13 July 1998
(Also Nikolae Filipescu of the Romanian-American Community) (4700) Washington -- Stephen Flanagan, special assistant to the president for Central and Eastern European affairs at the National Security Council, said President Clinton plans to talk with Romanian President Emil Constantinescu this week about a wide range of issues, including Kosovo, Romania's interest in NATO membership, and "the support that we've received from Romania in dealing with a number of the problems in the very turbulent region that it resides in." During his visit, which begins July 14, Constantinescu will address a joint session of Congress and meet with a number of government and private officials in addition to the president. In a WorldNet program with Romanian journalists July 13, most questions focused on possible NATO membership for Romania. Flanagan said that the mention of Romania in the Madrid Declaration last year -- specifically, Romania's "positive developments towards democracy and the rule of law" -- "is a sign that we do feel that Romania is on the right path in achieving its ultimate goal of membership in NATO." But he added that other countries were also mentioned in the declaration, and that "we've made no decisions at this point." One purpose of next year's NATO summit in Washington is "to review how the various countries, including Romania, have progressed." Flanagan also noted that "we are at an early stage of ... advancing the integration of those three countries [the Czech Republic, Hungary and Poland] that were invited to join the alliance.... We are very confident that this process is headed along the right course. And if that does proceed as we expect, it will be paving the way for membership for additional countries." In response to a question, he said "concerns about the further strengthening of the Romanian economy is a factor" in whether Romania will be considered ready for NATO membership. "It's not the most decisive factor, of course.... What we would like to see is further progress ... as a way to show that indeed market reforms have been consolidated in Romania." Flanagan noted U.S. support for Romania's efforts to prepare for membership in the European Union as well as NATO, "and so we feel that our support for the development of the Romanian economy through our strategic partnership, through our assistance program, through a variety of other mechanisms, is important in advancing Romania's overall economic integration goals." Also participating in the WorldNet was Dr. Nikolae Filipescu, a leader in the Romanian-American community who will host a meeting between President Constantinescu and Romanian-Americans later this week. Following is a transcript of the WorldNet program: (Note: In the following text, "billion" equals 1,000 million.) (Begin transcript) WORLDNET "DIALOGUE" UNITED STATES INFORMATION AGENCY Television and Film Service Washington, D.C. GUESTS: Stephen Flanagan Special Assistant to the President for Central and Eastern European Affairs National Security Council Dr. Nikolae Filipescu, Romanian-American Community TOPIC: U.S.-Romanian Relations POST: Bucharest HOST: Jim Bertel DATE: July 13, 1998 TIME: 07:30 - 08:00 EDT MR. BERTEL: Hi, I'm Jim Bertel, welcome to "Washington Window," where we discuss today's most important issues one-on-one with leading newsmakers. Tomorrow Romania's President Emil Constantinescu arrives here in Washington to meet with President Clinton, and review the U.S.-Romanian partnership one year after Mr. Clinton's visit to Bucharest. During their meeting the two presidents will discuss trade and investment, the status of Romanian reforms, NATO expansion, and cooperation between the two countries. This week's visit marks an important milestone in bilateral relations between Romania and the United States. (Begin videotape.) ANNOUNCER: After long years under one of the world's most repressive Communist regimes, Romania took a decisive step in 1989 to embrace democracy. A year ago President Clinton was warmly received by the Romanian people. His visit to Bucharest helped raise Romania's spirit following NATO's disappointing decision not to invite the country to join the alliance. Stay the course. Stay the course. PRESIDENT CLINTON: As long as you proceed down democracy's road, America will walk by your side. ANNOUNCER: President Clinton urged Romanians to keep on course in making needed reforms, a necessary step toward Euro-Atlantic integration. MR. : I think Romania is a key (arch ?) [stone?] or the key element in any major -- (inaudible) -- equation, and therefore I think that there will be areas in which Romanian-American relations will develop towards a type of privileged relationship. ANNOUNCER: That special relationship develops further this week with President Constantinescu's address to a joint session of Congress. This speech will put him among a very select group of world leaders to be invited to speak before such an impressive forum. MR. : It is a significantly high honor for a foreign official to be invited to a joint meeting of Congress. Over the course of 175 years, perhaps no more than 50 foreign heads of government have been invited to speak before congressional sessions. ANNOUNCER: The deepening ties between the two countries will be further strengthened this week when President Constantinescu meets with President Clinton at the White House. (End videotape.) MR. BERTEL: Joining us here in Washington to discuss President Constantinescu's visit is Stephen Flanagan, special assistant to