SECRETARY ALBRIGHT: Thank you very much Maya. Thank you very much for that introduction, and Mr. Minister, Mr. Mayor, Mr. Ambassador, Bob Asher, it's a pleasure to be with you this afternoon. Let me say that I'm very pleased that there's an audience here, because as a former professor, if somebody were twenty minutes late, you could walk out. So, I'm very appreciative that you hung around.

I am delighted to be here in Israel and I want to thank everyone that has made me feel so welcome. And I want to greet all of you that are here from NGO's and from the business and academic community.

I am especially grateful to Bob Asher for this invitation to speak to the students of this renowned academy. As I was telling the Prime Minsiter where I was going, he said: "Oh, yes, the waiting list for that place is a hundred years long. You are indeed in a very renowned place." For the young people here represent the future of this country. And it is Israel's future and that of her neighbors that have brought me to the Middle East this week.

It is hard for my daughters to believe, so it may be hard for you to believe, but I, too, was young once. And some of the most vivid and dramatic experiences of my life came early--during and after the Second World War.

I still remember clearly sitting in a bomb shelter during the Nazi siege of London.

I remember events leading to the communist takeover of Czechoslovakia, my native land.

I remember the opening years of the United Nations, where my father had a diplomatic assignment working on the crisis in Kashmir.

And I remember having a sense that something truly great had happened when, on the day before I turned eleven years old, the modern state of Israel was born.

That milestone in history--that miraculous birth--was the product of a marriage between unbearable sacrifice and unbreakable faith.

And since that spring almost fifty years ago, the motivating dream of an independent Israel, prosperous and secure, has moved steadily closer to reality.

From around the world, people of talent and character have come to contribute their energy to your economy, their knowledge to your culture and their valor to your defense.

Out of the desert, the families of Israel have brought forth a nation of productive farms, skilled labor and vigorous enterprise.

And I can tell by looking at your faces--and by knowing the reputation of excellence of this academy--that each of you will make your own contributions to your country and to our world. To the United States, Israel is a trusted and valued friend. Our peoples are bound together by shared values. And we are both nations of immigrants, both nations determined to fulfill the uplifting dreams of our founders, both nations of ideas driven, above all, by the idea of freedom.

These ties provide a firm foundation for alliance. Israel remains America's strategic partner. And America's commitment to Israel's security is and will always be rock solid. If there is any doubt, let me dispel it now. America and Israel will stand side by side, shoulder to shoulder, today, next year, through the next century and for as long as the sun shall rise.

The depth of that commitment has been reinforced for me already during this trip. Yesterday, as soon as I arrived, I had a chance to visit some of those injured in the explosions last week. I saw there Jews and Arabs, some greatly harmed, being cared for by Jewish and Arab doctors and nurses, and I thought if these two peoples can hurt and heal together--surely they can also live together.

Later I visited the Children's Memorial in Yad Vashem. There could be no experience more humbling. My heart was full. My thoughts and prayers were with the millions of men and women, girls and boys memorialized there--some of them from my family, many, I know, from yours.

My prayers were also for the more recent victims of the violence: for those who died in the bombings this year and last year and the year before that and in the shootings in the mosque and for all those who have had their lives cut short by this cycle of senseless slaughter.

I am not a pollster. I can't tell you what you think or what the person sitting next to you thinks or what the person who is very much like you in age and aspiration but who lives in Ramallah thinks. Clearly, there are those who have never believed in the possibilities of reconciliation and others who have never doubted them. But I suspect many of you are somewhere in-between, wanting peace but unsure whether a secure peace is possible.

For many, your expectations may have been on a roller coaster in recent years as moments of joy have been succeeded by tragedy. I have no magic cure for your uncertainty, which is grounded in the realities of the moment.

But I can tell you that, at Yad Vashem yesterday, along with my prayers, I felt a determination. It was the same determination that the world saw in you when Israelis returned to the Ben Yehuda mall last Friday. We must not let the terrorists win. We must not let them destroy the possibility of peace.

For make no mistake. Those who went to Mahane Yehuda and Ben Yehuda to kill innocent people wanted, by so doing, to kill the peace. And if, in our anguish and anger, we allow the peace process to collapse, we will have allowed them to accomplish their objectives. We must never let that happen.

