Transcript: Secretary of State Hillary Clinton on 'This Week'

CLINTON: Well, I'm having to do both. I mean, I spend a lot of my time on the problems that you would imagine: Afghanistan and Pakistan, the Middle East, Iran. But I'm also working to create a strategic set of priorities that will guide our efforts.

So, for example, there are specific regional and country-based endeavors that we are teeing up. We are going to work really hard on our relationships with, for example, Indonesia, and Turkey, and India.

We have a strategic and economic dialogue that will start the last week in July with China that Secretary Geithner and I are going to co-lead.

STEPHANOPOULOS: So there's plenty of work to go around?

CLINTON: There's plenty of work to go around, but then there are the transnational problems. I mean, the president asked me to lead the effort on food security. The president also wants us to focus on Haiti. And, ironically, the United Nations...

(CROSSTALK)

STEPHANOPOULOS: ... President Clinton...

CLINTON: ... secretary general asked Bill to be the special envoy. So we're really going to have a united effort by our government and by the international community. Those are just some of the, you know, very specific and more general challenges that we are taking on and managing.

STEPHANOPOULOS: You're also developing a reputation for blunt talk as secretary. You talked about Pakistan abdicating its responsibilities, about the idea that (inaudible) negotiation with North Korea is implausible.

And especially on this issue of settlements with -- with Israel, you were very strong last week; so was the president.

(BEGIN VIDEO CLIP)

CLINTON: He wants to see a stop to settlements, not some settlements, not outposts, not natural growth exceptions.

(END VIDEO CLIP)

STEPHANOPOULOS: I don't know if you've seen the headlines in Israel, headlines talking about the American threat. Publicly, the prime minister is saying that this is just unreasonable, these demands from the United States, and privately he was reported to have said -- and this is a quote -- "What the hell do they want from me?"

CLINTON: Well, George, I think it's very clear, as you heard in the speech from the president here in Cairo, that he wants to focus from the very beginning of his term in office on doing everything he can to try to bring the Israelis and the Palestinians together. You know, we were very close in 2000. And it's heartbreaking to see where we are today. And we can't just stand by and expect time to work its magic.

So that means, as the president said in his speech...

(BEGIN VIDEO CLIP)

OBAMA: This bond is unbreakable.

CLINTON: ... and as he has said on several other occasions prior to it, that we have to do our very best to reassure Israel, to demonstrate our commitment to Israel's security, that the bonds we have are unshakeable and durable.

But we do have a view about Israel's security. We see historical, demographic, political, technological trends that are very troubling as to Israel's future. At the same time, there is a legitimate aspiration of the Palestinian people that needs to be addressed.

STEPHANOPOULOS: So is there any room for compromise on the settlement issue?

CLINTON: Well, I don't think we want to pre-judge the effort. I think that, if you look back, certainly from my perspective, every Israeli leader that I have personally known and others who I have looked at through an historical lens has come to the same conclusion.

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