the president, and senior director for Central and Eastern European affairs at the National Security Council. Dr. Flanagan, what can we expect from this week's visit? MR. FLANAGAN: Well, we can expect a thorough review of our strategic partnership with Romania -- a discussion of a number of important issues of mutual concern to both our government and the government of Romania; that is to say, the crisis in the Balkans, particularly Kosovo; a discussion of the support that we've received from Romania on dealing with a number of the problems in the very turbulent region that it resides in. We also want to discuss, of course, the progress of Romania with regard to its interest in NATO membership. It has been very actively involved in the Partnership for Peace, which we feel is the best path for it to proceed down the road to NATO. But we want to review where things stand and give the Romanians a sense of where next steps are. MR. BERTEL: It should be an important visit. Well, we are pleased to be simulcasting today's program with Pro-TV in Bucharest, where I am joined by news anchor Lucien Mendretu (sp). Q: Hi. Mr. Flanagan, as we all remember, our country was mentioned in the final document of the Madrid Conference one year after. Do you feel that our presence in that document means something to the American administration? MR. FLANAGAN: Well, it absolutely does -- it absolutely does. The fact that your government, that Romania's progress on reform, on restructuring its armed forces, was mentioned in that Madrid declaration is a sign that we do feel that Romania is on the right path in achieving its ultimate goal of membership in NATO. What we've already resisted is any suggestion that gave any country -- and there were some other countries, as you know, mentioned in that document -- any pride of place with regard to the long-term future. We have committed next year, in April of 1999, at the Washington Summit of NATO, to review how the various countries, including Romania, have progressed. We've made no decisions at this point. We have made no commitments that indeed there would be a decision that some other country or countries would be admitted to NATO at that time, or invited to begin accession talks. But it does show that we feel that Romania is very much going and proceeding along the right path. Q: This is another journalist from Bucharest, Romania. Our caller, Bodan Ciedieak (sp) from the newspaper -- (inaudible) -- and he has a question for Mr. Flanagan. Q: (Off mike) -- made a promise to the Romanian people one year ago here in Bucharest. Now the United States and the other members of the alliance have a good experience in what -- (inaudible) -- the integration of three Eastern and Central European countries in NATO. Concerning this experience, are you optimistic or pessimistic concerning the second wave of integration? MR. FLANAGAN: Well, I would say we are at an early stage of that process of advancing the integration of those three countries that were invited to join the alliance. We have, of course, been working over the last several months, but this is a process that is going to take several years. So I would say we are optimistic in the sense that we do feel that the assessment we had made to the Congress and to others that these governments would be net contributors to alliance security is in fact proving true. We're finding that in some cases some of their military capabilities or ability to support alliance activities are better than we expected. There are issues that are arising that we hadn't anticipated. But we are very confident that this process is headed along the right course. And if that does proceed as we expect, it will be paving the way for membership for additional countries. So -- and we will feel very optimistic, I think, once this process is over. But I think it's a little premature to say whether or not we're convinced. Or we could -- what's more important is not that we are convinced as a government -- our administration has always been convinced that this will be the case. What's more important is that we have a credible case to make to the Congress, to other parliaments in NATO, that in fact this process has been a success, and that we can show that integration of other countries will go just as smoothly. Q: Sir, do you mean we are going to have many years between the first and the second wave? MR. FLANAGAN: No, I am not suggesting we are going to have many years. What I am saying is that we -- technically, the full process of integration really hasn't begun -- because not all of the NATO parliaments have ratified the protocols necessary to amend the North Atlantic Treaty. We are working in many of the preparatory steps with all of the three governments that were invited last year. But that process is far from complete. Indeed, that process ultimately could take more than a decade. But I am not saying that that means that there can be no further invitations until that's completed. If you look back at the way other countries -- for example, Spain -- it was a period of several decades as it adjusted and adapted the way it actually related to NATO over the long term. The same with some of the other members of the alliance. All I am saying is that it's premature for us to be able to go to the Congress now and say, "Yeah, we're sure this is working just exactly as we said," because as I said earlier, the process really still is unfolding, and it will take some time. I don't want to put a timeline on that -- I don't think it's