Our relationship with the Western Hemisphere has become a complex tapestry - it is impossible to describe the thousands of ways we interact on a daily basis – individuals, companies, and governments. After all, more than one million people legally cross the U.S.-Mexican border every day; more than a billion dollars a day in goods are traded between the U.S. and Canada; and the fastest growing segment of the U.S. population is comprised of Hispanics. The fact that the Western Hemisphere is not on the front page of the paper every day – now dominated by the war on terrorism and weapons of mass destruction – is not a sign of neglect, but rather a sign of how integrated into our regular lives the hemisphere has become.

The struggles for democracy that characterized the 1980s have become a mutual effort to deliver the benefits of freedom to every individual in every country. Free elections and peaceful transfers of power are now the norm, the repressive dictatorship of Cuba the exception. The Cuban regime has earned the international community's condemnation of its recent outrageous crackdown on human rights and democracy advocates. Seventy-five members of Cuba's growing civil society, who merely acted on the freedoms of expression and assembly we take for granted, have been arrested and sentenced to an average of 20 years in Castro's prisons. Governments and international groups from around the world have denounced the repression and called for the release of these prisoners of conscience. Castro and his corrupt and totalitarian government must know that these actions do not alter the fact that change is coming in Cuba, from Cubans themselves.

In the Americas, we enjoy what my colleague Ambassador Roger Noriega calls "multilateralism that works." No other region has a process like the Summit of the Americas, where we engage such a large number of countries on such a broad range of topics in what is a truly multilateral effort to advance our common interests. The 2001 Quebec City Summit led to the creation of the Inter-American Democratic Charter, which was adopted on September 11, 2001 – at the very moment of tragedy, the free nations of the Western Hemisphere reaffirmed the principles of democracy the terrorists had targeted. The Charter acknowledges a collective responsibility to promote, protect, and advance democracy in this hemisphere and has been the basis for more active regional engagement in crises in the region.

Other Summit achievements since Quebec range from cooperation on airport security, health care, and disaster management to the establishment of fellowship programs and centers for teacher training.

The Organization of American States (OAS) has grown in strength and influence and now plays a key role in protecting imperiled democracies. From Venezuela's difficulties to Haiti's ongoing turmoil, the OAS has led efforts to find peaceful, democratic solutions. OAS Resolution 833, on Venezuela, says - and we concur - that the only politically viable solution to the crisis in Venezuela is a peaceful, constitutional, democratic, and electoral solution agreed upon by both the government and the opposition and facilitated by OAS Secretary General Gavíria.

The dialogue led by the Secretary General remains the best hope for Venezuelans to reach such a solution while following their own constitutional procedures. Representatives of the government and opposition reached agreement on a document some three weeks ago that points the way forward. Unfortunately, President Chavez has refused to sign this document without further changes, even though the government delegation correctly notes that the agreement simply elaborates rights that Venezuelans enjoy under their institution and law. It is time to give a demonstration of good faith in these negotiations. I call upon President Chavez to sign the agreement now, and as is.

In Haiti, where flawed elections in 2000 led to an ongoing political impasse, the OAS and the Caribbean Community crafted clear guidelines, laid out in Resolution 822, to restore a climate of security and enable a return to full democracy via free and fair elections.

The OAS has also made great strides in counterterrorism and counternarcotics efforts across the hemisphere. Ambassador Roger Noriega, our permanent representative to the OAS, will tell you more about their work at the reception this evening.

That said, however, I can understand why many people in the hemisphere might wonder whether they can rely on free markets to lift them from poverty and why some have expressed dissatisfaction with democracy. The experience of some nations shows the disastrous consequences of populist measures that ignore economic fundamentals. Late last year, voters in Brazil and Ecuador elected candidates who promised more social justice. These new leaders appear to understand that populist measures do not offer enduring solutions. Along with many of their colleagues elsewhere in the region, Presidents Lula and Gutierrez are poised to deepen the reform process in a quest for economic growth with greater equity. The United States is committed to helping the people of Latin America and the Caribbean in that quest.

That is why we continue our many bilateral efforts to deepen democracy and encourage second-generation democratic reforms. Our continued progress in achieving these aims in the hemisphere requires that we confront, in a systematic way, those problems that have seemed too large and entrenched to address directly. They include corruption, failures of governance, inadequate education systems, insufficient health care, and crime. We can no longer afford to dismiss these issues as endemic or to address transnational threats in a piecemeal fashion. The kind of progress we want – the kind that creates strong, resilient democracies and growing, modern economies – requires a broad commitment to address these issues.

