Good evening. Admiral Larson, thank you for your kindintroduction. Captain Bogle, Dean Shapiro, Captain Evans,midshipmen, I am delighted to have a chance to address the NavalAcademy community and the participants in your annual ForeignAffairs Conference.

I am also pleased that the Conference organizers chose as yourtopic this year the great unfinished cause of our times -- thestruggle for democracy.

This Academy has been the training ground for many of the heroesof that struggle.

Their memory is strong within us and cherished by us. For withinthe past few years, we have celebrated what sometimes seems the50th anniversary of everything. And as we have recalled thebravery of sailors, aviators, soldiers and Marines from Normandyto Leyte Gulf to Tarawa to Iwo Jima, we have been in awe of theirsacrifice and inspired by their example.

The lessons they bequeathed to us are many.

We must maintain strong alliances, for there is no better way toprevent war.

We must be prepared to defend our interests whether in air, onland or at sea.

We must never take freedom for granted.

And as Americans, we must continue to carry aloft the banner ofleadership.

Today, we are approaching the threshold of a new century in a newera of possibility and risk. The class that entered this Academylast fall will graduate in the year 2000. You will embark uponyour careers of service at a time when America is strong,prosperous, respected and at peace.

You will look across the Caribbean and see a nearly-completehemisphere of democracies, and a group of forward-looking leaderswith whom we are striving to consolidate the sway of freedom,defeat the plague of drugs and lay the groundwork for sustainableeconomic growth.

You will look across the Atlantic and see a NATO strengthened bynew members and trained for new missions in a Europe in whichevery democracy -- including Russia -- is our partner and everypartner is a builder of peace.

And you will look across the Pacific, where you will see a regionof dynamic economic growth, thriving new democracies, and complexpolitical and security challenges.

It is American policy towards this region -- East Asia -- that Iwould like to discuss with you tonight.

When the Cold War ended, some Asian leaders feared that weAmericans would retreat from our historic presence in the region. If any remnants of that perception persist, let me dispel themnow. As President Clinton has repeatedly made clear, and as theU.S. Navy helps ensure, America is and will remain anAsia-Pacific power.

Our role there is vital, from the stabilizing effects of ourdiplomatic and military presence, to the galvanizing impact ofour commercial ties, to the transforming influence of our ideals. And our commitment is solid because it is solidly based onAmerican interests.

We have an abiding security interest in a region where we havefought three wars in the last half-century, and where almost anysignificant outbreak of international violence would threaten ourwell-being or that of our friends.

We have an abiding economic interest in a region that ischaracterized by explosive growth, and with which we alreadyconduct more than 40% of our trade.

We have an abiding political interest in a region whosecooperation we seek in responding to the new global threats ofproliferation, terrorism, illegal narcotics and the degradationof our environment.

And we have an abiding interest as Americans in supportingdemocracy and respect for human rights in this, the most populousregion of the world.

These interests cannot be separated into discrete boxes. Theyare reinforcing. The vitality of the international economicsystem rests upon international political order. Political orderdepends, in great measure, on military security. And economicstability reduces the likelihood of dangerous conflict. Wheneach of these pillars is strong, progress on all fronts ispossible. If one pillar collapses, stress on the others ismultiplied.

For this reason, we are working with our allies and others in theregion to build an Asia-Pacific community based on a full rangeof interests, including economic growth, the rule of law and ashared commitment to peace.

To this end, we are fortifying our core alliances, maintainingour forward deployment of troops, and supporting new multilateralsecurity dialogues such as the ASEAN Regional Forum. We arenegotiating agreements to open markets for American goods,services, and capital. And we are actively promoting the trendwithin the region towards greater political openness.

Although many of our initiatives in East Asia are regional innature, most are grounded in key bilateral relationships. Ofthese, especially prominent are those with Japan, the Republic ofKorea, and China.

