look forward to your questions and thank you for this opportunity. >> thank you. mr. cohen, please proceed. >> thank you, chairman johnson. ranking member shelby, and distinguished members of the committee. thank you for the opportunity to appear before you to discuss the treasury department's contribution to the obama administration's strategy to address the threat posed by iran's nuclear program and its support for terrorism. the focus of my testimony today will be the progress we are making in our financial strategy to pressure and isolate iran, and in particular the steps we're taking to implement the financial provisions of fast sad da. first i would like to say a few words about the revelation we disrupted an iran quds force plot to assassinate the saudi ambassador here in washington. this is a reminder that our concern is not limited to iran's nuclear -- we are concern about missile prorevelation, human rights abuses, in use of the international month tar system and support of terrorism. on tuesday, treasury imposed financial sanctions against five individuals, including the commander of the quds force and three other seen officers connect tote the assassination plot in taking this action, tressy exposed the iran's involvement in this plot through quds. yesterday we took another action involving quds, by imposing sanctions on iran's second largest airline, which was secretly ferrying operatives, weapons, and funds on its flights for the quds force. this week's action follows on sir reese of steps to ranch edup the sanctions on iran. we have imposed sanctions on tide waterer. iran air. iran's national airlines, for supporting the irdc. and al qaeda network operating in iran under an agreement with the iranian government. an individual and entities involved in human rights abuses, both within iran and supporting the syrian governments' repreparation of the syrian people. actions like these along with international sanctions have put increasing financial pressure on iran, and the effect has been amplified. they helped us deepen and broaden iran's isolation in the financial system. since president obama signed it into law last july, my colleagues and i have worked aggressively to implemented. we have met with foreign banks, regulators and government officials in nearly 50 countries. we explained to these banks and government officials that we offer a clear choice. a foreign bank can have access to the largest and most important financial sector in the world, the united states, or it can do business with sanctioned iranian banks but it cannot do both. for the overwhelming majority of the banks the chose is simple. some stopped the business, and where we learned of potentially sanctionable activity, we have actively investigated it, engaging with regulators and their home governments. our efforts are paying off. iran us now facing unprecedented levels of financial and commercial isolation. the number and quality of banks willing to interact with iran has dropped precipitously in the last year. iran's shrinks access to trade finance has made it extremely difficult for iran to pay for imports and receive payments for exports. iran's central bank has been unable to halt the steady erosion in the value of its currency, and iran has been increasingly unable to attract foreign investments, especially in its oil fields, leading to a projected floss 14 billion daz year in oil revenues through 2016. we're making progress-but there's still much to be done to prevent iran from evading sanctions and to apply additional pressure on iran in this regard we continue to focus on the central bank of iran, the cbi. although u.s. financial institutions are already generally prohibited from doing business with any bank in iran, including the cbi, further u.s. anxious against the cbi, if it attained multilateral support, could further isolate the cbi with a potentially powerful impact on iran. i can assure the committee that all options to increase the financial pressure on iran are on the table, including the possibility of imposing additional sanctions against the cbi. if iran continues to choose its path of defiance, we'll continue to develop new and innovative ways to impose additional costs on iran. i look forward to continuing to work with congress and this committee to advance our national interests. thank you. >> thank you, mr. mills, please provide. >> i welcome the opportunity to appear before the committee today and to discuss the department of commerce's role in implementing the comprehensive iran shankses and the wider issue of enforcing sanctions on iran. my department has a key role in administering and enforcing u.s. dual use export control policies towards iran and under the leadership of undersecretary, the bureau of industry and security has aggressively pursued this objective. we also work closely with our colleagues at the departments of state, homeland security and the treasury, and other agencies to implement and enforce our sanctions effectively. i wish to extent my heart-felt thanks to congress for giving enforcement on our agencies. the office bif is the only federal law enforcement agency con conducting dual use investigations. our agents have been utilizing the authority to investigate a variety of export violations, but iranian violations are a primary area of focus. accounting for about 37% of our investigations and the number of cases we have open now against iran is approximately 300. iran continues to engage in widespread efforts to illegally acquire u.s. origin commodities and technology and the majority of our criminal investigations involve iran as the ultimate recipient of diverted items. much of our enforce. is focused on stopping the diversion of such items in iran, via transportation hubs in the middle east, south, and east asia. the bif employs a variety of criminal and administrative tools against these elicit iranian procurement activities. i want to share some examples. just last month we imposed a civil penalty totaling 2.5 million against a corporation of irving, texas, and ten of its foreign affiliates to set 288 charges relating to exports and reexports of pumps and valves to iran, syria, and other countries. the bif pursued the charges in concert with the department of tressy's office of foreign access control, cooperation between bif and fac has been critical in maximizing the u.s. laws against violators in recent years export enforcement at bif has made use of the entity list to disrupt a range of procurement methods involving investigation of proaccurate of components for ieds by general