We must strive to create a future that is decent as resolutely as we attack those who would drag us back into the dark past.

At the same time as we fight terror, we must pursue peace.

These are the lessons of history.

These are lessons we must act on with unwavering courage if you, the children of Israel, are to know true security.

And these are lessons the United States is committed to helping Israel and all the people of this region implement by saying "no" to terror, "no" to murder, "yes" to life and "yes" to peace.

Another lesson I learned early in life is that the decisions made by leaders matter.

The choice before World War II to place expediency above principle at Munich helped smooth Hitler's conquests in Europe.

The choice after World War II to create NATO and defend freedom halted Stalin's advance and ultimately brought down the Berlin Wall.

Today, I cannot help but think of how the world in which your generation will come of age is being shaped by decisions and choices being made now. This is true broadly on such issues as the global environment and world trade. And it is true more specifically on the issue of whether Israelis, Palestinians and Arabs will come together in peace.

This is not a choice the United States or any outsider can make. It is a choice for your leaders and for you and for those with whom you share this region.

President Clinton believes, and I believe, that despite the recent tragedies, reconciliation is possible. We are convinced that a solid majority of Israelis, Palestinians and Arabs urgently desire the peace they have always deserved but long been denied. Parents, teachers, laborers and professionals from all faiths and of all backgrounds do not and will not accept the stark alternative of endless violence and countless victims with no security and no peace.

That is why the quest for peace has not been destroyed by terrorist attacks, assassins' bullets, or the insults of those who can only define what they are for in terms of whom they are against.

Like the burning bush, the desire for peace is never consumed.

And while the path of conflict and confrontation has spawned only more hate and deeper grief, the road towards peace has provided tangible benefits. Look how far you have already come.

For decades, Israel was isolated within this region. The peace process has changed that. In your parents and grandparents' day, thousands of Israelis died in conflicts with Egypt and Jordan. And thousands of Egyptians and Jordanians died fighting with you. Today, the three countries are at peace, with stable borders and no more talk of war.

Last year, at Sharm-el-Sheik, the leaders of 29 nations, including 13 Arab states, came together--seeing Israel as a partner, not an enemy--and joined her in denouncing and vowing to defeat terror.

The secondary and tertiary economic boycotts of Israel have weakened, thereby opening Israel to the world's products and Israel's products to the world.

And the framework of cooperation established at Madrid created the vision of a Middle East characterized by secure and stable borders; energized by the free movement of goods, capital and tourists; and bolstered by effective joint action on tough issues such as water, the environment and refugees.

Unfortunately, the momentum towards fulfillment of this vision has stalled. A crisis of confidence has evolved between Israelis and Palestinians which has, in turn, created a crisis of confidence between Israel and the Arab world.

This crisis was neither inevitable nor accidental. It has been caused by the failure of both sides to live up to their full obligations as partners in peace. As I have said several times in recent days, this failure was not symmetrical, but it was mutual. And mutual actions will be required if mutual confidence is to be restored.

That requires, above all, renewed understanding and acceptance of the fundamental reality recognized at Oslo--that the Israeli and Palestinian peoples are neighbors--not temporarily, but permanently--and that, in such a small land, it is vital that neighbors treat each other with respect.

Each day, Israelis and Palestinians make choices that contribute to the character of their shared neighborhood, making it more tense and dangerous or more prosperous and peaceful not for one or the other, but for both. The fallacy pushed by extremists is that one community's gain is another's loss. That is not true here.

As I am emphasizing in my meetings with Prime Minister Netanyahu and Chairman Arafat, there will be no security for either people unless there is security for both; no peace for either unless there is peace for both. And there will be no trust unless a spirit of reciprocity guides the approach to peace and its responsibilities.

I am making clear, as American Administrations have in the past, that the role of the United States is not to impose peace. Peace must emerge from compromise shaped and agreed to by both sides. It is, after all, you who must live with any commitments made--and it is your communities and your futures that are at stake.

However, as President Clinton has promised, the United States can and will do all it can to minimize the risks of peace and to support those who seek peace. Our record on this is beyond question.

We have used diplomacy, backed by force, to contain Iraq.

