Good afternoon, thank you for inviting me to be with you today. A special thanks to Mr. Omar Mohanna, the president of the American Chamber of Commerce in Egypt, for the kind introduction. I have had the pleasure of meeting many of the AmCham members over the past several weeks, so it is a very special honor to be invited to speak to you today.

Let me thank also Executive Director Hisham Fahmy and Deputy Executive Director Sylvia Menassa for making today’s arrangements. I thank all of the Members for your unrelenting efforts to promote Egyptian-U.S. relations.

President Mohana, Amcham members and distinguished guests:

Thank you for your warm welcome. Egypt is famous for its hospitality, and I have been taking full advantage of that as I get to know you all, making, I hope, new friends and colleagues. Egypt is also famous for the friendliness of its people, and I look forward to hosting you at the Embassy as we work together to expand and grow our vital partnership. And of course, Egypt is famous for the open and vibrant discussion in its media, a fact that came to my attention in the weeks before my arrival here. I will not always agree with everything that appears in the media, here or in the United States, but I am proud to represent the United States in a country with such a dynamic media environment.

I am fortunate to be following in the footsteps of very distinguished previous ambassadors, almost all of whom I consulted before my arrival and all of whom retain a special fondness and interest in all things Egyptian. And likewise, as the 42nd representative of the United States to Egypt, I am also fortunate to inherit the resources of one of the largest U.S. missions in the world, bringing together more than 400 Americans from across the U.S. government working side-by-side with 1,500 Egyptian colleagues.

I am delighted to be here today to begin with you what I hope will become a non-stop dialogue and partnership that will strengthen the relationship between Egypt and the United States and the friendship between our people.

The U.S. Embassy to Egypt will continue to do the things you know us for: promoting commercial ties between the United States and Egypt; providing assistance to Americans who live in Egypt or visit here; issuing visas to Egyptian business people, students, and tourists to visit America; promoting economic development, political reform, and security cooperation through our assistance programs; consulting and cooperating with the Government of Egypt on regional and global issues; and representing our country, and our culture, to the Egyptian government and the Egyptian people.

While I take pride in the work we are doing now, I believe a new ambassador should take a fresh look at what we can do better. If there is one headline to this speech, it is this: we need to maintain focus on the traditional, fundamental elements that make the partnership between our countries strong and we must start to look over the horizon so that we – Egyptian and American – are prepared to take advantage of immense opportunities ahead.

Not long after my arrival, President Bush came to Egypt to see President Mubarak for the second time this year. The visit coincided with the start of the World Economic Forum in Sharm El Sheikh, and represented, I believe, the great respect for Egypt in the U.S. and our enduring ties.

Holding the WEF was an impressive, important event for Egypt business because it reflects Egyptian leadership in the region. More than 1500 participants, including 12 heads of state or government, ministers, leading business figures, leaders from civil society and the media from over 60 countries traveled to the Red Sea. They discussed the impact of long-term global trends on the Middle East. They built networks of collaboration and interaction. And they shared many different perspectives from many parts of the world on the latest political and business headlines of the day.

To people like us, diplomats, government officials, business leaders, academics and journalists, that sounds like a lot of fun.

But it is also critically important. Today, despite – or perhaps because of the inundation of -- email, video conferences and instant communication, we have a greater need for face-to-face dialogue than ever before. We have to see each other in person, seek to understand each other and develop a true respect for each other if we are going to effectively work together to harness these forces of change for the greater good.

This dialogue is also urgent. It is no longer a question of whether things are going to change. It is a matter of how fast. As someone in a session at the Forum said, “It’s not big eats small anymore. It’s fast eats slow.”

President Mubarak warned the gathering that "the world now stands at a crossroad," that developing nations are facing difficult choices weighing "the benefits they gain and the problems and challenges they encounter from globalization." He cautioned that financial turmoil and rising food prices lend support to those who favor protectionist economic policies over those convinced of the merit of free trade and economies led by the private sector.

In his remarks, President Mubarak also recognized that Egypt and her neighbors in the region have what it takes to meet those challenges. I firmly believe that, too. I also believe that many of the men and women who can get us past this crossroad in Egypt and the region are in this room.

