Secretary of State Madeleine K. Albright
Remarks before the American-Iranian Council
March 17, 2000, Washington, D.C.
As released by the Office of the Spokesman
U.S. Department of State

"American-Iranian Relations"

MODERATOR: Your Excellency, Ladies and Gentlemen. It is a great honor for me to
introduce our keynote speaker for today's conference on United States relations with Iran.
Before I do that, however, please allow me to do two things. First, to make a blanket thank
you remarks to all our coordinators and sponsors, as with that a good number of dedicated
individuals who make this event to happen. For the benefit of time, unfortunately, I am not
able to go through that list. Some of them are listed on your program. Others will be
acknowledged throughout this conference. 

Next, I want also to introduce the American-Iranian Council to you. Founded in 1997, AIC
is a tax-exempt organization dedicated to promoting dialogue and better understanding
between the people and governments of the United States and Iran.

The guiding principle of AIC is that the mutual interest of the United States and Iran far
outweigh their differences. We have worked steadily over the past several years to achieve
our goals, to host projects, seminars, conferences and publications. 

Our honorary chairman is former Secretary of State, the Honorable Cyrus Vance. At the
event we organized jointly with the Asia Society in New York in January 1998, he said and I
quote, "In the past two decades, what is abnormal in international relations has been
accepted as normal in US-Iran relations." He then went on to say that and I quote, "It's time
for Iran and the United States to reestablish diplomatic ties." 

I have personally spent well over a decade thinking about the day when an Iranian Embassy
opens up in this town and an American one in Tehran. And questionably, such an occasion
will be a cause for celebration by Americans and Iranians particularly Iranian-Americans in
this great nation.

For the 1 million strong Iranian-American community, that will be a particularly auspicious
time, a time of reconstructing what has been two decades of painfully divided identity. 

In June, 1998, in her important policy speech on Iran, Secretary Albright said, and I quote
"We must always be flexible enough to respond to change and seize historic opportunities."
In fact, Secretary Albright's presence at our event today is an affirmation of her belief in
seizing upon historic opportunities and an indication that the time has come for the two
countries to go forward. 

Madame Secretary, we are deeply honored to have you with us this morning. Ladies and
gentlemen, please join me in welcoming Secretary of State, The Honorable Madeleine
Albright. (Applause.)

SECRETARY ALBRIGHT: Thank you very much. (Applause) Wait till I finish! Thank
you very much, Professor Amirahmadi and Ambassador Pelleteau, Excellencies from the
Diplomatic corps, distinguished colleagues, guests and friends.

Today's conference reflects a coming together of a real pantheon of organizations. Not just
the American-Iranian Council, but also the Asia Society, the Middle East Institute and the
Georgetown School of Foreign Service. The wealth of expertise in this room is enormous.
And it is testimony to Iran's importance. 

As this audience well knows, Iran is one of the world's oldest continuing civilizations. It has
one of the globe's richest and most diverse cultures. Its territory covers half the coastline of
the Gulf and on one side of the Straits of Hormuz through which much of the world's
petroleum commerce moves. It borders the Caspian Sea, the Caucasus in Central and South
Asia, where a great deal of the world's illegal narcotics are produced, several major terrorist
groups are based, and huge reserves of oil and gas are just beginning to be tapped. And it is
currently chairing the organization of the Islamic Conference. 

There is no question that Iran's future direction will play a pivotal role in the economic and
security affairs of what much of the world reasonably considers the center of the world. So
I welcome this opportunity to come to discuss relations between the United States and Iran.
It is appropriate, I hope, to do so in anticipation both of the Iranian New Year and the start
of spring. And I want to begin by wishing all Iranian-Americans a Happy New Year,
Eid-e-shuma-Mubarak. (Applause.)

I extend the same wishes to the Iranian people overseas. Spring is the season of hope and
renewal; of planting the seeds for new crops. And my hope is that in both in Iran and the
United States, we can plant the seeds now for a new and better relationship in years to
come. 

That is precisely the prospect I would like to discuss with you today. President Clinton
especially asked me to come to this group to have this discussion with you. It is no secret
that, for two decades, most Americans have viewed Iran primarily through the prism of the
U.S. Embassy takeover in 1979, accompanied as it was by the taking of hostages, hateful
rhetoric and the burning of the U.S. flag. Through the years, this grim view is reinforced by
the Iranian Government's repression at home and its support for terrorism abroad; by its
assistance to groups violently opposed to the Middle East peace process; and by its effort to
develop a nuclear weapons capability. 

