Sen. Corker the formulations committee will come to order. Foreign Relations Committee will come to order. Mr. Secretary, we appreciate you being here. We had a discussion about the timing issue. We do have a lot of other things happening today and i would like to finish this in one round. If it isink we will do ok with you lets put six minutes on the clock. If we need to have a second round for some reason, we will. We will have a discussion about that. I think six minutes sounds if we need to have a second round for some reason, we will. Fair. I do not want to preclude a member on either side from having that second round. I would encourage our members to try to be efficient with the use of their time. Sen. Corker i want to begin by saying last night about 10 20 p. M. , we finished negotiating a russia bill to be attached to the iran bill. And we were able to gavel in the senate last night. And i just want to thank senator carden along with his staff and my staff for what i think was an incredible effort to bring balance to a bill. But to send a very strong, strong message to russia. And it was a cooperative effort between the foreign Relations Committee, but also the banking committee, which meant a number of senators end up being involved. I really do think weve ended up with a very good piece of legislation. And senator carden, i want to thank you for the way that you have worked with us. And i want to thank all the senators here for the issues that youve brought up along the way to help us make sure that we try to deal with the issues that were important to this committee. Mr. Chairman, on that point, let me just underscore the points that youve made. This was a very challenging negotiations between the banking leadership and the senate Foreign Relations leadership. And i want to thank you for the manner in which those negotiations took place. I encouraged the members of the committee to read the filed amendment. Im extremely pleased with the way that we were able to manage that negotiations. On our side, i particularly want to acknowledge senator menendez who were helpful in putting together this package. It does incorporate not only the work that this committee did on the Democracy Initiative that was passed out at this committee, but also two other bills, one that i authored with senator mccain that deals with codification of executive sanctions against russia as well as additional sanctions against russia. And that is included in the amendment. The other is a bill that was authored by senator graham that i worked with him on that provides for congressional review if the administration desires to remove any of the sanctions in regards to russia. So i really believe that we did accomplish what we set out to do, where we had initially ten democrats and ten republican senators who joined together and the chairman protected our work product and i thank him very much. I do, just because i know we have a lot here, those bills are not in this bill. Those bills are not in this bill. But some of the topics that were brought up in these bills are points that we addressed in the overall legislation we developed. But i appreciate the input of all. And well turn to the hearing. We have a number of people here in the audience. I know people are pretty passionate about issues. I dont like for anybody to be arrested. I asked him to leave a meeting and what that means is youre immediately arrested. I was able to go down and get them out of jail. But im not going to do it anymore, okay . So just be warned that if you stand up or make a noise or do something you know to be inappropriate were going to ask you to be escorted out and theres nothing i can do beyond that. So please dont do this. This is democracy in action and this is our ability to express ourselves in appropriate ways. But youre here, were glad youre here but conduct yourselves in an appropriate way. Well move to the business at hand. I want to thank secretary tillerson for being here. I want to thank him for what has been unprecedented outreach to this committee and others who have wanted to give input. I share with people all over the country that, obviously, this administration is new. Some of the approaches have been very different. But one of the things that secretary tillerson has been willing to do and wants to do and seeks to do is to get input from the committee and i appreciate that very much with all that youve got to do to organize. So thats been unprecedented. I do want to say in addition to that i know some people are going to be taking shots, thats what happens in a Budget Committee meeting, especially one like this one. I think, though, i can speak for most everyone here, ill speak for myself, and i know others feel the same way. I am very thankful that youre serving as secretary of state. I am very thankful that secretary mattis is serving as secretary of defense. I am very thankful that mr. Mcmaster is serving as National Security advisor. I just have to tell you that around the world people are thankful that you in these positions. And i think that in spite of the fact they may disagree with some of the policies that are coming forth. The fact that someone with you who is as seasoned as you are in this position gives me and a lot of people here and a lot of people around the country and a lot of people around the world a lot of comfort. I want to thank you for your willingness to serve in the capacity that you are. On that point, i will say we sat down yesterday in the middle of the russian negotiations. I took some time out to sit down with my staff. We began going through the budget that youre presenting today. After about five minutes, i said this is a total waste of time. I dont want to do this anymore. And the reason its a waste of time is i think you know