The Cairo Speech: View from Morocco
Barack Obama’s speech to the Islamic world was generally well received by Muslims as a first step in bridging the chasm between Islam and the West — with the U.S. president earning praise for personally relating to Muslims and his blunt assessment of the Israeli-Palestinian conflict.
Obama peppered his 55-minute address with references to the Koran and his father’s Muslim heritage, while dismissing the notion that the West was at war with Islam. The president also mixed his signature idealism and empathy with frank criticism — denouncing the tendency for some Muslims to “measure one’s own faith by the rejection of somebody else’s faith,” while acknowledging mistakes the United States made in Iraq. The forceful oratory eschewed Bush-era terms such as “terrorism” and “terrorists,” but stopped short of apologizing for past U.S. actions.
Still, it was a question of substance versus style for many observers who wanted to hear more specifics about Obama’s outreach effort, while others criticized his choice to give the speech in Cairo — hardly a bastion of democracy given President Hosni Mubarak’s 28-year autocratic rule.
 The Diplomatic Pouch wasn’t in Cairo for the June 4 address, but it was in Morocco, which — geopolitical interests aside — might have made a more appropriate venue for Obama’s Muslim overture given the country’s progressive brand of Islam and steadfast alliance with the United States.
A few Moroccan-Americans lobbied for just that,
even setting up the Web site www.obamatospeakinmorocco.com. He certainly would’ve found a receptive audience there. “We love Obama,” beamed Mohamed Cherif, who heads a human rights NGO in the Moroccan town of Dakhla in the Western Sahara. “Very clearly it’s a new page between the United States and Muslim world.... Most important was [his emphasis] on tolerance and dialogue,” added the ebullient Cherif, who donned a bright red Obama baseball cap he bought while in Washington, D.C., during the presidential election.
That excitement was evident throughout Morocco, a land of contrasts where tradition mixes with tolerance, which makes it a rarity in the Arab world and a natural interlocutor for U.S.-Muslim dialogue. Situated along the North African coast — less than an eight-hour flight from New York and a short ferry ride from Spain — Morocco’s Arab and Berber roots intermingle with an array of European, Western and African influences.
A constitutional monarchy whose king traces his lineage directly to the Prophet Muhammad (only Jordan’s King Abdullah shares that distinction), the kingdom’s loyalty to Islam is complemented by its acceptance of other religions. King Mohammed VI in fact declares himself “commander of the faithful” to expressly include Muslims as well as Christians and Jews; he also denounces the Holocaust as “one of the most tragic chapters in modern history” — a far cry from the denials of Iran’s Mahmoud Ahmadinejad. (Our trip was hosted by the Institute on Religion and Public Policy, a Nobel Peace Prize-nominated nonprofit that pushes for freedom of religion around the world.)
 Although adherence to the king is almost a religion unto itself — his face is plastered throughout the country, from government buildings to pool halls — Mohammed VI, only 45 years old, has embarked on an ambitious campaign of social liberalization, expanding freedom of the press and democracy. Just last Friday, a party closely affiliated with the king won the most seats in local elections, sidelining the opposition Islamists in a vote most international observers deemed fair.
In addition, the king — who married a former information services engineer in 2002 — has pushed for women’s rights and revamped the country’s family code. Women for instance can teach Islam and counsel in mosques or prisons (as mourchidates, or women preachers), and they are afforded generous divorce and property rights. (Carefully sidestepping the issue of polygamy, the king gave women the right to approve a husband’s request for more wives.)
 Another delicate balancing act involves the government’s foreign relations. Friendly with most of its Arab neighbors in the Middle East and North Africa (with a few exceptions), Morocco also maintains strong ties with both Israel and the United States. In fact, Morocco became the first country to publicly recognize the United States in 1777, more recently signing a free trade agreement with the U.S. in 2004.
Morocco also enjoyed warm relations under President Bush, coordinating closely to fight terrorism, especially in the wake of the 2003 suicide bombings in Casablanca, the country’s worst act of terrorism. But today, it’s no secret how the population feels about Bush’s successor. Traveling with a group of American journalists during Obama’s Cairo speech, the Diplomatic Pouch encountered a number of Moroccans on the street bursting out in “Obama is the best,” “yes we can,” and other exaltations of approval.
