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CNN Live At Daybreak
Paul Bremer Now Speaking at Donors Conference in Madrid
Aired October 24, 2003 - 05:19 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: All right, the U.S. administrator for Iraq, Paul Bremer, is now speaking at the donors conference in Madrid, Spain, where officials are asking for money to help rebuild Iraq.
Let's listen to what he has to say.
L. PAUL BREMER, U.S./IRAQ RECONSTRUCTION ADMINISTRATOR: ... parent/teacher associations to sports federations across the country are electing their own leaders. Iraqis all over the country are getting their first experience with participatory democracy.
The economic situation has also advanced since the summer. In the six months since liberation, Iraq has taken remarkable steps to reshape an economy laid waste by a quarter century of useless wars, gross mismanagement and ill-conceived policies.
Electric power has returned to prewar levels. Hospitals, health clinics, schools and universities have reopened across the country. Markets are offering a wide range of goods and services.
The Iraqi government recognizes that if it is to succeed, it will have to get away from the state dominated economic system imposed by Saddam. As the foreign minister mentioned, it's important for political power to be devolved from the center, but just as important so economic power must be distributed away from the government to a newly vibrant private sector. The Iraqi government has taken important steps to lay the policy and legal foundations for a healthy private sector.
Iraq needs to be open again to the world. So to promote trade, the government has put in place a zero tariff, except for a temporary five percent reconstruction fee. To encourage much needed capital investment, the government has adopted a liberal regime for foreign direct investment. It permits foreign firms to establish wholly owned companies or to purchase 100 percent of Iraqi firms. Foreign firms will receive national treatment and may remit profits in capital freely.
I would note here that a number of reports have mistakenly interpreted this new law to mean that foreigners will come in and swoop up all the state owned enterprises. That's not right. No state owned enterprises are yet for sale. Decisions on that matter will be made in due course by the Iraqi authorities.
To promote the creation of a modern financial services network to support this new (AUDIO GAP)... COSTELLO: All right -- did we get the audio signal back?
I hear it, though.
Did we?
BREMER: ... and managed well. And the government, as Mr. Kohler mentioned this morning, has begun the process of issuing a new currency, a currency which will float freely.
No modern economy can survive well without modern communications and here, too, the Iraqi government has taken important steps. It is urgently repairing the country's telephone backbone services and two weeks ago the minister of communications announced the award of three mobile telephone licenses, which will, for the first time, give Iraqis access to mobile communications. These are all good signs. But economic transitions, as many speakers have pointed out, are painful. So the Iraqi government is developing a social safety net.
For example, after the Oil For Food program ends in November, Iraq will retain the food basket program until private markets can respond effectively to the food needs of the population. We are grateful for the continued assistance of specialized U.N. agencies and NGOs in assuring that the neediest Iraqis are not left behind.
Of course, no discussion of contemporary Iraq can exclude the subject of security. Too many people believe that security stands apart from other issues. This is not so.
As part of the reconstruction effort, the coalition and the Iraqi government are working together to encourage more Iraqis to take part in their own security. A major part of President Bush's supplemental budget request provides for accelerated training of the new Iraqi Army and for the training of a professional Iraqi police.
In this respect, security is not a condition of reconstruction in Iraq, it is part of reconstruction. And I should add that security conditions in Iraq have not stopped reconstruction. In the last five months alone, the coalition has completed over 14,000 individual reconstruction projects, large and small, across all of Iraq. Each project is proof to the Iraqi people that theirs is a future of hope.
But security is more than the absence of suicide bombers. Security is also the broad sense of well-being that comes with a decent job, dependable public utilities, functioning courts and clinics and schools. Providing these essential services, which so many donors have so generously agreed to do, will improve well-being and security. The process will not be easy. There will be bumps along the path. But the direction and the momentum are clear.
In sum, Iraq's progress towards a constitution, elections and sovereignty is well advanced. Additionally, Iraq is already implementing a series of economic measures which will prove very attractive to private investors inside and outside Iraq. Reconstruction efforts are going forward every day. I urge you now to join in that reconstruction effort. All the Iraqi people, Sunni and Shia, Kurd and Arab, Christian and Turkmen, from the marshes to the mountains, need your assistance. As Dr. Perchachi (ph) said, this is a vast and historic undertaking.
The countries represented in this hall may have disagreed in the past. We may disagree today on one point or another. But by our presence, we signify that we agree on one major point, Madam Chairman, and that is that the Iraqi people need help to realize their future of hope and we are ready to contribute.
Mabruk el-Iraq al-Jadid (ph).
COSTELLO: L. Paul Bremer, the U.S. administrator in Iraq, talking to the donors conference in Madrid, Spain. Of course, the United States seeking some $55 billion in aid to help the United States in reconstructing Iraq. And they're asking dozens of countries in Spain for money.
