Good afternoon, Ladies and Gentlemen. I am pleased to be in New Orleans today.

My trip to this great city has thus far been very successful. This morning, I met with the Consuls General and representatives of the seven Central American Countries. I appreciate that they took the time to attend.

While we met, I found that they possess an overwhelming commitment to restoring the economies of their respective areas and, in turn, they are committed to helping each other through what is a true regional crisis.

I also had the pleasure of meeting with a group of predominantly Latin American business leaders who operate in New Orleans and who are working with the hurricane relief effort. The dialogue that we shared closely resembled that of the meeting with the Consuls. That meeting further reinforced in me the notion that globalization has brought us together in time, space, culture, and security. Thank you all for taking on a leadership role to help Central America.

To quote an editorial of your own Times-Picayune: "those who help the needs and reach out to those in pain – they are ‘peacemakers’ in the truest since of the word. Their efforts may never earn a Nobel Prize, but they offer hope that peace on Earth is something attainable."

This is an appropriate and eloquent observation. Here in New Orleans, you are familiar with natural disaster. Hurricane Camille flattened the Mississippi Gulf Coast in 1969. Then, last year, you endured the wrath Hurricane Georges.

To further quote the Times-Picayune: "Watching hurricanes strike elsewhere is, for the people in our area, a matter of ‘there but for the Grace of God go we.’"

Your individual contributions to the rehabilitation of Central America and the bond that you share with the people of that area are, believe it or not, in our country’s best interest.

When your state needed help after Hurricane Georges, the Federal government responded. Some of you may know that just last month, the Clinton-Gore Administration, with the support of your Senators and Representatives, transferred to the state of Louisiana $72.8 million in disaster relief to help in your efforts to recover from Hurricane Georges. Granted, this will not cover all the damage you suffered but it is a solid start.

B. What is OPIC

All of us in this room probably have a strong appreciation of the notion that our nation’s economy is not completely driven by business and transactions within the 50 states. It is also driven by worldwide investments of U.S. businesses and the U.S. government. We must make investments in foreign economies and their people, making our country a world power. President Clinton even mentioned this in Tuesday’s State of the Union address.

Now, enter OPIC. OPIC is a Federal government corporation that works with the U.S. private sector to carry-out investments in emerging markets or developing countries as a means of improving and securing our economy and security, and the host country’s economy and security. Since 1971, OPIC has supported projects that will generate $58 billion in U.S. exports, create more than 237,000 American jobs, and assist businesses of all sizes.

Nearly 5,000 jobs, and a billion dollars in exports, created by projects sponsored by Louisiana companies.

We provide business financing, political risk insurance, and we have established some investment funds for specialized finance projects. You have some information about us so I won’t go in to the details of our operation. Just realize that if you want to expand your business operation overseas in an emerging or developing market -- and you cannot get private sector financing or political risk insurance -- you want to come to OPIC. OPIC can work with you to help you with financing, or to insure your project from political risk. These kinds of initiatives build stability worldwide and give U.S. businesses a new market in which to operate.

In New Orleans, we currently have a dozen businesses that are OPIC clients or suppliers that are involved in diverse development projects throughout the world.

For example, we are working with one New Orleans company on an offshore oil field project. This project will bring significant economic benefit to New Orleans, Louisiana, and Eastern Russia.

Following the devastating destruction of Hurricane Mitch, we have focused our efforts on helping U.S. business respond to the needs of the affected countries.

Last month, our OPIC Board voted to approve our providing up to $100 million in political risk insurance for a U.S. bank’s participation in the privatization of Guatemala’s principal state-owned electric company.

This project marks the first electricity distribution project in Central America supported by OPIC insurance, as well as one of the first privatizations in Guatemala—so much of their infrastructure is government-owned. It will significantly benefit Guatemala by enhancing the management and efficiency of electricity service in key regions of the country.

So why has OPIC returned to New Orleans? It’s not just because we were invited.… OPIC’s Executive Vice President Kirk Robertson and a group of OPIC senior staff members were here this summer. It was evident to them that your business community has great interest in investing oversees and that this area is ripe for development. And now, you are eager to assist Central America.

In the time since Hurricane Mitch, it has become evident to us all that Central America cannot rebuild alone and that the U.S. private sector, in partnership with the U.S. government, can make a substantial contribution to rebuilding the region—to help create a decent standard of living.

C. Clinton-Gore Administration’s Hurricane Relief Effort

Last month, I had the privilege of attending President Clinton’s meeting with the Presidents of Honduras, Costa Rica, El Salvador, Nicaragua, and the Vice President of Guatemala.

All the visiting Presidents were very appreciative of what our country has agreed to do to assist their region.

When the President of Honduras, President Flores, spoke, he said: "Inasmuch as we do appreciate and are grateful for the generous support that we have and are sure to receive from the United States and the international community, we also feel that it will not replace our own initiatives, but will provide much needed momentum." He went on to note that there is a very immediate concern about whether Hondurans will remain in their country, or repeat the unfortunate mass exodus that occurred in Central America when war and political problems robbed their people of jobs in their own countries.