 We sat down with a few Moroccans to go beyond the jubilation and find out what was behind Obama’s appeal. “The fact that he was elected by Americans, it looks like a new era for America since they voted for an African American president,” said Asmak Hajjou, a 23-year-old student in Marrakech.
Hajjou added that she hopes Obama’s rapprochement is a genuine one and that he fundamentally changes the U.S. approach toward the region, stressing that Moroccans don’t have a problem with Americans, but rather with U.S. policies. Asked about those policies, she responded: “The influence of America is everywhere, and it looks like America is behind everything, especially war.”
That sentiment was echoed by a group of young Moroccan journalists, who cited the war in Iraq as having left an indelible impression of President Bush’s Middle East policies, despite his avid promotion of democracy in the region. The mild-mannered Hajjou did not mince words when it came to Bush’s legacy.
“He is not a human being to me,” said Hajjou, who is studying to become a nurse. “He’s done so much harm and caused so many deaths with his policies, yet he still thinks he’s done something good, and that’s not a human being.”
Many Muslims have expressed tepid optimism that Obama’s appeal for a “new beginning” would indeed signal a break from the previous administration, though eloquent words still need to translate into deeds. “He hit all the right notes and offered probably the most honest appraisal from a Western leader on why relations have deteriorated,” Maleeha Lodhi, Pakistan’s former ambassador in Washington, told the Financial Times. “But the test will come in the conduct of U.S. policy not the offer of promises.”
 “I think most Muslims were happy with the speech,” said Mohamed Cherif of the Western Sahara. “He said the U.S. and Muslim world must counter extremism and must fight together to conquer all extremism…. And Obama said the United States supports a two-state solution and that Israel must stop settlements.”
Indeed, Obama reserved some of his most pointed remarks for the Israeli-Palestinian conflict, reiterating America’s “unbreakable” bond with the Jewish state while at the same time describing the “intolerable” plight of the Palestinians, whom he seemed to put on equal footing with the Israelis for the first time when he referred to “Palestine” as opposed to the Palestinian people. The Obama administration has also been the first to unequivocally demand that Israel stop building settlements, butting heads with its longtime ally over the issue of “natural growth” expansion.
“Around the world, the Jewish people were persecuted for centuries, and anti-Semitism in Europe culminated in an unprecedented Holocaust,” Obama said.
“On the other hand, it is also undeniable that the Palestinian people — Muslims and Christians — have suffered in pursuit of a homeland,” he added. “They endure the daily humiliations — large and small — that come with occupation. So let there be no doubt: the situation for the Palestinian people is intolerable. America will not turn our backs on the legitimate Palestinian aspiration for dignity, opportunity, and a state of their own.”
A moderate Arab country, Morocco mixes Islamic and African cultures with Western and European influences, as evidenced by the modern streets of cities such as Casablanca and Marrakech, where the traditional is juxtaposed against the trendy.
Photos: Anna Gawel
Morocco’s Muslim-Jewish ‘Living Laboratory’
The Diplomatic Pouch also spoke to Serge Berdugo, head of Morocco’s Jewish community in Casablanca and ambassador at large for King Mohammed VI, for his thoughts on President Obama’s speech to the Muslim world.
 “It was perfect, but perhaps too perfect. Everything fit,” said Berdugo, referring not to a lack of detail but rather comparing the situation to a delicate Swiss watch made of hundreds of interlocking parts — which can fail if just one of the parts break down. Likewise, one actor can easily spoil Obama’s bold Mideast peace agenda.
Nevertheless, he said it wasn’t “naïve” on Obama’s part to make such a gesture because the speech shows that he understands the importance of communication in sensitive negotiations. “Sometimes one word that means nothing to Israelis but can mean [everything] to Arabs,” he pointed out. “You have to restore confidence,” Berdugo added, describing Obama’s speech as a “normal, obligatory step. After that, they have to deliver.”
On that front, Berdugo says the parameters of a peace deal between the Israelis and Palestinians have long been in place, describing the first phase as a souk (a traditional Arab market), where everyone haggles and bargains. “We are finished with one phase,” he said. “We are in the supermarket phase now. Everybody knows what price they have to pay for peace.”
