U.S. Ambassador Speaks on U.S.-Egyptian Partnership

(Address to American Chamber of Commerce, Nov 7) (3420)



Speaking before the American Chamber of Commerce in Cairo, Ambassador
C. David Welch expressed U.S. appreciation for Egypt's support and
counsel in the fight against global terrorism.


Egypt is "doing what close friends and allies do when their help is
needed. And it is doing it effectively. Whatever you may have heard or
read in the media, this is the official view of the United States
Government," Ambassador Welsh said.


Noting Egypt and the United States have developed a "deep, stable,
mature, and multifaceted relationship," Ambassador Welch said both
countries continue to pursue a broad-based political and economic
agenda.


Below is the text of Ambassador Welch's remarks as prepared for
delivery November 7, 2001. This was his first major policy address
since being sworn in as U.S. Ambassador to Egypt August 3, 2001.


(begin text)



"The United States and Egypt: Global and Regional Partners" Address by
Ambassador C. David Welch before the American Chamber of Commerce in
Egypt, Conrad Hotel, November 7, 2001


Mr. Mansour, Mr. Fahmy, Honored Guests,



I'm very pleased to appear today before the American Chamber of
Commerce for my first major policy address as Ambassador to Egypt. I
am delighted to deliver it to the first American Chamber of Commerce
in the Middle East, and among some of America's closest friends. For
nearly 20 years you have been doing a superb job of advancing Egyptian
business interests in the United States, and American business
concerns in Egypt. I look forward to continuing our fruitful
partnership during my tenure in this country.


I would also like to thank the Conrad Hotel for having us here today.
The Conrad put on an impressive display last Friday night when it
hosted our annual Marine Corps Ball. It was a splendid event, and I
want to thank General Manager Mark el-Awady and the Conrad staff on
behalf of the Marines and the entire US Embassy community.


My friends, we have had some very busy and eventful months since my
arrival in August, to say the least. The events of September 11
ushered in a new era not only for the United States but for the
international community as well. We have all been forced to take a new
look at our priorities. Some things that seemed important prior to the
11th of September seem secondary now. But the importance of the
US-Egyptian bilateral relationship has never been more evident. As the
campaign against the Taliban and Osama bin Laden's al-Qai'da
organization proceeds, it is clear who our friends are. Like President
Bush, I am gratified that we can count Egypt as one of our strongest
supporters.


But at the same time Egypt and the US confront the threat of terrorism
together, we are continuing to advance our bilateral relationship
along a broad-based front -- political, diplomatic, and economic. We
are truly partners in the global sense, working together to advance
important global and regional goals.


Before I talk about that in a bit more detail, I would like to bring
you up to date on where we stand now in the international campaign
against terrorism. It's important to note here that the attacks of
September 11 were not just an attack against the United States, but
against all our friends and allies who oppose terrorism and the
terrorists' agenda of violence against innocent people for political
gain. Citizens of some 80 countries, including Egypt, were senselessly
murdered that day. Because of this, we have worked hard to bring
together all those who share our determination to confront and destroy
the threat of terrorism.


As our strategy has taken shape, we have consulted closely with our
friends and allies, including President Mubarak. We have listened
carefully to our friends' advice, and it has been reflected in our
actions. We have gone the extra mile to address several concerns
expressed by our Muslim friends ever since the start of the crisis. We
have not acted precipitately. Our response in Afghanistan was
carefully considered, our actions were undertaken on the basis of firm
evidence, and launched with a compelling international mandate.


I won't go into detail here about al-Qa'ida's involvement in the
September 11 atrocities, except to note that some very specific
information we developed, as well as the similarity of the attacks to
other al-Qa'ida operations, pointed conclusively to al-Qa'ida's
responsibility for the attacks. The British have also published a 70
point paper that provides more detail on al-Qa'ida's connection to
terror; it makes very interesting reading.


Where doubts about the evidence once were commonplace, I get the sense
that the world has moved on. Any remaining questions about al-Qa'ida's
guilt seem to have been answered by Bin Laden himself in his taped
remarks released after the beginning of our military operations on
October 7, with his threats to undertake further terrorist attacks. I
am gratified to note that his exultation of these attacks has been met
with disgust by many, including here in Egypt.