You have played a significant part in Egypt's economic accomplishments of recent years. You have created one of the fastest growing economies in the world. You have attracted more foreign investment than at any time in the history of Egypt. You are reaping the benefit of a strong currency, some privatization and a reduction of subsidies. I believe you are prepared to weather the economic challenges ahead.

President Mubarak took justifiable pride in these accomplishments. And, at the same time, he recognized the political component of reform when he said: "We are completing the pillars of our democracy; enhancing pluralism and energizing our political life. In so doing, we are applying home-grown reforms that are sensitive to our society's conditions."

The United States also believes that sustainable economic growth is inter-related to and dependent upon sustainable political and social growth. This includes all indices of human development, such as health, education and standards of living, and the growth of the institutions of civil society. We understand that these developments will look different in every country. This principle has been and will remain a key feature in our policies, not only in Egypt, but around the world. We will continue to support Egypt’s government, business and civic leaders who are engaged in building a prosperous, democratic future for all Egypt.

The United States also believes in and will remain committed to free trade. Last month, President Bush noted in a proclamation of World Trade Week that open markets increase economic growth among our trading partners and play an integral role in America's economic progress, creating better jobs, expanding consumer choices, and providing increased opportunities for workers and employers.

Nearly 250,000 U.S. firms now export U.S. products. The number of U.S. small-business exporters has more than doubled since 1992. Those businesses have surpassed a quarter of a trillion dollars in annual export sales. This vital and growing constituency for trade ensures that the United States will remain committed to expanding economic freedom worldwide.

We will continue to seek an ambitious outcome in the Doha Round that will reduce and eliminate tariffs and other barriers on goods and open new markets for services trade. The Doha Round provides a once-in-a-generation opportunity to advance open markets, strengthen economic growth, and help millions rise out of poverty.

It is also an immediate opportunity to address a problem people all over the world encounter every day: high food prices. A successful conclusion of the Doha Round will increase market access for agricultural products and reduce trade-distorting subsidies. We can generate new trade flows and give consumers relief by reducing tariffs and trade restrictions that raise food prices. We can help farmers by cutting subsidies that distort markets and discourage agricultural development. Finally, we can broaden global markets which, over the long term, will reduce price volatility.

Regionally, we anticipate the pursuit of free trade will be a hallmark of U.S. policy because it is the right course to pursue. We are firmly on the path from aid to trade, and you know better than I the results we have already achieved.

In 2007, bilateral trade between Egypt and the United States was more than 7.7 billion dollars – a 75 percent increase in just three years. So far in 2008, the growth has continued. The first quarter figures from 2008 show an increase of an almost 19% in bilateral trade from the same period last year.

The United States remains Egypt’s largest trading partner, buying 33% of everything Egypt exports to the world. In 2007, Egypt was the 62nd largest exporter to the United States out of 233 countries. In the last ten years, Egypt’s exports to the U.S. increased by 262% while Egyptian textile exports, specifically, increased by 400%.

We aren’t just trading, but we are also investing. Since 2002, private US direct investment in Egypt has nearly doubled to $6 billion a year.

Clearly, Egyptian and American businesses are forging ahead. We now face the challenge of ensuring that the benefits of trade and economic expansion spread more broadly so that all members of society have a stake in these reforms.

This is not an abstract ideal, but a practical necessity. Despite the strong economic performance of recent years, the World Bank estimates that 17 percent of the Egyptian population, mainly in Upper Egypt and rural areas, lives on less than a dollar a day. The soaring inflation of recent months makes their plight all the more difficult, while persistent unemployment erodes their hope for better days.

This is the crossroad. Or where fast overtakes slow. You can call it many things, but I think we agree that the growth that leaves out a big portion of the people is not sustainable. But I believe if we look to the horizon, this powerful partnership can shape a future of peace, prosperity and opportunity for all Egyptians, as well as Americans and other people of the region.