But Berdugo remains skeptical not because of the new leadership in the United States, but rather in Israel. “It’s very, very difficult. We are hoping for some changes because it’s very, very difficult,” he said in reference to the new coalition government led by Prime Minister Benjamin Netanyahu. The hawkish prime minister recently backed the creation of a Palestinian state but attached a long list of conditions — insisting on a demilitarized Palestinian state, that Palestinians recognize Israel as a Jewish state, and that Jerusalem remain under Israel’s authority, while skirting Obama’s demands for a settlement freeze. “Who can talk with somebody who says no more than yes?” Berdugo asked.
Echoing ideas mentioned in Obama’s speech, Berdugo said “two springs” must come together in any peace agreement: security for Israel and dignity for the Palestinians. “When these touch, all the other things fall into place.”
Berdugo said the opinions of Jews in Morocco run the spectrum, although he noted that “you cannot live all your life in a population that is 99 percent Muslim and sincerely pro-Palestinian” and not be impacted by their viewpoints. “You live with them, you love with them, you cry with them — you can’t help but be influenced by them and the other way around. That’s why you have such a tolerant society,” explained Berdugo, whose own family was part of the mass exodus from Spain that began in 1492, when Ferdinand and Isabella expelled Jews and Muslims — many of whom jointly sought refuge in Morocco.
That history has contributed to Morocco’s unique identity as a melting pot of ancient Arab, Berber and Jewish civilizations. “When you live together, when you are expelled together … the respect begins at this time,” Berdugo said. “This is perhaps where the model cannot be exported [to other countries], but we have to be a living laboratory.”
 Today, out of Morocco’s 34 million people, only about 5,000 Jewish residents remain, the majority of them concentrated in Casablanca. Berdugo, who lives among Muslim neighbors in an area known as the “Beverly Hills” of Casablanca, calls it a “tiny, strong, vibrant community,” ticking off a number of accomplishments, including 15 synagogues operating every day, three pastry shops, two delicatessens, a kosher wine store, a sports club, as well as three schools and three Jewish judges.
Worldwide though the figures are much higher. The Moroccan Jewish Diaspora totals around 1 million, with about 600,000 living in Israel, where waves of Morocco’s Jews resettled after the Jewish state’s creation in 1948. Nevertheless, Berdugo pointed out that Moroccans never lose their nationality and can come and go as they please. As a result, some 30,000 Israelis visit Morocco every year, according to Berdugo, who noted that a handful of families are resettling back in the country because of the economic crisis. “It’s the freedom, that’s important.”
Berdugo also said that many Israeli Jews remain “emotionally attached” to Morocco, often displaying pictures of King Mohammed V in their homes. He credits Mohammed V for relaxing the laws on emigration to Israel and standing up for Jews when the Vichy French came to Morocco in 1942 (in response to a demand that Jews wear yellow stars, the king retorted that his own royal family would wear yellow stars then too).
“He let them know we don’t have Jews here. We only have Moroccans,” Berdugo said. “So for us, Mohammed V, at the minimum he is one of the great heroes because if he were not there, we would be another statistic.”
Likewise, Berdugo praises the current king, Mohammed VI, for his inclusive governance, noting that the king’s title as commander of the faithful “is a duty as a descendant of the Prophet to respect and protect all faiths.”
In fact, one of the king’s top advisors, André Azoulay, is Jewish, and the Obama administration is set to appoint Sam Kaplan, a Democratic fundraiser, to serve as the U.S. ambassador in Morocco, where he would become the country’s second Jewish U.S. ambassador.
And Berdugo says that if Obama ever achieves peace between the Israelis and Palestinians, Morocco would become one of the first Arab nations to recognize Israel while championing the Palestinian state — and it would be “instrumental in giving confidence, trust and vision” based on its own experiences.
That would no doubt please the new U.S. president, who in his Cairo speech briefly mentioned Morocco as the first nation to recognize the United States to illustrate that “Islam has always been a part of America’s story.” Morocco’s own story is one that continues to have relevance for American audiences today, and as such, perhaps it deserves more than a mention.
For the full transcript of President Barack Obama’s remarks at Cairo University, go to www.whitehouse.gov/the_press_office/Remarks-by-the-President-at-Cairo-University-6-04-09/.