We have led in opposing Iran's sponsorship of terror and its efforts to acquire weapons of mass destruction that could threaten Israelis and Arabs alike.

We have insisted on UN sanctions against Libya.

We have backed our ironclad commitment to Israel's security with generous military and economic aid. At the same time, we have provided tangible support to Arab states and to the Palestinians who have joined Israel as partners in peace.

We have taken these steps not only because we view it as our obligation to help achieve reconciliation between Israel and her neighbors. We have acted--and will continue to act--because the United States has a strategic interest in Middle East peace. That is why President Clinton sent me here to explore the possibilities for ending the current cycle of recrimination and getting the peace process back on track.

And it is why, in my speech in Washington last month, I sought to lay out some basic principles required to move the negotiating process forward.

The first and most important is security. Security must be seen not simply as a goal to be achieved once the journey to a final peace has been completed. There must be security every step of the way. This is basic. Security cooperation is the glue essential to partnership between Israel and the Palestinians. And it is vital for progress in the negotiations.

The terrorist strategy is to drive decent people within both the Israeli and Palestinian populations to conclude that peace is not possible. Our strategy must be to unite the decent people in both and demonstrate to the terrorists that their strategy will never succeed.

That requires leadership from both parties. But it requires, in particular, that the Palestinian Authority display an unceasing red light to terrorists. Against suicide bombers, there can be no guarantee of 100 percent success, but there must be 100 percent effort to deter, prevent and punish terrorist acts.

In recent days, the Palestinian Authority has taken some welcome steps. But I must emphasize that fighting terror is not a part-time job. Fighting terror is not something you do only when it is convenient. Fighting terror is a 24 hour a day, 365 day a year responsibility, and for any partner in peace, fighting terror is a sacred obligation.

Fulfilling that obligation means identifying and seizing terrorist weapons and supplies. It means arresting and prosecuting those involved in planning, financing, supplying or abetting terrorism. It means sharing information and coordinating law enforcement actions.

And it means getting out the message over and over again that those who commit terrorism in the name of the Palestinian cause are committing terrorism against the Palestinian cause.

The ear-splitting sirens of terror make it harder to hear the urgent and just call by Palestinians for the life of dignity and opportunity they deserve. And terrorist acts cause your government to respond with closures and other restrictive measures.

In this way, the forces of terror simultaneously deny Palestinians their future dream while increasing their present suffering. That is why the average Palestinian has no greater enemy than Hamas or the Islamic Jihad.

Defeating terror is paramount, but if mutual confidence is to be restored, both sides must also renew and reinforce their commitment to the Oslo process. There can be no backing off from Oslo commitments or from the principle of reciprocity that is inherent in them.

This means that Israel should refrain from unilateral acts--including what Palestinians perceive as the provocative expansion of settlements, land confiscations, home demolitions and confiscation of IDs. Such actions appear designed to prejudge the outcome of negotiations and they undermine Palestinian confidence in Israeli intentions.

This is especially important at a time when the parties are considering the idea of complementing the implementation of the Oslo Interim Agreement with an accelerated approach to permanent status negotiations. We believe that a "time-out" from these kinds of unilateral actions will create a climate in which such an accelerated approach can succeed in achieving a final Israeli-Palestinian peace agreement.

While safeguarding her security, Israel should also do all she can to avoid harming the economic well-being of the Palestinian people--bearing in mind that no nation has a greater interest than Israel in making tangible for Palestinians the benefits of peace.

For their part, the Palestinians must also be clear about their intentions. The language of jihad must cease. The education of their people, whether in the schoolroom or the broadcast studio, must reflect a commitment to peace, not a call to confrontation. And Palestinian leaders must make clear that Oslo does not represent merely another phase in their struggle with Israel; it must be the end of their struggle with Israel.

It is not enough for either side to say it is committed to peace. Both must act in the spirit of peace. And both must contribute to an atmosphere in which the violent extremes are marginalized and the roots of trust may grow.

Finally, both parties must demonstrate their understanding of peace not as one option among many, but as the only option that will provide for the security and well-being of their people. It was this mutual and irreversible recognition that made Israel and the Palestinians partners in pursuing peace. And it is the logic of this partnership that has made it possible to overcome past obstacles to peace.

