Embassy of the United States

Thank you, Arn.  It is a pleasure to be here today to speak to the American Chamber of Commerce.  It is good to see so many friends from the business community, the Croatian government, and the diplomatic corps here today. 

This is the third time that I have been able to speak to the AmCham:  the first time was soon after my arrival in Croatia, more than two and a half years ago; the second time was after President Bush’s visit to Croatia last April.  And, now today, I am here to address you as President Obama’s Ambassador to Croatia. 

Many of you, I am sure, watched his inauguration, little more than a month ago, with the same sense that I had, a sense that we were witnessing a remarkable moment in American history, that America was showing to itself and the world once again that it is a country where all things are possible, and that America was demonstrating its unique capability to reinvent itself.

I would like to talk with you today about what is happening in Washington, under our new Administration, about the new directions in foreign policy that the Administration has launched, and about what this means for Croatia and our relations with Croatia.

My starting point is perhaps an obvious one, but having lived through a number of changes of Administration in Washington, I think it is important to remind everyone that President Obama has been in office for only thirty-six days – counting weekends.  This is a very short time, under the best of circumstances, to put a new team in place, to take hold of something as complicated as the United States Government, and to implement new policies – and these are not, to put it mildly, the best of circumstances.

The United States is in its worst economic crisis for the last thirty years and perhaps since the 1930’s.  President Obama’s first priority and the main preoccupation in Washington today is the economy, reestablishing confidence in our financial system, putting people back to work, and enabling them to remain in their homes.

Tom Friedman, one of our best journalists and political commentators, wrote recently that while on a trip to Israel, he was asked where the Middle East Peace Process would fit into President Obama’s priorities.  His response was that President Obama had three immediate priorities – banks, banks, and banks – and none of them was the West Bank.

This focus on the economy is already producing important results.

Last week, the President signed a $787 billion stimulus package and presented a housing plan designed to help nine million Americans to remain in their homes.  The week before, Secretary of the Treasury Geithner put forward a trillion dollar package to strengthen our banking and financial system.

We also recognize that this is a global economic crisis.  We are working with the countries of the G-20 to restore confidence in the international financial system, avoid the dangers of protectionism, and increase demand for American goods in global markets, for the world depends on us having a strong economy, just as our economy depends on the strength of the world’s.

At the same time, the President and the Administration’s new foreign policy team have also been hard at work, despite the pressures of dealing with the economy. 

In just over thirty days:

The Administration named three special representatives, one for the Middle East, one for Afghanistan and Pakistan, and one for the Gulf region, to include Iran and Southwest Asia.  Two of them have already visited these regions to begin their very difficult missions.

The President sent Vice President Biden to the Munich Security Conference earlier this month to make a major policy address and engage our European partners.

The President visited Ottawa last week to meet with Canadian Prime Minister Harper to discuss common economic and security concerns with our neighbor and top trading partner.

Secretary Clinton has just returned from a trip to Asia, where she met with the leaders of Japan, South Korea, China, and Indonesia, and she will be coming to Europe next week for an informal NATO Foreign Ministers’ meeting and a meeting with Russian Foreign Minister Lavrov before traveling on to the Middle East.

And, in little more than a month, in early April, the President himself will make his first trip to Europe for a meeting of the G-20 in London, a NATO Summit, which will be jointly hosted by France and Germany, and a summit with the European Union.

So, despite our economic problems, despite the energy and effort they are demanding, the Administration is pursuing a full foreign policy agenda, reaching out to our friends and partners, setting new directions, and establishing new priorities. 

Let me highlight three general ideas that are at the core of the new directions the Administration is pursuing.

First is a concept called “smart power.”  Secretary Clinton has said that smart power means using all of the tools that are available to us – the so-called tools of “soft power” – political, diplomatic, economic and cultural – as well as the tools of “hard power,” which are primarily military, but also can include intelligence and law enforcement.  In using all the tools of our national power, as Secretary Clinton emphasized, diplomacy will have a “leading role.” 

The “smart” part of smart power means choosing the right instruments, at the right time, with the right degree of coordination to gain the cooperation of our friends and allies, and to keep our adversaries from harming us or damaging our interests.  It also means, as Vice President Biden has said that “we will strive to act preventively, not preemptively.” 

A second general idea that defines the new Administration is one that President Obama emphasized in his inaugural address when he said:  “We reject as false the choice between our safety and our ideals.”

The President put this principle to work in his first week in office, when he signed orders to close the Guantanamo detention facility within a year, to ensure compliance with treaty obligations of the United States including the Geneva Conventions, to guarantee the safe, lawful, and humane treatment of individuals in custody during armed conflicts, and to close all existing CIA detention facilities. 

Carrying out the closing of Guantanamo, in particular, will not be easy, and there will inevitably be times when we fall short of our ideals, but, as Vice President Biden has said, “the example of our power must be matched by the power of our example.”

Let me mention a third general idea at the core of the Administration’s approach, that is, a willingness to listen to and consult with our allies and, in the words of  President Obama, also a readiness to extend our hand to those who will unclench their fist.  

In an interview with “Al Arabiya,” his first interview as president with a foreign television network, President Obama said that United States needs to start by listening; too often in the past, he added, the United States started “by dictating.”  Secretary Clinton’s just completed trip to Asia was an example of this new approach. 

We also stand ready to engage in direct, carefully prepared dialogue with countries such as Iran.  President Obama has said that in the coming months he expects, “we will be looking for openings that can be created where we can start sitting across the table, face-to-face.”  However, he also stressed that, even as we engage in direct diplomacy, we will be very clear about concerns we have about Iran’s support for terrorism and its nuclear program. 

