ambassador speeches

Speech to Czech Senate

December 14, 2005

Thank you for inviting me here today to talk about U.S.-European relations.  I will begin by discussing U.S.-Czech Republic relations and then broaden my discussion to include relations between the United States and Europe.  I would like to speak to you this morning as a person who has served as the U.S. Ambassador to the Czech Republic for almost two years, as one who has spent over 30 years managing a business and someone who spent 12 years in the Alabama Parliament, 4 years in the House of Representatives and 8 years in the Alabama Senate.  I also speak as someone who has a tremendous amount of respect for the Czech Republic and the Czech people and one who firmly believes that the Czech Republic has a very bright and solid future ahead of it.  I want to thank Senator Sevcik for the invitation to speak to you today and for all that he has done to improve transatlantic relations.  I have personally visited his district many times and have always been warmly received in Plzen and Rokycany.

Washington and the Czech Republic have ties that go back long before any of us were born.  The relationship, historically, was based on US support for the establishment and later the liberation of a Czechoslovak state.  I see these ties, already healthy and vibrant, growing even stronger through increased investment, cooperation on security issues, and our joint commitment to promoting democracy across the globe. 

Let’s start with our common commitment to economic growth.

Much of the economic success enjoyed by the Czech Republic over the last few years is the result of investments made by foreign firms and I’m happy that the US is a leading part of this.  Foreign direct investment (FDI) is expected to double from 2004 to 2005, reaching CZK 240 billion.  However, continued FDI inflows cannot be taken for granted.  FDI by nature seeks out the best – the most competitive – environment.  And with further anticipated enlargement of the EU, businesses are already looking east, at potential markets such as Ukraine, Romania and Bulgaria, in the same way that they looked at the Visegrad-4 countries five years ago in anticipation of their accession to the EU.  Therefore, when new investors look to the Czech Republic and read or hear about the potential rise of communist influence in the Czech government, about the draft labor code not enhancing the flexibility of the labor market, a new drug categorization decree that discourages innovation, or the Czech Republic wanting to renegotiate the Bilateral Investment Treaty – they have to ask themselves, “why should we invest in the Czech Republic?”  I help answer that question on a daily basis for U.S. companies seeking to do business in the Czech Republic.  The U.S. consistently ranks in the top five sources of FDI in the Czech Republic, and political-economic stability and competitiveness are key considerations for U.S. companies.  While I congratulate the Czech Republic for its success in attracting FDI up to now, I urge you not to be complacent, and to consider each piece of political, social, and economic legislation with a view to its impact on the overall investment climate of the Czech Republic.
Our economic success depends, of course, on a secure environment. 

We congratulate the Czech Republic on its excellent work in crisis spots around the globe.  From Iraq, Afghanistan, and Kosovo to Pakistan, and the Tsunami-affected countries of Asia, Czechs have proven that they are committed to making the world a better place for all.  We plan to continue our work with you on crises around the globe, both bilaterally and in organizations such as the UN and NATO.  Our goal for NATO is to continue its transformation into an alliance that can make decisions more quickly, can deploy forces more rapidly, and sustain them more fully.  As Europe takes on more responsibility for its own security, it is crucial that we build a useful and constructive relationship between NATO and the EU.  For the U.S., however, NATO must remain the pre-eminent security institution binding North America to Europe and the core of our collective efforts to keep the peace in Europe and beyond.  When all is said and done, the U.S., Canada and Europe are natural allies.  We are the most like-minded peoples in the world, sharing a common history, common democratic values, and interconnected economies. 

The Czech Republic has a well deserved reputation as a country that stands up for the little guy, that defends those whose human rights have been trampled on in places like Cuba, Burma, Belarus, North Korea, and Zimbabwe.  You’ve set up a special unit in the Ministry of Foreign Affairs to promote transformations in these dictatorial states.  Czech non-governmental organizations, such as People in Need, complement these efforts.  Your Foreign Minister, Mr. Cyril Svoboda, has personally led the efforts on Cuba, sitting in a mock jail cell in Wenceslas Square, publicly condemning the regime, in the EU and enduring threats against his family in return.   President Havel has used his own stature to write widely publicized letters and editorials against regimes in Burma and Zimbabwe.  There is a small organization right here in Prague called Olympic Watch that is shining a spotlight on human rights abuses in China in the run-up to the 2008 games.  The US and the Czechs are cooperating on the funding of a radio station that will broadcast independent information from Poland into Belarus.  For a small country, you’re playing a big role on this issue.