Partnership imposes a mutual responsibility to work together, to take each others' views into account, to allow each other's legitimate aspirations to influence behavior, and to seek actively to expand areas of common ground. Israelis and Palestinians each have needs that the other must recognize. They have substantive differences each must strive to narrow. And in extremist violence, they face a common enemy, which they must join forces to defeat.

There is no obstacle to a Middle East peace that the parties cannot together overcome. Every respected power in the world wants to see Israel and the Palestinians devise arrangements that will enable both to live in security and peace. And the United States firmly believes that an outcome that meets the needs of both is achievable if obligations are met and essential compromises made.

President Clinton has given his solemn commitment that America will continue to support the parties as they work to inject new life into the peace process. We will also continue to call upon the Arab states, and the international community generally, to give peace their strong diplomatic and financial backing.

There are those in the region who complain bitterly that the United States is pro-Israel. They are right. That is why we believe so strongly that the possibilities of peace must be tested. That is a pro-Israeli position. But it is also a pro-Palestinian and a pro-Arab position.

According to the Scriptures, there is a time and a season for everything under heaven. This is a season of testing. True testing. Of leaders. And of peoples. A time for true cooperation on security. For a true commitment to partnership. For a true recognition of the reality that Israelis and Palestinians must--for the sake of your children and of your children's children--live together as neighbors.

Some argue that people of different backgrounds cannot live together in peace. The United States, whose citizens include virtually every race, creed, culture and ethnicity on earth, is living testimony to the contrary proposition. So, with its immensely diverse population, is Israel. So is this Academy.

Among the students here are Jews and Arabs, religious and secular, urban and rural, immigrant and native-born--not to mention female and male.

In studying here, you are not expected to alter your beliefs or conform to a single manner of thinking.

You are learning--even while taking pride in your own customs--to value the qualities and contributions of others. You are encouraged to open your minds to new information and different ideas.

And you are becoming part of a new community bound together not by a shared past, but by a shared determination to shape the future.

Eleanor Roosevelt said once that "within all of us there are two sides. One reaches for the stars, the other descends to the level of beasts."

That is not only a statement of fact. It is a presentation of choice.

We can value the differences of culture and creed that divide us without ignoring the common humanity that binds us.

We can strive to ensure our own security, without depriving others of their dignity or their rights.

We can debate vigorously the policies we oppose, without wandering into the wilderness of violence and hate.

And we can think of death camps and terrorist bombs and fall into despair; or we can think of them and vow never to rest in our opposition to intolerance; and never to allow terrorists to crush the possibilities of peace or extinguish our hope.

This academy--in its commitment to diversity and knowledge--affirms the more hopeful side of human nature--the side that moved the family of Abraham to begin its fabled journey westward almost 4000 years ago, the side of human nature that Moses appealed to and Jesus spoke to, that Theodore Herzel counted on and Anne Frank never lost faith in; the side that President Sadat referred to when he told the Knesset that "there is no happiness based on the detriment of others"; and the side that Prime Minister Rabin was probing for when he said to the Palestinians "enough of blood and tears, enough."

As she prepares to begin her second half century, modern Israel stands as a monument to the unquenchable human conviction that, ultimately, hope will conquer fear and human decency will outlast human evil. That core conviction is the foundation of Israel's strength and the source of her unshatterable bond with the American people.

We know that courage is required to make peace--and to fight the enemies of peace.

But if ever there were a people of courage--it is you.

If ever a country deserved to live in peace, it is Israel.

And if ever a land deserved to be free at last from bloodshed and war, it is this land, sacred to all the children of Abraham, where the core identity of Moslems, Christians and Jews were each formed, a land that is home to the memories and host to the dreams of the world.

Know that in the quest to bring this land forever into the sunlight of security and peace, you will always have the American people by your side.

Thank you very much.

MODERATOR (Bob Asher, Academy co-founder): Thank you, Secretary Albright. As you can understand, the students were very enthusiastic in learning about your visit. In preparation for it we distributed copies of your August 6 speech, so that they would have a chance to see what you had said just a month ago, and they have prepared some questions. I will ask those students who want to ask questions to please follow the regular rules, and identify yourself and where you come from, and what you're studying and what grade you're in. Who wants to ask questions? Galit, how about you start? Go to the microphone right up there.