Five decades ago, our predecessors made a strategic decision tohelp Japan rebuild from the destruction of World War Two. Theresulting alliance of two great peoples, two great democraciesand the two largest economies in the world is not directedagainst any particular adversary. Rather, U.S.-Japanesecooperation is for peace, for prosperity, for democracy and foreconomic and political development around the globe.

Militarily, we are committed to maintaining our presence inJapan, to being good guests there, and to working with our hoststo expand the already high degree of cooperation among our armedforces.

Economically, we will continue to strive for a more balancedrelationship. Since 1993, we have negotiated 23 market-accessagreements that have narrowed our trade deficit and set the stagefor further progress.

And politically, we are working with Japan almost everywhere,from peace in Bosnia to development in Africa to reform at theUnited Nations to our pathbreaking Common Agenda on globalissues.

In 10 days, Prime Minister Hashimoto will be in Washington, and Iknow that President Clinton is looking forward to reviewing withhim ways to further strengthen our alliance.

The U.S.-Japan partnership is a cornerstone of our engagement inthe Asia-Pacific region and a vital contributor to Asiansecurity. Central, as well, is our friendship with the Republicof Korea. Since the Armistice four decades ago, South Korea hasclimbed the ladder from poverty and destruction to become anactive democracy with a modern economy.

Today, our annual trade with Korea tops $50,000 million, and wework with the government in Seoul on a range of politicalmatters. But most critical is our shared effort, as allies, topreserve stability on the Korean Peninsula.

To this end, the Agreed Framework we have negotiated has frozenNorth Korea's dangerous production of nuclear materials andrequired it to take the steps necessary to comply fully with theNuclear Nonproliferation Treaty. U.S. and South Korean diplomacyhas thereby preserved the Peninsula's stability in the shortterm, while preparing the way for discussions that may lead tofull reconciliation in the long term.

A year ago, Presidents Clinton and Kim proposed talks involvingthe two Koreas, China, and the United States. We have recentlyjoined with South Korea in briefing the North on the derails ofthese proposed Four Party talks. And we look forward to what wehope will be a positive response at meetings scheduled this weekin New York.

We are also continuing to respond to North Korea's food shortage,the tragedy of which has been documented not only by U.N.officials but by recent visitors from Congress. Although thethreat of famine results largely from the failed policies of theNorth, we view the suffering as an humanitarian, not a politicalissue. Earlier this year, the United States contributed $10million in response to a World Food Program appeal. Today, Ihave announced that we will commit an additional $15 million.

In February, I visited U.S. troops in the DMZ. These men andwomen are the visible, human evidence of our commitment to SouthKorea's security. As I talked with these young Americans, shooktheir hands and thanked them, I felt again the urgency of thechallenge that Korea presents to us all.

Our alliance with the Republic of Korea is a source of stabilityand vital for the defense of freedom. North Korea has begun tomove, ever so slowly, in the direction of greater contact andopenness with the outside world. While maintaining our firmpolicy of deterrence, we will also continue to make clear thebenefits of cooperation.

The future of the peninsula is for Koreans to decide. Our roleis to support the South in its efforts to assure peace. We aredoing that, and we will maintain that commitment for as long asour help is required.

No nation will play a larger role in shaping the course of 21stcentury Asia than China. With its huge population and vastterritory, China's emergence as a modern, growing economic andmilitary power is a major historical event.

In the United States, there are some, alarmed by China's rise,who suggest that our policy should be to contain China. Such apolicy assumes and would, in fact, guarantee an outcome contraryto American interests.

A policy of containment would divide our Asian allies andencourage China to withdraw into narrow nationalism andmilitarism. Our interests are served by an Asia that is comingtogether, not splitting apart -- and by a China that is neitherthreatening nor threatened.

What we see in Asia today is not a clash of civilizations, but atest of civilization. And that test is whether we can seize theopportunity for mutually beneficial cooperation that now exists,for we are privileged to live in an era when the protection ofsecurity and prosperity is not a zero sum game.

Much is made in the foreign policy journals of the dialogue thatis underway between our government and the government of China. What those journals sometimes ignore is that -- in addition towhat is occurring at the official level -- ties between theAmerican and Chinese people are deepening at every level.