So, using all the elements of national power, with diplomacy in the lead, being true to our ideals while maintaining our security, and demonstrating a willingness to listen and engage in dialogue -- these are among the core ideas that will guide our policy.

Along with these concepts come new directions in a number of specific, important policy priorities.  Let me highlight four key areas, where the Administration’s new approach is already quite clear.

First, Iraq.  As President Obama said during his campaign, he is committed to ending the combat role of U.S. troops in Iraq within sixteen months.  He has asked U.S. military leaders to develop and present options to him on how to accomplish a responsible and phased withdrawal of combat troops, while preserving the security gains that have been made and protecting our own forces.

Second, Afghanistan.  Last week the President announced that we are sending 17,000 more troops to Afghanistan, reflecting his assessment of the deteriorating situation there and importance of the threat that we and our NATO allies face.  The President and Secretary Clinton named Richard Holbrooke, who is well known in this part of the world, as a Special Representative for Afghanistan and Pakistan.  Ambassador Holbrooke will work to integrate all aspects of our policy in the region, including military, counter-narcotics, and development.

Third, the Middle East.  Signaling the importance that the President attaches to the Middle East and an active U.S. role in pursuing peace there, President Obama, on his second day in office, announced that former Senator George Mitchell would be Special Envoy for that region.  Senator Mitchell has already completed his first trip to the Middle East and is working to consolidate the ceasefire in Gaza and lay the foundation for a two-state solution between Israel and the Palestinians.   Earlier this week, the Administration named a veteran of Arab-Israeli negotiations, Ambassador Dennis Ross, to coordinate new policy approaches for Iran and the region.

Fourth, Climate Change.  The President has said he wants the United States not just to engage on the problem of climate change. He wants us to “lead” in the effort to develop and implement a coordinated global response to climate change.  The President’s stimulus package includes $65 billion in     funding and tax credits for energy efficiency and clean energy.

This, of course, is not a comprehensive list of new policies and initiatives.  But I hope it will make clear that this is an Administration committed to change, and that it will give you an idea of the new directions that the Administration is pursuing, and speed at which it is moving.

Finally, I want to turn to the question of what this means for Croatia and Croatian-American relations.   In short, our bilateral relationship, already strong, will flourish in the new Administration.

The cornerstone of U.S. policy will remain support for Croatia’s efforts to join the Euro-Atlantic institutions of NATO and the EU.  Don’t forget that President Obama, Vice President Biden, and Secretary Clinton were all members of the United States Senate that voted to ratify the protocol to the NATO Treaty that will bring Croatia into NATO. 

In this context, I would emphasize that the United States is doing and will do everything it can to ensure that all NATO members complete the process of ratification of the accession protocols so that Croatia can be a full member of NATO when the leaders of the Alliance meet at the 60th anniversary Summit on April 3.  Let me say here that this is not just about Croatia.  All of us, in NATO and the EU, need to recognize that if bilateral disagreements are allowed to block the path of the countries of Southeastern Europe towards Euro-Atlantic institutions, we risk seriously weakening the forces of reform and reconciliation in this region.

U.S. relations with Croatia will also be strengthened by the considerable experience in and personal commitment to this region that Vice President Biden and Secretary Clinton bring to the new Administration.  I am confident that there will be close cooperation between the United States and Croatia in dealing with this region’s “unfinished business” of helping other countries to pursue their future in NATO and the EU.  Working bilaterally and in the Adriatic Charter, the United States and Croatia can help Bosnia-Herzegovina, Macedonia, and Montenegro to realize their Euro-Atlantic aspirations and prepare for the time when Serbia and, ultimately, Kosovo, will be ready to follow this path.

We will also further strengthen our cooperation in dealing with problems outside this region.  Croatia has already proven itself as a reliable partner by taking an active role in global affairs.  Croatia’s membership in NATO will give Croatia an equal seat at the table when the United States discusses with its most important partners problems around the world.  These include areas where NATO is involved militarily, such as Afghanistan, where Croatia’s highly regarded armed forces are already making an important contribution, and areas where NATO is not involved militarily, such as the Middle East, whose future and stability are crucial to all of us.

And in the United Nations as well, especially during the remaining time of Croatia’s membership in the Security Council as a non-Permanent member, we look forward to working with Croatia on key issues such as UN reform, Sudan, climate change, non-proliferation, and the Millennium Development Goals.

Of course, we will also continue to work on our bilateral agenda.  While we may have had a change of Administration, the United States will continue to look for ways to pursue important goals – strengthening our economic relations, making it easier for Croatians to visit the United States, and increasing exchanges. 

We are committed to the promotion of trade and investment, even in these difficult economic times; and we continue to work towards visa-free travel to the United States.   On exchanges, a topic that you know is one of great personal interest to me, we expect very soon to receive final approval to establish a foundation to provide an efficient and sustainable way to generate funding for exchanges between the United States and Croatia from the private sector. 

In all these areas, I would caution that it will take time to see results, but we are committed to making progress in our bilateral relations, as partners and as friends.

Now, this has been a long speech, and I am well aware of the dangers of standing between a hungry audience and their lunch.  But, these are not simple times, and there are no simple solutions or short answers to the problems we face.  I hope that I have been able to give you some idea of the new directions this Administration will pursue in the challenging and exciting times that are ahead.  Thank you.  And now, I would be happy to take a few questions.