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U.S. Education Secretary, Arne Duncan, talks to local education leaders during a round table...

OAKLAND -- Oakland's schools could become models for the rest of the country if the community supports them, the nation's education chief told East Bay educators Friday.

Speaking at Oakland's Merritt College, U.S. Education Secretary Arne Duncan praised advances made by Oakland Unified Superintendent Tony Smith and said he had high hopes for the struggling district, which recently emerged from a state takeover. If the school board, teacher's union, business community and other Oakland residents rally behind Smith, Duncan said, the city can "demonstrate to the country how urban school districts can revitalize themselves."

Duncan called the school district's status quo "morally unacceptable," citing the high dropout rate of the system's black and Latino high school students. He concluded his assessment of Oakland's public schools with a bold claim and a promise to support the district's efforts.

"I think Oakland -- three, four, five years from now -- could be one of the highest-performing districts in the country," Duncan said after meeting with school and college leaders. That discussion was closed to the media.

Afterward, Smith said Duncan's ambitious goal for the Oaklan