Some items from the article worthy of some note:

First, this

Ms Hughes emphasises two themes she says have most damaged America’s image in the eyes of the world – perceptions of the mistreatment of alleged terrorist detainees at Guantánamo Bay and elsewhere, and the view that Washington is not doing enough to promote the creation of a Palestinian state.

Wonder how forceful she has been. Obviously interest weights heavily

She says she has frequently conveyed both observations to the US president. Ms Hughes did not mention the war in Iraq. “The toughest thing I’ve told the president is that he needed to improve the detainee policy,” she said. “I felt it was important it was understood that was how we were being seen in the world.”

It strikes me as an almost religious belief among a certain kind of American that they don't have to care about the US image in the world. The same are generally aggressively hostie to the idea that there is a cost-benefit analysis to apply.

One supposes self-image is too emotional to be dispassionate about.

Another point of reflexion,

Participants included Accenture, Disney, Mastercard, Citigroup and Burson-Marsteller. Part of the object is to get many more foreigners, in particular from the Islamic world, to visit the US.

That means she often beats a trail to the Department of Homeland Security, which has been heavily criticised by private sector groups for its strict post-9/11 visa policy and for the offhand way that many immigration officials treat arriving foreigners.

While I am not convinced that study tours, business visits have that much impact, they certainly count for something in hedging hostility.

However, the US image at the border, as projected by the DHS is, well, deeply unpleasant.

As a result, many companies and universities now hold conferences outside the US to spare foreign participants the potential humiliation. Likewise, the number of foreign students studying in the US fell after the September 11 terrorist attacks.

“I understand – no customs officer wants to be the one to let a hijacker into the country,” she said. “But it is also important to be welcoming. Our most important tool of public diplomacy in the last 50 years has been the [foreign] exchange programme.”

Indeed.