WASHINGTON - Sen. Hillary Rodham Clinton would make about $4,700 less as secretary of state than her predecessor, Condoleezza Rice. Congress late Wednesday lowered the salary for the nation's top diplomat to keep Clinton's nomination from running afoul of the Constitution.

An obscure section on compensation for public officials, the Emoluments Clause, says that no member of Congress can be appointed to a government post if that job's pay was increased during the lawmaker's current term.

In other words, Clinton, D-N.Y., might have been ineligible to serve in the post because she was serving in Congress when Rice's salary was raised to its current level of $191,300. So late Wednesday, the House and Senate quietly rolled the secretary of state's salary back to $186,600, its level in January 2007 when Clinton began her second Senate term.

Even at the lower rate, Clinton would still get a raise over her Senate salary.

Senators now make $169,300 and are expected to receive a raise to $174,000 next year.

President-elect Barack Obama nominated Clinton to the post earlier this month. She is expected to keep her Senate seat pending confirmation by the Senate next year. Republicans and Democrats have said they expect no serious objections to her confirmation.

By LAURIE KELLMAN, Associated Press, December 11, 2008

WASHINGTON (AP) - Secretary of State Condoleezza Rice and designated successor Hillary Rodham Clinton have met and broken bread for the first time since the former first lady was tapped to become America's next top diplomat.

State Department spokesman Sean McCormack says Rice and Clinton enjoyed a private two-hour catered meal of sea bass, wild rice, mushroom soup and fruit at Rice's apartment in Washington's exclusive Watergate complex on Monday night. Aside from the food, he says they chewed over foreign policy issues and challenges that will face the new Barack Obama administration.

Rice and Clinton - who will be country's third female secretary of state after she is confirmed by the Senate - first met in the 1990s when Mrs. Clinton brought her daughter, Chelsea, for a visit to Stanford University where Rice was the provost. The pair have had a cordial relationship since and Rice has said she believes Clinton will make a great secretary of state.

By MATTHEW LEE, The Associated Press, December 9, 2008

Former president Bill Clinton, who agreed to make his charitable activities more transparent in an accord with President-elect Barack Obama that paved the way for his wife to become Obama's secretary of state, today disclosed the sponsors of last week's Clinton Global Initiative meeting in Hong Kong.

About a dozen corporations, foundations and individuals underwrote the Dec. 2-3 philanthropic gathering, according to a list of sponsors released by Clinton's office. Among them is Citi, one of the nation's largest banks, which last month was granted a multibillion-dollar bailout by the federal government.

Victor Pinchuk, who runs a leading Ukranian steel company and is one of the wealthiest businessmen in Eastern Europe, was listed as a convening partner. Datuk Vinod Sekhar, a Malaysian businessman and philanthropist, was named the major underwriter of the initiative's Hong Kong meeting. Sekhar is chairman of the Sekhar Foundation in Kuala Lumpur and is president of the Petra Group, a rubber technology company.

Other sponsors include CLSA, a large Hong Kong-based investment bank; Laureate, an education firm; the Robertson Foundation, established by Tiger Management founder Julian H. Robertson, Jr.; the Li Ka Shing Foundation, established by Hong Kong entrepreneur Li Ka Shing; Hewlett Packard, a U.S. technology firm; Ogilvy, an international public relations firm; Suzlon, an Indian wind power company; and Thompson Reuters, a global information company. CNN and The Economist were listed as the meeting's media partners.

The non-profit Clinton Global Initiative hosts lavish meetings in New York and around the world that bring together heads of state, corporate chiefs, philanthropists and celebrities to facilitate charitable commitments in such areas as global health, climate change and international development.

"Our sponsors are vital to the mission of the Clinton Global Initiative," Clinton said in a statement. "CGI was founded on the belief that great change emerges from the collaboration of dedicated partners."

In a deal reached with Obama that allowed Sen. Hillary Rodham Clinton (D-N.Y.) to become secretary of state, Bill Clinton agreed to several concessions restricting his international activities. If she becomes secretary of state, he agreed to make the Clinton Global Initiative a separate entity from his foundation and said he would no longer accept contributions from foreign governments or hold meetings outside the United States.

Clinton also said he would disclose all past and future donors to his foundation, including those whose contributions were made anonymously. Clinton's office plans to release publicly the list of about 200,000 donors by the end of December.

By Philip Rucker, The Washington Post, December 9, 2008

WASHINGTON (AP) - Two major figures in President-elect Barack Obama's foreign policy team both had briefings at the State Department on Monday amid speculation they are jockeying for position in the new administration.

Secretary of State pick Hillary Rodham Clinton and potential U.N. envoy Susan Rice, whose post Obama will elevate to a cabinet position, separately visited the agency's headquarters in Washington's Foggy Bottom neighborhood, according to officials familiar with the transition.