From the Bay area to Beijing, from New York to Shanghai, we arevisiting each other, studying with each other, doing businesswith each other, philosophizing with each other and learning fromeach other. It is our peoples, even more than our governments,that are bringing the old era of mutual isolation andmiscommunication to a decisive and irreversible end.

But for America, the strategic benefits of our official dialoguewith China are also tangible, clear and growing. We are not yetwhere we want to be, nor has China evolved as rapidly orthoroughly as some have hoped, but the direction we must go isclear; greater interaction based on China's acceptance ofinternational norms.

For example, the United States has an interest in China'sintegration into the global trading system. Accordingly, wesupport its entry into the World Trade Organization oncommercially acceptable terms. And we have worked with China todevelop a list of concrete steps that would broaden access to itsmarkets and bring its trade practices into line with WTO rules.

In the security arena, when the Clinton administration tookoffice in 1993, the United States and China generally did not seeeye to eye on nuclear issues, and the Chinese were sellingdangerous weapons and technologies with impunity. Through ourdialogue, we have built a record of cooperation on agreements toenhance international nuclear safeguards, ban nuclear tests andmake illegal the possession and production of chemical arms.

We also welcome China's commitment not to assist unsafeguardednuclear activities and its agreement to abide by the guidelinesof the Missile Technology Control Regime. We remain concerned,however, about the adequacy of China's export control system. Difficulties have arisen, for example, over Chinese exports ofarms as well as sensitive goods and technologies to Iran andPakistan. Through our dialogue, we are working with China tostrengthen export controls and expand cooperation in thedevelopment of peaceful nuclear energy and other areas.

More broadly, we have maintained a good working relationship withChina at the U.N. Security Council; we consult regularly onKorea; we are exploring steps to avoid military incidents at sea;we have a shared interest in fighting international terrorism andcrime; and we have joined forces on specific problems such ashalting the inhumane and criminal practice of smuggling illegalaliens.

Finally, as the world's top producers of greenhouse gases, theUnited States and China must cooperate in responding to thestrategic danger posed by threats to the global environment. Those of you who have traveled in East Asia know that the "Asiamiracle" has been accompanied in some places by undrivablestreets, unbreathable air, undrinkable water and unbearableliving conditions. We all should care whether the globe'sstrongest power, and its largest, are able to work together toensure a future that is not only wealthier -- but healthier.

The U.S.-China relationship is guided by principles set out inthe 1972 Shanghai and two later Communiques. Pursuant to thesedocuments, we recognize the government of the PRC as the solelegal government of China.

At the same time, under the Taiwan Relations Act of 1979, we havemaintained strong unofficial ties with the people of Taiwan,thereby helping to propel Taiwan's flourishing democracy.

Although leaders in both the PRC and Taiwan recognize the need toresolve differences peacefully, those differences remain apotential source of instability. That is why we have stressed toboth Beijing and Taipei that our "one China" policy is firm, andthat they should do all they can to build mutual confidence andavoid provocative actions and words.

In this regard, our naval presence in the Pacific plays astabilizing role. When China's military exercises causedtensions in the Strait early last year, our deployment of twoaircraft carriers helped lower the risk of miscalculation.

Another important element in the U.S.-China dialogue is ourinterest in the future of Hong Kong.

Two centuries ago, Hong Kong was a treeless granite islandpopulated by leopards, tigers, mongooses, butterflies and whathas been described as "an unusual variety of newt." Today, it isa vital and astonishing center of global commerce. I am askeptic about the human ability to predict the future, but I payhomage to the 12th century Chinese poet who imagined a Hong Kongablaze "with a host of stars in the deep night and a multitude ofships passing to and fro within the harbor."

On July 1, less than 90 days from now, the world will watch witha mixture of hope and concern as Hong Kong reverts to Chinesesovereignty. The United States supports this reversion under theterms of the 1984 Sino-British Joint Declaration, which calls forthe preservation of Hong Kong's high degree of autonomy and itsway of life and basic freedoms.

