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

CLINTON: Well, you know, we've been there a little over four months. And clearly a lot of what we are doing is teeing up our framework for decision-making.

We are aggressively pursuing diplomacy, not as an end in itself, but as a means to try to resolve some of these outstanding and very difficult problems. We are trying to make clear that the United States is of course going to pursue our interests in values, but, frankly, we believe there are ways that we can make them consonant with the issues and values that are important to others, as well.

STEPHANOPOULOS: You know, when I saw President Ahmadinejad last month, he said the U.S. wasn't really walking the walk here, and he cited the idea that President Obama never responded to his initial letter of congratulations. Why not?

CLINTON: Well, I think that President Obama has made very clear that he is going to put forth an open hand, but not as part of an electoral ploy or propaganda.

STEPHANOPOULOS: You have to let the elections play out?

CLINTON: I think, just like in every country, there is a process that takes place during an election. That will be over soon, and then we're going to hope to get a positive process going.

STEPHANOPOULOS: With North Korea, it seems like nothing has worked. Engagement doesn't work; isolation doesn't work. They keep on pursuing their nuclear ambitions. And -- and the problem with North Korea is that they've tried to sell every single weapon they've ever made.

CLINTON: Right.

STEPHANOPOULOS: So what does that mean? How do we stop them now? And what happens if they try to sell nuclear materials?

CLINTON: One of the positive developments, George, in the face of what has been very provocative and belligerent behavior by the North Koreans, is that it has actually brought the members of the six-party process -- Japan, South Korea, China, Russia, the United States -- much closer together in how we view...

STEPHANOPOULOS: But that process isn't going anywhere, is it?

CLINTON: Well, but I think what is going somewhere is additional sanctions in the United Nations, arms embargo, other measures taken against North Korea with the full support of China and Russia.

STEPHANOPOULOS: Including enforcing past resolutions, which give the U.N. the ability to board North Korean ships?

CLINTON: Well, we are -- we are working very hard to create a mechanism where we can interdict North Korean shipments. Obviously, some countries -- not just the ones I named -- but others have some legitimate concerns about setting precedent and the like.

But we are working very hard. I've personally talked with all the foreign ministers, some of them, you know, many more times than, you know, just a couple. We've been in very close communication. Obviously, we're working closely with our team in New York.

We think we're going to come out of this with a very strong resolution with teeth that will have consequences for the North Korean regime.

STEPHANOPOULOS: And what are the consequences if they try to ship nuclear material elsewhere?

CLINTON: We will do everything we can to both interdict it and prevent it and shut off their flow of money.

If we do not take significant and effective action against the North Koreans now, we'll spark an arms race in Northeast Asia. I don't think anybody wants to see that.

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