Top photo: From left, Saida Zaid; counselor at the Moroccan Embassy in Washington; Joseph K. Grieboski, founder and president of the Institute on Religion and Public Policy; Serge Berdugo, head of Morocco’s Jewish community; Anna Gawel of The Washington Diplomat; Patrick McKenna, editorial and opinion pages editor of The Times-Tribune; and Tessa McBrayer of the Institute on Religion and Public Policy talk about Moroccan-Jewish relations at Berdugo’s home in Casablanca..
Bottom photo: Casablanca is home to the Hassan Mosque, the largest in the world outside of Saudi Arabia, yet the Moroccan city is also home to more than a dozen synagogues and a thriving Jewish community.
Top photo: Heather DiPaolo
Bottom photo: Anna Gawel
U.S.-German Relations: Friction or Fodder?
Although President Barack Obama has traveled to Germany now three times in the last year — including two visits since taking office — speculation abounds as to the state of U.S.-German relations, and the personal chemistry between Obama and German Chancellor Angela Merkel.
The German magazine Der Spiegel called the two leaders “trans-Atlantic frenemies” while the New York Times described Obama’s most recent visit as an attempt “to repair his increasingly strained relationship with Chancellor Angela Merkel.”
Following his address to the Islamic world in Cairo on June 4, Obama made a stopover in Dresden in the former East Germany, the Buchenwald Nazi concentration camp and the American military hospital in Landstuhl before heading to Normandy to commemorate the 65th anniversary of D-Day in France.
 Obama met with Merkel at the Dresden Castle, though some commentators questioned why Berlin wasn’t included on the itinerary, noting that Obama spent an additional night in France. Much has also been made about Merkel’s perceived snub when she declined an invitation to meet Obama at the White House in April, opting instead for a videoconference.
But during the joint press conference in Dresden, Obama dismissed all the speculation “as wild and based on no facts.”
“The truth of the matter is, is that the relationship not only between our two countries but our two governments is outstanding. Most of the speculation around my schedule here in Germany doesn’t take into account simple logistics: traveling, trying to get from one place to the other, coming off a Middle East trip, having to go to Normandy tomorrow. There are only 24 hours in the day,” the president told reporters. “I know you have to find something to report on, but we have more than enough problems out there without manufacturing problems.”
And there are plenty of problems, from the economy to Afghanistan — issues that have also fueled rumors of a trans-Atlantic rift. For example, some U.S. officials have privately grumbled that Merkel has been hesitant and slow to tackle the financial crisis. And although Germany has boosted the number of troops in Afghanistan to about 4,100 ahead of the country’s elections this summer, Berlin has consistently rebuffed calls to move those forces from the relatively peaceful north to the volatile south.
Moreover, the issue of taking in Guantánamo detainees has become a sore spot, with Germany so far only taking in one detainee even though it has long argued for the shutdown of the facility. And if the United States continues to resist taking in detainees within its own borders, it’s doubtful Germany and other European allies will open their doors.
At the press conference, Obama said the Guantánamo negotiations are ongoing and that “Chancellor Merkel has been very open to discussions with us. We have not asked her for hard commitments, and she has not given us any hard commitments beyond having a serious discussion about are there ways that we can solve this problem,” — while Merkel noted that she is “absolutely confident that we will find a common solution.”
On the flip side, Merkel has been at odds with the Obama administration over the extent of stimulus spending and government bailouts, warning of excessive inflation and debt. Some Germans also complained when the United States sent a low-ranking officials to handle the negotiations over carmaker Opel, whose parent company General Motors declared bankruptcy. And there is an overriding sense of disappointment and tension that the Obama administration may be taking longtime allies for granted while it focuses on the Middle East and other hotspots.
 But Klaus Scharioth, Germany’s ambassador in Washington, said the trip symbolized the enduring bilateral bonds that began at the end of World War II. For instance, the famous Frauenkirche — Church of Our Lady — that Obama visited was almost entirely destroyed in the bomb attacks on Dresden in 1945 and restored between 1994 and 2005 with U.S. support.