America's response has been a policy of isolation and containment. We took Iranian leaders
at their word, that they viewed America as an enemy. And in response we had to treat Iran
as a threat. However, after the election of President Khatami in 1997, we began to adjust
the lens through which we viewed Iran. Although Iran's objectionable external policies
remain fairly constant, the political and social dynamics inside Iran were quite clearly
beginning to change.

In response, President Clinton and I welcomed the new Iranian's President's call for a
dialogue between our people. We encouraged academic, cultural and athletic content. We
updated our advisory to Americans wishing to travel to Iran. We reiterated our willingness
to engage in officially authorized discussions with Iran regarding each others principle
concerns, and said we would monitor future developments in that country closely, which is
what we have done. Now we have concluded the time is right to broaden our perspective
even further. 

Because the trends that were becoming evident inside Iran are plainly gathering steam, the
country's young are spearheading a movement aimed at a more open society and a more
flexible approach to the world. 

Iran's women have made themselves among the most politically active and empowered in
the region. Budding entrepreneurs are eager to establish winning connections overseas.
Respected clerics speak increasingly about the compatibility of reverence and freedom,
modernity and Islam. An increasingly competent press is emerging despite attempts to
muzzle it. And Iran has experienced not one but three increasingly democratic rounds of
elections in as many years. 

Not surprisingly, these developments have been stubbornly opposed in some corners, and
the process they have set in motion is far from complete. Harsh punishments are still meted
out for various kinds of dissent. Religious persecution continues against the Baha'i and also
against some Iranians who have converted to Christianity. 

And governments around the world, including our own, have expressed concerns about the
need to ensure the process for 13 Iranian Jews, who were detained for more than a year
without official charge, and are now scheduled for trial next month. We look to the
procedures and the results of this trial as one of the barometers of US-Iran relations.

Moreover, in the fall of 1998, several prominent writers and publishers were murdered,
apparently by rogue elements in Iran security forces. And just this past weekend, a
prominent editor and advisor to President Khatami was gravely wounded in an assassination
attempt.

As in any diverse society, there are many currents swirling about in Iran. Some are driving
the country forward; others are holding it back. Despite the trend towards democracy,
control over the military, judiciary, courts and police remains in unelected hands, and the
elements of its foreign policy, about which we are most concerned, have not improved. But
the momentum in the direction of internal reform, freedom and openness is growing
stronger.

More and more Iranians are unafraid to agree with President Khatami's assessment of 15
months ago, and I quote, "Freedom and diversity of thought do not threaten the society's
security," he said. "Rather, limiting freedom does so. Criticizing the government and state
organizations at any level is not detrimental to the system. On the contrary, it is necessary."

The democratic winds in Iran are so refreshing, and many of the ideas espoused by its
leaders so encouraging. There is a risk we will assume too much. In truth, it is too early to
know precisely where the democratic trends will lead. Certainly the primary impetus for
change is not ideology but pragmatism. Iranians want a better life. They want broader social
freedom, greater government accountability and wider prosperity. Despite reviving oil
prices, Iran's economy remains hobbled by inefficiency, corruption and excessive state
control. Due in part to demographic factors, unemployment is higher and per capita income
lower than 20 years ago.

The bottom line is that Iran is evolving on its own terms and will continue to do so. Iranian
democracy, if it blossoms further, is sure to have its own distinctive features consistent with
the country's traditions and culture. And like any dramatic and political and social evolution,
it will go forward at its own speed on a timetable Iranians set for themselves.

The question we face is how to respond to all this. On the people-to-people level, the
answer is not hard to discern. Americans should continue to reach out. We have much to
learn from Iranians and Iranians from us. We should work to expand and broaden our
exchanges. We should engage Iranian academics and leaders in civil society on issues of
mutual interest. And, of course, we should strive even more energetically to develop our
soccer skills. (Laughter.)

The challenge of how to respond to Iran on the official is more complex, and it requires a
discussion not only of our present perception and future hopes but also of the somewhat
tumultuous past. 

At their best, our relations with Iran have been marked by warm bonds of personal
friendship. Over the years, thousands of American teachers, health care workers, Peace
Corps volunteers and others have contributed their energy and goodwill to improving the
lives and well-being of the Iranian people. 

As is evident in this room, Iranians have enriched the United States as well. Nearly a million
Iranian-Americans have made our country their home. Many other Iranians have studied
here before returning to apply their knowledge in their native land. In fact, some were
among my best students when I taught at Georgetown School of Foreign Service. 

It's not surprising, then, that there is much common ground between our two peoples. Both
are idealistic, proud, family-oriented, spiritually aware and fiercely opposed to foreign
domination. 

