Abu Dhabi
May 28, 2003
An
overview of regional developments
Members of the ABC, Ladies and Gentlemen, Friends. I am happy to
have this opportunity to address you. I strongly support a close
dialogue between the Embassy, the Consulate, and the American business
community and I will be looking to you to share your ideas and concerns
with me and my staff as together we seek to build ever closer bilateral
economic and commercial ties between the UAE and the United States.
My remarks today will focus primarily on Iraq, but I also will touch
on the Roadmap as well as our commercial interests here. I look
forward to hearing your views and or questions after my prepared
remarks.
Iraq
The United States has a special responsibility in Iraq to restore
the infrastructure and services while supporting the people as they
work to establish a free and democratic government. Since the appointment
of Ambassador Paul Bremer, the Presidential Envoy to Iraq, there
have been significant achievements. At this time, Ambassador Bremer's
top priority is security. He has issued a directive ordering individuals
to hand in automatic and heavy weapons or face criminal charges.
Meanwhile, Ambassador Bremer and his team have worked hard to bring
more than 10,000 police officers back on the streets, and to get
Iraq’s Criminal Court to resume legal proceedings.
Ambassador Bremer and his colleagues also have focused on education. His team established a new salary structure for teachers increasing their pay rate by four times the previous amount, and salaries to most other government employees have resumed. The Ministry of Education should receive the first salary payment next week. All of Iraq’s primary and secondary schools reopened on May 10, and attendance is 90 percent of pre-war levels.
Another significant development was the transfer of the Port of Umm Qasr to civilian control on May 23. Stevedoring Services of America won the contract to manage the port and is in the process of hiring 3,500 local workers. As you know, Dubai Port Authority is assisting in this effort. Additionally, all of Iraq's major airports have reopened to humanitarian aid flights, dozens of which are arriving each day.
Most importantly for the future of Iraq, the UN Security Council recently voted to lift trade sanctions and Iraq is now allowed to export oil freely. The new UN resolution spells out a role for the UN Envoy and opens the door to international support for Iraq's reconstruction.
While the immediate humanitarian concerns have subsided, the Coalition Provisional Administration is focused on the long-term needs of the Iraqi people. The infrastructure of Iraq is decrepit and dilapidated, neglected by the Saddam regime for more than a decade. Iraq will be transformed, but the progress will be slow and gradual.
With the UN's decision to lift sanctions, Iraq will start to export oil immediately. Iraqi oil production has risen to approximately 800,000 barrels per day and should reach pre-war production levels of about 2 million barrels per day by the end of the year.
Repairs to the deteriorated runways of Baghdad International Airport may delay the start of commercial civilian air service for up to two months. New radar equipment that meets current civilian commercial standards must be installed, and customs and immigrations authorities need to be instituted.
In the education sector, 2000 of the most run down schools will be renovated during the summer break and will be ready for the new term in September.
USAID's implementing partner, Bechtel, has issued five orders to immediately upgrade or repair the major stations of the Iraqi power grid -- only one is related to damage caused by the war; the others are to repair and upgrade infrastructure neglected by Saddam’s regime. USAID also awarded seven other major contracts to U.S. companies to address education, local governance and other reconstruction issues.
The Commerce Department also recently launched an Iraq Reconstruction Task Force to provide U.S. companies interested in participating in the reconstruction of Iraq with information about business opportunities and commercial conditions. The task force will offer valuable information on key industry sectors, current reconstruction efforts, potential obstacles to doing business in Iraq and information about remaining sanctions on weapons and dual-use goods. Commercial Officer John Lancia can provide information about the Task Force and additional information can be found at the Department of Commerce website, as well.
In Baghdad, the U.S. consulting firm Research Triangle Institute is implementing the Neighborhood Advisory Council project, which includes 83 neighborhoods in the city. Neighborhood committees will form and select representatives to the Baghdad City Council, which will serve the needs of more than five million Iraqi citizens. I think this is one of the most interesting and challenging projects in Iraq, as it will create a mechanism for political participation at the grass-roots level.
Ambassador Bremer meets with Iraqi community and tribal leaders everyday, and he seeks to convene a national conference to form an Interim Iraqi Authority in July. All Iraqis should have a voice in a new democratic, representative form of government that establishes a rule of law and respect for all Iraqi religious and ethnic groups. Therefore, the next few months will be very important for the future of Iraq and the role of the United States in partnership with Iraq's emerging leadership.
It is impossible to talk about the reconstruction of Iraq without singling out the efforts of the UAE, which have been significant. We greatly appreciate the leadership role the UAE is playing in Iraq’s humanitarian assistance and are proud of the efforts of the U.S. Embassy in Abu Dhabi in aiding them. During the war, the UAE government focused on addressing food and water shortages and attending to the medical needs of the Iraqi people. I am very pleased that our Embassy and Consulate were able to facilitate the UAE’s shipments of supplies and movement of medical personnel into Iraq.
