Interview on CBS Face the Nation with Bob Schieffer

SECRETARY RICE: Well, we're going to talk about the future of Afghanistan, and there's a lot to talk about. There is a lot to talk about in terms of the training of Afghan security forces in order to assist in the war on terror and against the Taliban. There is reconstruction to talk about; the United States has put about $14 billion in reconstruction aid.

And, of course, yes, we will talk about the situation on the Pakistan-Afghanistan border. I think there is no doubt that things have changed in terms of even Pakistani perception of what needs to be done in the frontier areas; and that's why the Pakistani army has been much more active there. And we continue to believe that it's important to have reconstruction assistance in that region to try to deal with hearts and minds of the people who, right now, may be too close to or may be turning a blind eye even to terrorism; the villagers themselves. But yes, of course we'll talk about the situation between Pakistan and Afghanistan.

QUESTION: Well, Senator Obama said, the other day, one of the things that needs to be done and that what he would do were he the President -- he said that if he discovered there were high-value targets in that area, in what has become this safe haven, and Pakistan wasn't willing to do anything about it, he would invade Pakistan and do something about it. What's your reaction to that?

SECRETARY RICE: Well, let me just talk about what we are going to do and what we are doing --

QUESTION: Well, let me just ask you to answer the question, with all due respect.

SECRETARY RICE: No, I -- look, it's not for me to comment on what Senator Obama has said. It is for me to talk about American policy. And American policy --

QUESTION: Well, let me ask you, then: Would the Administration --

SECRETARY RICE: Bob, Bob, you asked --

QUESTION: -- would the Administration, if it found high-value targets there, invade Pakistan?

SECRETARY RICE: Bob, you asked what the United States would do and what the United States -- has been very clear about what it would do. We have a cooperative arrangement with Pakistan. Pakistan is an ally in the war on terror. Pakistan is a state that has lost a great deal and has a great deal at risk in the war on terror, including Musharraf himself, who has been targeted for assassination several times by al-Qaida. I am quite certain that if there are high-value targets, that we are all going to do everything that we can to capture or kill them.

The idea that somehow we have a greater interest in the capture and kill of high-value targets who are threatening Pakistan itself, as was shown by the extremists -- who brought about all that trouble at the Red Mosque, who are bringing about trouble in the frontier areas -- I think is just not right. Yes, Musharraf has constraints, but we believe that the future with Pakistan is to be very active in that region. Of course we are going to go after targets and after extremists. But so are the Pakistanis because they have a lot at risk too.

QUESTION: But -- let me just go back here. You would not leave it to Pakistan to take care of this?

SECRETARY RICE: I think that we and Pakistan have a very strong interest together in capturing or killing high-value targets. Let me remind again, Pakistan itself is at risk from extremists. Musharraf himself is at risk from extremists. That gives us a joint interest in making sure that high-value targets are captured or killed.

QUESTION: Madame Secretary, well, let's shift then to Iraq. You are just back from the region out there, trying to find a way to encourage Iraq's neighbors to take more of a stance and lend more support to the United States' efforts to somehow find some in to what is going on there. One of the things you did is propose an enormous arms sale to the Saudi -- to the Saudis.

Back home, people in the Congress -- they created something of an uproar. Some hundred or so members of Congress have now signed a letter asking you not to do this. They're warning it could set off some sort of an arms race in the Middle East. Why did you do this, and why is this a good thing?

SECRETARY RICE: Well, this effort to have security cooperation and to help provide for the defense of our allies goes back decades. The relationship between Saudi Arabia and the Gulf states -- and by the way, it's not just Saudi Arabia, it's several of the Gulf states -- does go back decades, and it's because America has important interests in the region that need to be defended. And it doesn't make sense that our friends and allies would be undefended, or that they would have to rely on somebody else for the supply of goods for their defense at a time of growing challenge in this region.

I don't think anybody doubts that Iran constitutes a major challenge, security challenge, to our friends, our allies and therefore to our interests in the Gulf region. And we will be briefing the Congress. We will work with the Congress. We believe we've constructed these security cooperation packages with the Gulf states; with Israel, by the way, where we are now going to start a new ten-year program; with Egypt, where we will start a new ten-year program.

But the United States has had security interests in this region for decades. And we need to be able to be a reliable security partner for our friends.

QUESTION: Do you believe that Saudi Arabia is doing all it can to block militants from crossing the border into Iraq, because, as we hear it, most of the foreign fighters who are coming into Iraq are coming across the Saudi border.

SECRETARY RICE: Well, we believe that the most unguarded situation is really with Syria, where people are not just crawling across the border, they're coming in through the Damascus airport. That could be cut off if the Syrians wish to do it. One of the reasons they're coming in through the Damascus airport is that the Saudis are working on the border to try and cut off the flow of foreign fighters. It's a difficult border to defend.

One of the issues that the Saudis raised with me is: better security cooperation between the United States -- or the multinational forces -- Iraq and Saudi Arabia to try and really deal with that border. The Saudis also noted, while I was there, that they're going to put an embassy in Baghdad. We've been asking for that from Arab states for some time; I think that's a step forward. And the Saudis have been active in engaging Sunni tribes -- many of whom have ties of kinship across the borders between Iraq and its neighbors -- to really be active in the political life of the country.

And so yes, there is more that all of Iraq's neighbors can do. And that's why we had the Sharm neighbors conference; is to emphasize that. But we're working with those neighbors, and all of them understand that a stable Iraq is going to be in their interests and an unstable one is going to threaten their interests.

QUESTION: Do you think, Madame Secretary, it was a good idea for the Iraqi parliament to go off on vacation while we're all awaiting in this country the report from General Petraeus on whether the security situation has improved enough, because those troops were on the ground to give the Iraqi parliament time to reach some agreements on sharing power. And as you well know, they haven't gotten very far on that. Yes, the security situation has improved a little, but the political situation does not seem to be improving at all. Now, the Sunnis have left the government. The parliament has gone home. Did you urge the Iraqis not to go on vacation?

SECRETARY RICE: Well, we certainly urged the parliament to be ready to pass legislation when the time comes. And what is going on now in Iraq is that the political leadership of these very powerful parties, which really are the key to getting legislation that can be passed, are working. They're not on vacation. The Prime Minister, the presidency council -- which represents these very powerful party interests -- are trying to work to see if they can forge a compromise on some of this legislation that then can pass the parliament. And I do hope and do believe that when that legislation is ready, the parliament will be ready to pass it.

But I do want to note, Bob, that the Iraqi leadership is working on this, but of course other things are going on in Iraq. It's not at all inconsequential that the budget was passed and that resources are now actually going out to the provinces from the national government. It's not inconsequential that these Sunni sheikhs and local leaders are taking back their streets from al-Qaida and doing so in cooperation with us.

And so a lot is going on in Iraq. We've been very clear that there should be greater urgency on the part of the government in getting this legislation passed. But it requires that these powerful party leaders work together to make sure that there is legislation that can indeed be passed --

QUESTION: All right, well --

SECRETARY RICE: -- when it gets to the council of representatives.

QUESTION: I think we'd better leave it there. Thank you for joining us, Madame Secretary.

SECRETARY RICE: Thank you.