'This Week' Transcript: Madeleine Albright, Sen. Lindsey Graham, Sen. Kent Conrad and David Cote

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So I've got concerns about this new government. But we need to stay involved -- effectively involved. And I'm in the camp of the Republican Party that wants to work with President Obama to end it well in Iraq, to get it right in Afghanistan, contain Iran through effective sanctions.

And to my friends in the Republican Party who want to withdraw, you do so at your own peril, but the administration has to do their part. They're not being as effective as I think they can be in Iraq and Afghanistan. And when it comes to Iran, our sanctions efforts are not working as well as I would like, so I'd ask them to step up their game, as well.

AMANPOUR: And, Secretary Albright, do you think Iraq is -- I mean, you just heard Senator Graham saying he's worried that it's not inclusive and it's not reliable, this -- this new government.

ALBRIGHT: Well, it's a work in progress. I mean, there's no question about that. And every day brings a somewhat different story.

I -- I do think that the American government is very involved. Vice President Biden has been talking to them, as have our ambassadors, in a variety of places, so I do think that it is a difficult process. We do need Iraq...

AMANPOUR: The Sunnis just walked out.

ALBRIGHT: Well, no, they came back.

AMANPOUR: Right, but...

ALBRIGHT: But I think that we are going to be watching this, but they understand that we will be there, and I agree that we need to make sure that the place works.

I think that the administration is committed to that, and it is committed, also, to making Afghanistan work. I think the issue is -- as Senator Graham said, winning, I don't know what that means at the moment, but I do think that we need to have stability in both those countries, and I see the administration as looking outward. We are the strongest country in the world, and we do need partners, and that is what diplomacy's about.

AMANPOUR: Discussion to be continued. Secretary Albright, thank you very much for joining us.

And, Senator Graham, thank you very much, indeed, for joining us this morning.

AMANPOUR: And as we've heard, America's growing debt is having an impact on the international stage. The draft recommendations released by the co-chairs of the president's deficit commission add up to nearly $4 trillion in deficit reduction through 2020.

But the proposed spending cuts -- Social Security and Medicare cuts -- and tax increases are getting a chilly reception from Democrats and Republicans, a sure sign of the difficult task ahead, while deep spending cuts in Europe are bringing people to the streets in protest.

Two members of the commission appointed by President Obama are with us this morning: David Cote, chairman and CEO of Honeywell and Democratic Senator Kent Conrad.

Thank you both for coming. Welcome to both of you. You were just on President Obama's trip abroad. How does this deficit and the big troubles and problems ahead with this play in trying to gin up business abroad, jobs?

COTE: Well, I think everything ends up being interconnected. You certainly, in my view, want increased trade. Trade, I'm -- you might expect I believe is a good thing, and it benefits both sides, and you want to have countries arguing about commercial issues, not geographic issues. I think it makes a lot of sense.

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