U.S. Ambassador to Egypt C. David Welch has called on Egyptian students to become involved in the search for Middle East peace by "encouraging reasonable dialogue, by promoting academic and cultural exchanges, and by making your voice for peace heard."

"For those of you in this audience who ask what you can do, consider this simple message to all parties: stop the violence, start negotiations. Everyone must realize that the depth of fear and despair suffered on one side is mirrored on the other side as well. Only when each can acknowledge the essential humanity of the other will the basis for a true reconciliation be established," Welch said in an address to Egyptian students at the American University in Cairo January 28.

Welch denied the claim that recent U.S. military actions against al Qaeda and the Taliban in Afghanistan were directed against the Islamic faith.

"Some critics of the United States have wrongly characterized the struggle against terrorism as a war against Islam. No assertion could be more wrong. Americans respect Islam, a religion that is flourishing in America," said Welch.

Acknowledging recent incidents of violence and prejudice against Arabs and Muslims in the United States, Welch said the U.S. government immediately responded to them as crimes against U.S. laws that prohibit hate crimes and discrimination.

"Those who perpetrated hate crimes are now feeling the sting of U.S. law, and the full weight of the American justice system. America stands with its Muslim and Arab communities, offering them the same freedoms enjoyed by the many other religious and ethnic groups that make up the mosaic that is the United States," said Welch.

Welch discussed American foreign policy in the Middle East, and said the leadership role played by Egypt in Arab-Israeli and Palestinian-Israeli peace efforts is "irreplaceable."

"Egypt's support and assistance in this effort is vital. We will seek your advice, and listen to your counsel," said Welch.

Much of Welch's remarks concerned the current violence between Israelis and Palestinians. He reviewed U.S. diplomatic initiatives in the region since Egypt's 1978 peace treaty with Israel and said those initiatives demonstrate long-term American commitments to peace, and to ask his audience "to see the record of our engagement and the seriousness of our purpose."

"The hard truth, however, is that it would be fruitless for America to impose any solution on the two parties; none of the serious problems in the Middle East can be solved by the U.S. alone. What we can do is to show leadership and resolve, and we are committed to this process. We also listen to our friends in the region, because we realize that no one has a monopoly on wisdom," said Welch.

The ambassador praised Egypt's cooperation and assistance in the international campaign against terror and promised further U.S. assistance to help Egypt's economy.

"[W]e are mindful that Egypt's economy has suffered in the aftermath of September 11. In recognition of those difficulties, and of Egypt's role as a steadfast partner for peace in the region, the U.S. government recently agreed to accelerate $959 million in economic assistance funds to Egypt," said Welch.

He outlined several approaches that would be helpful to Egyptian businesses, but added, "We are prepared to help - indeed we will help -- through our economic cooperation program, but ultimately, these are decisions for Egypt and Egyptians."

Following is the transcript of Ambassador Welch's speech, as prepared for delivery:

(begin transcript)

U.S. Foreign Policy in the Middle East Address by U.S. Ambassador to Egypt C. David Welch The American University in Cairo [As prepared for delivery] January 28, 2002

Thank you so very much, ladies and gentlemen, for that warm welcome, and I thank you, Nagwa Shoeb, for that very kind and generous introduction. I am very pleased and honored to be here tonight at the American University in Cairo, an institution that has a distinguished and growing reputation for intellectual openness and high quality education. I am also very honored to be part of this very important and prestigious Public Lecture Series, which gives the students, faculty, and others an opportunity to hear directly from senior members of government and other facets of society, both here in Egypt and elsewhere, and to pose questions directly to those officials.

I would like to thank AUC for the invitation to share this same podium so recently held by the Egyptian Foreign Minister, Ahmed Maher. I would also like to acknowledge Dr Tim Sullivan, the University Provost, and Ms Nagwa Shoeb, head of Public Affairs at AUC, for arranging the program tonight. Thank you all for coming. My first visit to AUC was shortly after my arrival here in Cairo on August 19. My first weeks were dedicated to making sure that Egypt remained in the forefront of the minds of the new policymakers in Washington. With all that has happened, those days seem different and far away.

The international community, including over 80 nations that lost innocent citizens to the attacks of September 11, is now engaged in a war against terror, and the agents of terror. One of its strongest allies in this effort is Egypt. The United States is particularly grateful to President Mubarak for his early, strong and forceful stand against international terrorism, and the cooperation that Egypt has given to getting rid of this dreadful scourge. From their own experience, Egyptians know as well as anyone the enormous harm and pain that terrorism inflicts. The United States is indeed thankful for Egypt's constant support and assistance in this worthwhile cause.

