speeches by amb. coats

Thank you Mr. Staudacher for your kind words of introduction. I'd also like to thank Dr. Wailemann and the Konrad Adenauer Stiftung for giving me the opportunity to speak to you today.

Ladies and gentlemen: I am honored that you have invited me to speak to you today. As I have said on other occasions, I feel privileged that President Bush asked me to serve as United States Ambassador to Germany.

As you have noted, Mr. Staudacher, the tragedy that occurred September 11 has had -- and will continue to have -- far-reaching effects on our lives and our work. It has already had an immense impact on the global foreign policy order; some say the paradigm has changed irrevocably, that relations between states will never be quite the same.

Mr. Staudacher, you have also pointed out that I have had the opportunity, since the time of my arrival in Germany, to see and hear different aspects of the German "mood" with respect to the campaign against terrorism and, in particular, to America and America's role in the world. To that I must note in every democratic society -- including our own -- differences of opinion are to be expected; indeed they should be encouraged. Of course, the current international situation and the course of our common struggle against terror has resulted in very close cooperation and coordination. I am convinced that Germans and Americans by and large share the fundamental belief that tough action was and is necessary if we hope to create a world free from the scourge of terrorism.

Ladies and Gentlemen, prior to September 11, some in Europe and elsewhere were questioning whether America and Europe still held dear the same values and ideals, suggesting that America was drifting away from Europe. They were concerned that the focus of America's commercial and strategic interests was shifting elsewhere -- to Asia, or Latin America. They called into question America's continued commitment to fundamental ideals, wondered about American neo-isolationism, and perceived an America that was less dedicated to international institutions and international law than to the unilateralist pursuit of American interests around the globe.

I have said it before, and it is worth reiterating here: that debate is over.

Instead, we are now witnesses to a renewed commitment to the eternal core of transatlantic solidarity; to the permanence of German-American friendship. Our relationship of trust, shared values, and affection has been nourished and strengthened by the solidarity the German people have displayed in the months since September 11.
It has become clear in the aftermath of September 11 that we do have a common purpose and share common values, among which are respect for all human life, ensuring the safety and security of our people, upholding the rule of law, and advancing the cause of freedom and democracy. These values will continue to provide the organizing principle for our common activities. We will again, overcome obstacles and, together make this new century one of hope, progress, and benefit for mankind.

What is the initial result from the shock and horror of September 11th? It is that the basic foundations of our society remain strong ... it is the courage and heroic efforts of our people when faced with terror and adversity ... the compassion and support for the victims, care for the wounded, support for family and friends ... it is the resolve that justice will prevail and that the scourge of terrorism will be eliminated. And I can unequivocally state today that the result is the re-affirmation of the strong grid of connections between Germans and Americans, built on a bedrock of immutable democratic values.

But another result is that we must acknowledge and accept that our world has changed. America has certainly changed. And America's dealings with its partners as well as with its adversaries has changed.

This new dimension of global affairs will inevitably have an effect on the German-American relationship. The challenges include economic globalization; social and economic modernization; reshaping the priorities of the transatlantic partnership; German national interests and self confidence; the future of Europe; the European Security and Defense Identity; the Common Foreign and Security Policy; missile defense; trade disputes. It is my belief that our discussions will from now on take place in a new, different context. It is a context that will be shaped by the far-flung, intense international effort to combat the international terrorist threat. All those subjects and more will be fundamentally transformed by this new common task.

Perhaps the most far-reaching changes for the U.S.-German relationship will be derived from the new security challenges we now face. On September 11 we were witness to the shape this new threat has taken. It is therefore incumbent on the United States, Germany and indeed all countries at this critical time to continue to focus on current and future threats, and not to the past.

A key question facing us is how to strengthen stability by facing and countering these new and varied threats. And this is not only a problem for the United States, but for all countries around the world. And the reason that this is a global concern is the global proliferation of dangerous technologies into so many hands in many unstable areas of the world.

