Ambassador April H. Foley

Remarks at the American Chamber of Commerce in Budapest

September 14, 2006

Ambassador Foley (Embassy photo by Balázs Monostori)

Good afternoon. 

I’d like to express my appreciation to AmCham for the opportunity to address this critical group.  I’d like to thank especially Les Nemethy, the AmCham Board of Directors, and Peter Fath.  Also, I am pleased to see Dr. Janos Horvath, a Member of the Parliament in the audience – welcome.  I am highly supportive of AmCham’s mission “to be the leading representative for U.S. and international business in Hungary, and to promote the global competitiveness of the country.” 

Since its transformation to a market economy only 16 years ago, Hungary has made tremendous strides.  It was the country that was probably the fastest off the starting blocks after the fall of the Soviet Union.  And it has an enviable track record of growth and economic development.  AmCham Hungary has been a key player in that success.

In my presentation today, I want to lay out what I see as my main tasks while I am here.  I will begin with a few personal impressions, and then lay out four themes that I see as the foundation of my mission here.    I offer my thoughts in the spirit of candor and non-partisanship that befits the long and fruitful U.S.-Hungarian friendship.

I arrived in Budapest on August 10^th.  My daughter Catherine arrived the same day from Romania, where she had been traveling.  Our first reaction?  WOW!!  What a dazzling city!    The books I read before arriving did nothing to prepare me for the magnificent reality of Hungary…the delicious food,…the wonderfully relaxing Szecheny baths … the elegance of the interior of Parliament.  I was awed by the breathtaking sights of the Citadel, the exact spot where President Bush paid tribute to the courage and sacrifice of the Hungarian people in 1956.  His words still ring in my ears: “The Hungarian people know well the promise of freedom…you never lost hope.”

People here are already asking me what I think of Hungary.  In short, I’ve been impressed by what I have seen. Hungary has a lot to offer as a destination for foreign direct investment.

Hungary is a country that continues to transform itself.  It’s doing a remarkable job in embracing needed changes.  President Bush noted that, as a valued member of NATO and the European Union, “you know that the democratic journey is not easy, but you continue to make the tough decisions that are necessary to succeed.”

Looking forward, Hungary is now on the road to currency convergence with the Euro.  This will require sacrifices, but it could also lead to a change in attitudes that will solidify Hungary’s position in the community of free-market democracies.

In my short time here, I have had a chance to meet your Prime Minister, many of the Ministers in his cabinet, and representatives of various political parties.  I have been impressed by their strong commitment to create a healthy economy and address head-on the huge budget deficit.  At the same time, they are dedicated to keeping Hungary sharply competitive.  They are interested in creating the underlying business conditions needed to attract new foreign direct investment.  They know transparency needs to be improved, and corruption needs to be attacked.

The country has ambitious goals, and I believe they embrace the opportunity to work with AmCham and the broader business community.  They are keenly interested in understanding  the barriers to commerce and coming up with effective solutions.

As U.S. Ambassador to Hungary, I have four fundamental objectives:

• To promote freedom and democracy.
  
  
• To support the fight against terrorist forces.
  
  
• To build on already strong commercial ties.
  
  
• And to strengthen the bonds of friendship between our two great nations.

I’d like to say a few words about each.

Number One: promoting freedom and democracy.

In this, Hungary already has a great list of accomplishments. 

• In June, President Bush congratulated Hungary for launching the International Center for Democratic Transition. 
  
  
• He noted Hungary’s contribution to the UN Democracy Fund,
  
  
• And he highlighted the fact that the U.S. and Hungary together helped launch the Foundation for the Future.  This initiative supports democratic reformers, independent journalists, women’s groups and human rights advocates throughout the Middle East. 

President Bush said he appreciated “the opportunity to come to this great country and to celebrate the Hungarian example—the courage, the sacrifice, the perseverance that has led to this democracy.” 

The President noted that Hungarians “believe that free nations have an obligation to help others realize the benefits of freedom.” 

I understand there will soon be municipal elections in Hungary.  I’m sure everyone understands our commitment to non-partisanship.  I hope everyone also appreciates the example that free and fair elections can set for emerging democracies. 

In Cuba, we believe there is an opportunity to give the Cuban people hope and support.  We believe the Cuban people should have the right to choose their own form of government.  We believe that Hungary and many of its neighbors have valuable transition experiences, from which the Cuban people might draw inspiration.

My number two priority is fighting terrorism.