We also appreciate Egypt's public statements refuting Bin Laden's
self-declared right to represent the face of Islam to the world. As
Foreign Minister Maher so rightly noted in Damascus earlier this week,
after Bin Laden released his latest verbal assault -- which broadened
to include Nobel Peace Prize winners Kofi Annan and the United Nations
-- this is not a war of religions, but a war between Bin Laden and the
world. The Grand Imam of Al-Azhar, Sheikh Tantawi, and other religious
notables in Egypt and abroad have also condemned the September 11
attacks and rejected characterizations of our actions in Afghanistan
as a war against Islam.


I think the Arab and Islamic world, which I have always known to be
enlightened, is determined to cleanse itself of those like Bin Laden
who would attempt to hijack a great religion for extremist political
purposes.


With regard to our legal right to respond as we have, our actions are
fully justified and authorized by international law and the Security
Council. Article 51 of the UN Charter grants all nations the right of
self-defense. Our allies in NATO explicitly endorsed this right when
they invoked Article 5 of the North Atlantic Treaty, which states that
an attack on one NATO member is an attack on all. Moreover, the UN
Security Council has passed two resolutions in the aftermath of these
attacks calling for states to combat terrorism by all means and
reaffirming the inherent right of states to self-defense. The General
Assembly adopted a similar resolution at its first plenary session on
September 18. I would also recall for you that the Security Council
has had obligatory resolutions in effect since 1999 that specifically
call for Bin Laden to be brought to justice -- outside Afghanistan.


We have come in for some criticism lately from people who are unclear
about what we are doing now in Afghanistan and where this war might
lead. So let me be clear about what this campaign is about, and what
it is not about.


We have a very straightforward goal: the elimination of the al-Qa'ida
network and the Taliban leadership that shelters it. We will also work
to root out terrorists and their networks wherever they may be found.


As I said earlier, this is not a war against Islam or Muslims.
President Bush spoke very eloquently to this point when he said, "We
are friends of almost a billion worldwide who practice the Islamic
faith. The United States is an enemy of those who aid terrorists and
of the barbaric criminals who profane a great religion by committing
murder in its name". Indeed, we have worked closely with many Muslim
countries in the aftermath of September 11. After all, the violent
extremism of al-Qai'da and like-minded fanatics is a deadly threat to
moderate Arab governments such as Egypt that have strongly opposed
them in the past and continue to do so now.


This is not a war against Afghanistan, either. We remain strongly
committed to helping the Afghan people, who after all have suffered
the most from the Taliban's misrule. The US remains the single largest
donor to humanitarian relief efforts in Afghanistan, having provided
close to $1 billion in assistance over recent years. US assistance to
the Afghan people for our 2001 fiscal year totaled nearly $184 million
in food, health care, water and sanitation efforts, and shelter.
President Bush has also announced an additional $320 million for new
humanitarian aid to make sure the people of Afghanistan are fed and
their medical needs met. We are working with the UN High Commission
for Refugees, the International Committee of the Red Cross, and other
NGOs. We are providing US-origin food assistance for displaced persons
in Afghanistan and refugees in neighboring countries. We will work
closely with the international community to meet the needs of Afghans
as winter approaches.


And let me correct one other misperception: that we are bombing the
very same people we are trying to help. I want to make it clear that
the United States is trying to avoid striking any civilians or
civilian facilities. Sometimes, despite our best efforts, civilian
casualties do occur. These are deeply regrettable. The safety of the
Afghan people is of great importance to us, by contrast with the
Taliban, who have a well-documented history of deliberate attacks on
civilians. I find it ironic that the Taliban and their al-Qa'ida
allies are the ones who understand this best of all. Why else would
they be hiding troops and equipment within mosques and in civilian
neighborhoods if they didn't trust the United States to do its very
best to avoid hitting these targets?


Just as we understand the importance of helping the Afghan people
while we continue to fight the Taliban and the foreign terrorists they
harbor, we understand that military means alone will not win this
fight. Every means must be brought to bear, including diplomatic,
political, intelligence, law enforcement, and financial. In close
cooperation with our friends around the world, this is exactly what we
are doing now.