For example, the UAE Red Crescent Authority delivered more than 700 tons of foodstuffs and nine vehicles on April 11. This was the first NGO humanitarian delivery to Umm Qasr. The UAE Government also adopted Uday's Olympic Hospital in Baghdad -- now appropriately renamed the Shaykh Zayed Hospital -- in April and a 150 person medical team of doctors, nurses and administrators is providing medical care to Iraqi civilians free of charge. The Embassy facilitated the UAE's plan to adopt this hospital, and U.S. military and Embassy officers accompanied the UAE's medical assessment team to Baghdad in early April. Most recently, the UAE evacuated more than two-dozen wounded and sick Iraqis and their families to the UAE for medical treatment on May 21.
Dubai is and will play a prominent role in the reconstruction efforts in Iraq. The Dubai Port Authority was selected as a subcontractor to Stevedoring Services of America to help manage the port of Umm Qasr. The DPA's role is to focus on Umm Qasr's unique cultural and environmental challenges in Iraq.
USAID also selected Dubai as a one of three key regional "logistics support centers" for the rebuilding effort (the others are Mersin in Turkey and Aqaba in Jordan). Furthermore, the UN's World Food Program is using Dubai as its regional warehousing and shipping hub and plans to make Dubai a site for the prepositioning of foodstocks for worldwide relief efforts.
The
Roadmap
In addition to our efforts in Iraq, the United States is committed
to broader initiatives throughout the region, in particular, peace
between the Palestinians and the Israelis. With the other Quartet
members, the United States presented the Roadmap to the Palestinians
and the Israelis on April 30, as President Bush committed to do.
The recent confirmation of Palestinian Prime Minister Mahmoud Abbas
and the Israeli Cabinet's approval of the Roadmap this week are
important steps forward.
It is important to focus on the Roadmap's broad goals and remain flexible and realistic as we move into implementation. The Roadmap is a starting point toward peace, and a framework for progress. The United States is committed to working towards peace despite the recent increase in violence aimed at derailing the progress made so far.
We are making clear to Prime Minister Abbas that there are important steps he needs to take: immediately demonstrate empowerment in key areas of governance, especially security; make public statements that the armed intifada is over and that all violence and terror must end; and we have encouraged him to accelerate direct contacts with the Israeli Government.
We are also asking the Israelis to take important steps: to ease restrictions on the freedom of movement within the West Bank and Gaza, including internal checkpoints, to begin lifting curfews in all Palestinian populated areas during daylight hours and to allow regular, unrestricted humanitarian access to all areas. President Bush has also made clear the need for Israel to deal seriously with the settlements issue as this agenda moves forward.
MEPI
& MEFTAM
The United States is committed to broad reform in the Middle East,
and is working closely with governments to develop a vision for
this part of the world. The Middle East Partnership Initiative (MEPI)
announced by Secretary Powell last December is designed to expand
economic, political, and educational opportunities for people across
the Middle East. It will also serve as a forum for the U.S. Government
and governments in the Middle East to deepen and broaden our economic
ties, through expanded trade, enhanced strategic policy dialogue,
and the establishment of people-to-people partnerships.
To re-ignite economic growth and expand opportunity in the Middle East, the President, a few weeks ago, outlined a proposal to establish a U.S.-Middle East Free Trade Area within a decade. Building on our free trade agreements with Israel and Jordan, the United States will help reforming countries become members of the World Trade Organization, negotiate Bilateral Investment Treaties (BITs) and Trade and Investment Framework Agreements (TIFAs) with governments determined to improve their trade and investment regimes, and launch, in consultation with Congress, new bilateral free trade agreements with governments committed to high standards and comprehensive trade liberalization. U.S. Trade Representative Zoellick and Secretary Powell will elaborate on the free trade agreement initiative at the June World Economic Forum Conference in Amman.
Commercial
Successes in UAE
Finally, on a closing note, I'd like to mention the terrific work
done by the Commercial Service. During the past two-and-a-half years,
the Foreign Commercial Service in Abu Dhabi and Dubai has facilitated
export sales for more than 250 U.S. companies in the UAE, totaling
close to $5 billion.
One quarter of the commercial sales this year were in the medical equipment sector. The rest were spread out over 22 different sectors, including oil and gas, police and military, educational services, engineering, and the hospitality industry. The Commercial Service supported the first PowerGen electrical power conference in the Middle East and the first three conferences on Middle East Project Finance and Privatization.
We as a Mission strive for your success with relevant UAE Government customers and partnering with local businesses. The Commercial Team makes phone calls, writes letters, and advocates on your behalf. These can take a long-term view, such as a four-year campaign to sell U.S. air traffic control technology to Abu Dhabi Aviation Authority, or be relatively quick, such as encouraging a local company to pay money owed a U.S. supplier after the American firm exhausted its efforts without success. I look forward to working with all of you to help guarantee that American business continues to play a prominent role in the further development of the UAE.
Thank you, I'd be happy to take your questions now.