Barack Obama names 'my dear friend' Hillary Clinton as Secretary of State



Barack Obama officially buried the hatchet with Hillary Clinton last night when he unveiled her as his Secretary of State.

Introducing Mrs Clinton as 'my dear friend', the 47-year-old president-elect said: 'She possesses an extraordinary intelligence and toughness, and a remarkable work ethic.

'She is an American of tremendous stature who will have my complete confidence.'

Barack Obama has named former presidential rival Hillary Clinton as his Secretary of State

Mrs Clinton, 61, said she would give 'my all' as America's top diplomat. 'I am proud to join you in what will be a difficult and exciting adventure in this new century,' she added.

She had scarcely finished speaking when her husband, former President Bill Clinton, issued a statement heralding his wife as 'the right person for the job of helping restore America's image abroad, end the war in Iraq, advance peace and increase our security.'

And Mr Obama was forced on the defensive over claims he could face a backlash in his Cabinet by picking the former First Lady for the post.

'I didn't ask for assurances that they would agree with me at all times,' he said of his appointments. 'I am going to be welcoming a vigorous debate in the White House.'

But his decision to appoint Mrs Clinton remains remarkable considering their bitter rivalry on the primary campaign trail less than six months ago. Then, they clashed on foreign policy and defence, with Mrs Clinton questioning her opponent's experience.

He described her as a friend and colleague, as well as a source of counsel and a tough opponent. He added that she is someone of tremendous stature who can advance America's interest around the world.

He also announced that Robert Gates will stay on in his capacity as Defence Secretary as he revealed his new national security team.

Mr Obama said he aimed to implement a 'new dawn of American leadership' that integrates military, diplomacy, law enforcement and the economy.

'The team that we have assembled here today is uniquely suited to do just that,' he said in a statement.

Robert Gates, pictured here in India in February, is to stay on as Defence Secretary

The appointment of Mr Gates to such an important position fulfills Mr Obama's promise of including Republicans in his administration.



The 65-year-old defence secretary has been lauded by members of both parties since taking over the Pentagon from Donald Rumsfeld in late 2006.



Mr Obama also introduced retired Marine General James Jones - a former top commander of Nato - as White House national security adviser, former Justice Department official Eric Holder as his attorney general and Arizona Governor Janet Napolitano as Secretary of Homeland Security.



Mrs Clinton's first priority will be to get up to speed on the crisis in India where terrorists killed more than 170 people with a co-ordinated assault on the city of Mumbai.



Mrs Clinton will have frequent briefings from Condoleezza Rice, the woman she will replace as the top foreign diplomat in the U.S. government.



Ms Rice has been dispatched to India by President Bush in what is likely to be his last foreign policy decision before he steps down from power on January 20.



Mrs Clinton and Mr Gates, who have been at odds with Mr Obama in the past over foreign policy and defence issues, will have the task of implementing his vision for 'renewing' America's leadership in world affairs, rebuilding its image abroad, and overseeing two wars in Iraq and Afghanistan.



The appointments are given added emphasis by last week's rampage in India's financial capital of Mumbai when gunmen killed nearly 200 people, including at least five U.S. citizens.



The attack has ratcheted up tensions with nuclear-armed rival Pakistan, which New Delhi said was linked to the attacks.



Ms Rice has been in contact with the foreign ministers of India and Pakistan in recent days to ease tensions between the states, and this is expected to be a dominant theme in her meetings with Indian officials.



Analysts say the United States could get ensnared in tension between New Delhi and Islamabad, and it may prove to be a setback in the war on Islamic radicals on the Pakistan's western border with Afghanistan.

There is also talk in Washington that Mrs Clinton's husband, former president Bill , could be made a special envoy to try and mediate between India and Pakistan over the disputed Kashmir region.



Bill Clinton will disclose the names of more than 200,000 donors to his foundation as part of a deal with Mr Obama that clears the way for his wife to become Secretary of State.

Making concessions: Bill Clinton, addressing an audience at a National Bank of Kuwait seminar recently, has agreed to disclose his donor list, speeches and business dealing so his wife can be Secretary of State

The former president, who is allowed to keep contributor list secret under U.S. federal law, has decided to publish it to avoid any conflict of interest with his wife's duties as Secretary of State.

The conditions of the agreement for Bill Clinton to reveal his contributors' list has been confirmed by Mr Obama's transition team, according to the New York Times.

The contributors' list is one of nine conditions that Clinton agreed to in his discussions with Mr Obama's representatives, the newspaper reported.

Mr Clinton turned over the names of all 208,000 individuals and organisations that have given money since 1997, while the agreement holds that his foundation will release them publicly by year's end.

Future donors will also be disclosed as long as Hillary Clinton is in the cabinet.

Mr Clinton has also agreed to submit his speeches and business dealings in advance to State Department ethics officials for their review, as well as to the White House counsel's office if need be.

He has previously pledged to do whatever the Obama team asked in order to make it possible for his wife to serve without questions.

The team said it expected Mr Clinton's concessions would defuse any potential controversy, the report said.

Since leaving the White House eight years ago, Mr Clinton has built a new life as a businessman and international philanthropist fighting causes such as AIDS, malaria and malnutrition.

He formed the William J. Clinton Foundation a decade ago, and has since raised more than $500 million to build a presidential library and to finance charitable programs.

Among high-profile identities rumoured to have donated to Mr Clinton's foundation are the Saudi royal family, the king of Morocco, a foundation linked to the United Arab Emirates, the governments of Kuwait and Qatar and a tycoon who is the son-in-law of Ukraine’s former authoritarian president.

Mr Clinton can earn up to $425,000 for a one hour public speech, which he gives dozens of every year around the world.