[Congressional Record Volume 143, Number 157 (Sunday, November 9, 1997)]
[Senate]
[Pages S12286-S12288]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      UNITED STATES-SPAIN COUNCIL

  Mr. GRAHAM. Mr. President, the relationship between the United States 
and Spain is the oldest one in North America. Almost 500 years ago--in 
1513--Spanish Explorer Ponce de Leon and his crew in search of a 
Fountain of Youth discovered North America. What they found was a 
treasure of a different kind--a land that Ponce de Leon named ``La 
Florida.''
  In the four centuries since then, the histories of the United States 
and Spain have been inextricably linked. While there have been periods 
of estrangement and even hostility, the United States and Spain are 
``natural allies.'' As we approach the end of this century, the 
cultural, political, and economic ties between the United States and 
Spain have never been stronger, nor more mutually beneficial.
  This reinvigorated relationship is especially visible in the active 
relations, frequently in close collaboration, of Spain and the United 
States in Latin America.
  To build on this exceptional period of positive relationship, the 
United States--Spain Council was formed in May 1996 by Vice President 
Al Gore and the President of Spain, Jose Maria Aznar. The Council was 
formerly established at an organizational meeting held in Toledo, Spain 
in November 1996. The Council established itself as a forum in which 
Spanish and American citizens, including leaders in government 
business, education, and culture could discuss the state of the United 
States--Spain relationship.
  In April of 1997 the Chairman of the Board of Trustees of the 
Fundacion Consejo Espana-Estados Unidos, Mr. Jaime Carvajal and the 
then Chairman of the United States--Spain Council, Bill Richardson, 
signed an agreement of the common goals regarding their intent to: 
promote cooperation between Spain and the United States in the 
economic, trade, business, scientific and cultural fields; improve 
knowledge about each other's country and the image of the United States 
in Spain and of Spain in the United States; propose to their respective 
governments actions aimed at developing relations between the two 
countries and adopt other initiatives which would contribute to the 
progress and growth of relations between the United States and Spanish 
societies.
  This past October 31 through November 2, 1997 the Council met here in 
Washington for two and one half days and in New York for an additional 
day on November 3, 1997. The meeting was attended by many prominent 
members of the Council from both nations, which led to a candid and 
thought provoking discussion of the topics on our agenda.
  These topics included United States--Spain Trade and Investment 
Analysis of Direct Investment Practices, Spanish and United States 
images: Origins and Reasons, Strengthening United States--Spanish Ties, 
the Role of Civil Society (Educational and Cultural exchanges), 
Intellectual Property and Internet in Spanish.
  The members of the Council agreed to undertake a challenging agenda 
short and long objectives, all intended to advance United States and 
Spanish relations.
  I would like to thank Vice President Al Gore, Spanish Deputy Prime 
Minister of the Economy and Finance, Mr. Rodrigo Rato, Spanish Minister 
of Foreign Affairs, Mr. Abel Matutes, and Stuart E. Eizenstat, US Under 
Secretary for Economic Business and Agricultural Affairs, and other 
distinguished presenters, for their meaningful participation in our 
meeting.
  I also take this opportunity to thank the two Executive Directors of 
our Council, Ambassador Diego Asencio and his Spanish counter part, 
Emilio Cassinello Auban. Ambassador Asencio and his Assistant, Elia 
Garcia-McComie did an outstanding job of bringing together all the 
ingredients essential to a productive meeting.
  It is important that my colleagues in the Senate and the people of 
the United States understand this special relationship, which is old in 
historical terms and yet new because it is being reinvigorated by this 
renewed attention to its importance. We must recognize that the United 
States with its growing Spanish speaking population, is a logical 
bridge between Latin America and Spain. We must take advantage of this 
moment in history to strengthen cultural and educational ties as well 
as promoting investment opportunities for both countries.
  I ask unanimous consent that excerpts of speeches at the meeting by 
Vice President Gore, Mr. Rato, Mr. Eizenstat, and the entire text of 
Mr. Matutes' address be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