As I assured Martin Lee, the leader of Hong Kong's largestdemocratic party, in a meeting I held with him yesterday, theUnited States is deeply committed to freedom and democracy inHong Kong, as elsewhere.

In addition, 40,000 Americans live in Hong Kong; our citizenshave $13 billion in investments there; and we have an interest inlaw enforcement cooperation and in port access for Navy ships. Advancing these interests depends on the rule of law andprotection of civil liberties in Hong Kong.

Accordingly, I have decided to accept the invitation of theBritish and Chinese Governments to represent the United States atthe reversion ceremony in July. By so doing, I will underlineAmerican support for the continuation of Hong Kong's current wayof life and freedoms. And I will emphasize America's continuedinvolvement in protecting our interests and supporting HongKong's people as they enter the Chinese nation.

A major area of disagreement between the United States and Chinais human rights. We recognize that the Chinese people todaypossess far more options in their daily lives than did theirparents. Progress has also been made in revising civil andcriminal law and in permitting a degree of choice in villageelections.

China is changing, but the Chinese government's repression ofpolitical dissent has not.

The United States will continue to shine the spotlight onegregious violations of internationally-recognized human rightsin China, as elsewhere. The world cannot and should not beallowed to forget dissidents such as Wei Jingsheng and Wang Dan,both of whom have been sentenced to long terms in jail for theirnon-violent support of democracy.

We have expressed to China particular interest in seeing therelease of those imprisoned for the peaceful expression ofpolitical, religious, or social views and, as a first step, therelease on medical parole of those who are eligible. We haveurged that international humanitarian organizations be givenaccess to prisoners. And we have stressed the value of resumingnegotiations between Beijing and the Dalai Lama for the purposeof preserving Tibet's unique cultural, linguistic, and religiousheritage within China.

Earlier today, the U.N. Human Rights Commission decided not toconsider a resolution we had cosponsored that would have urgedChina to improve its human rights practices. We regret thatdecision. We congratulate the government of Denmark forsponsoring the Resolution and the others who cosponsored it.

The Clinton administration views human rights as an essentialpart of what our country is all about. We recognize that nonation is perfect, and that none has all the answers. But wealso believe that human rights are a legitimate subject fordiscussion among nations. On this, we differ with China. But wealso differ with those who believe that the way to improve humanrights conditions in China would be to deny to that country thetrading status we accord to most others.

For years, the debate in Washington linking trade to human rightsin China has raged. And for years, it has failed to advanceAmerican interests or to produce progress in China.

Instead, this debate has divided us, and blurred the focus weshould be putting on Chinese practices. The debate has alsocreated the perception that our economic ties to the PRC and ourconcerns about human rights are in opposition when, in fact, theyare two sides of the same coin. Economic openness and politicalliberalization are not identical, but they do reinforce eachother. Both add to China's integration within the world

community.As Americans, we all enjoy a good debate, but we should alsorealize that -- in this debate -- we all have the same goal. Andthat goal is a China that is a responsible and deeply engagedparticipant in the international system, and that is meetinginternational norms including those that concern the treatment ofits own people.

The strategic dialogue between the United States and China is notbased on any particular presumptions about the future. On thecontrary, it is designed to influence the future in a manner thatserves the interests of both countries, the region and the world.

Later this month, we will welcome Vice Premier Qian Qichen toWashington. And later this year, we look forward to a meetingbetween President Clinton and China's President Jiang Zemin. Throughout, we will continue efforts to narrow differences,expand cooperation and build understanding. And we anticipatethat the larger process of increased ties between the Americanand Chinese peoples will accelerate with profoundly positiveresults.

The unifying trends of economic and political modernization thatare sweeping East Asia have not erased the region's kaleidoscopicdiversity. Nations are adapting to growth and change each intheir own distinctive ways. But the struggle for democracy intwo countries, in particular, deserves mention now and here.