QUESTION: Good evening. My name is Galit Parvari (phonetic). I live in Omer, which is close to Beersheva and I'm in the tenth grade, studying sciences right now. Madame Secretary, this question has been on my mind for a long time, and I am grateful for the opportunity to ask it. In your excellent speech on August 6, you called on Chairman Arafat to make a hundred percent effort to combat terrorism, to stop violence, to confiscate weapons, to arrest terrorists, and to resume security cooperation. Teenagers like me are losing their lives in acts of terrorism. If Israel were to meet all the demands of the Palestinian Authority, how could we be sure that terrorism won't be used as a bargaining chip for further negotiations and for Chairman Arafat's benefit in such negotiations?

SECRETARY ALBRIGHT: Thank you for asking that question, and for having thought it through so well. Let me say that I think that one has to believe that the Palestinian people, like you, want to have peace and want to have a land, an area of their own, in which they feel that they can exercise their legitimate rights. One has to believe that, with an end to their quest, the tool of terrorism would not be used, and that an entity that had a security system which was foolproof and which had the ability to operate properly, would fight against terrorism itself, because -- as I said in my speech -- terrorism is the enemy of all those who would like to have a normal life. The truth is, I have to tell you, that terrorism is a weapon that is always open to everyone. We, in the United States also have problems with the thoughts of terrorism and combatting it, not only in our own country -- since we, as you know, had a bombing in Oklahoma that devastated many lives -- but in also trying to make sure that countries throughout the world do not see terrorism as a tool. It is a struggle that we will all be a part of. But it is my personal feeling that the chances that Chairman Arafat or any Palestinian will want to avail him or herself of terrorism is much lessened, if in fact the legitimate rights of the Palestinians are carried out, and for all of you to be able to live in this region together.

MODERATOR: Orly?

QUESTION: My name is Orly Lewis. I come from a town called Rehovot. I am in the eleventh grade, and my major subject is chemistry and (inaudible) arts. Madame Secretary, as you said, we learn here in a school, we live in a school which brings together people from different religions and different beliefs. We have great relationships and great connections with each other, and we want to show the world and the heads of nations that peace can work and without harm. What can we do to bring the lessons that we've learned and which we live by, to the rest of the world?

SECRETARY ALBRIGHT: I think you have the greatest message of all, which is that people, if left to their own devices in a setting which encourages learning and encourages diversity, have the chance to live together. They do not normally go to that level, as I was talking about Eleanor Roosevelt's quote, "are more likely to reach for the stars then to have the beast in them come out." But you have a hard message, there's no question. I have spent some time with some other young people, who are part of the Seeds of Peace program that I think is very impressive, and the best way, I think, is for you in your behavior to show that it is possible, and as you travel outside of this area, whenever you can travel with someone of a different background, to prove to the world also, that you can all live together. But the main issue is here and it is a struggle every single day, and I admire all of you for what you are doing, and it is a message that I will carry in my heart that the young people of Israel may have more wisdom than some of the older people.

(Applause)

MODERATOR: Yarden?

SECRETARY ALBRIGHT: Did you practice chemistry on your hair?

(Applause)

I had to ask that as the mother of three daughters who had that happen to them (Secretary laughs).

QUESTION: My name is Yarden Karmin. I live in Hadera, and I'm an eleventh grade physics student. Madame Secretary, you've come to the Middle East with a clear purpose of rebuilding the trust between Israel and the Palestinian Authority, and reviving the peace process. What immediate steps towards achievement of this goal should follow your visit, so that you would feel that it's been a success?