As Secretary Powell and others have noted, different countries will
have different things to offer in the fight against global terror,
based on their political and historical circumstances. Some will
provide diplomatic support; some will help politically; others will
assist militarily and in other ways. And we appreciate the many ways
in which Egypt is helping.


President Mubarak's words of support following the start of the
military campaign were warmly welcomed. So too have been Egypt's
approval of overflight clearances for US military aircraft, its grant
of transit rights through the Suez Canal for our warships, and its
determination to carry out the biennial Bright Star exercise as
planned. Indeed, Bright Star is an enduring symbol of the US-Egyptian
partnership for peace and stability, a symbol that holds special
significance today.


Egypt has pledged its cooperation with global anti-terrorism efforts
in other ways, too. It is providing excellent cooperation with
elements of the United States Government as we seek to destroy
terrorist networks and investigate the crimes of September 11. The
government is actively seeking out terrorist financial assets wherever
they may be found. It is working to strengthen Egypt's money
laundering laws to make it harder for terrorists to move money. Egypt
Air and the Egyptian Civil Aviation Supervisory Authority are fully
implementing new civil aviation security requirements to make air
travel safer.


Egypt, in other words, as a close friend and ally, is doing what close
friends and allies do when their help is needed. And it is doing it
effectively. Whatever you may have heard or read in the media, this is
the official view of the United States Government.


The point I want to emphasize here is that what Egypt and the United
States have done together since the start of this campaign is possible
because the US and Egypt have worked for many years to build a deep,
stable, mature, and multifaceted relationship. And although we are now
focused on the threat of international terrorism, Egypt and the United
States continue to pursue a broad-based political and economic agenda.


We are consulting with Egypt on ways to end the violence in Israel and
the Palestinian areas, reestablish security through the Tenet Plan,
implement the Mitchell Report, and get the parties back to the
negotiating table. The United States is firmly committed to the
achievement of a just, comprehensive and lasting peace in this part of
the world based on Security Council Resolutions 242 and 338. And, as
President Bush said on October 2, "The idea of a Palestinian state has
always been part of a vision, so long as the right to Israel to exist
is respected." We welcome and appreciate the active role Egypt is
playing in helping to get the negotiating process back on track.


We are also working closely with the Egyptian Government on advancing
peace and stability in Sudan. The President's Special Envoy for Sudan,
Senator John Danforth, will be coming to Cairo in the next few weeks
to meet President Mubarak, and Senator Danforth's advance team held a
series of wide-ranging talks with the Foreign Minister and many other
senior Egyptian officials this past week. Our goal is to pursue a just
peace in Sudan with Sudan's neighbors, a peace that addresses their
many interests as well as the needs of the Sudanese people.


On the economic front, Egypt and the United States are looking to the
future as we support Egypt's efforts to build a prosperous,
free-market oriented economy, and to identify ways to cope with the
difficult economic period we face now. Because of the Egyptian
government's commitment to serious reforms since the early 1990s, the
Egypt of today is in a better position to face the global economic
downturn and the post-September 11 shocks than it would have been 10
years ago.


While the impact of September 11 on Egypt's economy is severe,
especially in the tourism sector, this is not the time to slow the
reform process. Instead, this is the time to accelerate the kind of
reforms that will position Egypt to take better advantage of the
global rebound when trade, tourists and investors start moving again.
In fact, I would note that the US Trade Representative, Robert
Zoellick, told Minister Boutros Ghali he is interested in the
possibility of initiating discussions on the elements of a potential
US-Egypt Free Trade Agreement.


We have a robust policy dialogue with the government. Here's our
outline:


First, define the dimensions of the problem. A World Bank team will
arrive here next week to work with the government on projections of
the potential impact on all sectors of Egypt's economy. We will
cooperate closely with this mission, as well as Ministers Boutros
Ghali and el-Darsh, and are prepared to offer US advice and expertise
if needed and requested.


Second, share ideas on what to do about the problem. We have some, the
GOE has some, and I am sure we will agree on a positive,
forward-looking agenda.


Third, what is done now is profoundly important to position Egypt for
the future.