“I had the privilege to be there, and I could see how impressed the president was of the Frauenkirche in Dresden,” Ambassador Scharioth told the Diplomatic Pouch. “He immediately sensed the message of that monument. The Frauenkirche had been destroyed during the bombardments in the final days of World War II, and had been restored through private contributions, including from the United States. Nowadays, the Frauenkirche symbolizes the resurrection of Germany as a country of civilization and culture.”
Likewise, both Merkel and Obama insisted the alliance was as strong as ever. “Germany is a close friend and a critical partner to the United States, and I believe that friendship is going to be essential not only for our two countries but for the world if we are to make progress on some of the critical issues that we face, whether it’s national security issues or economic issues or issues that affect the globe like climate change,” Obama said.
Discussions on a follow-up agreement to the Kyoto Protocol for the Copenhagen Climate Summit in December were on the agenda during Obama’s visit, according to Merkel, as was Iran’s nuclear program, implementing economic measures agreed to at the G-20 summit in London, as well as Israeli-Palestinian peace talks.
On that front, Merkel pointed out that “we have a very close and very special relationship with Israel. We have a very great interest in the safety and security of Israel. And on the other hand we also have a very fervent wish a Palestinian state be built,” she said, praising Obama’s efforts to get moribund peace talks back on track. The German chancellor added: “We have an obligation not only to create peace within Europe, because we’ve been able to do that, but to actually share with others the knowledge how we managed to get that to happen.”
Showcasing that obligation was the second leg of Obama’s visit that took him to the Buchenwald concentration camp, which was liberated by U.S. troops in 1945. The U.S. president also has a personal connection to the camp given that his great uncle liberated a sub-camp of Buchenwald while serving in the 89th Infantry Division.
Obama recalled how his great uncle “returned from his service in a state of shock, saying little and isolating himself for months on end from family and friends — alone with the painful memories that would not leave his head.”
“My great uncle’s commander, Gen. Eisenhower, understood this impulse to silence,” Obama continued. “And that’s why he ordered American troops and Germans from the nearby town to tour the camp. He invited congressmen and journalists to bear witness and ordered photographs and films to be made.
“We are here today because we know this work is not yet finished. To this day, there are those who insist that the Holocaust never happened — a denial of fact and truth that is baseless and ignorant and hateful,” added Obama, who was joined by Holocaust survivor Elie Wiesel, a former prisoner at the camp, where Wiesel's father died.
Sadly, Obama’s remarks at Buchenwald took place a little over a week before an 88-year-old white supremacist reportedly opened fire at the U.S. Holocaust Memorial Museum in Washington, killing a security guard.
Obama said Buchenwald stands as a reminder of past atrocities and the need to keep vigilant so as to “ensure that those who were lost here did not go in vain.” Ambassador Scharioth said he was personally moved by Obama’s words.
“I was deeply impressed that he showed his appreciation for Germany’s determination to, as the president put it, ‘look into the past and to acknowledge it and to make something of it’ — make a determination that they [Germans] will stand guard against acts like this happening again,” Scharioth said. “I am grateful for that.”
Next up, Merkel is scheduled to visit Obama in the United States from June 25 to 26 ahead of the Group of Eight summit in Italy in July. The two leaders will discuss topics such as climate protection, the Middle East, Afghanistan and North Korea, a government spokesman recently told reporters in Berlin.
As for the upcoming G-8 summit, Ambassador Scharioth said, “We expect that the summit sends a clear signal to jointly overcome the global financial and economic crisis. It should also highlight that we have to show solidarity with the poorest countries that are especially hard hit by the crisis.
“Another major issue certainly is climate policy,” he added. “At the summit, we expect a clear commitment to reaching an agreement at the United Nations Climate Change Conference in December of this year in Copenhagen. And finally, the summit should focus on the cooperation of the G8 countries with India, China, Mexico, Brazil and South Africa in what is called the ‘Heiligendamm Process,’ an initiative taken by the German G7 Presidency in 2007.”
Front page photo: President Barack Obama walks with leaders, including German Chancellor Angela Merkel to his right, at the G-20 summit in London on April 2, 2009.
Photo: FRANTZESCO KANGARIS/Newsteam.co.uk
Top photo: German Chancellor Angela Merkel Chancellor, top left, along with Canadian Prime Minister Stephen Harper, top right, and President of Argentina Cristina Fernandez de Kirchner, bottom left, greet President Barack Obama at the G-20 summit in London.
