This first section of a two-part report examines the evolution of peace building in the State Department. It begins with a sketch of the role of diplomacy in peace building. It reviews the leadership role of the secretary of state. It proceeds to an examination of multi-bureau involvement in the reconstruction and stabilization efforts in Afghanistan and Iran. It assesses the central role of individual geographic bureaus. The bulk of the section is devoted to a description and evaluation of the Coordinator for Reconstruction and Stabilization. It concludes that traditional peace-building diplomacy, led by geographic bureaus, has been uneasily and incompletely yoked with the work of the Coordinator’s Office and advances suggestions for reform. The second section of this report, published separately, looks at the peace-building function at the USAID. With the exception of Iraq, the report is concerned with management of political conflicts within states and not with inter-state conflicts.