productive -- because we really don't know. But we're convinced that we will be able to show the Congress over the longer term that indeed these governments have been net contributors to our overall security and to the security of Europe. Q: Another journalist here in Bucharest is -- (inaudible) -- from Pro-TV. And she has got a question for Mr. Stephen Flanagan. Q: Mr. Flanagan, do you believe that the economic situation such as it is today in Romania can negatively influence the decision concerning Romania's access to NATO? MR. FLANAGAN: Well, I think concerns about the further strengthening of the Romanian economy is a factor. It's not the most decisive factor, of course. What we do feel is that there is no doubt that democratic and overall market reforms have been implemented in Romania. Of course, there have been a number of problems in the economic area, as you well know. The slowness to complete the privatization process, certain other aspects of macroeconomic restructuring have been slow. That has also led to a slowness in foreign direct investment. What we would like to see is further progress along some of these lines that I mentioned as a way to show that indeed market reforms have been consolidated in Romania. But while NATO has always been an alliance of democracies with free markets who want to promote those values, there is no specific economic criteria. There is no specific point in Romania's economic development that has to take place before we can say yes on NATO. But of course Romania has broader integration goals as well. We would like to see, and we support Romania's desire to be a member of the European Union. And there there are indeed strict economic criteria that will have to be met. And so we feel that our support for the development of the Romanian economy through our strategic partnership, through our assistance program, through a variety of other mechanisms, is important in advancing Romania's overall economic integration goals. Q: Mr. Flanagan, Romania happens to be situated in an area dominated by conflict -- Bosnia and Kosovo are just two examples. In NATO's view, could our position be an asset? Is it a flaw? And can we be a provider of security for NATO in Southeastern Europe? MR. FLANAGAN: Well, I would say it's absolutely a plus. While indeed you are in an area of the world where there has been a great deal of turmoil over the last few years, there is a conviction that Romania remains an island of stability in that turmoil, and has been a very important contributor and supporter of alliance and other efforts to enhance security throughout Europe. Your government has been an active participant in the Partnership for Peace. You've been with us there in Bosnia where your armed forces have recounted themselves very well. Your support to other activities, including the force that was sent in to Albania in 1997 -- all of that was seen as very positive and redounded very much to Romania's benefit in a sense that we recognize that Romania really can be an effective partner in working with us on some of these collective security problems in the region. Q: Right here in Bucharest, when we talk about the second wave of NATO expansion, we think about Romania, and we believe that we are talking about Romania. In this concern, do you think that this strategical partnership between Romania and the United States -- do you think this strategical partnership is a preparation or a replacement? MR. FLANAGAN: It's absolutely a preparation. It was never intended to be a surrogate or an alternative. What we have said is that the strategic partnership is our bilateral effort, complemented by your work in the Partnership for Peace and other things that Romania is doing itself, that this is the way that we will help you become the best possible -- and your government to become the best possible candidates for NATO membership. We have taken a comprehensive approach on this, because we do think that a strong Romanian economy is important to be able to support an effective military structure over the longer term. We think that that will advance your other integration goals. It will help you be a more effective partner with other states in your region. All of this will contribute to your stability and security and advance your goal of achieving NATO membership. So it has always been seen as very much a part of this preparation, as part of leading you down this path towards your ultimate goal of NATO membership. Q: (Off mike) -- is obviously very important both to Romania's accession to NATO and in our bilateral relations. What in your opinion is keeping American investors away from Romania? MR. FLANAGAN: Well, I think there's a number of uncertainties. We have seen a number of deals that have been very close to closure and for some reason or other all of the elements don't seem to come together. So there seems to be a need for some greater transparency, some deregulation in the process of receiving foreign investment. There's obviously still a little bit of uncertainty. As you know well, the Romanian economy this year has contracted a little bit. They expect it to see some other further downturns in some other economic indicators. This is, of course, not a climate that is going to attract foreign investment. Some of the process of privatization and the way in which the opportunities for foreign investors to come in has been inhibited by certain Romanian government policies. All of this has contributed to a slowdown. We made a commitment as part of