Photo: Richard Lewis/Newsteam.co.uk
Bottom photo: German Ambassador Klaus Scharioth says that when German Chancellor Angela Merkel and President Barack Obama meet this July for the G-8 summit in Italy, the agenda will include the global economic crisis and climate change.
America’s Compact with Africa
To mark Africa Day, a group of U.S. and African representatives decided to spotlight one of the most successful bilateral ventures that has benefited the continent: the Millennium Challenge Corporation (MCC), a U.S. government agency that ties aid for developing countries with good governance and economic freedom.
Of MCC’s 18 large-scale grants, known as Millennium Challenge Compacts, 11 are with African countries, totaling about $4.4 billion. These partnerships span the continent and include Benin, Burkina Faso, Cape Verde, Ghana, Lesotho, Madagascar, Mali, Morocco, Mozambique, Namibia and Tanzania. (Future compacts are expected with Malawi, Senegal and Zambia.)
 MCC Acting Chief Executive Officer Rodney Bent welcomed diplomats and other officials at the agency’s D.C. headquarters on May 28 for the discussion “A Vision for Africa: Celebrating the Promising Future of the Continent.”
And contributing to that future have been the performance-oriented MCC programs. “MCC’s partnerships with Africa are built on increasing accountability, strengthening capacity, and achieving lasting and sustainable results in the lives of individual Africans and in their communities,” said Bent. “Because of the commitment of our African partner countries to reduce poverty through economic growth, the poor have more resources available for better food, better education, and better health care, all leading to an improved quality of life for them — and for America.”
And such assistance has been all the more crucial in the wake of global economic turmoil, as well as the ongoing food crisis that has since faded from the headlines but remains a key challenge in Africa.
“The global economic crisis has hit the poorest people hardest, especially in Africa,” pointed out David Beckmann, president of Bread for the World. “Long-term investments in agriculture, education and infrastructure development — the kind of commitments made possible by the MCC — will help people weather these tough times and lift entire communities out of poverty.”
In addition to the large-scale grants designed to combat poverty, MCC also gives smaller-scale grants to help countries that are on the “threshold” of compact eligibility. Of the 19 threshold programs, nine are with African countries, totaling more than $120 million. These programs provide specialized assistance to focusing largely on fighting corruption and improving governance.
The goal is to reinforce good governments and free markets to promote economic growth and eliminate poverty — aid as a reward, not a handout. “I am proud to say that MCC has played a significant role in civil society engagement in Africa,” said Ken Hackett, president of Catholic Relief Services. “This is part of what sets MCC apart. MCC’s approach encourages participation by each country’s civic and community groups, including those representing women and those located in rural areas. It is only through this direct participation that development projects will be effective and sustainable.”
From left, Ken Hackett, president of Catholic Relief Services; David Beckmann, president of Bread for the World; Millennium Challenge Corporation (MCC) Acting Chief Executive Officer Rodney Bent; Gayle Smith, special assistant to President Obama and senior director for Relief, Stabilization and Development at the National Security Council; Ambassador Johnnie Carson, assistant secretary of state for African Affairs; Ambassador of the African Union Amina Salum-Ali; and Ambassador of Morocco Aziz Mekouar attend an Africa Day reception at the MCC headquarters in Washington, D.C.
Bermuda Marks Four Centuries of British Rule
Special to the Diplomatic Pouch contributed by Larry Luxner
 This year, Bermuda celebrates its 400th anniversary as a colony of England. And judging from the festive mood at a May 20 reception in Washington, that happy status isn’t going to change anytime soon — despite threats to its all-important tourism and reinsurance sectors.
“Bermuda is the most populous and the wealthiest of Britain’s remaining territories,” declared the party’s host, Dominick Chilcott, deputy head of mission at the British Embassy. “Many [former British colonies] have robust democratic institutions, good educational systems and investment levels they would not otherwise have had, while others are places in conflict or contain too many poor people,” he mused. “If only the whole empire could have turned out like Bermuda.”
Although Bermuda has observer status in the 15-member Caribbean Community (Caricom) due to long-standing cultural ties, it is geographically not a part of the Caribbean at all. The prosperous colony sits out in the middle of the Atlantic — 650 miles due east of North Carolina, and a two-hour flight from Washington.
