With such warm Californian applause and encouragement you take risks that I might speak well beyond the 20 minutes that I've been granted, but I will try to stay with the rules.

Thank you very much to Joe Cerrell for what he said, thank you to the World Affairs Council and to its president, Curtis Mack.  I have had the opportunity to receive delegations of World Affairs Councils when I was in New York as the Italian ambassador to the United Nations, and again last January in Washington, D.C.  I think that what the World Affairs Councils do for democracy, for expanding the knowledge and the understanding of what is happening in this complex world, a far more complex world than existed at the time of the Cold War, is a great issue, is a great task.  I think that this country enjoys a large number of bodies who are focusing on transformations and change in today's world.  The sophisticated and in-depth ability of analysis in figuring scenarios that I found in United States' think tanks, academic bodies, universities and your media are a real asset for a country which has the task and the mission of leadership which has been, I would say, rooted in your history in the 20^th century. 

I would say that Italy and the United States share a future; that is to say, that they ended the 20^th century in a far better comparative status of power than how they entered the 20^th century.  In the case of Italy, I would say that the conditions of the country at the opening of the 20^th century had forced millions of its citizens to emigrate under the pressure of the need of want, to escape poverty.  At the end of the 20^th century, Italy placed in the same league with the countries who were world powers five hundred years before.  In a few weeks, the G-8 summit of the most industrialized countries will be held in the United States, in Sea Island, Georgia, and Italy is very proud to be the fifth industrial country in the world.  The 20^th century taught Italy a number of lessons and these lessons have been well understood.  We had mistakes in the first part of the century.  Politics, was not focused on a number of principles of democracy, of freedom, of stability. The second part of the century belonged to NATO, to the Atlantic Alliance. Understanding the leadership role played by the United States has been a safe recipe for extraordinary and tremendous growth of Italy and the way also to tackle challenges and threats of the last decades.

The transition from the 20^th century to the 21^st century unfortunately has been very challenging.  The legacies of the past, new threats, ominous threats, anonymous threats like those arising from terrorism, from failed states, represent at present the ground where United States and Italy have developed strong and better cooperation.  I will not recall here the great solidarity, spontaneous solidarity, which Italy has shown with the United States after the terrorist attack of September 2001.  This is well known.  I would say that beyond political distinctions, political parties, my countries need to stand side by side with the United States, reflecting the awareness that what was at stake was not a problem of security, a problem of stability, but rather the choice between international order based on principles, on a strong international cooperation and vision and the need to reject a world of intolerance, of rejection, of hatred.  What we are facing today in areas of crisis were anticipated in the 1990s by the crisis in the former Yugoslavia. Former Yugoslavia was a neighbor of Italy, and where unfortunately again the forces of hatred, on a smaller scale, regional scale, had shown devastating power and force in making impossible the coexistence and the cooperation among the people of that country.  The Dayton agreements in 1995 put an end to the civil war in Bosnia and Herzegovina and Italy followed suit sending its own soldiers to stabilize that part of Europe.  Four years later, the situation in Kosovo, which unfortunately had deteriorated for multiple reasons and causes, had reached a level of instability, and again the American leadership with NATO—and I would say with the valuable support of the strategic position of Italy, its military bases, air bases—made it possible to stop a civil war in that part of Europe again.

I think that the real test of the ability to address a situation or crisis came after September 11, 2001.  We must say that Europe as a whole, and I wouldn't make a distinction actually between Italy and its European partners, have joined forces in fighting terrorism.  From fighting terrorism in the case of Afghanistan, to fighting terrorists worldwide, to really high level and effective cooperation in stopping financial flows, in sharing intelligence, in addressing, I would say, terrorism at its roots.