Our administration of justice programs strengthen rule of law, with a special emphasis on police reform. The development of strong civilian police organizations that work effectively with prosecutors and others in the criminal justice system enables them to address the concerns for public safety of their countries’ citizens. It also helps them cooperate more effectively with U.S. law enforcement agencies to combat the threat of transnational crime. We have programs underway in El Salvador, Guatemala, Honduras, and Nicaragua, as well our continuing support for the Justice Studies Center of the Americas. Our goal is solid legal systems that provide transparency and predictability to all participants – the level legal playing field that is necessary not only to direct foreign investment, but the continuing integration of our economies.
Indeed, we remain committed to the notion that free markets, competition and private investment are essential elements for increased economic growth in the Hemisphere. That is why we have concluded a free trade agreement with Chile, launched free trade talks with the Central American countries and are working hard to negotiate the Free Trade Area of the Americas. That commitment is at the heart of our Partnership for Prosperity initiative with Mexico and under lies the Partnership workshop our two governments will sponsor in San Francisco, June 9-10. We are convinced that trade liberalization, beyond its obvious economic benefits, will also foster transparency, encourage investment in human capital, and strengthen the rule of law in the region.

Helping establish governments with integrity, where impunity is not tolerated and law applies to everyone, requires a major commitment of effort and resources, both on our part and that of our regional partners, but this commitment is vital to deliver the benefits of democracy and free trade to every individual. We work to build strong government institutions, broad-based and effective national political parties, and a free and responsible press; enhance the rule of law and investigatory and prosecutorial capacity; and develop ethics education at the secondary and professional levels.

To improve governance, we offer enhanced help in the fight against corruption across the hemisphere. For example, we support the efforts of President Bolaños of Nicaragua to beat back impunity in his nation. A U.S. government-funded and trained anticorruption police unit carried out initial investigations against tainted high-level figures. We have adopted a "no safe haven" approach to corruption. We will deny U.S. visas to corrupt officials as appropriate under existing law, we will monitor aid to ensure it is used transparently, and we will assist countries in recovering stolen funds. We have also developed a comprehensive program to combat corruption in the hemisphere, not just through bilateral and multilateral programs, but also through collaborative actions with our partners.

In all of our efforts to enhance and deepen democracy, civil society plays a critical role. From encouraging support for members of the opposition and other independent voices in Cuba to combating AIDS in the Caribbean, we work hand in glove with organizations around the hemisphere to develop freedom on an individual, institutional, and national level.

None of this development will ultimately be successful, however, without security. Promoting hemispheric security remains a key U.S. objective, as it is a precondition to every objective we share – stopping terrorism; ending the illicit trafficking in arms, narcotics, and people; strengthening the rule of law and respect for human rights; halting environmental degradation; ending lawlessness and criminality; and expanding economies.

To prevent terrorism and transnational crime along our northern and southern borders, our 30-point Smart Border Accord agreement with Canada and the 22-point Border Partnership plan with Mexico focus on strengthening and ensuring the security of our land borders while facilitating and safeguarding the legitimate flow of people and goods. Security and efficiency are not mutually exclusive. Our border partnerships work to lower costs and improve efficiency by using technology, advanced planning techniques, and improving infrastructure to ensure that heightened security requirements do not cause additional delays. Additionally, programs being developed under our Third Border Initiative will unite our common goals of improving the security of the Caribbean region with continuing to build the capacity of Caribbean nations to meet our shared challenges.

We actively encourage private sector engagement in our efforts to beat back corruption, enhance democracy, and prepare the nations of the hemisphere for the Free Trade Area of the Americas. From joint efforts to improve investment climates to active promotion of integrity pacts in public bidding processes, the private sector is our most powerful ally in bringing home the critical message that if governments do not play by the rules, we will take our business elsewhere.

The countries of the Americas have to help every citizen of the hemisphere benefit from peace, freedom, and prosperity. What I have described here is a huge task, but our successes as nations suffer if all of our people do not also enjoy them. We have set ambitious goals, but we do so with confidence that we – with your help and participation – have the dedication and focus to achieve them. As President Bush said, this hemisphere of 800 million people strives for the dream of a better life, “A dream of free markets and free people, in a hemisphere free from war and tyranny. That dream has sometimes been frustrated – but it must never be abandoned.” He knows there are millions of men and women in the Americas who share his vision of a free, prosperous and democratic hemisphere. Working together as partners, I am confident that we will achieve this goal.