A brief aside… That same day, while interviewing with the news bureau La Prensa, President Flores was likewise complimentary to the United States, but did go on to note that "the necessary funds for reconstruction in Central America equals twenty-nine days of tobacco consumption in the U.S."

What has the Clinton-Gore Administration committed? It amounts to over $420 million to the overall Central American relief effort. Mrs. Clinton, Mrs. Gore, and dozens of U.S. government officials, including Senator Landrieu (Lan-drew), have visited the region. President Clinton will be there in the next few weeks.

To just briefly describe our overall relief plan: no fewer than seven federal agencies will make direct contributions to the effort:

• The Department of Defense has provided $150 million to support the relief and rehabilitation efforts, including more than 3,000 soldiers who are assisting in clearing and repairing key roads, providing disease control and treatment, delivering relief supplies, and providing engineering expertise;

• The U.S. Agency for International Development has provided $87 million in food and other necessities like medical assistance. USAID will also direct another $120 million to reconstruction efforts in Central America by reprogramming and reallocating recently appropriated funding assistance.

• The Department of Agriculture is providing food aid and concessional loans, valued at $63 million. USDA is donating 330,000 metric tons of grain and is also providing $420 million in grants for Honduras and Nicaragua for the purchase of beans, dry milk, vegetable oil, rice, and other basic commodities;

• The U.S. and other creditor nations have relieved Honduras and Nicaragua from their debt service obligations through the year 2001, while encouraging other nations to do the same;

• The Department of Housing and Urban Development is providing $5 million to assist in the reconstruction of homes in Central America;

• The Department of Commerce will lead a business development mission to Central America next year that will include U.S. business leaders with expertise in critical areas such as infrastructure, environmental technology, and agriculture;

• Immigration and Naturalization Service is allowing Hondurans and Nicaraguans living in the U.S. to apply for temporary protected status, allowing them to stay and work for a year and a half.

D. OPIC’s Central America Reconstruction Effort (CARE)

And, now, about OPIC. The Overseas Private Investment Corporation has a history of working with Central America. Since 1992, we have assisted more than 40 projects located in every country in Central America. OPIC assistance was provided to these projects in the form of almost $103 million in direct loans and loan guarantees and approximately $937 million in insurance coverage.

• In response to hurricane relief, we will work to spur private sector investment, starting with an initiative to accelerate more than $200 million in new projects for the region.

• Moreover, when a qualified applicant comes to us for financing or insurance for a project in Central America, we will expedite their application.

• OPIC is expediting the development of a new credit facility in Central America and the Caribbean region, to be administered jointly with a major U.S. banking institution.

A little more than a year ago, before the hurricanes, President Clinton had the foresight to ask OPIC to develop ways to support the U.S. commitment to Central America and the Caribbean. He asked us to assist the region in "promoting prosperity and in making the transition to the global economy."

OPIC has proposed this innovative financial partnership to create a $200 million Credit Facility for the region. The facility will offer direct loans ranging from $500,000 to $40 million. It just so happens that developing this facility came at an opportune time, in light of the destruction caused by Hurricanes Georges and Mitch.

• OPIC is going to begin making smaller denomination direct loans to U.S. business that wants to locate in the region. And, we have put together a Small Business Task Force to study how we can improve our outreach and product line to attract more small and medium-sized enterprises, many of which may be interested in activities in Central America.

E. Closing

Now, these OPIC initiatives have already begun. How is OPIC able to do all this? We are an extremely high-performance agency. Over our tenure, we have supported projects worth over $121.6 billion. We do all this with fewer than 200 outstanding employees. In addition, we are a self-sustaining Federal Government agency that makes more money than we spend.

At OPIC, we can help U.S. business operate in over 140 countries. Some of these developing countries and emerging markets get quite a bit of U.S. private sector interest, but they require our assistance with financing and political risk insurance. This is true for areas such as: Russia and the NIS, Latin America, Vietnam, and Africa, among others. The Caspian region is continuing to develop with the help of U.S. investments. In fact, to further the cause of investment, OPIC is joining the U.S. Trade and Development Agency in hosting the U.S. Caspian Ambassadors’ Tour this year. The tour begins in New Orleans on April 30^th. Best of luck to you all in preparing for their visit. I know that the Caspian Ambassadors will learn a great deal from their trip.

In summation, OPIC operates where the markets have failed because of fear of foreign government political action against U.S. investors, or lack of financing for projects that are viable, but for the political climate in the country. We do it because we want to maintain the security and strength of our economy—It’s in our country’s best interest.

As President Franklin Roosevelt said: "A basic essential to peace, permanent peace, is a decent standard of living for all individual men and women and children in all nations. Freedom from fear is eternally linked with freedom from want."

Thank you for your time and courteous attention. I would be pleased to take any questions.

Quotes from Times-Picayine, The Times –Picayune Publishing Company

#1: "Blessings of the Peacemakers," December 25, 1998, pg B6.

#2: "Season’s End," November 30, 1998, pg. B4.