The war in Iraq, which has been the subject for controversies and for differentiated analysis between a number of European countries and the United States, has to be considered in the perspective of the future.  It would be useful and productive to focus now on the reasons, on the ways, on the usefulness of that war.  We are there, and hopefully the United Nations will join in supporting the political institutional process of reconstruction of Iraq, of devolution of power to the Iraqis themselves and also on the assumption of responsibilities by the Iraqis of their own security and stability.  This is the objective, this is the target, this is the scenario which the Italian government is pushing today.  There have been many questions in the last 48 hours on what Italy will do in three or six months about Iraq.  The only point is that one week ago the Italian parliament decided to adopt the proposal of the Italian government maintaining and extending the Italian military mission in Iraq for an additional six months.  This is the only reality.  We cannot make policies with if and when.  It's to say anticipating now what will happen after July first.  The basic factor of our policies is to support the political transition, to support the role of the United Nations in that context, and in having, as far as possible, as much as possible, the role of the Iraqis themselves in addressing their security problems. 

I mentioned the next summit of the G8 in June in Sea Island.  That will be the occasion which will offer the opportunity for an in-depth review of what the possibilities are to have a multilateral approach to the situation in Iraq itself and in the region, including the peace process between Israel and the Palestinians, which unfortunately has been once again thwarted by the terrorist attacks which took place two days ago.  We attach a great importance to the peace process between Israelis and Palestinians.  Italy has been strongly supportive of the role of the Quartet, which is a framework of consultation and cooperation between the United States and the European Union plus the United Nations and Russia.  But as far as the Palestinian Authority would not show leadership, would not effectively stop the use of violence, use of terrorism, I think that the conditions would not be ripe for real progress in this area. 

Today, this very day, the Italian Foreign Minister, Franco Frattini, is visiting Jerusalem.  He was in Cairo four days ago.  Italy is very active in carrying messages, in offering expertise, in trying also to imagine formulas in order to make possible safer conditions and secure conditions when it would be politically possible to have an Israeli withdrawal from Gaza, the territory of Gaza, as a first step in order to implement the road map.  What is crucial at this stage is to keep the channel of dialogue open.  What will confer this step is for the Palestinians to understand that there is no future for their political national aspirations if the role of terrorism and violence is not abandoned.  I think that in the talks that Minister Frattini had today in Jerusalem these points were made very clear and thanks to the deep friendship that Italy has shown to Israel and to its security needs it should be possible – it has been possible – to tell our Israeli friends that their future has to be based first of all on security but also on a political vision of development and progress in that region with the strong support of the United States and of the European Union.   We are ready to promote, and this was made clear already 18 months ago, reconstruction and development of a future Palestinian state if this goal will one day achieved.  We understand that Palestinian youth and young generations need to have a vision of their own future not based on violence, on hatred, but on development, growth, education, addressing the real problems and the real needs of the Palestinian population.  This is the most difficult crisis to manage in today's international landscape, but we are determined.  Our resolve is very deep to keep engaged and committed and to offer our support to the excellent relations that we have with Israel and the relations of confidence that we have with a number of Arab countries. 

Italy held the Presidency of the European Union in the second half of the year 2003.  We were very happy to hand the succession of leadership within the European Union to Ireland – to our Irish friends, and I would like to recognize them.  The Consul of Ireland, Finbar Hill, is here tonight and I want to say that we are very proud of the joint efforts of our two countries, two countries which share, I would say, a very crucial future in the relationship with the United States.  Ireland and Italy have in this country very deep roots that contributed enormously to the growth of the United States.  Again, I would say that if we compare the conditions of how we started the 20^th century and the way we are today in the early 21^st century I think that both the Irish and Italians can be most proud.  We find here in this country an environment where to a large extent the assertiveness of our international position has found an extremely responsive, friendly and equal relationship.  I would say that the Presidency of the European Union in the last months has been extremely useful in providing the European Union with a number of tools that empower the European Union to be a credible and effective partner of the United States for the world governance.  The European Union has provided a security strategy and the political, economic, and possibly also the material tools for tackling the new threats.  These range from weapons of mass destruction, which is the new scourge of international disorder which followed the end of the Cold War breaking many illusions, illusions of those who thought 12 or 14 years ago, that the end of the Cold War would produce an open context of stability and peace, and tackling terrorism which comes from many factors, ranging from frustration to hatred and ignorance.  I think that the work that Italy did during the second half of the year 2003 has contributed to bridging the gap between the United States and the European Union on how to address the new challenges and how to tackle the new threats.  I would say that the distance between the United States and the European Union on many issues is more apparent than real.  There have been some weak communication consultation channels, there may be a different perception of the priorities but I will say that there is also an increasing awareness that we are facing the same challenges, we are facing the same threats.

