THE 4TH ANNUAL CAPITAL LINK FORUM CONFERENCE
Monday October 30, 2000

Hon. R. Nicholas Burns

UNITED STATES AMBASSADOR TO GREECE

Ladies and gentlemen:

It's a great pleasure for me to be in New York City. It is a city i love to visit, even though the world series was somehow mistakenly held here last week rather than where it rightfully belongs, in my hometown, the true baseball capital of America, Boston.

I am very happy to be here at the 4th annual Capital Link Forum whose objective is to inform american investors, bankers and business people about investment opportunities in greece. I want to thank the american- hellenic chamber of commerce and capital link for its leadership and vision in putting all of us together this morning.

This year's conference is special for several important reasons.

First, it takes place at a moment of economic triumph for the greek government: the country will soon enter the european economic and monetary union, it is enjoying a hopeful period of economic growth and prosperity, and it is preparing for the 2004 summer olympic games. All of greece's friends applaud this new greek economic renaissance.

Second, it is the first time that this conference has been co-sponsored by the American-Hellenic Chamber of Commerce and Capital Llink, Inc. This type of cooperation between greek and american businesses and organizations is a good example of the re-birth in us-greece relations that has occurred over the past few years. Ican say, and i think that my good friend ambassador aleccos philon will agree, that the relationship between our governments is stronger, deeper and more trusting than in a very long time.

Third, on major foreign policy issues of our time, the u.s. and greece are close partners. Our troops serve together in bosnia and in kosovo. We can be proud that we stopped the wars there and are preserving the current peace. Both of our countries support the Kostunica Government and the re- birth of democracy in Yugoslavia. We both are working hard to get the middle east peace process back on track, and we are full partners in nato. The United States supports an improvement in greece's relations with Turkey, as well as an eventual just settlement of the Cyprus question. So we are a close partner onthe great issue of peace on europe.

Fourth, on economic issues, we are successfully reviving a relationship that had fallen on hard times. Events like this conference recognize one central fact - our U.S.-Greece relationship is of vital importance to both countries.

Since this year's conference focuses on our economic relations and future economic growth and development in Southeastern Europe, let me say a word about both.

In the post-cold war world of the 21st century economic ties are the most important barometer of any two countries' relations. As military ties dominated the post-world war ii era, how we trade, how we invest, and how we share technology will dominate the next 50 years. That is why i have focused on re-building our economic relations as my first andmost important priority in the last three years. We had fallen to low depths in the 1980s, but now we see many new and positive trends. The greek economy is one of europe's fastest-growing. The greek economy has experienced impressive reforms under prime minister simitis's leadership and we see a revitalized business sector. As most of you know,wall street and main street american corporations have taken notice and are trading and investing at new and higher levels.

And now i'll get right to the heart of the matter: Greek-American commercial relations are going very well. U.S. investment in greece is roughly $2.2 billion and growing. This amount is more than one third of all foreign investment in greece. U.S. companies in greece provide greeks with over 8000 jobs. I believe that figure will grow quickly in the next few years. American firms are making alliances with greek firms in the technology sector, which dominates the world economy.

Here are some highlights of u.s. investment in greece:

That is a view of our growing investment ties. I believe that this large gathering of U.S business representatives will contribute to even greater investment ties in the future.

For the first time in years, our trade is also expanding. U.s.-greece trade should double in coming years; that is my prediction. In the first six months of 2000, u.s. exports to greece increased by 17.9% over 1999 an almost one-quarter increase/that is significant. Two-way trade was up 14.4% over that in 1999. This trend will bring us to over $2 billion in trade for 2000 the greatest increase in the last 20 years

So, U.S. diplomacy in greece is not focused simply on political or military relations. We are focused like a laser on re-building our economic relations. That is why we have opened a new commercial office in Thessaloniki because northern greece has grown in economic importance. We have hosted trade delegations by the Governor of California, Gray Davis the state of New Jersey, the city of New York and sadly the recently deceased governor of Missouri, Mel Carnahan.) Governor Carnahan was a friend to greece and a real pioneer in promoting U.S. businesses and investments in greece.

We also hosted the first-ever tourism infrastructure conference in athens last year, drawing 650 delegates from 32 countries.iwe will hold a second tourism conference in spring 2001, because greece is europe's most beautiful and historic country, and because investment in tourism infrastructure is long overdue and will intersect with the anticipated surge in tourism to greece over the next decade.

Another historic event this year was the thessaloniki trade fair. This year's trade fair continued a 65-year tradition as the most important business event of the year in greece/the united states and the forty u.s. firms that participated in the event had the distinction of being honored. In every way, the selection of the us as "timomeni hora" recognized one central fact - our US-Greece relationship is of vital importance to both countries. This year, the u.s. had the unique opportunity to showcase selected and representative aspects of american life and culture. I want to thank the American-Hellenic Chamber of Commerce. They was one of the drivinc forces behind. Their support contributed to the great success of the two-week celebration of american life and culture and our links with greece.

Ladies and gentlemen, given all of this good news, it is clear that this year's conference occurs at a time of great, positive growth and development in u.s.-greece economic relations, a time when we can focus on the many reasons why u.s. investors should consider coming to greece and other countries in southeastern europe.

As the conference title suggests greece is about to become a full member of the European Economic and Monetary Union (EMU). This economic harmonization of currency makes greece an attractive place to invest. It also creates great opportunities for U.S. investors to develop partnerships with greek companies. Teaming up with greek companies affords u.s. firms all the rights of businesses in eu countries.

In addition the overseas private investment corporation (opic) just announced the creation of the southeast european equity fund. Kirk robertson, executive vice president of opic, recently visited athens to inform greek government and business officials about the fund. This 150 million-dollar fund is open to any business interested in investing in the region. Opic is in new york today to sponsor a meeting between minister of development christodoulakis an]) american hotel chains to discuss the new opportunities in the greek market.

Lastly Greece is preparing for the 2004 olympic games and i am committed to helping u.s. firms participate in the many investment opportunities related to the games. Our foreign commercial service is helping organize a conference, "infralympics" this week in athens. Its objective will be to provide opportunities for u.s. companies to matchmake with greek and other eu firms on olympics-related infrastructure projects./greece is rapidly improving its infrastructure for the games. Greece's investment in the new airport, roads, metro and other transportation systems in the athens area will ensure that greece will contintue to be an attractive place for u.s. investors in the future.

I am an optimist about the future of america's economic ties with greece. I am pleased to see all of you here today and wish you all the best for a successful and productive conference.

ORGANIZERS