Remarks by Ambassador Joseph M. DeThomas
To the American Chamber of Estonia
Tallinn, Estonia

Lugupeetud Daamid ja Härrad:

Aitäh, et olete mind täna õhtul siia kutsunud. Mõned teist on võib-olla kuulnud mind rääkimas eesti keeles.

Täna õhtul ei hakka ma teid piinama -- ja seepärast on minu kõne inglise keeles.

I'd like to say that I'm honored to be here today, in the presence of His Excellency the President of the Republic of Estonia, addressing one of my most important constituencies, American business. Mr. Grace and Mr. Grenfell-Gardner thank you again for this invitation.

Recently, Secretary of State Colin Powell spoke with a group of American newspaper editors. This was at the height of the September 11 crisis as we were establishing the coalition. The Secretary had just come from a meeting with the president of Pakistan, and he asked the editors what issue they thought the two men had spent the majority of their time on.

It wasn't the war on terrorism. They spent most of their meeting discussing textile quotas.

The message that the Secretary wanted to give is that diplomacy more and more is focused on economic and business issues.

This is because one of the results of the end of the Cold War and the spread of democracy is that governments are being held responsible for the prosperity of their countries and the well being of their people.

And this means that issues of trade and investment are primary issues in diplomacy. Not an aside. Not a hobby.

Promoting American business, therefore, is a fundamental part of my job.

And, it's a part of my job that does not conflict with my primary mission of making Estonia a part of a Europe whole, free and at peace.

I firmly believe that U.S. companies are good corporate citizens.

The values and practices of American companies abroad serve as very powerful examples to others around the world who are working to build democratic societies, market-based economies, and institutions that provide the best hope for peace and prosperity in our world.

Good American business is good for the community – in this case the Estonian community.

There are many good stories about American investment in Estonia.

As is usually the case, however, a considerable amount of my time and attention has been taken up with a story that has not been so happy. This is the NRG arrangement with Eesti Energia.

I'd like to make a few comments on this matter before an interested audience.

I strongly believe the story isn't over.

Politics and energy are always a dangerous mix. It is unfortunate that the NRG arrangement was caught up in a sensitive moment in domestic politics in Estonia.

At some point, however, people will have to leave politics and actually generate electricity. This will require a rational, hard-headed look at the costs and benefits of real alternatives.

People are currently reviewing alternatives for the long-term generation of electricity in Estonia. I am convinced that when they look at the numbers and start looking at the facts, they will look favorably on what NRG has to offer. There are tremendous benefits to doing so:

1. Energy security and independence. I can easily imagine affordable alternatives to NRG, but in the end they involve making Estonia dependent on foreign sources of electricity. For strategic reasons this has always been rejected here.
   
   
2. An enormous reduction in pollution. It will take massive investment to come into compliance with Estonia's foreign commitments on the environment.
   
   
3. Investment in an economically depressed region of the country, and
   
   
4. Estonia would gain a good corporate citizen that is willing to make a commitment not only to the business it is buying but also to the citizens of the communities it will affect.

Some of this could be done without NRG, but if you take NRG out of the picture, I can't see how all of it could be done without putting an enormous burden on the shoulders of the Estonian taxpayer.

In closing, I would like to say how pleased I am to be in Estonia at a time of historic and positive change.

In my brief time here, I have met with several American Chamber members, and I have heard a number of fascinating stories about people who took the risk and came to Estonia to establish businesses in times far more difficult than these.

I congratulate those of you who were wise enough to take this risk.

Those of you who are here now, I believe, are positioned to be part of a great success story.

It is very probable that within three years Estonia will be part of the richest and largest market on the planet.

It will do so on the basis of sound economic and fiscal polities, low taxes, and an environment friendly to free trade and to the free flow of capital.

Estonia, therefore, is going to be well-positioned for success for itself and for those who have come here.

That said, there will inevitably be bumps in the road for you and for Estonia. I will be here to do anything I can within U.S. law to smooth out those rough spots for you.

Thank you.