Those officials said Rice wants to install her own transition team inside the State Department, but that was denied by the Obama team and aides to Clinton.

"Sen. Clinton has great respect for the ambassador-designate and looks forward to working with her," said Kiki McLean, a spokeswoman for the senator.

Obama transition spokeswoman Brooke Anderson said: "Decisions about confirmation and agency review teams were made by the Obama-Biden transition. Given that the U.S. mission to the U.N. is supported by the State Department, it makes perfect sense that our nominee would have an office to use for preparations and meetings there as part of the transition process."

In announcing Rice's and Clinton's nominations last week, Obama's said he wants Rice to play a more significant role in foreign policy than some previous U.N. envoys, most of whom have not been members of the president's cabinet.

"As in previous administrations, the U.N. ambassador will serve as a member of my cabinet and integral member of my team," Obama said.

There is already a small Obama agency review team at the U.N., and the officials said incoming U.N. ambassadors rarely have transition staff at the State Department because the job is based in New York.

State Department officials declined to comment on issues related to the transition.

It was not clear if Clinton and Rice - who had strained relations during the Democratic primaries because of Rice's steadfast backing of Obama - saw each other at the State Department on Monday, as Clinton left the building shortly after Rice arrived.

During the presidential campaign, some Clinton aides saw Rice's early decision to back Obama as a betrayal because of her previous role as a senior State Department official during President Bill Clinton's administration.

Technically, the job of U.N. envoy falls under the authority of the secretary of state, although some previous U.N. ambassadors have held Cabinet rank. The last U.N. ambassador to be part of the president's Cabinet was Richard Holbrooke, who had a famously icy relationship with then-Secretary of State Madeleine Albright during the Clinton administration.

Albright, who was President Clinton's first ambassador to the United Nations, was a mentor to Rice. But the two had a falling out when Albright, America's first female secretary of state, lined up behind Hillary Clinton for the Democratic presidential nomination and Rice backed Obama.

Hillary Clinton, meanwhile, had dinner plans Monday evening with the nation's current and second female secretary of state, Condoleezza Rice, at Rice's apartment in the exclusive Watergate complex. The two Rices are not related and Condoleezza Rice said Sunday that she thought Clinton would do a great job.

Also Monday, Clinton had plans to meet privately with Sen. John Kerry, D-Mass., the incoming chairman of the Senate Foreign Relations Committee, according to a Democratic official. Kerry, once a contender for the secretary of state job, will oversee Clinton's confirmation. Kerry has pledged to hold "swift and fair" confirmation hearings.

By MATTHEW LEE, The Associated Press, December 8 2008

Preparing for her new role as secretary of state, Hillary Rodham Clinton is moving to surround herself with a cast of die-hard loyalists and veterans of her husband's administration to help her cope with world crises and backstage Washington power plays.

For her team of foreign policy experts, the nation's third female secretary of state is expected to draw heavily from the staff of the first, Madeleine Albright, who was an early supporter of Clinton's unsuccessful bid for the Democratic presidential nomination.

And to deal with internal Obama administration affairs, State Department bureaucratic politics and media pressures, the former first lady appears set to tap current Senate aides and former White House "Hillaryland" stalwarts, whose reputation for insularity and staunch protectiveness has already set off anxiety among career foreign service officers.

State Department officials say they have been told to expect visits as early as next week from Clinton advisers who are working with President-elect Barack Obama's incoming transition team. Members of the new administration's team have been at State since mid-November, getting briefings and visiting officials there. Neither the transition team nor Clinton's office would comment.

Those officials and people familiar with the transition say most, if not all of Clinton's growing team of advisers will be tapped for senior State Department positions.

James Steinberg, President Bill Clinton's former deputy national security adviser, who was once thought a prospect to become Obama's national security adviser, is now "a lock" to become deputy secretary of state under Clinton, according to people close to the transition who spoke on condition of anonymity because no announcements have yet been made.

On the policy side, there is strong speculation that Clinton's Senate foreign policy adviser, Andrew Shapiro, will play a leading role as will Lee Feinstein, who was her national security adviser during the campaign. Feinstein is a member of the State Department transition team and served as deputy policy planning director under Albright.

For Clinton's personal staff, names already floated include longtime confidante and 2008 Clinton presidential campaign manager Maggie Williams, attorney Cheryl Mills, personal assistant Huma Abedin, current senior adviser and spokesman Philippe Reines and Clinton's chief of staff when she was first lady, Melanne Verveer.

All are known to be fiercely loyal. The prospect of their imminent arrival in Foggy Bottom has been a hot topic of nervous corridor conversation among many in the professional diplomatic corps who fear they will be frozen out of positions of influence.