the strategic partnership last September, when Assistant Secretary Marc Grossman and I were in Bucharest, to try to see if we couldn't triple American direct investment in Romania. And we have been making some progress, and there are a number of deals as I say that are near closure but haven't quite come to fruition. So we are going to keep working on it. We hope that there will be some signs of progress. Secretary Daley will be meeting -- the Secretary of Commerce here in the United States -- will be meeting also with President Constantinescu during his visit -- and we hope that we can identify some ways, working with your ombudsman and other elements of the government, to move forward some of these deals. Q: Right now in Bucharest it has been concluded a very important deal between Bell Helicopters and some Romanian companies. The contract has a value of roughly more than $2 billion. Do you think that this project will attract more American investors to Romania, and will boost Romania's chances to get into NATO? MR. FLANAGAN: Well, on the first question, will it boost interest in Romanian investment: Obviously any of these deals that come to fruition, if they are seen as solid, as in any other business, the market will tell. If this proves to be a good deal, if Romania makes good on various commitments, if the business evolves well, then indeed it will have that effect. With regard to defense questions, we have always said to the Romanian government that this is their decision to make. We have a number of priorities that we would like to make sure that it continues to pursue in the development of its armed forces so that it can work with NATO. I would say that the helicopter deal is not at the top of that list, but indeed, as long as Romania can meet these other priorities, and proceed with the helicopter deal, we're fully supportive. Q: Mr. Flanagan, in our bilateral relation it seems that the best cooperation has been in the field of military relations. How much further can military relations go if Romania does not eventually join NATO? MR. FLANAGAN: Well, there are a number of things that we can continue to do. We are looking at elements -- whatever happens in the April summit of NATO, we would like to enhance the Partnership for Peace to make it more effective in allowing the Partners to play a more effective role in dealing with the various problems with NATO member countries. We are very much convinced that the Partnership for Peace, even as NATO enlarges, should continue to develop, that it should continue to be a mechanism whereby NATO can cooperate with non-member states. And we think there are some things that we can do in the area of training and other elements of the development of Partner armed forces that could make the Partnership for Peace, and therefore Romania's participation, whatever happens, more interesting, more challenging, more relevant to -- just as it always has been -- to achieving that long-term goal of integration in NATO for those states that are seeking membership. Q: Do you think that at a certain moment the position of Romania in Europe, which is a very important pillar of stability in this part of the Balkans, can prevail the economic situation in what concerns a fast NATO admission? MR. FLANAGAN: I'm sorry, I didn't quite -- as long as you remain stable, that this will help advance your integration? Q: No, what he was trying to ask is whether our position in Eastern Europe can prevail over our, let's say, economic stature in regard to our admission to NATO. MR. FLANAGAN: No, I'm sorry, the strategic importance and location be taken in -- seen as a higher consideration than your economic consideration? Is that right? I would say that there is no particular hierarchy. NATO is being enlarged on the basis of the sense that this is a group of democracies who have common interests and shared values that they want to protect. That's the fundamental thing that we've said about NATO enlargement -- it's not some kind of geo-strategic gambit designed to advance some specific geo-strategic goals. Those certainly are considerations, and I think as you said earlier your location gives Romania a certain geo-strategic interest, because it is in a region where we know there is real turmoil that could affect overall European security. It does have an important position with regard to U.S. interests elsewhere in the world. But I would say that we want to see progress along a number of different fronts before we can say to the United States Congress, "Yes, Romania can sustain its membership in NATO, can be a net contributor to security." We're not just looking for air bases, or any other kind of power projection sort of platforms. That's not what we're looking for. We're looking for reliable and effective partners. And if Romania can prove that, then it will be in the alliance. Q: I was just thinking that last year NATO expansion went only on the northern side of Europe, and all the problems seem to be here in the south. And from this consideration I was wondering about the participation of Romania in Albania, in Bosnia, and farther on. So I was thinking about that, that at a certain moment the position of Romania should be vital -- the economic consideration in what concerns the NATO participation. Thank you very much. MR. BERTEL: Dr. Steven Flanagan of the National Security Council, thank you for taking time to be with us today on WorldNet and Pro-TV. Good to have you. Well, now joining us here in Washington is Dr. Nikolae Filipescu, a