Obama names Clinton secretary of state

By Jeff Mason and Caren Bohan

CHICAGO (Reuters) - U.S. President-elect Barack Obama named former rival Hillary Clinton as secretary of state on Monday and said Robert Gates would remain defence secretary as part of a national security team charged with recasting America's leadership of world affairs.

Clinton and Gates, who have been at odds with Obama in the past over foreign policy and defence issues, will implement Obama's vision of rebuilding the U.S. image abroad and oversee two wars in Iraq and Afghanistan.

"I assembled this team because I am a strong believer in strong personalities and strong opinions. I think that's how the best decisions are made," Obama said at a news conference.

Clinton, standing with Obama on the stage in Chicago, said the United States must rely on its friends to help confront threats like global warming and terrorism -- an implicit rebuke to the go-it-alone approach of President George W. Bush.

"While we are determined to defend our freedoms and liberties at all costs, we also reach out to the world again, seeking common cause and higher ground," she said.

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

He also named former Justice Department official Eric Holder as attorney general and Susan Rice, an Obama foreign policy adviser, as U.N. ambassador.

All the nominees are expected to win quick confirmation by the Democratic-controlled Senate.