But that common ground has sometimes been shaken by other factors. In 1953 the United
States played a significant role in orchestrating the overthrow of Iran's popular Prime
Minister, Mohammed Massadegh. The Eisenhower Administration believed its actions were
justified for strategic reasons; but the coup was clearly a setback for Iran's political
development. And it is easy to see now why many Iranians continue to resent this
intervention by America in their internal affairs. 

Moreover, during the next quarter century, the United States and the West gave sustained
backing to the Shah's regime. Although it did much to develop the country economically, the
Shah's government also brutally repressed political dissent. 

As President Clinton has said, the United States must bear its fair share of responsibility for
the problems that have arisen in U.S.-Iranian relations. Even in more recent years, aspects
of U.S. policy towards Iraq, during its conflict with Iran appear now to have been
regrettably shortsighted, especially in light our subsequent experiences with Saddam
Hussein. 

However, we have our own list of grievances, and they are serious.

The embassy takeover was a disgraceful breach of Iran's international responsibility and the
trauma for the hostages and their families and for all of us. And innocent Americans and
friends of America have been murdered by terrorist groups that are supported by the
Iranian Government.

In fact, Congress in now considering legislation that would mandate the attachment of
Iranian diplomatic and other assets as compensation for acts of terrorism committed against
American citizens. 

We are working with Congress to find a solution that will satisfy the demands of justice
without setting a precedent that could endanger vital U.S. interests in the treatment of
diplomatic or other property, or that would destroy prospects for a successful dialog with
Iran.

Indeed, we believe that the best hope for avoiding similar tragedies in the future is to
encourage change in Iran's policies, and to work in a mutual and balanced way to narrow
differences between our two countries.

Neither Iran, nor we, can forget the past. It has scarred us both. 

But the question both countries now face is whether to allow the past to freeze the future or
to find a way to plant the seeds of a new relationship that will enable us to harvest shared
advantages in years to come, not more tragedies. Certainly, in our view, there are no
obstacles that wise and competent leadership cannot remove. 

As some Iranians have pointed out, the United States has cordial relations with a number of
countries that are less democratic than Iran. Moreover, we have no intention or desire to
interfere in the country's internal affairs. We recognize that Islam is central to Iran's cultural
heritage and perceive no inherent conflict between Islam and the United States. 

Moreover, we see a growing number of areas of common interest. For example, we both
have a stake in the future stability and peace in the Gulf. Iran lives in a dangerous
neighborhood. We welcome efforts to make it less dangerous and would encourage regional
discussions aimed at reducing tensions and building trust.

Both our countries have fought conflicts initiated by Iraq's lawless regime; both have a stake
in preventing further Iraqi aggression. We also share concerns about instability and illegal
narcotics being exported from Afghanistan. Iran is paying a high price for the ongoing
conflict there. 

It has long been host to as many as two million refugees from the Afghan civil war. And
thousands of Iranians have been killed in the fight against drug traffickers. Moreover, Iran is
now a world leader in the quantity of illegal drugs annually seized. This is one area where
increased US-Iranian cooperation clearly makes sense for both countries. 

But there are numerous other areas of potential common interest, such as encouraging
stable relations between Armenia and Azerbaijan, regional economic development, the
protection of historic cultural sites and preserving the environment. 

So the possibility of a more normal and mutually productive relationship is there. But it will
not happen unless Iran continues to broaden its perspective of America just as we continue
to broaden our view of Iran. 

When we oppose terrorism and proliferation, the norms we uphold are not narrowly
American, they are global. These standards are designed to safeguard law-abiding people in
all countries and reflect obligations that most nations, including Iran, have voluntarily
assumed.

When we strive to support progress towards a Middle East Peace, we serve the interest
and embrace the aspirations of tens of millions of people, Arab and Israeli alike, of all
backgrounds and faiths. 

When we talk about human rights, we're not trying to impose our values. We are affirming
the principles enshrined in the Universal Declaration of Human Rights that people
everywhere are entitled to basic freedoms of religion, expression and equal protection under
the law.

And when we talk about the value of an official dialogue with Iran, we have no secret
agenda, nor do we attach any conditions. We are motivated solely by a realistic interest in
taking this relationship to a higher level so that we may use diplomacy to solve problems and
benefit the people of both countries. 

In recent months, Iranian leaders have talked about their nation's policy of detente. And
Foreign Minister Kharazzi said not long ago that "Iran is ready to act as an anchor of
stability for resolving regional problems and crises."

The United States recognizes Iran's importance in the Gulf, and we've worked hard in the
past to improve difficult relationships with many other countries -- whether the approach
used has been called detente or principle engagements or constructive dialogue or something
else. 