The struggle against terrorism will be long. It will take great effort, and great courage. But we will be patient. We will also be persistent. Some critics of the United States have wrongly characterized the struggle against terrorism as a war against Islam. No assertion could be more wrong. Americans respect Islam, a religion that is flourishing in America. Six million Americans call themselves Muslims, and that number is steadily growing. Indeed, Islam is the fastest growing religion in the United States, and its presence enriches and enlightens our culture. This is a struggle against killers of innocents, against murderers. Distinguished Muslim scholars such as Sheikh Tantawi of Al-Azhar and leading Islamic groups around the world have condemned terror. The American Muslim community has also condemned terrorism and those who practice it.

In the days and weeks following the terrorist attacks against the United States, some Americans and foreigners of Arab descent in the United States came under physical attack. Others were the recipients of verbal abuse, causing fear among the American Arab and Muslim communities. I should emphasize that the number of such incidents-while still regrettable-was very small compared to the total number of Muslims and Arab-Americans living in the U.S. The U.S. government's response to this outrage was immediate. President Bush, our Secretary of State, Colin Powell, political and religious leaders around the country, and the American people all condemned these anti-Muslim and anti-Arab - these anti-American -- words and deeds. The U.S. Department of Justice is actively tracking down-and prosecuting - those responsible for criminal attacks against America's Muslim citizens.

We have laws in America that protect our citizens -- whatever race, whatever religion -- against hate crimes and against discrimination. Those who perpetrated hate crimes are now feeling the sting of U.S. law, and the full weight of the American justice system. America stands with its Muslim and Arab communities, offering them the same freedoms enjoyed by the many other religious and ethnic groups that make up the mosaic that is the United States. I was very pleased to read today that Arab students on the campuses across the U.S. are once again making their voices heard after several months of reluctance. The numbers of people from Arab and Muslim countries immigrating to America is increasing. These are people who hope to take advantage of the American dream; to seek a better place for their children; to obtain a better education; to seek better economic opportunities. Combating terrorism also means striking at extremism, and the roots of its causes. This means speaking out against those who cynically distort the sacred tenets of religion and advocate messages of hatred -borne only of despising the West and its values. This means addressing with credible action the extremism spawned by hopelessness, poverty, and the frustration of the disenfranchised. For that reason, the U.S. has always said that the fight against terror cannot be waged by military means alone. As we enter the 21st century, the most significant challenge the international community faces together with the countries of the Middle East is to provide hope for young people by eradicating poverty and ignorance, and by offering opportunity for expression and advancement. Countries and societies must find a way to exchange hope for despair.

The battleground of the future will not be won by troops. It will be won with better economic policies that encourage free trade and foreign investment; that embrace the private sector and encourage entrepreneurship; that reward efficiency and hard work; and that create the jobs necessary to employ burgeoning populations. The job of government in the future will be to "secure for the individual the blessings of prosperity" by eliminating corruption; freeing economies from over-regulation; investing in economic diversity; and preserving natural resources for future generations. The challenge includes improving national educational institutions to produce the number and variety of technical and professional skills needed by growing economies. Universities that produce legions of unemployable graduates fuel feelings of desperation and despair, and waste the most precious commodity of any nation - its youth. The best universities create intellectual climates for scholars that encourage a free exchange of ideas and discovery, with an eye toward generating constructive, non-violent solutions to problems both local and global. AUC is a superb example of what more universities in the region should be doing in this regard.

The peoples' voice - what Secretary Powell calls the politics of participation -- and the confidence to contribute to a dialogue of reason, without fear of reprisal should be the goal. The importance of civil society, guided by the rule of law, cannot be overestimated. America recognizes that with economic development and prosperity comes security. Today, the nations that led the Axis during World War II, Germany and Japan, both led at that time by governments with extremist views, are two of our staunchest allies and economic partners. After World War II, the Marshall Plan made it possible for our former enemies in Germany to rebuild their economies. In Asia, Japanese industry was almost completely destroyed during World War II. Inside two decades, with substantial foreign investment, much of it American dollars, hard work by German and Japanese workers, and a desire to succeed, both economies took off.