The US Census Bureau has the Czech Republic ranked as 79th in the world in terms of population.  But size isn’t everything.  After all, you won the World Hockey Championships in Vienna this May.  In November, you moved ahead of the Netherlands to take 2nd place in the world football rankings.  China is 130 times bigger than you.  India is 110 times bigger, and neither of them is going to the World Cup in Germany next year.  You have also produced cultural giants, such as the composers Dvorak and Janacek, or writers such as Capek and Kafka.  And it is not only in culture and sport that you exert an influence far beyond your size.  You also stand out in politics and international affairs including sharing the lessons of your own transition, promoting human rights and democracy, restricting the proliferation of dangerous weapons, and excelling in science and engineering.  We here at the U.S. Embassy, as well as officials in Washington, are very excited about the contributions you can make in these areas.
In short, small countries can make big contributions in certain areas.  And small countries, just like big countries, have interests that need to be defended.  Please keep up your active role in multilateral institutions, such as the EU.

 Now let me say a few words about our own relations with the EU:  The disagreements over Iraq were perhaps the most profound disputes we’ve had since the end of WWII.   Some editorials even hinted that the US and Europe were going to go their own ways, permanently, like a divorce.  Some Czechs even complained that they were being forced to choose between loyalties to the US and loyalties to Europe.  That’s a position you should never be in and I’m happy to say that you aren’t today because things are now back on track.  The values of democracy, the rule of law, respect for human rights, and a market economy are the foundations of the Euro-Atlantic community.  Our shared commitment to those values, fortunately, is ongoing and sees us through any temporary differences of opinion.  Unlike the Warsaw Pact, ours is a voluntary, democratic alliance.  In our alliance countries can disagree with each other, and small countries can disagree with big countries.  If you go back a few decades, there have been several significant disputes between the US and Europe, including: the Vietnam War in the 60s and 70s, the stationing of Pershing Missiles in Germany in the 80’s, and Bosnia in the mid 90’s.  At each point the alliance between us bent but it didn’t break, and I think as a result of these disagreements we have a healthier respect for each other today.
We have a political alliance that allows cooperation on issues outside of the transatlantic area, which is terribly important.  That has to be our main project today.  From the Middle East, to Sudan, to rising powers India and China, and Iran’s suspected attempts to develop nuclear weapons; there really isn’t any part of the world that is beyond this new US-European agenda.
As the world's primary sources of development assistance, the U.S. and the European Union (EU) have a long tradition of cooperation and coordination on our respective assistance programs.  The U.S. and EU together contributed a total of $53.4 billion, or 78% of all the world’s assistance in 2003.  Most of the U.S. and EU development and humanitarian assistance priorities coincide.

We have a trade relationship that exceeds 3 trillion dollars a year.  That’s three thousand billion dollars The US and the EU economies dominate so many industries.  Where would the airline industry, the tourism business, pharmaceuticals, films and pop music, or the auto industry be without the US and Europe?  As the world’s biggest economies, the US and the EU have a special responsibility to promote growth in other markets.  There are negotiations taking place right now in Hong Kong to reduce tariffs, subsidies, and other barriers to the free flow of goods and services.  Two months ago the U.S. publicly announced an ambitious proposal that would eliminate all export subsidies and drastically reduce domestic support and expand market access for agriculture goods.  This proposal is conditional upon reciprocal action from other countries, particularly the EU, and thus far, we are disappointed that the EU is not willing to go as far as the US in reforming agriculture trade.  It must not go unnoticed that the Czech Republic has much to gain through reforms on agriculture because this is what is holding up progress in the two areas most important to the Czech economy:  non-agriculture market access (NAMA) and services.  The U.S. shares the EU and the Czech Republic’s desire to see movement on NAMA and services, and to that end, hope we can also work together to achieve forward movement on the agriculture issue.

We’ve had problems, such as Hurricane Katrina, where you and other European allies rushed to our aid.  Let me personally thank you for your generous assistance to the people of New Orleans in a time of great need.  Ten tons of Czech cots, tents and other supplies were sent to the US by NATO’s fledgling Rapid Reaction Force, an excellent example of the new mission NATO is capable of. 

The U.S. follows events in Europe very closely.  Political disagreements and polarizing issues in Europe are a problem for us too.  The U.S. prefers a strong, united Europe, a Europe that has the capacity and willingness to get involved in problems beyond its borders.  The U.S. and the EU have to work together to address many of the world’s problems simply because we are the only ones with the resources and expertise.  President Bush was the first U.S. President to visit the European Council in Brussels in February 2005.  Today, we’re doing more with the EU today than we ever have before and it’s one of the things that make me very optimistic about the future.  With that, I’ll take questions…