that the budget thats being presented is not going to be the budget were going to deal with. Its just not. And i mean, the fact is that, you know, congress has a tremendous respect for the diplomatic efforts that are underway, the aid that we provide in emergency situations and its likely by the way, this happened with every president ial budget. Every president ial budget. This one in particular, though, is likely what comes out of congress is likely not going to resemble what is being presented today. So i felt it was a total waste of time to go through the line items and even discuss them because its not what is going to occur. So i say that with all due respect. And pointing out that really, over the last 17 years you know, our nation has been unwilling to deal with the fiscal issues we face. And so 70 of the budget is off budget. We are edhadding towards a fiscal calamity. Everyone knows it. Sees it coming and i realize that this president took an inordinate amount of cuts to demonstrate he was trying to address fiscal issues. In fairness, unwilling to address all the other issues that are driving spending so much. We understand that. Its happened on both sides of the aisle for at least 17 years. And, you know, thats kind of where we are. So until we have a person who runs for president who says theyll serve one term and theyre going to try to deal with these issues, unfortunately, were heading to a place that, to me, is a fiscal calamity. What i do appreciate about what youre doing today, and what youre doing within the department, the fact that you ran a Major Company that had the same amount of employees as the state department has, what i appreciate is what youre doing today is bringing forth a debate that weve needed to have for a long time. And that is not focusing on everything we can do but what we should be doing as a nation. I appreciate that very much. Since congress is likely to write its own Appropriations Bills and spending, what i hope well spend most of our time on, instead of taking pot shots. Although everybody will do whatever they wish, i know. I hope youll help us lay out some of the things you really think are appropriate for us to look at and different ways of approaching, whether its international organizations, which many of us support, or whether its how the state department is going to be run. We thank you for being here today. I respect you very much, i respect the role youre playing for our nation. And with that, ill turn to our Ranking Member, senator carden. Let me welcome the secretary here in order to discuss the proposed budget and other issues that are important for our National Security. I just want to make an observation before i start my formal statement. That revealing the administrations fy 18 budget in a waste of time. I know that were going to write our own budget. Yesterday, i was in a city which suffered from a major, major flood almost a year ago. And i was talking to a federal administrator there, not from state department. It was a different agency. About the tools that we need to make available for the businesses there in order to recover from that horrible tragedy. And the president s fy 18 budget for that agency would not allow the federal partner to continue providing mentoring services to the businesses. And that it was a challenge for the administrator to be able to carry this out with the instructions being given by omb in regards to budget issues. So, mr. Chairman, i dont think the fy 18 Budget Review is a waste of time. I think well write our own budget. But i do think it has a chilling impact on the state department with the career people trying to carry out their missions, believing that their supervisors have a different vision as to what is necessary to carry out that mission. We meet at a challenging time for the state department and for our nation. Mr. Secretary, we meet at a time of deep and mounting concern regarding the tone, substance and trajectory of your administrations Foreign Policy. 70 years ago this month, George Marshall delivered a speech that helped cement his reputation as a key architect of the post war efforts to build a liberal International Order. He was present at the creation. My concern today quite frankly, is that your Administration May go down in history as being present at the destruction of that order we have worked so hard to support and that has benefitted our security and prosperity and ideals. Im deeply concerned with the direction that President Trump appears to intend on taking our country and the world with it. Indeed, no matter where we look around the world today, it seems that americas interest and values in the International System is under threat and under pressure. Most troubling, much of the recent pressure is coming not only from external forces and foes, but also from the president of the United States and from your administration. I cannot tell you how devastating the president s decision to walk away from the paris accords was, not only to our allies abroad, but to also to many americans. The decision to abdicate americas leadership sent shockwaves around the globe, raising concerns about our fundamental engagement as a stakeholder in the International Order that the United States has worked so hard to help build and lead over the past seven decades. I truly believe that Climate Change will be a defining issue for our generation, not just environmental or security issue or even an economic issue, although theyre all those. But a moral issue in which our success or failure as stewards of a nations interests and shapers of global interests will rise or fall. In your confirmation hearing, you said in response to one of my questions i think its important that the United States maintain its seat at the table on the conversations around