The United States remains committed to further strengthening our common efforts to halt the proliferation of weapons of mass destruction and the technology needed to create them. We have seen all too graphically what harm can be caused to innocent people by evil men with no regard for the sanctity of human life. Using what we would call "conventional" weapons, terrorists were able to end the lives of thousands. The death toll in a terrorist attack with weapons of mass destruction would be far higher and indeed catastrophic. Stopping the spread of weapons of mass destruction will require a cooperative effort, and Germany will have a key role here as well. We will be counting more and more on your help in stemming the spread of weapons of mass destruction, just as we will rely on your help in the struggle against terrorism generally.

But our cooperation extends far beyond the struggle against terrorism, and in my view will grow even broader and more wide-ranging as we seek to meet the challenges that the future holds. Germany and the United States already cooperate on a multitude of issues at all levels. In NATO, Germany functions as the principal bridge to the newest members of the Alliance, Poland, Hungary and the Czech Republic. Germany plays a pivotal role in the Alliance's initiatives in the Balkans, as it does in our efforts to develop deeper dialogue with Russia, Ukraine and the other successor states of the former Soviet Union. Our cooperation on key foreign policy issues was most visible with respect to Afghanistan, where Germany played host to the successful talks that led to the establishment of a transitional Afghan government that we hope will lead that country out of despair and towards a future of peace and prosperity.

Another example of our common ideals being transformed into common action to preserve peace and stability is the work that German, American and other Allied forces are performing in the Balkans. Over the past decade, in Bosnia, Kosovo and now Macedonia, our challenge has been to promote security in the Balkans. And despite the dire predictions of skeptics, the Alliance has succeeded.

And, there is no greater demonstration of our common resolve than committing our soldiers to a perilous task. Whether it is to end ethnic cleansing in Bosnia and Kosovo, or to bring the parties in Macedonia to the point where they can reach political solutions, or in combating terrorism, it is imperative that we have the military capabilities to match our policy. And more important, that we have the political will to use that military force when necessary.

I would now like to talk a bit about the U.S.-German economic relationship: another key element of our existing -- and increasing cooperation.

Our shared interest in market-oriented economics and liberal international trade make the United States and Germany natural partners, and -- now more than ever -- the world needs our joint leadership on the important new economic problems of today and tomorrow. It is by now quite clear that one of the aims of the September 11 terrorist attacks was to deliver a blow to the world's financial markets and economic framework, with the hope of bringing the international economy to its knees.

We must not allow this to happen. Rather, we must resolve to increase our cooperation and restore the confidence of consumers and investors, even as we continue our ongoing efforts to deal with longer-term issues such as adjusting to a global economy, educating our labor forces for new demands, balancing growth and environmental concerns, and sustaining public support for trade liberalization. In all these areas neither side has all the answers, but we can learn much from each other and hopefully find common ground.

If September 11 had never happened, the United States and Germany would probably mainly be discussing bananas, hormone-treated beef, foreign sales corporations, genetically modified organisms, and the like. It's not that these and other trade disputes have suddenly disappeared. As I noted before a different audience yesterday, last week I met with Economics Minister Mueller. He asked me about steel, and I asked him about biotechnology. But I think we would all agree that the events of September 11 have forced a new perspective on us. The focus now is not on the various irritants that might divide us, but on the core of common values that unite us against a common enemy that threatens not only our lives, but also our livelihood.

A good example of that is the agreement in Doha last month to launch a new round of multilateral trade liberalization negotiations. I know that tough negotiating preceded even this agreement just to begin negotiations. But in the end, all sides made compromises, including in politically sensitive areas, for the greater good of showing the resolve of the international community and reducing trade barriers in the interest of future growth. Cooperation between the United States and the European Union was critical to this successful outcome.

