New Secretary of State Hillary Clinton on Thursday asserted that diplomacy and development would be the two key 'Smart Power' tools of the Obama Administration to achieve the long-term objectives of the United States.

"As we go forward diplomacy and development are essential tools in achieving the long-term objectives of the United States," Clinton said in her welcome address to the officials of the State Department at its headquarters in Foggy Bottom.

"And I will do all that I can, working with you, to make it abundantly clear that robust diplomacy and effective development are the best long-term tools for securing America's future," Clinton said, and dubbed it as 'Smart Power', reiterating the same catch phrase she had used during her Senate confirmation hearing.

"There are three legs to the stool of American foreign policy: defence, diplomacy, and development. We are responsible for two (diplomacy and development) of the three legs," she said.

Observing that it is going to be challenging times for the State Department under the circumstance in which the Obama Administration has come to power, the Secretary of State said meeting these challenges would require "21st century" tools and solutions.

The 61-year-old was confirmed by the Senate by an overwhelming majority of 94 votes to two, despite concerns raised by some about the transparency of the Clinton Foundation, headed by her husband and former President Bill Clinton, as it receives funds from foreign donors.