Since my arrival in Egypt in April, I have been talking with and listening to many government officials, business men and women, civil society leaders and private citizens. I mentioned to these friends just what I said to you earlier. That is, I believe the fundamentals of the Egyptian-American partnership are strong, but we must start to look at the horizon to shape our mutual goals and ambitions. I wanted to listen to what they thought and what they saw on the horizon. In the course of our discussions, many ideas emerged.

What they said surprised me. Or let me be more specific. It wasn’t exactly what they said as much as the fact that nearly each conversation landed on the same theme: education. What I have heard over and over again is the need for public and private support to prepare Egypt’s greatest resource, its people, for 21st century leadership. Education is essential to creating the leaders Egypt needs to sustain economic growth, political openness and peace in the region.

This idea is not new to you. I know many of the companies and organizations represented here are working on education projects. I also know the Government of Egypt and, especially, First Lady Mrs. Suzanne Mubarak have been on the cutting edge of innovative education reform programs, especially programs that focus on joint public-private cooperation, often with business leaders like you.

Last month at the World Economic Forum, Mrs. Bush and I had the pleasure of celebrating the second anniversary of one of Mrs. Mubarak’s signature programs, the Egyptian Education Initiative. The “EEI” is a great success and a model for how to do things right. The program has put 40,000 computers in more than 2000 schools, universities and computer centers and trained more than 185,000 students, equipping students with the skills that will enable them to participate in our global economy.

The Egyptian Education Initiative has also proven that multi-stakeholder partnerships can be effective when there is a clearly defined interest shared by all parties. Intel, Microsoft, HP, Siemens, Cisco, CA – all AmCham members -- provided the private sector leadership for the EEI. Your partners were three Egyptian ministries – Education, Higher Education, and Communications and Information Technology. I'm also glad to note that USAID is providing support for the monitoring and evaluation of part of the program.

But I strongly believe much more can be done. We are all stakeholders, with vested interests in educational excellence and opportunity. Today, I would like to start a conversation with you and get your views on what role our partnership can play in the area of education. As I mentioned at the outset, I would like us to look to the horizon. In the U.S., in Egypt, and in countries all around the world, school systems are changing to prepare their graduates to compete in the international economy. This is an issue that is important to all of us and area I want to explore, especially about the role of partnerships, private donors and multi-lateral organizations. I would like to hear from you, especially because your experience is so rich.

Looking simply at the efforts of the AmCham and its members, it is clear that Egyptian private business can be a powerful element in educational and other reforms. As AmCham members, committed to your community, your work in education has become a model for the kind of public-private partnerships that make a tangible difference in the lives of Egyptians and a sustainable contribution to U.S.-Egyptian relations. Consider these other examples of AmCham members leading the way:

Vodafone Egypt. You are partnering with USAID and CARE in the New School Program to provide 98 schools with Information Communication and Technology Centers, introducing computer-based learning for students, teachers, administrators and community members.

Demonstrating corporate social responsibility as the lead U.S. investor in Egypt, Apache partnered with the National Council for Childhood and Motherhood and the Government of Egypt to construct 100 one-classroom schools for girls. Apache families and staff continue to make financial and time commitments to these schools to ensure the success of this initiative.

MOBINIL agreed to be the corporate sponsor for Alam Simsim, the Egyptian Sesame Street, for one year as this ten-year program transitions to sustainability without USAID support by 2010.

CIB has been a valued partner under USAID’s School Team Excellence Awards Program – STEAP – a competitive, incentives-based program for improving school quality in support of the GOE’s quality assurance and accreditation movement. CIB along with other corporate sponsors are interested in sustaining this program as USAID transitions out next year. Under STEAP, communities raised 11 million pounds in cash and in-kind donations. For example, residents of Tala Idarra in Menoufia recently raised half a million pounds for a new secondary school.

Injaz, Microsoft, Protor & Gamble, Young Arab Leaders, Vodafone, Alashanek Ya Balady, Mobinil, ExxonMobil, British Petroleum, LinkdotNet, DaimlerChrysler, British Engineering Institute, and others have partnered with USAID and the Education and Employment Alliance (EEA) to create Career Development Centers at the faculties of engineering at Cairo and Ain Shams Universities in order to provide mentorship opportunities, training, workshops, job fairs and other practical experiences for students. To date, over 2,000 students have benefited from the programs.