             Excerpts of Remarks of Vice President Al Gore

       Thank you so much.
       You know, Bob Graham is truly a national treasure. He has 
     done so much to nurture the friendship between Spain and the 
     United States, and has been such a leader in building a 
     thriving new era in the affairs of our hemisphere. I am 
     honored to be here with him today.
       When President Aznar and I met last year, we looked forward 
     to the day when a vanguard of key leaders from business and 
     academics, politics and culture would meet to discuss issues 
     of common concern.
       What we do here today is an important new step in the 
     evolving relationship between our peoples and our nations--a 
     relationship that dates back hundreds of years of rich 
     history.
       Our historic ties, strong alliance and shared ideals 
     underpin an ambitious cooperative effort in support of peace, 
     democracy and prosperity in important areas such as the 
     former Yugoslavia, the Middle East, Central and Eastern 
     Europe and Latin America.
       Each of you here this morning represents a specific aspect 
     of the American-Spanish relationship--whether in diplomacy 
     and government, business, culture, education, the media or in 
     any of a host of other endeavors.
       The variety of this group mirrors the complexity of our 
     exchanges and drives home the point that it is in our daily 
     business, public or private lives, that our nations' bonds 
     are created and affirmed. Some many of the important national 
     issues we address have international ramifications. Doing our 
     jobs well means doing them well together.
       All this, ladies and gentlemen, can be summed up in one 
     sentence: U.S.-Spanish relations are excellent now, and 
     poised to become even more productive in the coming years.
       I applaud your work; and I salute your commitment to a new 
     era, and a new century of friendship between Spain and the 
     United States.
       Buena Suerte, and Good Luck!

Excerpts of a Speech by the Spanish Deputy Prime Minister and Minister 
                of the Economy and Finance, Rodrigo Rato


          ``The spanish economy on the threshold of the euro''

       It is a great honor for me to have the chance to close this 
     Third Spain-United States forum. Previous sessions have 
     demonstrated the great utility of these platforms, involving 
     a wide range of personalities from all fields, in enhancing 
     dialog between the two countries and promoting greater 
     tapproachment and mutual understanding.
       In a globalized work such as today's, marked by freedom of 
     exchange and the mobility of factors, ti is clear that there 
     can be no isolated response to the problems affecting our 
     economies. The global interrelation which surrounds us 
     assesses the need for coordinating mechanisms which are 
     sufficient to meet the demands of the international economy 
     effectively and with assured success.
       EMU implies for Spain an economic policy which would have 
     to be pursued in any case (even if there were no EMU), given 
     the challenge of globalization and competition with North 
     America and in the Asian Pacific region. EMU represents 
     macro-economic stability, a necessary pre-requisite in the 
     creation of jobs.
       EMU is a strategic challenge. The point of no return for 
     the creation of EMU and for Spain's participation has been 
     reached. For Spain, there is no strategic alternative to our 
     full participation from the outset. EMU will not however be a 
     panacea that will resolve all our problems with no effort on 
     our part. Moderation of production costs, restraints of 
     public spending and tax policies to format saving and 
     investment are key elements to the creation of jobs.
       Trade unions and employers have recently given ample 
     evidence of their sense of responsibility in dealing with the 
     historical challenge posed for Spain by EMU. Spanish society 
     and the Government are certain that they will be up to the 
     task and that social consensus will be maintained. The 
     Government considers this social consensus to be fundamental 
     to its economic policy strategy for stability and job 
     creation.

[[Page S12287]]

       As revealed by the figures and the results of the last 
     year, the Spanish economy has shown considerable maturity, 
     adapting and reacting positively to the changes made to its 
     system. Spain is, at this time, an adaptable economy, 
     increasingly flexible, and with a dynamism which I do not 
     doubt will increase as we pursue the structural reforms under 
     way.

Excerpts of Remarks for Under Secretary Eizenstat at U.S.-Spain Council 
                                 Lunch


