February 2, 2009

[Remarks]{.underline}

Consul General Beth Payne

**"THE FUTURE OF INDO-U.S. RELATIONS"**

American Chamber of Commerce

February 2, 2009

Gulshan K. Sachdev, Chairman of AmCham Kolkata,

Mr. Khatri, President and CEO of KPK Global Solutions,

Members of the press,

Ladies and gentleman:

Less than two weeks ago, Barack Hussein Obama was sworn in as the United
States' 44th President. Several million people gathered in Washington
D.C. and millions of others throughout the globe came together to
witness this historic event. Americans and their friends from various
communities, religions and cultures shared in the celebration of a new
beginning for the United States. The people of India have also welcomed
our new President and our relationship with India will be a central part
of our new beginning as we forge ever stronger partnerships and
friendships with the government and the people of India in a wide range
of areas including art, culture, education, economics, international
diplomacy and security.

Indo-U.S. relations have never been stronger and President Obama has
made further strengthening of this relationship a priority. He would
like to see across-the-board growth in our relationship that reflects
our shared interests, shared values, shared sense of threats and
ever-burgeoning ties between our two economies and societies. India and
the U.S. have shared interests in a number of areas, including
stabilizing the world economy, bringing peace to the Middle East and
South Asia, protecting the environment by finding alternative forms of
affordable and clean energy, and ensuring that terrorists cannot
threaten any country's peace and harmony.

In forging this strong partnership, you will find that President Obama
-- who has introduced himself as a Desi -- has a strong understanding of
Indian culture and values. He has found inspiration in the teachings of
Mahatma Gandhi, whose portrait hung prominently in his Senate office. He
explains that Gandhi "embodies the kind of transformational change that
can be made when ordinary people come together to do extraordinary
things.\"

A major area where I expect an increase in partnerships between the U.S.
and India is in the economy. The U.S. is confronting a serious economic
crisis, which as you all know has had a major impact on the global
economy. President Obama recognizes that the major economies, including
those of China and India, are tightly linked and views India as South
Asia's economic powerhouse. President Obama has already taken
unprecedented steps to stabilize the U.S. economy and will seeking
advice and assistance from India in efforts to ensure that economic
growth in the U.S. is accomplished in a way that also ensure economic
growth in countries such as India.

For example, President Obama is committed to finding a way to increases
jobs for American workers that balances the reality of global markets.

President Obama supports comprehensive immigration reform, which would
improve the H-1B visa program in order to attract more talented people
to the United States. This will have a direct impact on India, since
almost 80 percent of the H1-B visa petitions approved for the top 10
participants in the program are for Indian companies.

President Obama will continue to support initiatives that will increase
trade between the U.S. and India. An example of the types of programs
President Obama supports is the new office that the U.S. Department of
Health and Human Services (HHS) Food and Drug Administration (FDA)
recently opened in New Delhi. The opening of the office comes at a time
when India is the fourth largest exporter of medicinal drugs to the U.S.
and a significant exporter of food products. This office will ensure
safety, effectiveness, and quality of India's imports into the U.S. and
will enable our two countries on a day-to-day basis to enhance
cooperation, which we hope will lead to an increase in India exports to
the U.S.

You can expect to see a much more active role by the Obama
Administration in protecting the environment and addressing the
challenges of climate change. President Obama believes the climate
change crisis must not be underestimated, nor should the science behind
it or the facts on the ground be ignored or dismissed. Like India, he
believes that the time for realism and action is now. This
administration recognizes that the solutions to this crisis are both
domestic and global, that all nations bear responsibility and all
nations must work together to find solutions. Under President Obama,
America will take the lead in addressing climate change, both by making
commitments of our own and engaging other nations to do the same.

President Obama has already committed to reach agreement on a post-2012
international effort to combat climate change. We see the December 2009
meeting in Copenhagen as a critical milestone and will work hard with
our global partners, including India, to reach an agreement by then.
President Obama has appointed a Special Envoy for Climate Change, Todd
Stern, who will serve as his principal advisor on international climate
policy and strategy. He will be the Administration's chief climate
negotiator, and will lead our efforts with United Nations negotiations
and processes involving a smaller set of countries and bilateral
sessions.

President Obama sees Pakistan and Afghanistan as "the central front in
the fight against terrorism" and is committed to forging a hard-earned
peace in Afghanistan. Like India, we want to see Pakistan succeed as a
moderate, modern, democratic country. The Obama administration will use
diplomacy, development, and defense to root out al-Qaida, the Taliban
and other violent extremists.

One of President Obama's first actions was to appoint Ambassador Richard
Holbrook as his special representative to Pakistan and Afghanistan to
improve coordination among U.S. agencies and to actively seek advice and
assistance from countries such as India, who share our goal of
rebuilding Afghanistan. President Obama recognizes India's concerns
regarding Kashmir and has made very clear that Ambassador Holbrook's
mandate does not include Kashmir.

President Obama will continue unprecedented cooperation with Indian
security officials in investigating terrorist attacks such as those in
Mumbai on November 26, with the goal of identifying those responsible
for these reprehensible attacks and bringing them to justice. President
Obama will seek an in increase in intelligence and law enforcement
cooperation between the U.S. and India to protect against terrorist
attacks. By sharing information about terrorist plans and activities and
taking joint action against terrorist cells and organizations, we can
better ensure that terrorists are unable to operate on Indian and U.S.
soil and against Indian and U.S. interests anywhere in the world.

In President Obama's own words: "As we learned so painfully on 9/11,
terror cannot be contained by borders, nor safety provided by oceans
alone. We were reminded of this threat once again when terrorists took
the lives of six American among nearly 200 victims in Mumbai. In the
world we seek, there is no place for those who kill innocent civilians
to advance hateful extremism. I told Prime Minister Singh that Americans
stand with the people of India in this dark time. And I am confident
that India\'s great democracy is more resilient than killers who would
tear it down."

In our efforts to combat terrorism, however, the Obama Aadministration
will not sacrifice American values -- democracy, rule of law, respect
for our Constitution and international law -- all values that India
shares. On his first day in office, President Obama signed three
executive orders, emblematic of the change that his new administration
represents, to close Guantanamo within one year, apply military
procedures to all interrogations, and review the USG detention policy.
He has, in no uncertain terms, reaffirmed that terrorism must be fought;
however, without sacrificing our values.

In our two nations there is openness and robust debate -- our free and
professional media is a pillar of our democracies. We are both committed
to democracy as the best way to achieve our dreams, to address
grievances and resolve differences. In both our nations, diversity is
our strength and democracy the glue that binds us.

President Obama could have been describing India when he said in his
inaugural speech "for we know that our patchwork heritage is strength,
not a weakness. We are a nation of Christians and Muslims, Jews and
Hindus, and non-believers. We are shaped by every language and culture,
drawn from every end of this Earth \... we cannot help but believe that
the old hatreds shall someday pass, that the lines of tribe shall soon
dissolve, that as the world grows smaller, our common humanity shall
reveal itself." With these shared values and common interests, India
will be an important and valued partner as America plays its role in
ushering in a new era of peace.

Thank you.

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