"By electing Barack Obama our next president, the American people have demanded not just a new direction at home but a new effort to renew America's standing in the world as a force for positive change."

The New York senator said it would be hard for her to leave the US Senate but believed taking over the nation's top diplomatic role was the best way for her to serve the country.

Along with Clinton and Gates, Obama named retired Marine Gen. James Jones as national security adviser and Arizona Gov. Janet Napolitano as head of the homeland security department.

He also named former Justice Department official Eric Holder as attorney general and Susan Rice, a foreign policy adviser to his presidential campaign, as U.N. ambassador, which he will make a Cabinet-level position.

All the nominees are expected to win quick confirmation by the Democratic-controlled Senate, although the Cabinet itself may be a more fractious place.

"No doubt there will be frictions at times," said Stephen Flanagan of the Center for Strategic and International Studies think tank.

INDIA RESONATES

The announcements have been given added emphasis by last week's rampage in Mumbai, India, where gunmen killed nearly 200 people, including at least five US citizens. India has blamed the attacks on militants from Pakistan, which has denied any complicity with the terror plot.

Obama said he had spoken to Indian Prime Minister Manmohan Singh and offered American support. Obama said that while sovereign nations "obviously have the right to defend themselves," he did not want to comment on the specifics surrounding the Mumbai attack.

... contd.