Mr. President, Mr. Secretary-General, my fellow delegates, ladies and gentlemen. It is a great honor to address this Assembly for the second time, nearly two years after my election as President of the United States.

We know this is no ordinary time for our people. Each of us comes here with our own problems and priorities. But there are also challenges that we share in common as leaders and as nations.

We meet within an institution built from the rubble of war, designed to unite the world in pursuit of peace. And we meet within a city that for centuries has welcomed people from across the globe, demonstrating that individuals of every color, faith and station can come together to pursue opportunity, build a community, and live with the blessing of human liberty.

Outside the doors of this hall, the blocks and neighborhoods of this great city tell the story of a difficult decade. Nine years ago, the destruction of the World Trade Center signaled a threat that respected no boundary of dignity or decency. Two years ago this month, a financial crisis on Wall Street devastated American families on Main Street. These separate challenges have affected people around the globe. Men and women and children have been murdered by extremists from Casablanca to London; from Jalalabad to Jakarta. The global economy suffered an enormous blow during the financial crisis, crippling markets and deferring the dreams of millions on every continent. Underneath these challenges to our security and prosperity lie deeper fears: that ancient hatreds and religious divides are once again ascendant; that a world which has grown more interconnected has somehow slipped beyond our control.

These are some of the challenges that my administration has confronted since we came into office. And today, I'd like to talk to you about what we've done over the last 20 months to meet these challenges; what our responsibility is to pursue peace in the Middle East; and what kind of world we are trying to build in this 21st century.

Let me begin with what we have done. I have had no greater focus as President than rescuing our economy from potential catastrophe. And in an age when prosperity is shared, we could not do this alone. So America has joined with nations around the world to spur growth, and the renewed demand that could restart job creation.

We are reforming our system of global finance, beginning with Wall Street reform here at home, so that a crisis like this never happens again. And we made the G20 the focal point for international coordination, because in a world where prosperity is more diffuse, we must broaden our circle of cooperation to include emerging economies - economies from every corner of the globe.

There is much to show for our efforts, even as there is much work to be done. The global economy has been pulled back from the brink of a depression, and is growing once more. We have resisted protectionism, and are exploring ways to expand trade and commerce among nations. But we cannot - and will not - rest until these seeds of progress grow into a broader prosperity, not only for all Americans, but for peoples around the globe.

As for our common security, America is waging a more effective fight against al Qaeda, while winding down the war in Iraq. Since I took office, the United States has removed nearly 100,000 troops from Iraq. We have done so responsibly, as Iraqis have transitioned to lead responsibility for the security of their country.

We are now focused on building a lasting partnership with the Iraqi people, while keeping our commitment to remove the rest of our troops by the end of next year.

While drawing down in Iraq, we have refocused on defeating al Qaeda and denying its affiliates a safe haven. In Afghanistan, the United States and our allies are pursuing a strategy to break the Taliban's momentum and build the capacity of Afghanistan's government and security forces, so that a transition to Afghan responsibility can begin next July. And from South Asia to the Horn of Africa, we are moving toward a more targeted approach - one that strengthens our partners and dismantles terrorist networks without deploying large American armies.

As we pursue the world's most dangerous extremists, we're also denying them the world's most dangerous weapons, and pursuing the peace and security of a world without nuclear weapons.

Earlier this year, 47 nations embraced a work-plan to secure all vulnerable nuclear materials within four years. We have joined with Russia to sign the most comprehensive arms control treaty in decades. We have reduced the role of nuclear weapons in our security strategy. And here, at the United Nations, we came together to strengthen the Nuclear Non-Proliferation Treaty.

As part of our effort on non-proliferation, I offered the Islamic Republic of Iran an extended hand last year, and underscored that it has both rights and responsibilities as a member of the international community. I also said - in this hall - that Iran must be held accountable if it failed to meet those responsibilities. And that is what we have done.

Iran is the only party to the NPT that cannot demonstrate the peaceful intentions of its nuclear program, and those actions have consequences. Through U.N. Security Council Resolution 1929, we made it clear that international law is not an empty promise.

Now let me be clear once more: The United States and the international community seek a resolution to our differences with Iran, and the door remains open to diplomacy should Iran choose to walk through it. But the Iranian government must demonstrate a clear and credible commitment and confirm to the world the peaceful intent of its nuclear program.

As we combat the spread of deadly weapons, we're also confronting the specter of climate change. After making historic investments in clean energy and efficiency at home, we helped forge an accord in Copenhagen that - for the first time - commits all major economies to reduce their emissions. We are keenly aware this is just a first step. And going forward, we will support a process in which all major economies meet our responsibilities to protect the planet while unleashing the power of clean energy to serve as an engine of growth and development.

America has also embraced unique responsibilities with come - that come with our power. Since the rains came and the floodwaters rose in Pakistan, we have pledged our assistance, and we should all support the Pakistani people as they recover and rebuild. And when the earth shook and Haiti was devastated by loss, we joined a coalition of nations in response. Today, we honor those from the U.N. family who lost their lives in the earthquake, and commit ourselves to stand with the people of Haiti until they can stand on their own two feet.

Amidst this upheaval, we have also been persistent in our pursuit of peace. Last year, I pledged my best efforts to support the goal of two states, Israel and Palestine, living side by side in peace and security, as part of a comprehensive peace between Israel and all of its neighbors. We have travelled a winding road over the last 12 months, with few peaks and many valleys. But this month, I am pleased that we have pursued direct negotiations between Israelis and Palestinians in Washington, Sharm el Sheikh and Jerusalem.

Now I recognize many are pessimistic about this process. The cynics say that Israelis and Palestinians are too distrustful of each other, and too divided internally, to forge lasting peace. Rejectionists on both sides will try to disrupt the process, with bitter words and with bombs and with gunfire. Some say that the gaps between the parties are too big; the potential for talks to break down is too great; and that after decades of failure, peace is simply not possible.

I hear those voices of skepticism. But I ask you to consider the alternative. If an agreement is not reached, Palestinians will never know the pride and dignity that comes with their own state. Israelis will never know the certainty and security that comes with sovereign and stable neighbors who are committed to coexistence. The hard realities of demography will take hold. More blood will be shed. This Holy Land will remain a symbol of our differences, instead of our common humanity.

I refuse to accept that future. And we all have a choice to make. Each of us must choose the path of peace. Of course, that responsibility begins with the parties themselves, who must answer the call of history. Earlier this month at the White House, I was struck by the words of both the Israeli and Palestinian leaders. Prime Minister Netanyahu said,