Doug Hattaway, a former spokesman for Al Gore's 2000 presidential bid who also worked for Clinton during the primaries, has been mentioned as a favorite to become the next State Department spokesman.

Albright's high-profile former spokesman, James Rubin, along with top Albright assistant Suzy George, have already been seen at the U.S. Mission to the United Nations. They are working with a group that will smooth the way for the next U.S. ambassador to the U.N., Albright protege Susan Rice, whose defection to the Obama camp during the 2008 campaign caused a stir among Clinton loyalists. Rubin, based in New York, is advising the transition team.

A look at the Obama camp's agency review team for the State Department and its national security policy working group provides hints as to other potential appointments.

Among those who served in the Albright State Department are former counselor Wendy Sherman, counterterrorism coordinator Michael Sheehan, law enforcement chief Rand Beers, arms control expert Robert Einhorn, former ambassador to Indonesia Robert Gelbard and Mideast hands Daniel Kurtzer, Dennis Ross and Toni Verstandig. All are potential candidates for top slots.

One notable name on the list is Michael Guest, one of only two openly gay ambassadors ever to represent the United States overseas. Guest resigned from the foreign service in mid-career last December to protest the State Department's treatment of same-sex partners of diplomats.

The Associated Press, December 8 2008

WASHINGTON - Secretary of State Condoleezza Rice will be hosting her would-be successor, Hillary Rodham Clinton, for dinner at Ms. Rice's Watergate apartment this evening, according to Democratic transition aides.

Mrs. Clinton is visiting the State Department today for the first time since being nominated Secretary of State, the officials said. While there, she is meeting with high-ranking career State Department employees, and with members of the transition team that is conducting the review of the State Department.

Ms. Rice, who just returned to Washington from a trip to India and Pakistan, has told reporters that she thinks Mrs. Clinton will do a great job as her successor.

The dinner meeting between the two, first reported by MSNBC, is interesting because just three years ago Washington was abuzz with rumors that they could end up running against each other for President. "Condi vs. Hillary" spoof videos abounded on the Internet.

Ms. Rice never seriously considered tossing her hat into the ring for the Republican nomination, her aides said, and eventually the speculation died down. The two women have seen each other from time to time at various functions; the last time they met was three weeks ago in New York, at a Glamour Magazine awards dinner for notable women, when they chatted backstage.
Mrs. Clinton, during the campaign, was sharply critical of Bush Administration foreign policy, including the conduct of the Iraq war.




By Helene Cooper, The New York Times, December 8, 2008

WASHINGTON (AP) - The first sign of cracks in President-elect Barack Obama's foreign policy team of rivals emerged on Monday as his choices for secretary of state and U.S. ambassador to the United Nations visited the State Department.

As Secretary of State-pick Hillary Rodham Clinton and U.N. envoy-choice Susan Rice separately visited the diplomatic agency's headquarters in Washington's Foggy Bottom neighborhood, persons familiar with the transition said that Rice wants to install her own transition team inside the department.

Such a move by an incoming U.N. ambassador is rare, if not unprecedented, because the job is based at the United Nations in New York, where Rice already has a small transition staff, the sources familiar with the incoming administration.

The push by Rice, an early Obama supporter whose position the President-elect wants to elevate to a cabinet post, is also a signal that she intends to use her influence with the new president to play a more significant role than previous U.N. envoys, they said. The transition sources spoke on condition of anonymity to discuss internal deliberations.

Officials with Clinton's transition team declined to comment on the matter, and aides to Rice could not immediately be reached. State Department officials declined to comment on issues related to the transition.

It was not clear if Clinton and Rice - who had strained relations during the Democratic primaries because of Rice's steadfast backing of Obama - saw each other at the State Department as Clinton left the building shortly after Rice arrived.

During the presidential campaign, some Clinton aides saw Rice's early decision to back Obama as a betrayal because of her previous role as a high State Department official during President Bill Clinton's administration. Rice's desire to place her own team in Washington could fuel speculation that those tensions will carry into the new administration.

The officials could not say if Clinton's team had formally objected to Rice's plan, or even if Rice would be able to install a separate transition team inside the State Department. But they noted that dueling transition teams could complicate the handover by blurring lines of authority.

Technically, the job of U.N. envoy falls under the authority of the secretary of state, although some previous U.N. ambassadors have held cabinet rank. The last U.N. ambassador to be part of the president's cabinet was Richard Holbrooke, who had a famously icy relationship with then-Secretary of State Madeleine Albright during the Clinton administration.

Albright, who was President Clinton's first ambassador to the United Nations, was a mentor to Rice. But the two had a falling out when Albright, America's first female secretary of state, lined up behind Hillary Clinton for the Democratic presidential nomination and Rice backed Obama.