trading and related entities, ruling -- -- four of our agents received the attorney general's award for excellence in furthering the u.s. national security. the use of the entity list highlights or focus on sanctions directed at listed enterprises and also the prevention of violations, and the public naming of individuals and entities that are involved in or that pose a significant risk of engaging in elicit export activity. given my 18-year tenure at the department of treasury, i feel at home. it discourages businesses from doing business with targeted entities and prevents resellers and other parties in the united states and overseas from doing business with them. the bif also made effective use of its authority to issue temporary denial orders. tdos, so prevent imindependent violation of the expert administration's regulations. on august 21, 2011, the bif renewed a tdo against an airline in iran and related parties. the tdo included the bali group in the uk. that tdo was critical in preventing additional violation of the regulations. and furthering our investigation into bali group's involvement in obtaining boeing 747 aircraft. bali was sentenced to a $2 million criminal fine and corporate probation of five years. on february 4, 2010, bali group and bali aviation entered into a civil settlement to which bali ultimately paid $15 million civil penalty, the largest civil penalty imposed under the regulations to date. iran is a top enforcement priority, and we fully intend to press forward with our efforts to combat illegal vie version of sensitive products and technology to that country. we stand ready to work with the committee on the congress to maintain an effective export enforcement program. thank you verlander and much. >> thank you for your testimony. as we begin the questions, i will ask the clerk to put five minutes on the clock for each member. undersecretary sherman, while new u.s. and u.n. sanctions and other efforts to isolate iran have had real impact and slowed iran's progress on their nuclear program, they have not yet forced iran to suspend it. suddenly, iran is trying to outlast the west's appetite for sanctions and weakens the international communities resolve to maintain the pressure. what is your current assessment of iran's nuclear program, including their timeline, and does a job with those of our major allies? how is the u.s. working with our international partners to ensure that the commitment to sanctioning iran is threatennenned rather than weakened? >> thank you verlander and much, mr. chairman. you have raised the fundamental question, which has been laid out by some of your colleagues as well, which is, how do we move forward both to pressure and purr -- pure suede iran to give up its nuclear weapons program, get them to stop their state-sponsored terrorism, get them to recognize people's human rights, and how do we get them to stop destabilizing regions throughout the world. that's a tall order. one prong of that two-prong approach are the sanctions we're discussing today, and those sank must be throughout at about in three dimensions. the severity of the sanctions, the enforcement of the sanctions, and the internationalization of the sanctions because sanctions are most effective and strongest when they're internationalized and people throughout the world and governments throughout the world are enforcing those sanctions. we saw that in the change in apartheid in south africa. when they game internationalized, we got effective action and got change within the box of south africa. it's the same with iran, and i must say, since coming back into government, i have been incredibly impressed by the whole of government approach, the close cooperation we have within the government to not only work with the terrific legislation that you have placed before us in and the president signed, but to enforce that, and to work throughout the world with all of our interlock temperatures to increase that enforcement. over the last 48 hours, both in the united nations and every single capital in the world, and and by many phone calls made by the president, the secretary of state, the national security adviser, the deputy secretary of state, myself, every assistant secretary in every one of our departments, we talked to every capital and encouraged them to enforce the sanctions on the books, to look at their own bilad -- bilateral sanctions. we have encouraged them to make sure the quds force stops doing business in their country to look at high-level visits from iranian to their done there and consider postponing or canceling outright those visits. so we have worked verlander and hard and will continue to work verlander and hard to internationalize it, and as david can detail, it has had a real impact on the financial well-being of iran and created some of the splintering we're seeing within the iranian regime. the second prong is our ability to work with our partners in the p5 plus 1, to increase the pressure on iran and say to iran, if you are in fact sincere in discussing your nuclear weapons program, which we have not seen to date, we would be opening to having a discussion with you so that you in fact fulfilled the u.n. security council resolutions you stop your nuclear weapons program, that you in fact submit to all the iaea has put on the table. iran to date has not agreed to do that. recently in new york on the u.n. again assembly, participated in the meeting, and what was notable about the meeting was the verlander and, verlander and strong consensus among the p5 plus one, including china and russia, to stay as, i quote from this statement, we discussed the recent developments of the iranian nuclear program, in particular we noted with grave concern iran's installation of centrifuges in its facility as part of plans to increase the capacity to enreach uranium and the iaeas concern about the possible military dimensions to iran's nuclear program. we have verlander and strong p5 consensus that is verlander and crucial for maintaining the most robust sanction regime we have ever had. it has not yet deterred iran's nuclear program, but we believe it is making progress to do exactly that. >> thank you. mr. cohen, you and i have discussed that the threat of u.s. sanctions has, like many financial institutions to cease doing business with iran. can you give the committee a sense of how this works, the scale of treasury's everytimes and the regulations and roughly homage -- how many major banks have held off activity in iran and have one drawn in the past

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