speeches
Closer U.S.-German Ties: It’s A Fact - What Does It Mean
Ludwig Erhard Initiative Fürth
Ambassador William R. Timken. Jr.
Fürth
March 9, 2006
Thank you very much for the invitation to join you here this evening at this beautiful and historic location. Since we arrived in Berlin in August, Sue and I have had the opportunity to travel to many different parts of Germany. We have had the opportunity to see many fascinating locations and to learn more about the history and culture of this great country. We have also had the opportunity to meet many wonderful people. We have made a point of speaking to as many Germans as possible – of all ages, political persuasions and occupations.
We have learned that the German-American relationship is far stronger, more vital, and more positive than many perceive it to be.
As CEO of the Timken Company and during the year I served as chairman of the National Association of Manufacturers, I used to start every speech I gave with a reality check to highlight the strengths of manufacturing in America. Now, I conduct a similar reality check on the German-American relationship. Coming from the private sector, I know that the transatlantic relationship is mutually beneficial, dynamic and open to innovation and opportunity. And so that is my message as I go around Germany.
And I find myself in good company – in spirit at least. When Chancellor Merkel spoke at the World Economic Forum in Davos in January, she said she went around the country repeating the same idea -- that growth requires freedom. She went on to say, and I quote, “This means releasing brakes and removing obstacles, it means opening the windows to let in some fresh air, and seeing the opportunities created by development rather than concentrating on the risks.
This is freedom with responsibility - not freedom from anything but rather freedom to take action.” Unquote.
That pretty well describes the new climate in Germany; the new climate in German-American relations.
When Chancellor Merkel visited Washington at the start of the year, she and President Bush had the opportunity to meet on a personal level. Their discussions were wide ranging, covering both issues of high importance to our two countries, as well as personal insights, such as Chancellor Merkel's recollections of her experiences growing up in the former East Germany. They spent more than 3 hours together. I had the chance personally to observe their interaction. In my estimation, the duration and substantive content of the discussion between them were symbolic of a new era of dialogue and friendship. I know that the President was deeply impressed, commenting afterwards, that those who have lived under tyranny place an extraordinarily high value on freedom.
Chancellor Merkel stood at the White House alongside President Bush and stated her commitment to advancing freedom throughout the world. Her words of common purpose – in Washington, in Davos, in Munich at the Security Conference, and elsewhere – reflect the reality of transatlantic cooperation today. One year ago, the talk was about how transatlantic partners share common objectives on a number of issues. As a result of a series of very productive visits over the past year starting with the President’s visit to Brussels and Mainz in February 2005 and including the Chancellor’s visit in January, transatlantic partners are now moving on through open and candid discussion of the complex challenges of the 21st century to build a common view, express that view in the world, and – most importantly – act on it.
That doesn’t mean that, all of a sudden, it is going to be any easier to find consensus for common action. It will take patience and determination – just as the Cold War took patience and determination. It will mean translating ideas into action. It will mean having the courage to open up the window to fresh air and new ideas, as Chancellor Merkel said, but it will also mean sometimes closing the door and sitting down in private with friends to hammer out strategies and solutions -- as was the case in the early days of the German "Wirtschaftswunder."
In the summer of 1948, Ludwig Erhard, the ranking German official in charge of economic policy in the British and American zones, acted on the strength of his convictions, and on his own initiative, eliminated all wage and price controls and abolished the rationing of food and other essentials. With one stroke, he legitimated the law of supply and demand and subverted the economic controls that had grown up since the 1930s and, out of sheer necessity, been continued after 1945. General Lucius Clay, outraged by this act of insubordination, pointed out to Erhard that all of the American advisers considered this to be a serious mistake. Erhard is reported to have answered, "Herr General, pay no attention to them! My own advisers tell me the same thing." Events proved Erhard to be right.
History will also judge the course of events in the post-9/11 world of the 21st century – a world threatened by terrorists whose stated aim is to kill civilians. It is a reality of the 21st century that all free people have to accept, understand and work against. Just as the Cold War was different from a traditional war, requiring new strategies, we are examining the best means and mechanisms for dealing with the war on terrorism.
Whatever our differences were on Iraq, Europe and America are moving forward together taking positive action. We are supporting Iraqis as they build their institutions of freedom. We must help them with economic reconstruction, development and other support. Germany has been engaged with rebuilding Iraq by providing training for the military and the police. Billions of dollars of Saddam-era debts have been forgiven. We appreciate the German government's commitment to these efforts. The reason we are fighting for freedom in Iraq and Afghanistan is because we know a free world will be more secure, more prosperous, and better for all of us.