                      u.s.-spanish trade relations

       It gives me great pleasure to welcome you to the State 
     Department today. I am honored to host this event which marks 
     the first meeting in the United States of the U.S.-Spain 
     Council. I want especially to congratulate all those who have 
     helped make this meeting possible. I believe this group has a 
     vital role to play in the New Transatlantic Agenda and in 
     building and strengthening essential contacts between our two 
     countries.
       The overall relationship between Spain and the United 
     States can best be characterized as one of increased mutual 
     trust and cooperation, especially during the past decade. We 
     value Spain's commitment to strengthened transatlantic ties 
     and desire to strengthen points of contact in many areas--
     political, military and economic. Spain has courageously 
     taken a leadership role on many of the most challenging and 
     demanding issues before Europe today--peacekeeping in Bosnia 
     and the Middle East, development of a Mediterranean 
     initiative, the expansion of NATO, and improved transatlantic 
     trade. It was Spain that was most outspoken in its opposition 
     to the undemocratic Castro regime in Cuba. Spain's leadership 
     and initiative made it possible to create consensus among 
     governments, the private sector and nongovernmental 
     organizations on ways to promote democracy and freedom in 
     Cuba.
       The relationship between Spain and the United States 
     remains a partnership between equals who agree on the basic 
     principles that will help achieve the goal of a New 
     Transatlantic Marketplace. This is demonstrated here today by 
     the number of important U.S. and Spanish business and 
     government representatives committed to continuing an honest 
     and open dialogue on these issues.
       Once again, let me welcome you to the State Department and 
     encourage your successful collaboration.