Just last week, Japan hosted a gathering of nations in Tokyo to discuss donations for the rebuilding of Afghanistan. The international community pledged over 4 billion dollars in assistance. The United States will provide 300 million dollars in initial support to help rebuild what was torn apart during decades of war in Afghanistan. America and its allies are proud of the military campaign waged to free the Afghan people from the despotic Taliban, who had brutalized their own people, sponsored a massive increase in the drug trade, and welcomed with open arms Usama bin Laden and his terrorist network. For the first time in twenty years, the people of Afghanistan can look forward to a future of education and providing for their families, rather than warfare and terror.

Let me now turn to Egypt. The US relationship with Egypt is historical, strong, and based on mutual interests. We are proud of that relationship. Since 1975 the US has provided over 24 billion dollars in economic assistance to Egypt, or roughly $100 from each American man, woman, and child. U.S. -- Egyptian cooperation over the years has helped provide essential infrastructure, improve living conditions, advance economic reforms, and -- most importantly -- created jobs for millions of Egyptians. We have also contributed to the modernization of Egypt's armed forces. This additional assistance of 33 billion dollars has freed up additional funds for domestic consumption. Egypt remains an important ally in helping to contribute to America's security.

This partnership has produced some tremendous success stories, of which both our countries can be proud. For example, the infant mortality rate in Egypt has fallen two-thirds over the past twenty years. Mothers are getting more of the prenatal health care they need, and young children are being vaccinated against crippling diseases. As a result of improving and more widely available health care, people in Egypt are living longer, more fruitful lives.

US funding in educational programs has also assisted the people in Egypt in improving their educational system. The literacy rate in Egypt over the past twenty years has significantly improved, and higher education is becoming more accessible to the young people of Egypt. Selected students are sent to the United States each year with the help of US-provided funding for graduate study in selected fields and I hope to increase such opportunities. These students return to Egypt where they fill key planning and research positions in ministries here in Egypt. Teachers are sent to the United States annually to participate in programs that help them improve their curricula and teaching methodology. Similar programs assist members of Egypt's judiciary in learning how the US legal system addresses various criminal and civil issues.

There was a story on the front page of the Wall Street Journal recently entitled "Egypt Wages War Against Poverty In Attempt to Vanquish Terrorists." The theme of the story was Egypt's attempt to solve problems in Upper Egypt through stimulating economic development. The story tells of one businessman from Al Minyah who, in his youth, rejected recruitment by militants and instead, chose higher education. When in the late '90s the Al-Minyah provincial government offered economic incentives to investors willing to start companies there, this gentleman, a biochemist, was able to secure a low cost loan from USAID to purchase some needed equipment. Today his company employs 235 people, and has gross sales of over $700,000 a year in compost products, with over half of his sales going to the European market.

It is this kind of partnership for progress that works, ladies and gentlemen. This story is but one example of the good that comes from this partnership. As we work together with Egypt and our other allies in the struggle against terrorism, we are mindful that Egypt's economy has suffered in the aftermath of September 11. In recognition of those difficulties, and of Egypt's role as a steadfast partner for peace in the region, the U.S. government recently agreed to accelerate $959 million in economic assistance funds to Egypt. In February, we and other donors will meet with the Government of Egypt to discuss economic policy and development plans for the coming years.

As the largest donor of economic assistance to Egypt, the U.S. will do its part. But economic assistance alone cannot produce the sort of economic growth Egypt needs to provide for its people. Private business -- foreign, yes, but domestic business even more so -- must provide that engine of growth. And to attract the foreign and domestic business investment needed to provide jobs for Egypt's youth, there must be a conducive business environment: one that includes consistent and transparent policies on foreign exchange, tariff rates and customs procedures, business-start-up procedures, commercial arbitration, taxation, availability of reliable business and economic data -- in short, the array of policies that facilitate doing business.

Government can and should consider business a partner in this effort and seek business' opinion when considering policies that affect business. If the day-to-day cost of doing business is just too high because of excessive red tape, all the tax holidays and large potential markets in the world will not induce new businesses to invest. Strong economic policy leadership will attract capital. That is the challenge Egypt faces today and in the next few years. We are prepared to help - indeed we will help -- through our economic cooperation program, but ultimately, these are decisions for Egypt and Egyptians. That is the message the U.S. will convey at the donors meeting.

The U.S. government understands that political and economic reform efforts in Egypt, as elsewhere, do not exist in a vacuum. Much progress has been made here in Egypt, and in other countries of the Middle East, but much more remains to be done. The most formidable challenge to long-term political and economic stability in the region is the Arab-Israeli Conflict. In November 1977, President Anwar Sadat made a courageous decision to travel to Israel in order to meet with Prime Minister Menachem Begin of Israel and begin the road to peace. It was Sadat who took the first step. In September of the following year, Sadat and Begin met at Camp David, the US Presidential retreat. Those sessions were later followed by the signing of the historic Camp David Accords. After thirty years of war with Israel, Egypt was finally at peace with its neighbor.