USAID has also recently launched Technology for Improved Learning Outcomes (TILO). In addition to providing information technology to 280 primary and preparatory schools, the program is looking for partners to test technological innovations to improve student learning.

I would also like to mention that many U.S. companies with no presence in Egypt also contribute to our objectives here through participation in exchange and training programs financed by the U.S. government. One program sponsored by the Middle East Partnership Initiative provides micro-enterprise and business internships for women through a one-month executive MBA program, followed by a three-month internship at a Fortune 500 business.

We already know that the success of these efforts depends on the active involvement of the private sector and civil society in innovative partnerships. In Egypt, private-sector firms – multinationals and, increasingly, Egyptian firms – have already taken up this challenge, and we in the U.S. government want to ensure we are doing our part as well. As our bilateral partnership evolves to one based on trade and private investment and as our assistance programs become more targeted, I think this discussion is as timely as it is important.

In Cairo, throughout Egypt, and throughout the region, the American Chamber of Commerce in Egypt is a model for civic engagement. While Amcham members are working on many of the projects I mentioned, I know the Amcham itself is a leader in collaboration between the government and private sector.

The Amcham has also been a valuable resource for the Egyptian government as it reforms its trade policy and trade laws, working to complete a process begun here 30 years ago to open the Egyptian economy to the opportunities of the global marketplace.

And the Amcham knocks on doors in Washington. I understand that this year's door-knock mission was as successful as ever, making the case for an expanded QIZ, building sector-to-sector contacts, and affirming the importance of the Egyptian-American relationship, not only for our two countries but for the region as a whole. As President Mohanna has said, “AmCham-Egypt's annual DoorKnock missions help enhance commercial ties with our American counterparts, while building US decision-makers' awareness of Egypt's reform efforts, and its improved investment environment. The aim is to create a forum for exchange of information, ideas and opportunities - in order to increase investment and bilateral trade."

I want to add that Americans appreciate the door-knock program. It is an opportunity for face-to-face contact and to talk about Egypt and the Egyptian-American relationship. It makes politics and business human again and gives a chance for Egyptians to tell Egypt’s story to American leaders. Egypt should be proud of this initiative. It has become a model for the region – Dubai recently followed Cairo’s lead and has started a door knock program now, too. More are welcome, from Egypt and the region, because as I said before, there is no substitute for person-to-person contact to generate the mutual respect and understanding upon which any partnership thrives.

So let me close by saying the kind of regional leadership you represent is vital now to Egypt and the United States. Egypt has been a leader of nations and peoples throughout history, from ancient times through the present. 100 years ago, Egypt led the region and inspired millions around the world by its struggle against colonialism. 50 years ago, when the United States wanted to talk to the Arab World, we came to Cairo. And 30 years ago, Egypt made the most courageous decision of all, leading the way toward peace.

Today, every day, the region is changing, the world is changing, but the need for Egyptian leadership remains. Maintaining that historic leadership role will require Egypt to make full use of all its resources. And among the nations of the region, Egypt is blessed with the most valuable resource of all: its people.

Egypt has succeeded in recent decades in taking care of its people. Even as the population doubled during the last 30 years, life expectancy soared, infant mortality plummeted, and literacy spread to all corners of the country. At the same time, Egypt reformed its economy and worked to integrate into the world economy. Egypt is now a richer, healthier, and better-connected place than it has ever been in its storied history.

But the rest of the region, and the world, is moving forward as well at a startling pace, economically and politically. Your part in maintaining Egyptian leadership and the Egyptian-American partnership is vital. Of course we in the Embassy look to the Amcham and our other private-sector friends to advise us on economic policy. But beyond that, your organization and other civic-minded groups have a crucial role to play in building the wide-ranging partnerships necessary to promote sustainable economic, political and social development in Egypt.

I have taken your time this afternoon to cite the wonderful work you are doing not simply to offer congratulations, but to emphasize that together we must do more. I look forward to working with you on these partnerships, and now I look forward to beginning our dialogue on these issues. Thank you very much.