Let's head live back to Madrid.
Al Goodman standing by.
I know that France and Germany were kind of reticent to donate money because of the security situation in Iraq. But Mr. Bremer certainly addressed that, didn't he -- Al.
AL GOODMAN, CNN CORRESPONDENT: Right, indeed, he did, Carol. He said that security has not stopped reconstruction. He said 14,000 reconstruction projects have occurred over the last five months. That's talking about schools, playgrounds, all sorts of things. But, in fact, security, which has been mentioned repeatedly here during this pep talk, if you will, over the last couple of hours, trying to get these donors just before they put up their pledges -- all 60 of them are going to be putting up their pledges between just in the next few minutes for about the next six hours. They're going to go one right after another.
Security has been a key concern. And so that may be one reason, for instance, why France and Germany are not getting in and why others are not getting in.
But we can tell you that in the last few minutes, Japan has signed on as the second largest donor in the world to the Iraq situation, after the United States. The Japanese foreign minister telling this conference just a few minutes ago, Carol, that Japan would be ponying up $5 billion U.S. That's $1.5 billion in grants that they have done -- that they previously announced. That's cash. That's what Iraq needs most. And the rest in loans through the next few years -- Carol.
COSTELLO: Such a strange thing that you're at. It just sort of sounds like a charity auction to me.
Saudi Arabia also ponied up some money, but not as much as expected. GOODMAN: OK, we're getting reports and we've been trying to talk to the Iraqi officials. There is a report that Iraq -- that, I'm sorry, that Saudi Arabia has got some sort of package in the neighborhood of $1 billion, according to a Reuters report. That would be for project finances and export credits. Now we just were talking to a press assistant for Mr. Bremer. He was right here at our press center. He didn't know anything about that. So we're trying to get confirmation of that.
We've heard other pledges today. But principally in this morning pep talk before the major donor session when everybody has to basically put up or shut up, if you will, we've heard from U.S. Secretary of State Colin Powell urging the people here that this is the time to donate, that there's not one size fits all, that each country and each donor organization can give what it wants in the way it wants, but he says it has to be a substantial donation -- Carol.
COSTELLO: All right, we'll let you go to gather more information.
Al Goodman reporting live from Madrid, Spain this morning.
For more on the Iraqi donors conference and a list of countries and their pledges, log onto our Web site, cnn.com.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired October 24, 2003 - 05:19 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: All right, the U.S. administrator for Iraq, Paul Bremer, is now speaking at the donors conference in Madrid, Spain, where officials are asking for money to help rebuild Iraq.
Let's listen to what he has to say.
L. PAUL BREMER, U.S./IRAQ RECONSTRUCTION ADMINISTRATOR: ... parent/teacher associations to sports federations across the country are electing their own leaders. Iraqis all over the country are getting their first experience with participatory democracy.
The economic situation has also advanced since the summer. In the six months since liberation, Iraq has taken remarkable steps to reshape an economy laid waste by a quarter century of useless wars, gross mismanagement and ill-conceived policies.
Electric power has returned to prewar levels. Hospitals, health clinics, schools and universities have reopened across the country. Markets are offering a wide range of goods and services.
The Iraqi government recognizes that if it is to succeed, it will have to get away from the state dominated economic system imposed by Saddam. As the foreign minister mentioned, it's important for political power to be devolved from the center, but just as important so economic power must be distributed away from the government to a newly vibrant private sector. The Iraqi government has taken important steps to lay the policy and legal foundations for a healthy private sector.
Iraq needs to be open again to the world. So to promote trade, the government has put in place a zero tariff, except for a temporary five percent reconstruction fee. To encourage much needed capital investment, the government has adopted a liberal regime for foreign direct investment. It permits foreign firms to establish wholly owned companies or to purchase 100 percent of Iraqi firms. Foreign firms will receive national treatment and may remit profits in capital freely.
I would note here that a number of reports have mistakenly interpreted this new law to mean that foreigners will come in and swoop up all the state owned enterprises. That's not right. No state owned enterprises are yet for sale. Decisions on that matter will be made in due course by the Iraqi authorities.
To promote the creation of a modern financial services network to support this new (AUDIO GAP)... COSTELLO: All right -- did we get the audio signal back?
I hear it, though.
Did we?
BREMER: ... and managed well. And the government, as Mr. Kohler mentioned this morning, has begun the process of issuing a new currency, a currency which will float freely.
No modern economy can survive well without modern communications and here, too, the Iraqi government has taken important steps. It is urgently repairing the country's telephone backbone services and two weeks ago the minister of communications announced the award of three mobile telephone licenses, which will, for the first time, give Iraqis access to mobile communications. These are all good signs. But economic transitions, as many speakers have pointed out, are painful. So the Iraqi government is developing a social safety net.