As a result of its brave and heroic action, which included recognition of the State of Israel, Egypt's membership in the Arab League was temporarily suspended. Two years later, Anwar Sadat was dead, the victim of assassin's bullets. However, in time, the rest of the Arab world, needing and feeling the loss of Egypt's leadership, welcomed Egypt back into the Arab League, and came back to Cairo. President Mubarak has been no less a proponent of peace than his predecessor. President Mubarak has been a peacekeeper and peacemaker, a true leader of the region. His counsel is always sought by the United States, his support for peace efforts always available.

Whenever there has been a crisis in the region, President Mubarak has been at the forefront, urging action, seeking to avoid armed confrontation, and offering his counsel and his country's services. Sharm el Sheik has become known as much more than a superb tourist destination on the Red Sea; it has become famous as a landmark where historic action unfolds. Egypt's contribution to the Middle East Peace Process is vital. The leadership role Egypt plays in the region is irreplaceable. The United States recognizes these facts, and is highly appreciative of President Mubarak's constant attention to the cause of peace in the region.

We are now ten years removed from the Madrid Conference, when Arabs and Israelis sat down together and negotiated with one another, producing a workable approach and timetable for reaching a final peace settlement. Many of you here in the audience today have lived half your lives since that time. Although it seems so long ago, Madrid is the spirit that we are currently trying to recapture, when both sides set aside conflict and rhetoric, and sought peace. The world lost an opportunity for peace at Camp David in July 2000, when the Israeli administration under Prime Minister Ehud Barak, and Chairman Arafat and the Palestinian Authority failed to reach agreement on permanent status issues. With the outbreak of violence by both sides shortly thereafter, the effort has since been focused on stopping the violence, and rebuilding trust so both sides can return to the negotiating table.

With Egypt's strong support, America has taken a prominent part in these recent efforts. Just this last April, an international panel known as the Sharm el-Sheikh Fact Finding Committee, led by US Senator George Mitchell, published its report on what both sides should do to stop the violence and enable a return to the negotiating table. This path to peace has been accepted both by the government of Israel under Prime Minister Ariel Sharon and by the Palestinian Authority and Chairman Arafat. The plan has also received the overwhelming support of the world community, all of whom are eager to see the current cycle of violence end as soon as possible. The UN Secretary General, Kofi Annan, has supported the plan as well.

Both sides have also agreed to a ceasefire and security plan proposed by CIA Director George Tenet, which took effect on June 13, 2001. This work plan sets forth a time-phased set of steps to be taken by both sides in order to achieve a lasting ceasefire, and provide security assurances needed by both sides before negotiations on permanent settlement issues can begin. As violence between the Israelis and the Palestinians continued into the fall months, Secretary Powell asked the former Commander in Chief of the US Central Command, General Anthony Zinni, to serve as a Senior Advisor. General Zinni's mission is to assist the two sides in obtaining a durable ceasefire that will enable them to take further steps back towards the negotiating table. We are committed to remaining engaged in this effort.

Despite enormous problems facing the Middle East, we in the United States have great hopes for this vital and strategic region. The US Secretary of State, Colin Powell, best articulated this vision during his Foreign Policy address in Louisville, Kentucky in November: As the Secretary said only a few weeks ago (on November 19th in Louisville, Ky), "(The United States has) a vision of a region where Israelis and Arabs can live together in peace, security, and dignity. We have a vision where two states, Israel and Palestine, live side by side within secure and recognized borders...where all people have jobs that let them put bread on their tables, provide a roof over their heads, and offer a decent education to their children...(and) a region where people worship God in a spirit of tolerance and understanding... and... where the sanctity of the individual, the rule of law, and the politics of participation grow stronger day by day."

The United States remains committed to this vision, and we will remain engaged to help the Palestinians and the Israelis make this vision a reality. Ladies and Gentlemen, I review this history, and recall for you the guiding principles of U.S. policy, because my country has taken more than its share of criticism, as if we had not offered a clear path to negotiations and a vision of their outcome. You may ask for more - I would be surprised if you did not; I ask you to see the record of our engagement and the seriousness of our purpose. The hard truth, however, is that it would be fruitless for America to impose any solution on the two parties; none of the serious problems in the Middle East can be solved by the U.S. alone. What we can do is to show leadership and resolve, and we are committed to this process. We also listen to our friends in the region, because we realize that no one has a monopoly on wisdom.