Ladies and gentlemen, even as we seek to expand and deepen our economic ties, we must work together to overcome the occasional U.S.-German and U.S.-EU trade or investment disputes, which still generate headlines from time to time. While we cooperate in the fight against terrorism, we dare not minimize these disputes, which affect real companies with real employees and shareholders. Indeed, an important part of my job is to work with the German government and German private sector to help find solutions to these problems. Still, I maintain that September 11 has given us a new perspective. We have seen the harm that terrorists have already done to the world economy. And the global situation requires us to deal constructively with our various trade and investment disputes in ways that promote future economic growth.

Which brings me to my final point on the importance of restoring economic growth. On October 6, the United States hosted a special meeting of the G-7 finance ministers to address the economic issues arising from the September 11 attacks. There was agreement at this meeting about the best way to address the global economic slowdown in light of the impact of September 11. It was for each country to respond with economic policies appropriate to its own situation. In the United States, that meant the tax cuts and emergency spending plans. In some European countries, that meant speeding up tax cuts already in place.

Importantly, the G-7 went beyond stabilization issues and considered policies to increase long-term economic growth. They agreed on the importance of identifying policies in areas such as trade liberalization, education, and tax policy to improve long-run growth potential -- both of their own economies and the global economy as a whole. Two things strike me as especially important about this G-7 consensus. First, while recognizing the impact of the external environment, the G-7 countries put the emphasis on what each country should do internally to lay the groundwork for future growth. Looking overseas for the causes of one's economic difficulties may appear politically attractive but does not really serve the voters well if it becomes a substitute for national action. Second, the G-7 countries highlighted the important links between a country's macro growth prospects and the numerous micro policy decisions it faces. This is a linkage all countries need to remember.

As the world's third largest and Europe's largest economy, Germany also has a special responsibility to contribute to global growth. Our common interests are clear because economics is not a zero-sum game. Germany gains from faster U.S. growth and vice versa. Given our interest in your prosperity, the United States follows closely the economic policy debates in Germany and the unique and evolving European institutional context. Monetary policy has been housed at the EU level, where Germany has just one vote among twelve. EU commitments also limit Germany's fiscal options, though I believe the broad consolidation course has been sound and will bring medium- and long-term benefits. Germany has perhaps the greatest leeway for independent action on structural policies, and here there is much scope for pro-growth initiatives, in areas like labor market policies, continued deregulation, reducing subsidies, and support for future-oriented sectors such as biotechnology.

I believe these are the very areas the G-7 ministers were referring to at their October meeting, and it is critical that Germany and all G-7 members follow up by reviewing their policies and adopting those reforms that will promote growth. Such action would be fully consistent with the advice from outside experts at the IMF and OECD, as well as the German Council of Economic Experts, the various economic institutes here, and the "Benchmarking" study commissioned by the Alliance for Jobs. It would also be consistent with the EU's Lisbon Process to promote competitiveness through structural reform. In other words, there is no shortage of studies and recommendations on the steps needed to promote economic growth. The need is for action, and the current state of the world economy calls for it urgently.

Ladies and gentlemen, the United States is deeply grateful to Germany for the solidarity its government, businesses and people have shown in these difficult times and for Germany's strong support in the fight against terrorism. Our countries' shared commitment to democracy and market-oriented economics makes us natural partners, and the world needs our joint leadership on the important new economic problems of today and tomorrow. History shows the important connection between vigorous international leadership and a strong national economy. In that spirit, we must all continue to build on the strong foundation of U.S.-German cooperation to promote future growth.

The transatlantic agenda remains a full one. The United States remains committed to working closely with Germany to put this agenda into effect, and I pledge to do my part to achieve this goal. Of course, there have been and will be disagreements along the way, but those disagreements almost always involve means and methods, not goals and ideals. Our shared belief in the fundamental importance of transatlantic cooperation to the security and prosperity of both our countries remains, now as before, the bedrock of U.S.-German relations. As we face new and varied challenges, Germany is an even more valued Ally and partner for the United States. This is not solely due to the political and economic importance of the Federal Republic, but also due to the values and ideals which the German and American people share. The United States recognizes that German support is essential to addressing the varied and complex issues facing Europe and, indeed, the world.

Thank you very much.