Statement by Ambassador William B. Taylor, United States Coordinator for Assistance to Europe and Eurasia

On behalf of the United States of America, I would like to express our appreciation to the World Bank and the European Commission for organizing this Donors' Meeting for Macedonia. I would also like to thank the International Monetary Fund for its sustained engagement in Macedonia.

The United States is very proud that, in concert with the European Union, we contributed to helping Macedonia's political leadership lay the foundation for a durable peace settlement in Macedonia with the August 13 Framework Agreement. The United States remains committed to joining with others in the international community to ensure that the promise of the Framework Agreement--enduring peace and stability as the basis for a renewal of democratic and economic reforms and growth--is realized. Today's donors' conference is a further expression of the international community's resolve to do its part to support Macedonia's sovereignty, territorial integrity, and economic self-sustainability, and to promote its integration into Europe and Euro-Atlantic institutions.

The United States commends the Government of Macedonia for taking the steps that made this conference possible. The Macedonian government has demonstrated leadership and resolve in securing passage of key constitutional and legislative measures called for under the Framework Agreement. Moreover, the government has led in other key areas which contribute to a sustainable peace: pardons for former combatants; passage of an amnesty law, a major step toward full implementation of the Framework Agreement; working with the international community to manage police returns to sensitive post-conflict areas, thus speeding the return of refugees and displaced persons to their homes; and reaching agreement with the International Monetary Fund on a Staff Monitored Program.

Step by step, the United States will work with the Macedonian government and all of Macedonia's citizens to see that each element of the Framework Agreement is implemented. This must include, with equal leadership and resolve, the rejection of all who call for violence as a means to resolve political differences. By such measures, by such political stamina and courage, the Macedonian government and all of Macedonia's residents are making an invaluable contribution to the global war on terrorism--they are embracing peace, progress, and prosperity within their own country.

Clearly, however, Macedonia needs the strong and continuing support of the international community. The recent crisis has exacted a high price and has seriously damaged Macedonia's already weakened economy. Just as Macedonia began to recover from the Kosovo crisis of 1999, it had to confront a costly, destabilizing, and destructive insurgency. Recovery from the crisis and implementation of the Framework Agreement, we know, will also be costly. This extraordinary, cumulative burden is taking its toll. With average incomes at roughly 75 percent of what they were prior to independence and with an official unemployment rate of 32.1 percent, the standard of living for most citizens of Macedonia has eroded, contributing to the uncertainties bred by the conflict. Macedonia needs our support.

The United States will do its part to meet Macedonia's urgent needs. Today, the United States announces a total assistance contribution to Macedonia for the period covered by this meeting of $116,380,904.

Our total contribution includes a pledge of $39,618,424 against the needs sought for this conference; $55,081,997 in economic development assistance; $11,550,000 in 2001 funds supportive of the Framework Agreement; and $10,130,483 in humanitarian assistance.

Our specific pledge against the needs sought for this conference consists of: $16,500,000 in balance of payments support; $12,153,424 for reconstruction and rehabilitation in conflict-affected areas; and $10,965,000 to support implementation of the Framework Agreement.

Mr. Chairman, we have coordinated with the World Bank on our pledge, and I am advised that fully $39,618,424 are creditable against the conference target of $228,000,000.

I would like to note several things about U.S. assistance to Macedonia. First, our assistance includes $12,000,000 for the multi-lingual Southeast Europe University in Tetovo not counted against our pledge. Second, we are providing $4,900,000, also not counted against our pledge, to fund programs to enhance Macedonia's territorial integrity by helping it control its borders and by supporting post-conflict demining and ordnance disposal efforts. Third, given the critical importance of a national census to a strong multi-ethnic Macedonia, the U.S. offers continued technical assistance and support to the appropriate Macedonian authorities. For the census and the national elections, the U.S. continues to support close collaboration and coordination with our European partners.

As a sign of the United States' continued faith in Macedonia's future as a stable, prosperous, multi-ethnic, market-oriented democracy, I am pleased also to announce the forthcoming visit to Macedonia of Mr. Peter Watson, President of the United States Overseas Private Investment Corporation (OPIC). We are hopeful that Mr. Watson will be able to visit Macedonia in the summer. Peter Watson and OPIC are enthusiastic about supporting projects in Macedonia and will look for ways to expand OPIC's activities there. It is my hope that Mr. Watson's visit will shine a U.S. spotlight on the investment opportunities which exist in Macedonia.

As a further sign of the international community's interest in Macedonia, I would also like to announce that the U.S. Embassy in Skopje and the Export-Import Bank of the United States are jointly sponsoring a Finance Conference on May 30-31 at Lake Ohrid in Macedonia. This conference will focus on Macedonia's business and banking communities and on the financial, consulting, trade, and investment resources available from the U.S. Government to help them grow and prosper. The conference will highlight the programs offered by the Export-Import Bank, the Overseas Private Investment Corporation, the U.S. Trade and Development Agency, and the U.S. Agency for International Development.

In the context of fostering interest on the part of U.S. and other investors, I strongly encourage the Macedonian government to send the right signal to investors and create the most investment-friendly environment possible, by redoubling its efforts to eradicate corruption, by reducing bureaucratic hurdles to investment, and by ensuring that expenditures are transparent, reasonable, and responsive to the need to build peace in Macedonia.

Let me conclude with the pledge that the United States, together with our international community partners, stands prepared with technical and financial assistance to support Macedonia as it implements critical structural reforms and as it recovers from the recent crisis. We look to the Macedonian government to ensure that the country's resources, including the international financial support it receives, are allocated in a way that helps to achieve our shared goal of a stable, peaceful, and prosperous Macedonia. The Macedonian government's close cooperation with the international community, including the IMF, is a critical element in this relationship, and we urge the Macedonian authorities to work constructively to conclude negotiations on an IMF Stand-by Arrangement. To that end, timing of the disbursal of the $16,500,000 we have pledged in budget support will depend critically on cooperation with the IMF.

The United States remains ready to support the Macedonian government in its efforts to meet remaining Framework Agreement commitments and to take the sound political and economic measures necessary to keep Macedonia moving forward. We will be Macedonia's steadfast friend and partner as it continues along the path to full integration into Euro-Atlantic institutions.

Ladies and gentlemen, thank you for your attention.