Only the Israelis and the Palestinians can make peace. Only they can ultimately decide what the answers to some hard questions will be. Americans and Egyptians cannot make Israelis and Palestinians trust one another; the trust needs to be earned by the actions of each towards the other. For peace to be lasting and durable, it must be made by the parties themselves. Before the two parties can get to the tough issues remaining between them, the violence, terror, and fighting must end. Before a return to negotiations is possible, revenge and reprisals must stop. For those of you in this audience who ask what you can do, consider this simple message to all parties: stop the violence, start negotiations. Everyone must realize that the depth of fear and despair suffered on one side is mirrored on the other side as well. Only when each can acknowledge the essential humanity of the other will the basis for a true reconciliation be established.

The Palestinians must put an end to acts of violence and terror. The Palestinian leadership must demonstrate to Israel and the rest of the world that the rule of law will be upheld in a future Palestinian state. Only by the arrest, prosecution, and punishment of those individuals and groups involved in such acts, as the Palestinian leadership has agreed to do, will the Israelis feel secure. Suicide bombings must stop. The Palestinian Authority must also act to undo the damage from the seizure of the arms-bearing ship the Karine-A. This misguided action, which has raised serious questions as to the ultimate intentions of the current Palestinian leadership toward peace, has been a harsh blow to peace prospects.

The Palestinians must also stop the incitement to violence. A population constantly fed a message of hate is not a population ready to accept peace. Media messages urging revenge and reprisal are an invitation to begin another cycle of violence and death. Young men who strap bombs to themselves, and set them off in buses, markets, or pizza shops are not heroes - they are murderers, killers of innocents. Very sadly, it is now reported that a young woman has also blown herself up. Their glorification is an incitement to hatred and violence for other young men and women whose lives would be better spent building a lasting peace for their people. The incitement to violence must end, for the sake of peace, and the sake of the Palestinian people.

The Israelis must also take their own steps to put an end to violence and fear. Building a peace that will last does not begin with the destruction of Palestinian homes and villages. Large-scale military incursions into towns under Palestinian Authority control will not help either. We also oppose targeted killings by the Israelis and we have said so repeatedly, just as we have called for a halt to settlement activity. Provocative actions on both sides must end. Palestinians must have the same assurances of peace and stability in their lives as Israelis, the same freedom from fear and violence. Indiscriminate and disproportionate use of lethal force against unarmed Palestinian civilians by Israeli security forces has produced a long casualty list, children among them. This must stop.

Israelis and Palestinians alike will have to work hard in the months ahead to overcome a mountain of distrust and hatred. It is easy to be discouraged; right now, it is hard to see a way forward. But despite the level of violence over the past sixteen months, the United States has not given up hope that a peaceful resolution of the conflict is possible. We will remain engaged and, with the help of a concerned international community, will work diligently to bring the two parties together once again. We are cognizant of the difficult task ahead, both in achieving a hopeful vision of the future for the region, and in assisting to bring peace to the Middle East. Egypt's support and assistance in this effort is vital. We will seek your advice, and listen to your counsel.

I urge you not be overwhelmed by a sense of powerlessness and despair. Students, faculty, and ordinary citizens, all of you can contribute in your own way by encouraging reasonable dialogue, by promoting academic and cultural exchanges, and by making your voice for peace heard. Th ere is no lack of opportunity for any of you to become involved in this search for peace. We are determined to make this vision of peace a reality. We welcome the challenge, and look forward to working together with those in the region who share our message of peace and future prosperity.

The roadmap is there for the parties to embark upon if they have the genuine will. It goes from Tenet to Mitchell; to negotiations on the basis of UNSCRs 242 and 338; to the vision of a future Middle East laid out by President Bush to the UN General Assembly and by Secretary of State Powell in Louisville. All the pieces are in place-what we need now is to construct the bridges that will take us from one piece to the next. We are determined to see that happen but the parties must also show the same commitment to that vision. I hope you will do so as well. A final personal note - I am sure many of you disagree with things that I have said. I do not hope to win any popularity contests. But I do hope to contribute, in this great place among so many bright minds, to something on which I am sure we all can agree; reasonable discussion among people of reason liberates us all. Thank you for your kind attention, and I look forward to your questions.

(end transcript)

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