Protesters hold banners after a meeting between Egypt's President Mohamed Mursi and U.S. Secretary of State Hillary Clinton, in front of the doors of the presidential palace in Cairo July 14, 2012. [Photo/Agencies]

CAIRO- Egyptian President Mohamed Morsi held talks with visiting U.S. Secretary of State Hillary Clinton on Saturday afternoon to boost bilateral relations.

"I have come to Cairo to reaffirm the strong support of the United States for the Egyptian people and their democratic transition," Clinton said at a joint news conference with Egyptian Foreign Minister Mohamed Kamel Amr after her talks with Morsi in the Presidential Palace.

They discussed Egypt's transition process to democracy and ways to boost bilateral relations, in addition to regional issues such as the Syrian crisis and the Middle East peace process.

"We do support the democratic transition, but we know it is for the Egyptians to decide your way forward," said Clinton.

The United States stresses "democracy is hard... It requires dialogue, compromise and real politics... We will continue to support the Egyptian people making theses decisions in the best way we can," Clinton added.

"We now are doing all we can to support the democratically elected government and to help make it a success in delivering results for the people of Egypt," she said.

She reiterated the one-billion-dollar debt relief for Egypt, which was announced by the Obama administration last year. She also said the U.S. would grant Egypt 250 million U.S. dollars of trade credit guarantees and establish an investment fund worth 60 million dollars. A high-level U.S. delegation will visit Cairo in September to discuss business and trade cooperation.

Outside the Presidential Palace in Heliopolis district, dozens of Egyptians protested against the visit of Clinton. "Compensation for the victims of American torture in Guantanamo," read one banner. "You are not welcome in Egypt," said another with a picture of Clinton.

Near the U.S. embassy, several hundred people gathered to reject "the intervention of the U.S. administration in Egypt's domestic affairs", official MENA news agency reported.

Clinton arrived in Egypt's capital of Cairo on Saturday for a two-day visit. She is so far the top U.S. official to have visited Egypt after Morsi assumed Egypt's presidency on June 30. She will meet Egypt's military council chief Hussein Tantawi on Sunday.

"Obviously, We think it is important for all the nations in the region to try to maintain peace and stability, especially with so many economic challenges facing the region," she said.

"We certainly support the continuation of the peace agreement ( between Israel and Egypt) as it has brought great benefits to Egypt. We will continue to do so, enabling the president to focus on the economic conditions in the internal  political situation here in the country," Clinton said.

As to the Middle East peace process, Clinton reiterated "our goal is to help bring about the two-state solution. We know it can only happen if there is negotiation between Israelis and the Palestinians. That can only happen if all Palestinians  are committed to seeking a political resolution, renouncing violence. Reconciliation is up to the Palestinians."

Amr stressed Morsi's commitment to respecting all international agreements. "It becomes clear that our understanding for peace is a comprehensive peace as the peace treaty between Egypt and Israel stipulates," he said.

The Egyptian foreign minister said Egypt is seeking to achieve comprehensive peace in the region, which must include the Palestinians' right to establish an independent state with East Jerusalem as the capital.

Last Sunday, U.S. Deputy Secretary of State William Burns talked with Morsi in Cairo and delivered an invitation to Morsi to visit the United States while attending the annual session of the United Nations General Assembly in September.

Burns told reporters his talks with Morsi was "constructive." He conveyed the message of Obama who asserted the U.S. strong commitment to building a new partnership with Egypt based on the principles of joint interests and mutual respect.