Thank you very much, Mr. Chairman.

As the first visitor from Washington to the Permanent Council since the horrific events of September 11, I would like to thank all of you -- first, for your heartfelt condolences, and second, for the support you have pledged in joining what has now become a global campaign against terrorism.

It is indeed appropriate that the OSCE play a role in this fight. The attacks in New York, Washington and Pennsylvania on September 11 were a direct attack on -- and a direct challenge to -- our collectively shared beliefs and principles. These include our most shared tenets of respect for human rights, rule of law and conflict prevention and peaceful resolution.

The OSCE thus has an important role to play in the global response against terrorism. The Istanbul Charter said that terrorism in all of its forms is unacceptable. This theme is consistent with language going back to the Helsinki Final Act.

The United States welcomes the establishment of a working group to look at this question. In our view, we should work energetically on an action plan to be presented to ministers in Bucharest in December. Elements to consider are the following:

          - All states should report periodically on their counter-terrorism activities.

The United States looks forward to working cooperatively with all of you in this body to further our common efforts in ending the scourge of terrorism.

Our counter-terrorism efforts must also have a humanitarian dimension. In this regard, I would like to call attention to the announcement by President Bush yesterday that the United States is contributing an additional 320 million dollars to humanitarian assistance in Afghanistan.

The United States has greatly appreciated the opportunity afforded us by the Chair to undertake a review of the OSCE's capabilities, with the goal of strengthening our organization.

The OSCE remains an evolving organization. In the 26 years since the signing of the Helsinki Final Act, the OSCE has evolved from a Cold War discussion forum into an operational body. At the same time, the OSCE remains an important political forum in which states have been willing to undertake far-reaching commitments to strengthen rule of law and democratic principles.

The United States views the OSCE as an important partner in furthering peace and stability in this area. OSCE remains the most flexible and responsive Euro-Atlantic foreign policy instrument for non-military contingencies. It is the primary instrument for early warning, conflict prevention, crisis management, and post-conflict rehabilitation in its region.

While the OSCE cannot become the forum for discussion or decision regarding all Euro-Atlantic security issues, it does offer strong advantages in dealing with intra-state conflict and in addressing transnational threats to stability.

The United States endorses OSCE's comprehensive view of security, encompassing political-military, economic, and human rights elements. We believe this view of security is relevant to the new challenges we face.

OSCE's traditional strengths remain relevant to the new situation as well. The OSCE must remain flexible in responding to new situations.

The OSCE must respond quickly when a problem arises.

We were reminded of the OSCE's strengths last week when the Permanent Council took a decision to enhance the Skopje Mission, responding effectively to a Macedonian request for assistance. The OSCE came to consensus in a matter of days, committing significant staff and resources that will have a clear, positive impact. Such a rapid decision with such resource implications would not have been possible in almost any other organization.

Much remains to be done in Macedonia. Its political leaders must fulfill completely their commitments under the Framework Agreement. We are concerned that the timetable for adoption of the constitutional amendments and the new law on Local Self-Government, as laid out in the Framework Agreement, has slipped. First and foremost, we look to Macedonia's political leaders and the parliament to do their part in the peace process and implement rapidly these provisions of the Agreement.

Secondly, given disturbing reports that senior Macedonian officials are urging security force redeployment in contravention of Macedonia's commitments to the international community, it must be made clear to all that there can be no premature deployment of security forces into sensitive areas. Security force redeployment should not take place without careful preparation, including a fully transparent planning process, in coordination with OSCE, EU, and NATO, and also involving democratically-elected political representatives of the ethnic Albanian community. This has yet to take place.

Return of security forces to sensitive areas should not proceed without the presence of international monitors under appropriate arrangements with NATO; until adequate security conditions are in place, including demobilization of reservists and disbandment of any armed groups not under proper command and control; until the constitutional amendments have been adopted; and until an effective amnesty is in force. It is crucial that all sides adhere to these conditions in order for lasting peace to take hold.

The Ministerial in December is an opportunity to build on a new spirit of cooperation as we face a new and daunting challenge and the prospect of a long campaign against terrorism.

We also believe the Ministerial offers an opportunity to agree on ways to strengthen OSCE. Toward that end, we thank the Chair for its efforts in this area. We also thank those states that have put forth proposals designed to strengthen OSCE. We will work with all of you to develop effective measures to strengthen performance while retaining OSCE's flexibility and avoiding too much centralization. We do not believe the OSCE requires radical reform, but agree there is room for improvement.

We acknowledge and appreciate the efforts of the Russian Federation in contributing ideas to this discussion. We look forward to pursuing those proposals that enhance the efficiency and capacities of the OSCE.

We support the suggestion to create an economic committee. Similarly, reconsidering the relationship between the Permanent Council and FSC is useful.

Coordination among the OSCE and NATO, EU, and other organizations should be improved. A liaison cell in Brussels would be a step in the right direction.

The legal status of the OSCE has been a difficult matter. It affects not only issues of common interest to all participating state, but also specific issues within the domestic systems of particular states. We have been giving this matter careful consideration.

Another goal we have for the Ministerial is to strengthen the OSCE's efforts in the Balkans. The OSCE will assume greater responsibility as NATO draws down its forces.

There is currently underway in Bosnia an examination of how to strengthen civilian implementation. The result may be recommendations to shift responsibilities to improve effectiveness and speed transfer of responsibility to local institutions. We believe the OSCE may play a larger role as it assumes responsibility for some programs currently implemented by the UN or OHR. Police development and training, and perhaps, some limited public security functions are strong possibilities, along with efforts to strengthen democratization and rule of law.

Although counterterrorism issues have recently come to the fore, past commitments must be kept in view. In this regard, we welcome the return of the Assistance Group to Chechnya and the recent signs of political dialogue there and we should encourage progress in this process. These are positive developments.

The past commitments of other OSCE participating states, particularly Belarus, must be reviewed.

Looking at progress on fulfillment of Istanbul commitments, we appreciate current efforts on withdrawing equipment and troops from Moldova. We look forward to similar progress in Georgia, and urge the parties to resolve the outstanding issues.

We also look forward to full compliance with the adapted CFE Treaty’s agreed levels, as well as fulfillment of associated political commitments so that we can all proceed rapidly to ratification.

We look forward to our December Ministerial as an ideal opportunity to reaffirm our commitments to OSCE's basic principles, strengthen the institution, develop means to combat terrorism, and review progress on previous commitments and on-going operations.

We should look to the future. OSCE has proven itself a valuable organization in addressing the challenge of the past 26 years. It now faces new ones. We are positive it will continue to play a valuable and important role.