leading member of the Romanian-American community. Dr. Filipescu will be hosting a meeting between President Constantinescu and Romanian-American leaders later this week. Let's return to Pro-TV for more of our discussion. Q: Mr. Filipescu, hello, I'm -- (inaudible). I would like to ask you a question: What is the role of the Romanian community in the United States in planning to boost our country's relations with the United States? MR. FILIPESCU: Hello to you, Mrs. Greta (sp), the same to Mr. Mendretu (sp) and Mr. Ciediak (sp). The Romanian-American community is the day-to-day ambassador of Romania abroad. And the Romanian Americans have done an excellent job in projecting the image and the prestige of the country in the United States. The majority of the people of Romanian origin in America have behaved with a great deal of hard work and excellent attitude, and therefore have participated to creating an image and some kind of a good relations in respect for the Romanian origin of the Americans from here. Now, the second part of your question is what role do they play. It's a multiple role: first by the way they present themselves; second there is a lobbying type of activity which they have exerted and they will continue to exert on the American government and the American authorities, and even on the -- much more important probably -- the American private sector, which is instrumental in investing in America. The third aspect is the way they interact with the people in Romania. So there is a great deal of interest among the people of Romanian origin in America, a great interest and the great desire not only to help but to participate, and hopefully to make a difference in the future of the country. Q: (Off mike) -- with American businessmen coming home from Romania, because if you did, I want to know what they most often are complaining about. MR. FILIPESCU: The list is quite long. Unfortunately the Romanian state -- the Romanian bureaucracy has a pretty bad reputation, and that is stated repeatedly throughout all the forums where such things are discussed. Many times companies from the United States have tried to invest in Romania, to participate in the economic development, only to admit that they have been unable to. The examples are so abundant that it is difficult. I will choose only a few. The most prominent American company which makes agricultural machines -- it is called New Holland -- has negotiated for longer than two and a half years with the Romanian authorities and the Siminutara (sp) Factory in an attempt to create in Romania a center for manufacturing and distribution and export of agricultural utensils. And after all this time they gave up and they moved to Poland. Another company, Cargill, which deals with exports of grains and agricultural products, after doing something similar, they ended up going to Turkey. General Electric after coming to Romania with a decision-making capability ended up going to Hungary. American businessmen in the oil industry, with great technological capability have had to move on. It's very difficult to the business of Romania -- not only because the bureaucracy is corrupt and unable to see the interests of the country, but also because frequently deals which are made -- contracts -- are not respected. And the lower level, the lower echelons of bureaucracy, they are simply sabotaging the accomplishment of any deal. It is known in the business community in America that Romania has not been a preferential place for doing business. Q: Mr. Filipescu, I am -- (inaudible) -- daily newspaper here in Bucharest, Romania. Last year Romania was involved in a very huge effort to join NATO in the first wave. In this respect, do you think the Romanian community in the United States did enough to support this effort Romania did? And in this respect, are you preparing something for next year, for April in Washington, when it is going to be again on NATO expansion in Washington? MR. FILIPESCU: I'm not sure how much is known in Romania about the efforts which have been made by the so-called Romanian-American community in this respect. But there have been important actions and lobbying on many available mass media and communication matters here -- not only individual lobbying toward the congressmen and senators in the government, but also collective activities. And that has continued since. I would have to say the following thing. The chances of Romania getting into NATO are very good, because the doors have been opened in the United States, the other Western countries, for Romania. The door is opened. This strategic partnership is not a fiction; it is a reality. And so the most important thing which prevents us from going into it are the lack of reform, the lack of courage and determination to change the old structures which are still prevalent in Romania, which have been demolished in countries like the Czech Republic, Hungary, Poland, and even in Bulgaria and Albania. So therefore Romania is way behind in its ability to meet the standards for entering NATO, which are not based only on commonality of interests, but also on whatever happens in Romania -- the progress made in the economic and political fields. Q: Thank you very much. Thank you to Jim Bertel in Washington. MR. FILIPESCU: Thank you. MR. BERTEL: And my thanks to you, Lucien, and your colleagues in Bucharest. And of course I'd also like to extend my thanks to Dr. Filipescu for joining us today. In Washington, I'm Jim Bertel for "Washington Window." (End transcript)