Let me say a word about the role of the economy, the global economy, on transatlantic relations, and let me offer you an Italian view of this point.  Again, the differences between the European Union and the United States have been often exaggerated.  We are the first partner in trade, we are the first partner in investments, we are the first partner in technology, in research, in cultural and academic relations.  The European Union does not see the United States as a competitor, even less as an opponent, and I think that this is also the view of a large majority of Americans.  We had a number of problems but this is quite normal in the context of strong transformation where there are some sectors which may be not as flexible in adjusting to new circumstances.  I refer, for instance, to the tariff for steel which had to such an extent raised a great number of objections in the past months but the problem has been solved.  There were problems with the farming policies where farmers are players in the economies of both the United States and the European Union which are not very easy to deal with.  They defend a heritage and legacy, a material interest, but also I would say, a certain kind of environment, a culture, and therefore their legitimate expectations have to be met by governments having in mind also the need for free trade, rationality and productivity, and the expectations of other international players, both in the farming policies and trade of industrial countries ranging from Canada to Australia and among the developing countries. 

I want to say on this occasion that the role of the business community both in the European Union and the United States has not been sufficiently emphasized so far.  There is a channel of communication, a channel called the Transatlantic Business Dialogue, which in my view deserves to be strongly emphasized and strongly promoted in order to find, through further expansion of trade and investments between the United States and the European Union, the answers to some of the difficulties and potential roles which can appear in the relation between the two shores of the Atlantic. 

Even the creation of the euro, the new European single currency, two years ago has produced a number of effects.  The Europeans are mostly surprised with the strength of the euro and they find it is harming some short term interest of Europe in international trade.  Again, I would say that the euro is going to be a tool for further stability in the global economy.  It is going to be for a number of European countries, like Italy.  In spite of some difficulties to the export competitiveness, a factor of fiscal discipline, a factor of stability in the relations with our European trading partners within the European Union. 

Let me add a few words about the role that the Italian-American organizations play in fostering relations between Italy and the United States.  No surprise that we have shared for 50 years NATO and the Atlantic Alliance as a strong framework for cooperation. No surprise that two and one-half years ago Italy reacted in a very strong and genuine way in terms of solidarity with the United States.  We have too many bonds, too many ties historically, yes, but first of all I would say human and personal between our two countries.  And the role played by Order Sons of Italy in America (OSIA) and UNICO in fostering and strengthening these bonds and ties has been exceptional.  Today, these organizations are adjusting to new circumstances and they are broadening the scope and areas where they promote, business cooperation and cooperation also in the area of academic bonds, of research, of investment, of culture and finally of teaching our Italian language.  We scored success one year ago in having Italian accepted as a language within the advanced placement program.  Italian will be recognized, hopefully, from September of 2005, at the same level as French and German -- I will not mention Spanish because Spanish is in a different league in this country, I would not have the ambition to compete with Spain – has corrected an historical injustice and is going to bring Italian as a language in a number of American high schools and as a language which will grant credits for admission to college.  This has been a success which has been made possible only by the cohesion and I would say the strength of the commitment of the American-Italian organizations.  I would like to commend them and to acknowledge the great role that they have played in this very sensitive field and area.

Let me just conclude with a short comment on the fact that in today's transatlantic relations what is needed is the same degree of tenacity, political will and awareness that Europe and the United States may succeed only if they will be together.  This union will not be in the single interest of any of the two.  I think that there is a growing awareness about the truth, about this kind of destiny and about the fact that what unites us is by far more important than our differences.

Thank you.