For example, after the Oil For Food program ends in November, Iraq will retain the food basket program until private markets can respond effectively to the food needs of the population. We are grateful for the continued assistance of specialized U.N. agencies and NGOs in assuring that the neediest Iraqis are not left behind.
Of course, no discussion of contemporary Iraq can exclude the subject of security. Too many people believe that security stands apart from other issues. This is not so.
As part of the reconstruction effort, the coalition and the Iraqi government are working together to encourage more Iraqis to take part in their own security. A major part of President Bush's supplemental budget request provides for accelerated training of the new Iraqi Army and for the training of a professional Iraqi police.
In this respect, security is not a condition of reconstruction in Iraq, it is part of reconstruction. And I should add that security conditions in Iraq have not stopped reconstruction. In the last five months alone, the coalition has completed over 14,000 individual reconstruction projects, large and small, across all of Iraq. Each project is proof to the Iraqi people that theirs is a future of hope.
But security is more than the absence of suicide bombers. Security is also the broad sense of well-being that comes with a decent job, dependable public utilities, functioning courts and clinics and schools. Providing these essential services, which so many donors have so generously agreed to do, will improve well-being and security. The process will not be easy. There will be bumps along the path. But the direction and the momentum are clear.
In sum, Iraq's progress towards a constitution, elections and sovereignty is well advanced. Additionally, Iraq is already implementing a series of economic measures which will prove very attractive to private investors inside and outside Iraq. Reconstruction efforts are going forward every day. I urge you now to join in that reconstruction effort. All the Iraqi people, Sunni and Shia, Kurd and Arab, Christian and Turkmen, from the marshes to the mountains, need your assistance. As Dr. Perchachi (ph) said, this is a vast and historic undertaking.
The countries represented in this hall may have disagreed in the past. We may disagree today on one point or another. But by our presence, we signify that we agree on one major point, Madam Chairman, and that is that the Iraqi people need help to realize their future of hope and we are ready to contribute.
Mabruk el-Iraq al-Jadid (ph).
COSTELLO: L. Paul Bremer, the U.S. administrator in Iraq, talking to the donors conference in Madrid, Spain. Of course, the United States seeking some $55 billion in aid to help the United States in reconstructing Iraq. And they're asking dozens of countries in Spain for money.
Let's head live back to Madrid.
Al Goodman standing by.
I know that France and Germany were kind of reticent to donate money because of the security situation in Iraq. But Mr. Bremer certainly addressed that, didn't he -- Al.
AL GOODMAN, CNN CORRESPONDENT: Right, indeed, he did, Carol. He said that security has not stopped reconstruction. He said 14,000 reconstruction projects have occurred over the last five months. That's talking about schools, playgrounds, all sorts of things. But, in fact, security, which has been mentioned repeatedly here during this pep talk, if you will, over the last couple of hours, trying to get these donors just before they put up their pledges -- all 60 of them are going to be putting up their pledges between just in the next few minutes for about the next six hours. They're going to go one right after another.
Security has been a key concern. And so that may be one reason, for instance, why France and Germany are not getting in and why others are not getting in.
But we can tell you that in the last few minutes, Japan has signed on as the second largest donor in the world to the Iraq situation, after the United States. The Japanese foreign minister telling this conference just a few minutes ago, Carol, that Japan would be ponying up $5 billion U.S. That's $1.5 billion in grants that they have done -- that they previously announced. That's cash. That's what Iraq needs most. And the rest in loans through the next few years -- Carol.
COSTELLO: Such a strange thing that you're at. It just sort of sounds like a charity auction to me.
Saudi Arabia also ponied up some money, but not as much as expected. GOODMAN: OK, we're getting reports and we've been trying to talk to the Iraqi officials. There is a report that Iraq -- that, I'm sorry, that Saudi Arabia has got some sort of package in the neighborhood of $1 billion, according to a Reuters report. That would be for project finances and export credits. Now we just were talking to a press assistant for Mr. Bremer. He was right here at our press center. He didn't know anything about that. So we're trying to get confirmation of that.
We've heard other pledges today. But principally in this morning pep talk before the major donor session when everybody has to basically put up or shut up, if you will, we've heard from U.S. Secretary of State Colin Powell urging the people here that this is the time to donate, that there's not one size fits all, that each country and each donor organization can give what it wants in the way it wants, but he says it has to be a substantial donation -- Carol.
COSTELLO: All right, we'll let you go to gather more information.
Al Goodman reporting live from Madrid, Spain this morning.
For more on the Iraqi donors conference and a list of countries and their pledges, log onto our Web site, cnn.com.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