      address by the minister of foreign affairs mr. abel matutes

       Mr. Secretary of State for Energy, Mr. Under Secretary of 
     State for Economic Business and Agricultural Affairs, Mr. 
     Ambassador, Chairmen of the United States-Spain Council, 
     Ladies and Gentlemen: Today I visit Washington once again, on 
     the occasion of the III Forum, organized by the U.S.-Spain 
     Council, an initiative that rests on society, sponsored from 
     the outset by the President of the Spanish Government and 
     Vicepresident Gore, as a dynamic contribution to the 
     cooperation between our countries. We must congratulate 
     ourselves for the continuity this open and informal dialogue 
     has attained, a dialogue which brings together businessmen, 
     legislators, scholars, professionals and politicians from 
     Spain and the U.S.
       The III meeting of the Forum--the first to be held in the 
     United States--has been preceded by two previous ones: 
     Seville in 1995 and last year in Toledo. It is with utmost 
     satisfaction that we Spaniards now review certain predictions 
     made in Seville and Toledo. At the close of 1995, cautious 
     predictions envisaged the possibility of Spain being in the 
     first group of countries to enter the E.M.U. and inaugurate 
     the movement towards the euro. As a conclusion to the debate 
     on the Spanish economy, Seville's records state that: ``the 
     Spanish economy will continue to grow relatively strongly for 
     the next couple of years, the underlying concern being 
     whether or not Spain will meet the Maastricht convergence 
     criteria''. One year later, in November 1996, the Toledo 
     report literally stated that ``the markets judge that Spain 
     has a 70% chance of joining the E.M.U. on schedule''. Today, 
     scarcely twelve months after these predictions, neither the 
     economists, nor the politicians nor the markets leave any 
     room for doubt. Spain will be on time for this crucial 
     economic and political rendezvous, and will belong to the 
     group of countries that will lead the E.U. into the coming 
     millennium.
       It is obvious that, as members of the E.U., political and 
     economic convergence within the process of construction of 
     Europe is for us of paramount importance. This does not 
     exhaust, however, our foreign policy options. Spain can today 
     envisage being present simultaneously in all those 
     international scenarios, where necessary to defend its 
     national interests. This allows me to affirm, without 
     reservations, that the Spanish foreign policy has multiple 
     essential goals that are perfectly compatible. In this sense, 
     Europe does not preempt Latinamerica and even less so our 
     concerns for the Mediterranean; convergence with the E.U. is 
     not unreconcilable with the transatlantic common goals, 
     bilaterally with the United States and multilaterally, within 
     the E.U. and N.A.T.O.
       In the economic field, the fact is that the intensification 
     of our relationship with member countries of the European 
     Union has reduced the relative weight of trade and investment 
     between the United States and Spain. Notwithstanding, the 
     global value of our exchanges reflects a first-class 
     relationship with the United States. Our trade flows top the 
     10 billion dollar mark. The United States is our most 
     important trade partner outside the E.U. It is clear that the 
     balance is tilted in favor of the United States--6.5 billion 
     dollars against 3.6 billion dollars in 1996--, compelling us 
     to redouble the efforts to reach a more balanced export-
     import ratio, surmounting tariff barriers and the socalled 
     ``equivalent effect measures''. The image factor, --or the 
     lack thereof, rather than its shortcomings--, plays a 
     relevant role in the Spanish exports to the United States, a 
     fact which has drawn the Council's justified attention. The 
     analysis of the origins and solutions to the absence of a 
     Spanish image in the United States may well be a substantial 
     contribution of this Washington Forum.
       In turn, Spanish investment in the U.S. market is growing. 
     With an annual volume ranging between 300 and 400 million 
     dollars, it accounts for 5% of Spanish investments abroad. We 
     must not forget either the decisive role played by U.S. 
     investments in the Spanish development in terims of 
     contributing technology innovation, occupational training and 
     job creation in the 60's, 70's and 80's. Currently U.S. 
     financial investments in the Spanish stock exchange are of 
     considerable importance. Statistics show that more than 500 
     U.S. corporations are present today in the Spanish economy, 
     the eighth in the world in terms of industrial output, with a 
     G.D.P. that exceeds five hundred billion dollars, which makes 
     Spain the top medium in-come country.
       Many of these, import, export and investment companies are 
     represented in the U.S.-Spain Council, and their Chairmans 
     and CEOs are here today to participate in this III Forum. The 
     Program for discussion of this Forum has scheduled an 
     interesting session on ``joint ventures''. Their primary 
     field of action is obviously in this hemisphere. The 
     possibilities of success of these Spanish-American joint 
     ventures, particularly in basic areas such as infrastructure, 
     services and finance are increased by the affinity of the 
     Spanish culture, by the fact that Spain is the first European 
     investor in Latin America, and by the existence of a 
     sophisticated and complex network of cooperation agreements 
     between Spain and Latin American countries. The Latin 
     American experience can be obviously useful in other regions 
     and markets, be they European, mediterranean or Asian.
       In short, the potential of economic interests requires both 
     Governments to promote and encourage the transatlantic 
     business dialogue and to increase our exchanges. The creation 
     of the United States-Spain Council is a step in this 
     direction. Our dual convergence with the United States, both 
     bilaterally and as a member of the E.U., must be regarded in 
     the framework of the New Transatlantic Agenda that President 
     Clinton signed in Madrid and that Undersecretary of State 
     Eizenstat referred to as ``the roadmap of our relationship 
     into the XXI Century'', not only in the economic field, but 
     also in the field of foreign policy and security understood 
     in its widest sense. In this context, the Spanish Government 
     has given proof of its willingness--which I reiterate today--
     of pioneering in Europe the ``habit of consultation'' in 
     Europe, in my view the cornerstone of this New Transatlantic 
     Agenda.
       In the cultural field, our relations continue to advance, 
     but the volume of the Spanish presence in the United States 
     is still insufficient. Notwithstanding, our cultural heritage 
     is among the most important in the world; the artistic 
     creativity of the Spanish people has produced and continues 
     to produce exceptional works; and our language is a work of 
     art of the ancestral living and daily communication we share 
     with 400 million people. Of these, nearly 30 million live 
     within the borders of the United States, making this country 
     the fifth-ranking Spanish-speaking country in the world.
       Where do we then stand with regard to our cultural 
     relations?
       The answer is not as satisfactory as it could and should 
     be, even though new means and mechanisms have been created to 
     open significant perspectives for the increase of our 
     cultural exchanges. We witness growing levels of cooperation 
     in the field of education: within twelve to eighteen months 
     there will be 2000 Spanish teachers in American high schools, 
     two Cervantes Institutes, in addition to New York and 
     Chicago, a greater number of privately funded scholarship 
     programs, including post-graduate students such as Spain-
     U.S.A. 2000. The expectations are ambitious and we should 
     continuously stimulate them, especially in a country where 
     65% of all students choose Spanish as a second language, 
     including the daughters of both President Clinton and Vice-
     President Gore. New technologies and media, the promotion by 
     audio-visual means of Spanish cultural expressions, the 
     introduction of the Spanish language in the Internet--another 
     subject included in the program of discussion of the III 
     Forum--, in sum, the whole arsenal of modern communication 
     should be used in a tightly coordinated strategy, to achieve 
     a widespread presence of Spain in the United States, 
     including, naturally, tourism and the healthy Mediterranean 
     diet.
       Taking all this into account, I believe that the engagement 
     of society in this task is absolutely essential. This is why 
     I am so pleased by the fact that the United States-Spain 
     Council has, among its specific goals,

