Real-Time Coverage of Treasury Secretary Henry Paulson at WSJ Deals & Dealmakers Conference

1:58PM:  Paulson now taking questions from the audience.

1:58PM:  On global warming: obviosuly a very significant issue and one I've spent a lot of time on.  I've been working with China on it.  Important to get an international solution.  For China, that means getting them low-carbon technology.

2:00PM:  The challenge is coming up with the right way to price carbon in developing countries to encourage technological innovation.

2:01PM:  Need a "global construct" on global warming.  Kyoto was flawed from the beginning.  The only way to solve this is over a long period of time with major breakthroughs in technology and engaging the whole world.

2:02PM: We have in China the fastest growing economy and it's the fastest market for the U.S.  Some see that as a problem.  I see it as an opportunity.  Our goal is to improve the standard of living for the average working American.  Because we have this concern with income disparity, we may do things that are counterprotective.  We shouldn't be afraid of competition.  We should be open to competition.  It's frustrating to me to hear people say we're going to lose out to China and India.  We're in a much better position that they are.

2:05PM: Q.  What have you learned in your year in government?  A.  The key to being suucessful in government is the same as being successful at Goldman Sachs.  It's learning how to work as a team with people.  You can have the best ideas in the world but if you can't get them done they're not worth anything.  I've been "pleasantly surprised" by how many smart people there are in government who work very hard.  They stay up all night working on projects.  And they're not doing it to get a bonus.  They work because they want to do good.  I've also learned you better be patient if you want to be effective.

2:07PM  The event has ended.