We are encouraging the government to press ahead with its agenda of
key reforms that could substantially improve Egypt's investment
climate. These key reforms are: passage of a money laundering law; a
TRIPS-consistent IPR law and its implementation; a labor law;
adherence to one or both of the WTO agreements on Basic
Telecommunications and Information Technology; completion of a public
expenditure review; a competition law; and corporate tax, sales tax
and customs reform. Nearly all of these reforms are in progress and
achievable. Several of them are on the fall agenda of the People's
Assembly.


At the same time, our two governments are discussing steps we both can
take to address the economic impact of the war on terrorism. We are
urging the Government of Egypt to consider using all of the monetary
tools at its disposal, including both a flexible exchange rate policy
and prudent deployment of its substantial foreign exchange reserves,
as it seeks ways to address the expected foreign exchange revenue
shortfall from the crisis. All these subjects were on the agenda
during Minister of Economy and Foreign Trade Boutros Ghali's visit to
Washington just last week.


Despite worries about present trends in the global economy, though,
the fundamentals of the US-Egyptian economic relationship are sound.


The U.S. is by far Egypt's largest bilateral trading partner, and that
trade has been growing. Egypt's exports to the U.S. grew by 44% from
1999 to 2000, and continued to increase, totaling over half a billion
dollars in the first six months of 2001 alone, up another 22% over the
same period in 2000. And, no matter what you have heard, that trade
continues.


Our two countries cooperate closely on multilateral trade issues; in
particular, the World Trade Organization and the Ministerial meeting
in Doha that begins in two days. We are working towards launching a
new round of negotiations to liberalize trade further. The case for a
stronger international trading system is even more compelling today
than before September 11 -- agreement to open a new round of
negotiations would help us to restore confidence in the global
economy. As Chairman of the Federal Reserve Alan Greenspan said
recently, "A successful trade round would lead to a stronger global
market system. A successful round would not only significantly enhance
world economy growth but also answer terrorism with a firm
reaffirmation of our commitment to open and free societies." Egypt
plays a key and active role in negotiations for a new trade round, to
promote its own interests and its role as a leader of the developing
world.


With regard to the investment picture, there is some good news. The
U.S. is the second largest foreign investor in Egypt, thanks to many
of you here in the audience -- and that investment is growing. Apache
Oil, Procter & Gamble, and Chrysler are just three examples of major
American companies that expanded their investments here in the past
year. As I speak, another American company, Guardian Industries, has
its representatives here doing research work in preparation for a bid
on an upcoming privatization. American investments in almost every
sphere of the economy provide jobs, exports, and tax revenues to the
Egyptian economy.


Meanwhile, our economic cooperation program in Egypt remains USAID's
largest worldwide, at $655 million for our 2002 fiscal year. It
supports the Egyptian goal of a globally competitive economy that
benefits all Egyptians. Much of our assistance is directed at efforts
dear to your hearts as businessmen: tax reform, improved protection of
intellectual property rights, foreign exchange to support imports of
key industrial inputs, reduction of customs and other bureaucratic red
tape. Other projects help build the phone, power, water, educational
and administrative structures that both help the common Egyptian and
will make Egypt a more attractive destination for foreign and domestic
investors. Those efforts also will continue.


And I want to add that in all of this the United States Embassy is
enthusiastic, dedicated and positive. We are open for business and are
working every day to build the US-Egyptian partnership.


The Embassy continues to function and provide the full range of
services to Egyptians and American citizens living in Egypt.


While mindful of the regional security picture, the Embassy has been
assuring Americans in Egypt that it is all right to stay, invest, do
business, and pursue their careers here. Egypt is not a "war zone."


We have helped Cairo Airport upgrade its security to ensure the
continued safety of air travel into and out of Egypt.


We are also helping and encouraging Egyptians who need to travel to
the US. Our visa section was back in operation 48 hours after the
events of September 11. Extra appointments were added to assist those
who missed theirs during restricted Embassy hours. We have been
reassuring people that their current visas remain valid and that no
revalidation is necessary.


So, as you can see, many things have changed since September 11, but
many others have not. The inherent strength and value of the
US-Egyptian relationship is a constant. We will continue our work
together to confront and defeat the threat of terrorism, bring peace
and stability to this region, and build a better future for Egyptians
and Americans.


Thank you.



(end text)



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