SECRETARY ALBRIGHT: The truth is that diplomats never try to define their success before they've had it, so I have to be a little careful. As I have said, American Secretaries of State have come to this region for two reasons: Sometimes when things are going well, and negotiations have been successful, and the American hand can help in terms of making the final closing deal, and other times they have come because the situation has deteriorated. I had hoped that on my first visit to Israel as Secretary of State -- I have been here a number of times in my other lives -- I had hoped that I could come to be there at a time of success. Unfortunately, I have come at a moment where there is a crisis in confidence, where the bonds that we hoped would have developed out of the Oslo process have not developed, and I am hoping that what I can do on this, my first visit, is to try to help rebuild some of those bonds. The reason that in my speech that you were all assigned to read -- I'm sorry about that -- (laughter), I had suggested that we marry the interim agreement to an accelerated final status talks, and the reason that we did that is that while I am, as is President Clinton, a firm believer and supporter of the Oslo process and the interim agreement and the steps that are required by that, I had a feeling that many of you that live here did not have enough of a sense that something concrete was really happening, and that it is hard, even as hopeful as you all are, to be able to always look towards those final status issues. So we hope that, by having a parallel track here and marrying these two processes, that the hope will be rekindled and that a crisis of confidence will be ended, and that you all will be able to proceed further. And so my hope on this trip is that I can help as the American, to rebuild some of the confidence that has deteriorated, and to see if we can get the peace process back on track.

YARDEN KARMIN: Thank you.

(Applause)

MODERATOR: Michal?

QUESTION: I'm Michal from Rehovot, I'm a 12th grade science student here at this school. My question is this: As an Israeli, I'm aware of the powers the U.S. has to influence the peace process. For this reason, I'm very interested in knowing what you feel the role of the U.S. should be in the peace process. For instance, do you think that the U.S. should not "knock heads" as President Weizman says?

SECRETARY ALBRIGHT: I'm sorry, I didn't catch the last part.

MODERATOR: Question on President Weizman. They read the papers.

SECRETARY ALBRIGHT: I see, O.K. Well, let me -- no wonder I didn't understand that -- let me say the following. The United States, we have said in a number of instances, President Clinton has talked about the United States as the indispensable nation. And I believe that we are indispensable for many reasons, primarily for the values for which we stand, and our ability to project those values. I can say that as a naturalized American. I wasn't born there. I came to the United States in 1948. But we also are indispensable at times, when nations are willing to take a risk for peace. And we have demonstrated that in a number of places, and support countries where the leaders themselves have made the hard decisions, and the United States can then do what it can to lessen the risks for peace.

I have said before in the United States, and I will say it now here in Israel. It is very important for the leaders to make the hard decisions, because it is my sense that the people of Israel want peace. And once those hard decisions have been made, and the United States has something to work with, we will be there. But it is the leaders themselves who have to make some of the hard choices so that frankly, we have something to work with. I am a realist, and not a magician. And I cannot pull a rabbit out of a hat, if there is not the making of it there.

(Applause)

QUESTION: Madame Secretary, I am Efrat Mordechai, I come from Reut, which is between Tel Aviv and Jerusalem. I'm a 12th grade student here at the Academy. In the present situation while we are in the middle of the peace process, I as an Israeli teenager, should not be afraid to go out. This isn't the kind of peace we were waiting for. Would you comment?

SECRETARY ALBRIGHT: Well, I think it is a great tragedy that you are afraid to go out, that you are not free to go out in your land. And I think the only way that you and your friends will be able to go out, is if there is a renewed sense of vigor about the peace process, because I don't think a country can make its teenagers feel safe when it senses itself under siege. It can only make its teenagers feel safe when there is a sense of a movement towards peace. This is a difficult region in which to live. But it can be a place where all of you can go and shop and buy presents for your friends, and feel that you can go out and talk to each other and have a good time. But from my estimation, it requires a deliberate and sustained desire for peace and a necessity to decide that terrorism is unacceptable and cannot be tolerated in any society.

(Applause)

QUESTION: Good evening, my name is Nimrod Tamir. I study in the 11th grade and have a biology major, and I live in Zichron Yaacov. Concerning the Palestinian Authority, in your view, what would happen to the Oslo Accords, and future talks, if for any reason Chairman Arafat were to be replaced? Can you count on political stability on the Palestinian side?

SECRETARY ALBRIGHT: Let me say, I think in all societies leaders are very important, and they clearly are the ones that have to make the decisions that affect all of us. I cannot judge the stability in terms of the choices of other leaders. But I can tell you this, that from the American vantage point, Chairman Arafat made a commitment in Oslo, as did Prime Minister Rabin, to work together, to have mutual recognition, and mutual respect. That is the basis of that agreement. Something that I believe is irreversible. Whereas before, there was a sense that nobody could talk or deal with each other. I believe that Chairman Arafat is Israel's necessary partner. And in order to have the peace, that will provide the possibilities for all of you to be able to live normal lives, it is important to deal with Chairman Arafat with respect, and at the same time make sure -- as we also want for him -- to carry out his responsibilities under the various agreements signed. So, I think, it is essential to treat leaders of people with respect in the jobs that they have, and see Chairman Arafat as Israel's necessary partner.

