US Institute of Peace with President Karzai?

I knew their relationship was in trouble but a whole US institute devoted to peace with Afghan President Karzai? That's what it says in the BBC report. Hilary Clinton even addressed the institute just recently:

We're not fighting the Afghan people," she said during a visit to the US Institute of Peace with President Karzai.

See?

She went on to say:

We're fighting a small minority of very dedicated, ruthless extremists who unfortunately are able to enlist young men... for a variety of reasons and send them out into the battlefield.

And rather than get to the bottom of this "variety of reasons" that leads "young men.....out into the battlefield", Mrs Clinton wants American soldiers to kill them but not in such larger numbers that they will destroy the city of Kandahar in order to save it.

Meanwhile, even peace between the US and Karzai is elusive but still the
plucky little institute cracks on.