The island’s 67,000 inhabitants are squeezed onto just 21 square miles of land, translating into nearly 3,200 people per square mile — and making Bermuda even more densely populated than Bangladesh.
 But with average per-capita GDP approaching $90,000 a year, people live extremely well, and the colony enjoys excellent relations with both London and Washington. Last week it marked the 400th anniversary of Bermuda’s settlement by shipwrecked English colonists in 1609 with a flotilla of tall ships docking in picturesque Hamilton harbor.
The event was aimed at boosting tourism, which at the moment is taking a beating.
“This party is an occasion to celebrate the close ties between Bermuda and the U.S., as well as those between Bermuda and Britain,” said Chilcott, as guests raised their glasses in a toast to Queen Elizabeth II. “These three territories of very different dimensions share a rich, common history, and this close triangular relationship is now 400 years old.
“Yet its location, which has made Bermuda a great place for summits, has not made for easy politics on the occasions when Britain and the United States were at each other’s throats,” Chilcott noted wryly.
“Some Bermudians helped American forces steal 100 barrels of British gunpowder, which was then smuggled to the American colonies. And during the War of 1812, it was from Bermuda that a British force set sail to attack Washington, D.C., and burn down their public buildings. But I hope we can let bygones be bygones.”
That was fine with Chilcott’s guests, which included Gregory W. Slayton, the U.S. consul general in Hamilton, as well as three top Bermudian officials: Premier Ewart Brown, Deputy Premier Paula Cox and Finance Minister Donald Scott.
 The three were in town to hold annual bilateral talks in Washington, as some lawmakers take aim at the global reinsurance industry — which just happens to be the largest sector of Bermuda’s economy.
“Our timing is critical,” said Premier Brown in a prepared statement. “It is abundantly clear that members [of Congress] know these issues are coming down the pike and they want to be ready. They want to know what is in the best interest of their constituents and they are asking us to educate them. They want hard data so they can make informed votes should the time come.”
The Bermuda delegation argues that a discriminatory tax proposal on the industry would drive up prices for average Americans. A recently completed economic analysis by the Brattle Group noted the impact of proposed legislation will increase U.S. consumers’ insurance bills by up to $12 billion annually.
Deputy Premier Cox, insisting that “it is important we continue to tell the Bermuda story on Capitol Hill,” said tourism is down significantly as a result of the U.S. economic slowdown.
That’s not the only bad news. Last month, Moody’s Investor Service cut its longterm foreign currency credit rating on Bermuda to ‘Aa2’ from ‘Aa1,’ citing vulnerability to external shocks because of its small size and lack of diversity.
“The current global credit crisis and recession are affecting the outlook for Bermuda’s most important industry, insurance and reinsurance,” said Steven Hess, sovereign credit analyst at Moody’s. “While we do not see a major threat to the viability of the industry, the dynamism experienced over the past decade in this industry could be considerably lessened.”
Even so, Bermuda’s government debt ratios are still low by international standards, and its long track record of prudent fiscal management justifies the high ‘Aa2’ government debt rating.
Cox, for one, is decidedly upbeat.
“We are going through challenging times, but Bermuda has shown a resilience and a robustness which will see us weather this storm as well,” she said. “I have no doubt that — as a result of our ongoing ties with the United States, and the nature of our colonial relationship with the U.K. — Bermuda will be well positioned until she chooses to take the ultimate step of independence.”
From top photo to bottom:
Premier Ewart Brown of Bermuda, left, greets Dominick Chilcott, deputy head of mission at the British Embassy, at a reception hosted by Chilcott to celebrate Bermuda’s 400th anniversary as a colony of England.
Deputy Premier Paula Cox, left, and Finance Minister Donald Scott were part of a Bermuda delegation that held hold annual bilateral talks in Washington to primarily discuss the global reinsurance industry, the largest sector of Bermuda’s economy.
British Deputy Chief of Mission Dominick Chilcott, left, and Gregory W. Slayton, the U.S. consul general in Hamilton, celebrate the 400th anniversary of Bermuda being a colony of England.
Photos: Larry Luxner
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