Hillary Clinton, meanwhile, was to dine Monday evening with the nation's current and second female secretary of state, Condoleezza Rice, at Rice's apartment in the exclusive Watergate complex. The two Rices are not related and Condoleezza Rice said on Sunday that she thought Clinton would do a great job.

Also Monday, Clinton was to meet privately with Sen. John Kerry, D-Mass. and the incoming chairman of the Senate Foreign Relations Committee, according to a Democratic official. Kerry, once a contender for the secretary of state job, will oversee Clinton's confirmation. Kerry has pledged to hold "swift and fair" confirmation hearings.

By MATTHEW LEE, The Associated Press, December 8, 2008

Gov. David A. Paterson said on Sunday night that Caroline Kennedy has not yet explicitly indicated to him that she wants to replace Hillary Rodham Clinton as senator. He added that he was still considering a number of candidates to fill the seat.

The chatter in Democratic circles has been dominated by the news that Mr. Paterson discussed the Senate seat with Ms. Kennedy last week, holding open the possibility that she might be chosen to occupy the seat once held by her uncle Robert F. Kennedy, and serve alongside another uncle, Senator Edward M. Kennedy.

Mr. Paterson, for his part, has spent much of the past few weeks fielding questions about whom he will choose to replace Mrs. Clinton, who was picked to be secretary of state by President-elect Barack Obama. The governor made sport of the speculation during a speech in Washington on Saturday night.

But he said that though he and Ms. Kennedy had discussed the Senate seat, the ball was essentially in her court.

"I have enough qualified candidates that I don't think I have to draft anybody," he said in an interview on Sunday night. "Part of the consideration is how willing people are to serve, so I would figure if they were willing, they would make the request. I haven't really taken anyone in hand and asked them."

Ms. Kennedy, he added, is "thinking about it."

"Her questions were more informational," he said, referring to their conversation last week. "She said, 'I'll talk to you again to let you know if I'm interested,' and I thought that was fine."

Mr. Obama was asked on Sunday about Ms. Kennedy on NBC's "Meet the Press."

"Caroline Kennedy has become one of my dearest friends, and is just a wonderful American, a wonderful person," Mr. Obama said, "but the last thing I want to do is get involved in New York politics."

Mr. Paterson said he would be meeting with Mrs. Clinton, Senator Charles E. Schumer and other officials this week to discuss the vacancy. He said he had not spoken to Senator Kennedy.

The governor has been able to make sport of the rampant speculation over who would replace Mrs. Clinton. He was one of the two main speakers, along with the Mississippi governor, Haley Barbour, on Saturday at the winter dinner of the Gridiron Club, a press association, where politicians often try their hand at humor.

He noted the cavalcade of luminaries bending his ear.

"They are blowing up my cellphone," he said, according to a transcript, and then began listening to "messages" from New York's top political figures that were recorded on his cellphone and played over the audio system.

First, there was the voice of Mr. Schumer.

"Hi, Dave," he said. "It's Chuck Schumer. I thought I would let you know my view on the Senate race. I have one criteria above all. I would like a devout evangelical. That way, there will be no competition for Sunday press conferences."

Mr. Schumer was mocking his penchant for holding news conferences on Sunday to get media coverage on what is generally a quiet news day.

Then, Mayor Michael R. Bloomberg weighed in.

"Hey, Governor. Mayor Mike here. Listen, about that open Senate seat, is that term limited in any way? Just wondering."

Next up was Senator Clinton.

"I know you'll make a wise and careful choice, but Chuck asked me to make a suggestion," she said. "There are so many qualified candidates. And Chuck knows that naming a replacement will be very difficult. So he figures, Why bother? Why does New York need two senators, anyhow?"

She went on at some length to say she knew there was "just one candidate who will bring the perfect combination of intelligence, integrity and passion to this job, and that person is..."

At that point, the voice mail beeped and the future secretary of state - pending Senate confirmation - was cut off.

Finally, the governor left himself a message.

"Hello, Governor," he said. "It's David Paterson here. I am calling to remind you that things would be a lot easier if you appoint yourself to the Senate seat.

"Leave that budget mess in Albany to some other sucker," he said, adding, "I can't believe you're not thinking about this. I know I am."

The governor, it should be noted, once did have his sights set on the seat - when he was lieutenant governor and Mrs. Clinton was the front-runner in the presidential race.

Now that he is governor, he has ruled out appointing himself.

His speech got high marks.

"Several members commented that he was one of the better speakers we've had," said Carl Leubsdorf, the Washington bureau chief of The Dallas Morning News and president of the Gridiron. "He was very funny."

Signing off, Mr. Paterson told the audience: "I ask all of you to turn your plate over. There may be a gold seal on the bottom of your plate. If you have that seal, you will be the next senator of the State of New York."

By Danny Hakim, The New York Times, December 7, 2008