We are open to such a policy now. We want to work together with Iran to bring down what
President Khatami refers to as "the wall of mistrust." 

For that to happen, we must be willing to deal directly with each other as two proud and
independent nations and address on a mutual basis the issues that have been keeping us
apart. 

As a step towards bringing down that wall of mistrust, I want today to discuss the question
of economic sanctions. The United States imposed sanctions against Iran because of our
concerns about proliferation, and because the authorities exercising control in Tehran
financed and supported terrorist groups, including those violently opposed to the Middle East
Peace Process. 

To date, the political developments in Iran have not caused its military to cease its
determined effort to acquire technology, materials and assistance needed to develop nuclear
weapons, nor have those developments caused Iran's Revolutionary Guard Corps or its
Ministry of Intelligence and Security to get out of the terrorism business. Until these policies
change, fully normal ties between our governments will not be possible, and our principle
sanctions will remain.

The purpose of our sanctions, however, is to spur changes in policy. They are not an end in
themselves, nor do they seek to target innocent civilians. 

And so for this reason, last year I authorized the sale of spare parts needed to ensure the
safety of civilian passenger aircraft previously sold to Iran, aircraft often used by
Iranian-Americans transiting to or from that country. And President Clinton eased
restrictions on the export of food, medicine and medical equipment to sanctioned countries
including Iran. This means that Iran can purchase products such as corn and wheat from
America. 

And today, I am announcing a step that will enable Americans to purchase and import
carpets and food products such as dried fruits, nuts and caviar from Iran. 

This step is a logical extension of the adjustments we made last year. It also designed to
show the millions of Iranian craftsmen, farmers and fisherman who work in these industries,
and the Iranian people as a whole, that the United States bears them no ill will.

Second, the United States will explore ways to remove unnecessary impediments to
increase contact between American and Iranian scholars, professional artists, athletes, and
non-governmental organizations. We believe this will serve to deepen bonds of mutual
understanding and trust. 

Third, the United States is prepared to increase efforts with Iran aimed at eventually
concluding a global settlement of outstanding legal claims between our two countries. 

This is not simply a matter of unfreezing assets. After the fall of the Shah the United States
and Iran agreed on a process to resolve existing claims through an arbitral tribunal in The
Hague. In 1981, the vast majority of Iranian assets seized during the hostage crisis were
returned to Iran. Since then, nearly all of the private claims have been resolved through The
Hague Tribunal process. 

Our goal now is to settle the relatively few but very substantial claims that are still
outstanding between our two governments at The Hague. And by so doing, to put this issue
behind us once and for all.

The points I've made and the concrete measures I have announced today reflect our desire
to advance our common interests through improved relations with Iran. They respond to the
broader perspective merited by the democratic trends in that country, and our hope that
these internal changes will gradually produce external effects. And that as Iranians grow
more free, they will express their freedom through actions and support of international law
and on behalf of stability and peace. 

I must emphasize, however, that in adopting a broader view of events in Iran, we are not
losing sight of the issues that have long troubled us. We looked toward Iran truly fulfilling its
promises to serve as an "anchor of stability," and to live up, indeed as well as were, to the
pledges its leaders have made in such areas as proliferation and opposition to terrorism.

We have no illusions that the United States and Iran will be able to overcome decades of
estrangement overnight. We can't build a mature relationship on carpets and grain alone.
But the direction of our relations is more important than the pace. The United States is
willing either to proceed patiently, on step-by-step basis, or to move very rapidly if Iran
indicates a desire and commitment to do so.

Next Tuesday will mark the beginning of a new year for Iran and the start of spring for us
all. And it is true that for everything under Heaven there is a season. Surely the time has
come for America and Iran to enter a new season in which mutual trust may grow and a
quality of warmth supplant the long, cold winter of our mutual discontent. 

For we must recognize that around the world today the great divide is no longer between
East and West or North and South; nor is it between one civilization and another. 

The great divide today is between people anywhere who are still ensnared by the
perceptions and prejudices of the past, and those everywhere who have freed themselves to
embrace the promise of the future.

This morning on behalf of the government and the people of the United States, I call upon
Iran to join us in writing a new chapter in our shared history. Let us be open about our
differences and strive to overcome them. Let us acknowledge our common interests and
strive to advance them. Let us think boldly about future possibilities and strive to achieve
them, and thereby, turn this new year and season of hope into the reality of a safer and
better life for our two peoples.

To that mission I pledge my own best efforts this morning. And I respectfully solicit the
counsel and understanding and support of all. 

Thank you very much.

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