(Applause)

QUESTION: Good evening, my name is Shai Gorsky. I live in Moshav Horesh and I study in this school. I'm a senior, and my major subject is physics. My question was, if we examine the situation between Israel and Syria in the past years, shows in my opinion, some resemblance to the relationship between the United States and the Soviet Union in the 1950's and 60's Cold War. Both Israel and Syria are strong countries compared to the general region, and despite the tension between them, neither wants war. Furthermore, both of them try to idolize their political systems, support the arming of their countries, and have indirect military confrontation in Lebanon, which can be compared with Vietnam. Madame Secretary, what do you think of this comparison, and if you agree with this, what are the most important lessons we can take from?

SECRETARY ALBRIGHT: I wish I'd been the teacher that had read that paper. (Laughter). Very good. And now I'm the student answering the essay question. Compare and contrast. Let me say that I think it's an interesting analogy in terms of two powers that face each other with different agendas. But I would have to follow out your thread with more care. But let me say that I do think that it is as the Soviet Union and the United States have gone through different iterations, the Soviet Union having changed radically, that it is important to seek ways to try to have agreements, arrangements, even with countries that have different systems of government; that have different goals, so long as one can work out agreements that are in the mutual interest. I think that is always the basis of agreements between countries that are very different. So for instance, when the Soviet Union and the United States were able to sign arms control agreements, it was not because they trusted or liked each other, but because they were in their mutual interests to work out some kind of a deal which suited both. And if ever there is to be an agreement between Israel and Syria, it will have to be done on the basis where both sides feel that they have not been losers.

And I think that you have done probably a lot of interesting work on this. I applaud you from looking at the comparison.

(Applause)

MODERATOR: As you know, Secretary Albright is very generous in the time that she's given us. She's signaling that she will take one more question.

QUESTION: Good evening, my name is Avila Munduch. I'm in 12th grade science, in the Israel Arts and Science Academy. I came from (inaudible) town which is an Arab town, it's just near Kfar Saba. Madame Secretary, as an Israeli Arab, my fear is that the anger of some Israelis as the result of terrorist action would be directed at the Israeli Arabs. I would like to know from you, as the Secretary of State of a country which has had some periods of recent problems, what do you suggest to improve this situation?

SECRETARY ALBRIGHT: Let me say that I think that while the United States is the freest and best country in the world, I believe we have not dealt with all our problems. And as you know, President Clinton himself has now started to look in a more systematic way at what can be done to improve race relations. But I think there are lessons that we can see throughout the world, that it is possible for peoples or countries that have had a history of not getting along, to get along and live together. Who would have thought that the French and Germans could be friends. Or I, as I told you, was born in Czechoslovakia. If anybody had told me that the Czechs and Germans could make arrangements about borders and transfer of property, I, coming out of the Second World War would not have believed this. But one does see that reconciliation is possible. And it is possible in many societies that have gone through agonizing disputes, mainly because of people like you, and this school. Because you know about how it is possible to live together.

I hope very much that I will get mail from all of you as we get to know each other, because I now have gotten letters from some of the young people that I've met in Seeds for Peace. And there was a young woman, Noa, who was at the State Department a month ago, and they were there having just completed their summer camp, and those students were all together during the July 30th bombing, and they were at a camp, and they, after the bombing, all cried and reached out to each other. I got a letter from Noa after the September 4th bombing, and she said to me that the great support for her, was that she, having already come back to Israel, had reached out to her friends from the summer camp. And I really do think that you are the future in every single way. And you are the ones that have to teach others that once the situation has been resolved -- and in order to have my job, I have to be an optimist -- so it will be resolved, that you will be the teachers. The students will be the teachers.

And I thank you all very much for the fact that you will take on that duty, and we will all be watching you. And I thank you very much for the opportunity to speak to you this evening.