[[Page S12288]]

     that of promoting our relations with the Hispanic community 
     in the U.S. I am particularly encouraged by the fact that 
     this will be one of the issues to be discussed in this III 
     Forum, both in the context of education and promotion of 
     people to people links as well as from the perspective of 
     image and mutual understanding. In fact, the U.S.-Spain 
     Council which owes much of its existence to the talent and 
     the perseverance of Ambassador Bill Richardson is, in itself, 
     a good example of the special predisposition that Spaniards 
     and Hispanics share to understand each other.
       Finally, I would like to make reference to the third 
     convergence that makes our relationship unique: the security 
     and defense issues, the military component of the Spanish-
     American ties. Historically, Spain has evolved from 
     contributing to the struggle for American independence 200 
     years ago, to its accession to the Washington Treaty in 1982 
     and common membership in N.A.T.O. It can even be said that, 
     since 1975, the major change in our growing exchanges with 
     the American Government and society has been a progressive 
     reduction of the military issue in the relationship as a 
     whole. We are no longer primarily a military ally, as we have 
     become above all a partner in the International Community, 
     engaging in excellent and extensive political, economic and 
     cultural relations, that do not, however, exclude the 
     security and defense link.
       The N.A.T.O. Summit held in Madrid last July, was a crucial 
     moment in the design of a new post-Cold War N.A.T.O., both in 
     its internal renovation and its external adaptation. Spain 
     and the United States share a common view in practically all 
     issues: the new design of the command structure; the 
     development of the European Identity in Security and Defense, 
     involving the effective participation of the W.E.U.; the full 
     support to the new Council of Euro-Atlantic Association; the 
     enlargement understood as a historical challenge that demands 
     an undeferable response and as a evolving process that 
     began with three countries but has been left open to the 
     future; the full support to the new Council of the Euro-
     Atlantic Association; the N.A.T.O. Russia cooperation, and 
     the special relationship with the Ukraine; the 
     strengthening of the Mediterranean dialogue, and the 
     creation of a Group for Cooperation in the Mediterranean.
       Consequently, we have arrived at a juncture in which we 
     feel that the transformation of the current model of our 
     presence in the renewed Alliance, and our entrance in the new 
     command structure is deemed advisable. We believe that the 
     necessary adjustments are practically concluded, in a 
     conceptual design that is acceptable both to Spain and to the 
     Other N.A.T.O. partners. We trust that this decision will be 
     formalised next December, without undue interference from any 
     extraneous bilateral dissension, foreign to the Alliance, 
     which ought to be solved in other fora.
       Ladies and Gentleman;
       Our world is irrevocably and unquestionably different. 
     Globalization--of markets, of finance, of technology, of 
     challenges--is not an option but a reality. International 
     relations are predominantly multilateral; the expansion of 
     democracy can be demonstrated; the proliferation of new 
     conflicts within states, rather than between states, is a 
     proven fact and an unfortunate truth,; and the revolution in 
     communications and information technology is the result of 
     the most significant and drastic technological changes since 
     the Industrial Revolution.
       And within such complex and changing framework, that is so 
     contradictory in its inequalities and its fortunes, it seems 
     appropriate that as Minister of Foreign Affairs of Spain I 
     encourage the United States to continue to be the most 
     visible international spokesman in favour of stability, 
     sustainable development, peace and security. This is not a 
     responsibility that must be carried out alone. Europe must 
     participate since we share a common world, since the United 
     States is a European country and Europe is an Atlantic 
     Continent. This is Spain's understanding which has been 
     postulated numerous times over the last years. The United 
     States can rest assured that in the conflict-stricken 
     scenarios of the world and in the daily life of the 
     international community, it will always find a Spaniard 
     striving towards peaceful co-existence, democracy and the 
     rule of law.
       This does not imply that no differences exist between the 
     policies of both and countries, or that we will not encounter 
     situations in which, while agreeing on the goals, we dissent 
     on the means. In such a complex and vital relationship, 
     perpetual consensus or systematic unanimity are unattainable. 
     It is in exploring doubts and in the search for alternatives, 
     that the intelligence of thought is expressed. On occasion's, 
     this is the only manner in which partner of good faith can 
     effectively help one another, in a relationship as plural and 
     conditioned by the World's diversity as ours.
       I would like to end by congratulating, once again, the 
     U.S.-Spain Council for having maintained this initiative and 
     the continuity of its meeting. The ambitious originality and 
     imagination of its members allows us to harbour great 
     expectations about their practical proposals which we shall 
     listen to with great attention.

                          ____________________