and how to address threats of Climate Change which do require a global response. No one country is going to solve this alone. End quote. Well, today we find we have left our seat at the table. And shredded the efforts of the International Community to respond to Climate Change. And we stand alone. When President Trump repudiated the paris, he repudiated our partners in the International Community, indeed the very idea of an International Community. It was to quote from an oped penned by t along. Colleagues. Your let me give you one practical example. You couldnt remove the ambassador on trafficking because thats set up by statute. New era of mutual cooperation, the success of bipartisan administrations effectively put america first. Oreturn to the old era proposing a budget that would abruptly terminate key investments in dozens of countries, we find america isolated, alone and last americas leadership and engagement in global issues and with Global Leaders is perhaps more vital today than ever before. There is simply no substitute for president ial commitment for American Leadership and engagement. Risks undermining key tools that enable the United States leadership in the world. I am concerned that your administrations approach does not place america first, but rather leaves america alone and places our interest and values at risk your it our positions as leaders of the free world is at risk. The ideas of a democracy as a force of diplomacy, as a multiplier and development of a catalyst for change are being significantly challenged. Is now being undermined. Including by the president himself, who hurls insults at the mayor of london following a terrorist incident. Russia and china appear to be elevated to privileged positions ahead of our allies and a new game of power politics, while trees with allies like australia and the republic of korea are subject to bullying. The leaders of each of the philippines and others who commit devastating human rights offenses are impressive are russia has attacked our democracy, illegally and invaded eastern ukraine. As i said before, democracy does not defend itself. We, those of us on this dais, those of us in this room must defend democracy in the notion of Good Governance. Americansat the derive strength from its value and we must never retreat from the core concept. Yet in a speech earlier this year, that we can divorce our values from our policies, you suggested such a retreat. The deep cuts to International Affairs spending in your Budget Proposal is an approach to american for desta Foreign Policy that is nothing but a devastating assault on American Interest in valleys. What is most perplexing to me is that defense secretary mattis made it clear that it is critically important to Development Assistance insecurities. Assistance gn approach thatwise will endanger americans here at home. For those cuts in the state department suggested by you would undermine our ability to renew and revise our leadership and leave us less safe and less an increasing and complex work unable to advance our ideals or to secure prosperity. I look forward to hearing your thoughts and views on how this advances our interest and values around the world. But i can to you that my starting point is to be prepared to work with democratic and likeminded republican colleagues to make sure that nothing remotely close to this budget is enacted by congress. Thank you, sir. I know youry, since just made an announcement before you began your opening comments, we july like to go ahead and share with us what has just occurred and then do your . Pening statement some of you may have seen a press release before i arrived. The department of state have from north american korea. He is en route home to be reunited with his family. We continue our discussions with the north korean regime regarding the release of the three other american citizens that have been detained. We have no comment on mr. Wormbiers condition out of respect a him and the family. That was the statement that was released. Very good. We look forward to your questions and comments. Inc. You for being here. You can begin with that, if you would. Thank you for the opportunity to discuss this request for fiscal year 2018. As we all know, americas Global Competitive advantages and standing as a leader are under constant challenge. The dedicated men and women of the state department and usaid carry out the important and often perilous work of advancing americas interest every day, 24 7, 365 days a year. That mission is unchanged. However, the state department and usaid, like many other institutions here and around the world, have not evolved in the responsiveness as quickly as new challenges and threats to our National Security have changed and are changing. We are challenged to respond to a postcold war world set in motion new global dynamics. In a post9 11 threatsresenting you never seen before, enabled by technological tools that we have been illprepared to engage. The 21st century presented many evolving challenges to u. S. National security and economic prosperity. We must develop active responses to protect and advance the interest of the American People. A broad array of threats facing the United States, the fiscal year 2018 budget request of 37. 6 billion aligns with the administrations objective of making americas security our top priority. Of first responsibility government is the security of its own citizens and we will orient our diplomatic efforts effort. Ulfilling that while our mission will also be focused on advancing the economic interest of the American People. Primarye departments focus will be to protect our citizens at home and abroad during our mission is at all times guided by our longstanding values of freedom, democracy, individual liberty and h