The Middle East Policy Council, based in Washington, DC, does many things to advance its mission of contributing "to American understanding of the political, economic and cultural issues that affect U.S. policy in the Middle East."  Among them is organizing a series of panel discussions, the Capitol Hill forums, that bring together distinguished specialists to examine issues of interest to policymakers.  On April 7, 2006 the 43rd forum in this series tackled the question: "How can the U.S. Re-open for Business to the Arab World?"  MEPC President Chas Freeman moderated the panel and we are pleased to present his comments here for your consideration.  We thank the MEPC for allowing us to share it with you.  Panelists' presentations will be provided over the next several days.

If you agree that this forum series is important to improving the relationship between the United States and the Arab world we suggest you visit the MEPC web site to learn how you can support this important organization.

[For information on the next forum in the MEPC Capitol Hill Conference Series -- "Is There a Responsible Exit from the Strategic Ambush in Iraq? (April 21) -- contact MEPC/Maria Arruda (202) 296-6767 or e-mail: [email protected] ]

How Can the U.S. Re-Open for Business to the Arab World?
MEPC Capitol Hill Forum

First of all, let me introduce myself to those of you who don't know me. I'm Chas Freeman, and it's my honor to be president of the Middle East Policy Council. We are a small organization that does three things: we raise politically incorrect or neglected issues for public discussion, usually on Capitol Hill; we publish the results of those deliberations as the first item in our quarterly, which is by far the most often-cited and widely circulated journal on contemporary Arab-American relations; and finally, throughout the country, we attempt to educate the public by training high school teachers how to teach about Arab civilization and Islam. We have trained some 18,000 teachers and we reach about 1.4 million kids a year. This is a program which we are in the process of radically revamping and updating, and in addition to seeking funds for our normal operations and an endowment, we are now raising money for that curriculum development project. Anyone present who feels inclined to contribute to such worthy efforts would be most well received. 

I am just back from the region, as I believe a couple of others here are. I found it full of British, French, German, Chinese, Singaporean, Japanese, and Korean businesspeople. You may notice an absence on that list, as I certainly did. I can report that the fallout from the Dubai Ports World debacle is widespread. For many people in the region who had spent the last several years, as they told me, defending the United States, a country for which they have great affection, this was the last straw. It demonstrated that Arabophobia, a fear of Arabs and Islam, was not simply a regional or elite phenomenon, but was deeply rooted throughout our country, and it demonstrated that passionate prejudice would be exploited with shameless demagoguery by our ruling political class. 

We are at CSIS rather than on the Hill for the first time because members of Congress on whom we normally rely to provide us with a venue were afraid to do so. All of them stated that they wish to be to the right of the president on this issue; in other words, Arab-bashing rather than defending relations with the Arab world. This is a sign of the times. 

It's worth noting that on this issue the President was very much on the correct side, defending the integrity of the deal and looking at it strictly in its security dimensions, which were minimal. This was unlike his performance last summer when the Chinese National Offshore Oil Company attempted to buy Unocal and he was silent and allowed the xenophobia to roll. In the region, therefore, he doesn't get any credit for being on the right side. Rather, he is accused of having pandered to populist prejudice and having engaged in fear mongering, which helped to create the atmosphere we now sit in. Here, of course, the only accusation that has been made against the President is that he failed - get this - or I should say perhaps to use his word - he "misunderestimated" the ugly ignorance of the public and the shameless irresponsibility of the American political class. So the public and the irresponsible people of the political class escape all blame, but the President, having failed to correctly analyze their ignorance and shamelessness is blamed. So be it. I will note finally, with regard to the President, that in the region he is rapidly replacing Arab dictators as the butt of the ever-ingenious Arab joke. I will not tell you some of the jokes that I heard, but this is definitely a first for a leader of the United States. 

This ugly image comes on top, as we know, of other difficulties which have been there for awhile: inhibitions on financial transfers from the region to the United States that constrain willingness to do business with American companies, as well as to support organizations like Middle East Policy Council; harassment by lawsuits in the United States - I don't need to go into that; waits for visas and visa procedures that are perceived as onerous in the extreme; fear of humiliation by prejudiced people at border crossings or at airports; and an endless stream of, frankly, racist commentary on our media, all of which play in the region and add to the difficulties facing our companies. 

We have had a long-standing difficulty in bringing customers here to see our showrooms, to arrange training for those who buy our products, or delivery where delivery is free onboard or in the case of, for example, aircraft, fly-away from the factory. And this has now been compounded, I'm sorry to say, by an impression that to do business with the United States is to risk a political mugging by xenophobes. In short, the impression is the U.S. doesn't want Arab business or investment anymore. 

There are obvious dangers to this kind of impression, given the fact that the United States is by far the largest debtor country in the world, but we're giving foreigners the impression that we don't want to take our currency back in payment for goods and services on our side that they want to buy. I don't think this is an overblown description of the situation in this particular region. Unfortunately, it has its echoes in other regions as well. In politics, perception is reality, and therefore, this is a reality with which we and American business must deal. So the point really is not to bemoan it or lament it. We need to understand it correctly. Perhaps I've misstated it. But the issue is how do we correct the impression? How do we promote our economic and commercial interests with the Arabs? How do we sell our goods and services to them and invite their investments and job creation in the United States under these circumstances? How do we show them that we are open for business, given all that has happened? 

And this of course relates to the larger issue of balance between the requirements of national security, which are real, and the requirements of trade promotion, which are equally real. I think we will probably get into some of those tradeoffs. But essentially, to use the language of the American Constitution's preamble, we are forced to balance concerns about our domestic tranquility with concerns about the general welfare. And arguably, at least in this little corner of the world that we're talking about, our performance so far has been somewhat less than ideal. 

With these few words I wish to turn to the panel, which will, I hope, tear everything I said to shreds. 

TOMORROW: Dr. Edward M. Graham

Source: MEPC.org 

• Ambassador Freeman Bio

• Watchdogs, meet a gadfly by Dan Froomkin