The Bush administration took to heart comments by Germany, the NATO Secretary General, and other allies that we needed to transform NATO into a more effective tool for handling whatever missions the NATO allies may decide to take on in the future. The challenges of this new century will require a capability to take on humanitarian missions to provide stabilization, reconstruction and reform of failed states. Afghanistan is a test case for NATO as it transforms. Germany, with approximately 2,500 troops in Afghanistan, is playing a major role in ISAF for which the world is very grateful.
Germany, along with the United Kingdom and France, has been a leader in negotiations with Iran aimed at preventing that country from acquiring a nuclear weapons capability. One of the great diplomatic successes of the last year -- in terms of countries consolidating around a view -- has been the February 4 Resolution by the Board of Governors of the International Atomic Energy Agency on this issue. The international community is united in its view about what the problem. We are moving towards a consensus on what we need to do about it.
The Iranian regime is a strategic challenge to the world, and a destabilizing influence in the Middle East. The tools the Iranian regime uses to further its reactionary ambitions are political subversion, terrorism, and support for violent Islamist extremism. The United States will continue to work with the EU-3 to broaden that understanding within the Board of Governors of the IAEA. We hope the Iranian regime will heed the clear message of the international community. The world will not stand by if Iran continues its efforts to acquire nuclear weapons.
On another subject, the Iranian Government has cynically exploited the general dismay of Muslims around the world over the printing of the cartoons of the Prophet Mohammed to incite violence. The world ought to call Iran on that point as well. We all must respect each other's religions. We also need to respect freedom of the press but recognize that with press freedom comes a certain responsibility. The United States is a place where there is a strong sense of freedom of religion. Increased dialogue about freedom of religion and freedom of the press belongs with a discussion of shared values of human rights, the rule of law and security for our citizens. That is a fact of our globalized world.
There is also no doubt in my mind that strengthening our economies and intensifying trade is a sure way to address the political and economic challenges we face globally.
Pooling the technological and entrepreneurial strengths of the world's strongest economies is one of the best, most effective ways to create meaningful, well-paying jobs at home as well as stronger growth in developing countries.
We are working with Germany to achieve a successful completion of the Doha round. Trade in agriculture is an especially daunting challenge, requiring bold, decisive action. At the World Trade Organization talks in Hong Kong we reached an agreement to end all farm export subsidies by 2013. We need to build on this and to keep the momentum toward achieving a global trade deal. The U.S. has already made a far-reaching offer to reduce agricultural tariffs and subsidies. We hope that Germany will help lead the EU toward further steps to lower barriers to trade. This will boost prosperity and improve people’s lives. But the trade talks need the energies and contributions of all the 149 members of the WTO.
The United States and Germany need to keep working together to urge emerging markets such as Brazil and India to broaden access to their manufactured goods and services markets. We look forward to Germany -- as the world's leading exporter -- playing a leading role in the Doha talks, especially in paving the way within the EU for lower tariff barriers on farm goods.
Open markets, not protectionism, has been the worlds economic engine since the war, are the way of the future. We can see all around us here in Europe how economies improved and people’s live became better as governments scrapped tariff and other barriers to trade. The Wirtschaftswunder was one example of that. And there are more recent examples. We need to be vocal in talking about these experiences, these examples, with people elsewhere in the world to show them the future is about opening up markets. In that respect, I think the business community has the responsibility to play a more active role in the development of public policy. That was another one of my main messages when I traveled around the United States for the National Association of Manufacturers.
And I find myself repeating that message here in Germany as well – and I think Ludwig Erhard would agree.
The role of government is not to create wealth or to create prosperity. The role of government is to create an environment that unleashes the power of the citizens; private enterprise and innovation in an environment where an entrepreneur can flourish and companies can expand to create more jobs. Nobody understands better than the private sector what policies are good for the economy. Politicians aren't the ones who do business. Government can assist private businesses by ensuring conditions of transparency, building infrastructure, and defending the rule of law -- but it is the private sector that must drive economic prosperity. This leads, we believe, to the greatest growth potential.
I for one can't think of a better thing that we can do for the world at large than to strengthen the bonds, to strengthen the relationship between Germany and the United States, and I can't tell you how proud I am personally to be able to contribute to that very noble cause.
The strong ties between our countries have built one of the world's most valuable strategic partnerships. Our job now is to take that relationship to the next level, to draw us even closer together both politically and economically.
One of the key messages that came out of the meeting between President Bush and Chancellor Merkel -- the importance of honest, direct dialogue between long time friends. That is the basis and spirit on which we have succeeded in the past, and that will be the key to the successful future of U.S.-German relations.
Thank you very much.