President Bush praised “Hungarian troops defending freedom’s cause in the war on terror,” both in Afghanistan and Iraq.  Terrorism is an international scourge, and effective resistance to it must be multilateral.  Terrorism is fed by lack of freedom and hope.  It is generated in societies that cannot protect  or educate their people, and where there are not enough jobs.  Terrorism is an abomination to the vast majority of Muslims and to civilized peoples everywhere, regardless of religion. 

Hungarians can be proud of their country’s current efforts to fight against terror by establishing a Provincial Reconstruction Team (PRT) in Afghanistan.  I believe your Minister of Defense Szekeres is in Afghanistan this week with the Hungarian PRT. 

When Hungary transitioned to a free-market democracy, lots of nations reached out to help Hungary through this critical transition.  Now that Hungary itself has graduated to a higher status, it is extremely gratifying to see Hungary reaching back to lend a helping hand to Afghanistan, the next nation struggling through this difficult transition.

Hungarians can also be proud to see their country’s name on the list of countries that have joined together to support peace-keeping efforts in Lebanon.  

I congratulate Hungary for embracing the responsibilities that come with their relatively newly-gained membership into the EU and NATO.  Your actions continue to be a model for other countries to follow.

My number three priority is continuing to strengthen commercial ties.

As I said earlier, Hungary continues to offer a compelling business environment for foreign direct investment.  In my experience, when investors evaluate a country, they typically evaluate the infrastructure.  They often look at 3 categories of infrastructure, physical infrastructure, institutional infrastructure and human infrastructure.  Hungary scores well on all three.  In terms of physical infrastructure, the airports are good, the roads are good, the telecommunications systems are excellent.  In terms of institutional infrastructure, the banking system is strong, the commercial codes are good, rule of law is strong, the legal system is good, and, in general, the laws are upheld and enforced.  In terms of human infrastructure, Hungarians are  blessed with great intelligence…You have very bright, talented people with a strong skill set for today’s technological world.

Do improvements need to be made in many of these? Absolutely.  In any country, there is always room to do things better.  The U.S. has had some notable business scandals…Enron…that were an embarrassment.  But they have caused us to examine ourselves and try to come up with new better approaches.  It seems to me that Hungary is similar.  It’s not perfect, but it is very much oriented to self-examination and self-correction.  And this is critical.

I look forward to collaborating with Hungary, with AmCham, and with the business community to make it an even more attractive environment for U.S. investment.

My fourth objective is to strengthen the bonds of friendship between our nations. 

I see this happening through cultural exchanges, educational exchanges and professional exchanges.  On Sunday, I was witness to the superb level of musical achievement in Hungary.  Ivan Fischer, Director of the Budapest Festival Orchestra,  conducted Mahler’s 5^th Symphony at Budapest’s splendid new Palace of the Arts. And I say with confidence that he is an international phenomenon.  He is a World Class conductor.  He also happens to be the new principal guest conductor of the National Symphony Orchestra  in Washington, DC.  In that role I am certain that Mr. Fischer will be a great cultural ambassador.  This is the kind of cultural exchange that melts the barriers between us and unites us all as citizens of the world.

I met with Minister of Education and Culture Hiller this week, and we are hopeful that we will soon be able to conclude the latest round of the bilateral Fulbright agreement.  This year is the 60^th year of the original worldwide Fulbright program, an achievement in which we can all take pride.  Our many distinguished Fulbright alumni in Hungary and the U.S. continue to play an active role in promoting valuable educational exchange between our two countries.

Finally, I’d like to mention my own personal interest in the empowerment of women.  As a woman who has worked many long years in the private sector, I am a big believer in the leadership capabilities of women.  Hungary is loaded with extremely talented and well-educated women.  I will be looking for opportunities to promote their development as leaders.  It is a joy for any person to be able to live up to their full professional potential.  Women should be able to share fully in that dream.

In short, I see an extremely bright future for Hungarian–American relations and I look forward to implementing the four goals I mentioned earlier: 1) supporting freedom and democracy, looking to Hungary as an inspiration to emerging democracies; 2) fighting terrorism through cooperation with the international community; 3) promoting even stronger commercial ties; and 4) continuing to strengthen the bonds of friendship between us. 

Hungary is a great partner.  And through its continuing fine example as a free market economy, Hungary will help others realize their potential.  The United States remains committed to supporting Hungary to reach its own goals, to achieve its place in a stable and prosperous Europe, and to become a core member in the larger international community of free, democratic nations.

Thank you.