Thank you for such a warm welcome. What an indescribable feeling to be surrounded by so many true friends in the capital of the world’s greatest democracy. Members of the Administration, Members of Congress, distinguished ambassadors, especially our ambassador Michael Oren…. Michael, Rosey, Bob, David, Howard and Richard, AIPAC members… older and young…

Good evening to you all.

It is your toil and your graft – your unwavering support – that keep us safe. I have six humble words for all of you: Thank you, thank you, thank you. I would like to express my personal appreciation to President Obama and Secretary Panetta for their resolute backing of Israel. History will surely record your immeasurable contribution to the strength of Israel, and the maintenance of the truly special relationship between our peoples. On behalf of the people of Israel, I wish Secretary Hagel all the best in his new role. As Secretary of Defense he will, no doubt, serve his country with the same pride and honor with which he served, both on the battlefield and in Congress. It is great to see so many young activists here. Thank you for your energetic commitment to Israel! A commitment which is so lucidly dictated by the head… yet so deeply underpinned by the heart… Keep it up – you are the future!

It is thanks to the rock solid US-Israel relationship, alongside the devotion of the young men and women of the IDF, that our capacity to defend ourselves, has been guaranteed for years to come! With US support, combined with the ingenuity of our scientists; Israel finds itself at the cutting edge of missile defense technology. The ‘Iron Dome’ recently intercepted over 400 incoming terrorist rockets. Practically – this is like hitting a bullet… with a bullet! Just last week, we – the US and Israel – conducted a successful exo-atmospheric test of the Arrow 3 interceptor. The State of Israel simply would not be the strong island of stability it is, without one crucial constant. You! The United States of America. Its people. Its leadership. Its Congress. Its Jewish community.

It is no secret, and I’ll repeat it again, that we live in a tough neighborhood, where there is no mercy for the weak. And no second chance for those who cannot defend themselves. Israel is the strongest country in the region and the only genuinely open democracy. An unprecedented geopolitical earthquake in the last three years has shattered the generations’ old regional order. There are two clear lessons and one insight which I have drawn from this period: # 1: Be modest with predictions……. especially about the future! Take Egypt as an example; Mubarak was unable to predict it… who did? Who thinks he could? #2: When friends tell me: Don’t worry… If worse comes to worst … the world will step forward and act! My answer is: Do not take this for granted.

Look at Syria – you don’t need classified intelligence; it’s on your screens. Assad’s jet fighters, tanks and artillery are slaughtering his own citizens. Over 70,000 Syrians killed. Yet still… there is no sense of direction and no political will to act. There is an extremely relevant lesson here… especially for all of us in Israel. And an insight…

Many believe that the root cause for all the problems in the Middle East… is our inability to solve the conflict with the Palestinians. Well, I say… That’s not true! Recent developments in the Middle East have been far beyond our control… and independent of our deeds. Even if a peace agreement with the Palestinians had been signed and sealed a long time ago: The Muslim Brotherhood would still have come to power in Egypt. Syria would still be mired in a bloody civil war. And Iran would still be pursuing nuclear capabilities and a hegemonic role in the Gulf.

And ladies and gentlemen, it is Iran’s pursuit of nuclear capabilities which is the greatest challenge facing Israel, the region and the world today… A nuclear Iran spells the end of any conceivable non-proliferation regime. Saudi Arabia, Turkey and later Egypt will follow suit. In the future, even terrorist groups may try. Diplomatic efforts continue. Sanctions are unprecedented and hurting, but frankly – while exhausting all diplomatic means is understandable – I do not believe it will lead to a “moment of truth”, where the Ayatollahs will give up their nuclear aspirations. Therefore, all options must remain on the table.

We have stated this time and again. And we expect all those who say it… to mean it… Ladies and gentlemen… We mean it. And let me repeat it: we… mean it.

A nuclear Iran is the most imminent and acute danger to the stability of the entire region. But it is not the only one: Radical Islamist terror is spreading rapidly. And the accumulation of missiles and rockets will necessitate regional missile defense. So what is to be done? It is an interregnum right now in Israel, and the new Netanyahu government will have to shape its approach.

But allow me, just before I leave my post, to share with you my positions: The Middle East is a Gestalt – everything depends on everything else. Facing this array of threats, we have to: Firstly, start building a ‘Regional Security Framework’… This should be built around the common challenges of radical Islamist terror, border security, missile defense… and of course, Iran. And being led by the United States, it could provide a variety of synergies for all its regional participants.

Secondly, we need a daring peace initiative vis-à-vis the Palestinians. A two-state solution is the only viable long-term solution. It is a compelling imperative for us, in order to secure our identity and our future as a Jewish and democratic state; it’s not a favor for the Palestinians… Believe me, I tried hard as Prime Minister, together with President Clinton. So I know, from personal experience, that the Palestinians are not easy partners for peace. Prime Minister Netanyahu has taken courageous steps, to renew the process including an unprecedented settlement freeze. But still – from the Palestinian side… no proper response. They clearly bear most of the responsibility for past failures. And I know, a fully fledged agreement is probably not feasible today, But if this is the case – and only a sincere effort can determine this – we have to try and achieve a reasonable, fair, interim agreement. I strongly believe this is possible, while guaranteeing all our security and vital interests.

But if even an interim agreement is unobtainable, then we should consider unilateral steps, in order to place a wedge on this extremely dangerous slippery slope towards a binational state. It involves demarcating a line within the land of Israel… Within which we will have the settlement blocs and a solid Jewish majority for generations to come. As well as setting security arrangements, and a solid Israeli, long-term military presence along the River Jordan. Rest assured… our security should not – and will not – be compromised under any of these alternatives. Tough decisions must be taken; but it is possible. And as our sages teach us: “If not now… when?”

I strongly believe that this intertwined strategic triangle: First, The Regional Security Framework. Second, a reinvigorated political process with the Palestinians… And third: tackling Iran. This triangle, is the most effective approach to deal with the challenges on our horizon.

Israel, has also been experiencing its own tremors of change. In the summer of 2011, the people of Israel took to the streets… demanding a more equal allocation of the burden. Just last month, 53 new, fresh members of the Knesset were sworn in, about half the serving members of Knesset … (Present company included!)… were out. That is what I call democracy in action. A democracy I am proud of. A democracy you can be proud of. I am confident that Prime Minister Netanyahu will lead his new government with the same dedication and responsibility which he led the last.

Ladies and gentlemen, I was born 71 years ago, at the height of World War II; the Nazi crematoria in Europe were working day and night. And now… in 2013, I am ending my tenure as the Minister of Defense of a strong, independent Jewish state. Look at what we – as a nation – have achieved… Who would have believed it then? Today we have an agile and adaptive high-tech and export oriented economy. A start-up culture flourishes on an eruption of talent and an underlying entrepreneurial spirit.

I am optimistic, and my vision for Israel is clear: A strong, self-confident, thriving Jewish, democratic state, living in peace and security with its neighbors. An exemplary state and world leader in science, technology, education and culture. A country in which our children will want to live, and your children will be proud of.

Ladies and gentlemen, We are at a decisive juncture in our history… As President Kennedy noted during the Cuban Missile Crisis: “The path we have chosen for the present is full of hazards, as all paths are. But it is the one most consistent with our character and courage as a nation…” I believe we possess the character and courage as a nation to make those tough decisions for the future, peace and security of the State of Israel. Please allow me to end with the millennia old blessing: May the Lord bestow his people with courage; may the Lord bless his people with peace. Thank you…

Ehud Barak