In Cambodia, the terror of Khmer past -- Pol Pot's genocidalKhmer Rouge -- has faded in relevance and power. But thetransition to a democratic future has been slowed by corruption,infringement of civil liberties and political violence.

As Cambodians prepare for elections next year, we call upon allfactions to honor the past sacrifices of the Cambodian people andto agree to debate their differences openly and to settle thempeacefully, in accordance with the popular will.

In Burma, a military dictatorship continues to repress ademocratic movement that enjoys wide and proven popular support. The outcome of this struggle matters to us because Burma'spotential can only be realized by a government accountable to itspeople. And it matters because Burma is the largest source ofheroin in the world.

Our policy is to oppose repression and support a dialogue betweenthe government and the democratic opposition, led by theNobel-Prize-winning Aung San Suu Kyi, and including the leadersof Burma's many ethnic groups.

U.S. officials, myself included, have stressed to Burma'smilitary the opportunity presented by a democratic opening. Unfortunately, the government has responded by placing evengreater limits on the right of political expression and bythrowing peaceful demonstrators in jail. These decisionscontinue to have a corrosive effect on the Burmese government'sstanding at home and abroad; and Burmese leaders are on noticethat, unless the clouds of repression are lifted, they will faceinvestment sanctions under U.S. law.

There are some scholars who suggest that democracy and respectfor human rights are not well-suited to Asia, and that our focuson them is an attempt to impose alien values. But to me, thatargument is more rationalization than rational.

The Universal Declaration of Human Rights reflects aspirationsthat are common to all cultures on all continents. Those whostood up to tanks in Tiananmen Square, transformed thePhilippines from kleptocracy to democracy, and who are nowraising their voices for freedom in Burma are both true democratsand true Asians. They deserve our respect and the world's.

Before I close, I would like to stress again one central point. American policy in Asia has many facets, but those facets areinter-related, not separate and distinct.

If you are an American interested in investing in Asia, you willcare whether the legal structure in that country respectsindividual rights, and whether the political and securityenvironment is stable.

If you are a military planner, you will want to see nationsmoving ahead with economic and political reform because you knowthat democracy is a parent to peace.

If you are a human rights activist, you will want to encourageoutside investment, expanded trade, and a broad dialogue betweennations that are democratic and those that are just beginning toexperiment with democratic institutions.

And if you are Secretary of State, you will be determined to moveahead on all fronts, encouraging the full integration of everycountry in the region into an international system based on therule of law.

Fifty years ago this month, President Harry Truman addressed anAmerican people still weary from war and wary of the commitmentsthat loomed in the dawn of the postwar world.

He said that "the process of adapting ourselves to the newconcept of world responsibility is naturally a difficult andpainful one... But it is not in our nature to shirk ourobligations."

Truman continued by saying that "we have a heritage thatconstitutes the greatest resource of this nation, I call it thespirit and character of the American people. We ... not onlycherish freedom and defend it, if we need with our lives, but(we) also recognize the right of other (people) and other nationsto share it."

It was not enough, after World War Two, to say that the enemy hadbeen defeated, and that what we were against had failed. Thescourge of war had cut too deep. The generation that defeatedHitler and won the war in the Pacific was determined to build afoundation of principle and purpose that would last. Together,they designed the institutions and alliances that would one daydefeat Communism, promote prosperity and strengthen the rule oflaw around the world.

To them, and to all those who have fought and sacrificed so thatwe might be free, we have inherited a duty to history and toourselves. If we allow the momentum towards democracy to stall,or turn away from our responsibilities, or take for granted theblessings of liberty, we would betray generations past andfuture, and squander all that is truly precious to ourselves.

The dawn of a new century carries with it no guarantees. It willbe our shared task, as diplomats, sailors, marines and just plaincitizens to shape a future in which our interests are advanced,our values flourish, our goodwill is understood and ourdetermination and capacity to defend freedom is never in doubt.

Tonight, as I look out at you -- the Naval officers and leadersof tomorrow -- I have no doubt that in this shared task, we willprevail.