SECRETARY ALBRIGHT: Thank you Ambassador-designate Burghardt, for that introduction and thanks to President Grapin, Chairman Istel and members of the European Institute for your superb and far-reaching efforts to improve relations between the United States and Europe.

High Representative Solana, Ambassador Oyarzabal and other Excellencies from the diplomatic corps, Representative Gejdenson, our host Ramu Potarazu and his awesome satellites, distinguished guests and friends, I am very honored to receive this award for trans-Atlantic leadership.

In my previous life, I often had the pleasure of presenting awards to others. And I will tell you frankly that, although it is certainly more blessed to give, it is definitely more fun to receive.

So thank you. I could not think of a better way to start a new millennium; or a better person with whom to share this award than High Representative Solana, Europe's new Renaissance man.

If unemployment is an issue in Europe, it is because Javier has held or is holding almost every desirable job. Fortunately, no one has a deeper understanding than he of the importance of trans-Atlantic partnership.

In Spain, at NATO, and now with the EU and WEU, he is making our community stronger. So in honoring Mr. Solana, you have made a brilliant choice, and I look forward to hearing what he has to say tonight.

For my part, I plan to review quickly the enormous strides that were made by the Euro-Atlantic community in 1999 and single out two major challenges that confront us now.

As I am sure members of the Institute would agree, last year was a time of extraordinary testing and accomplishment on both sides of the Atlantic.

In January, the Euro was launched, providing dramatic evidence of the economic clout of an increasingly integrated Europe. Today, trade and investment across the Atlantic exceeds $1 trillion annually and provides more than 14 million jobs.

In April, NATO leaders gathered in Washington to observe the 50th anniversary of our alliance for freedom, welcoming new members, bolstering partnerships and preparing for new threats. We kept the door open to NATO enlargement. And the United States re-iterated support for a European Security and Defense Identity that strengthens the Trans-Atlantic relationship and allows for more balanced sharing of burdens and responsibilities.

In June in Bonn, and later in Washington, the United States and European Union met and mapped plans for acting together in fast-breaking crises, managing differences, and addressing global challenges.

In November, in Istanbul, we signed a new Charter for European Security, recognizing that stability within societies is as important as stability between states. This means that how a government treats its people, including ethnic minorities, is not only its business. It's everyone's business.

And in December, the EU expanded its policy of inclusiveness by setting a timetable for its next enlargement, asking additional countries to accession talks, and inviting Turkey to become a candidate.

As these events show, leaders of the Trans-Atlantic Community are making progress month by month towards the long-denied dream of a Europe whole and free.

This reflects the success of the strategy President Clinton has been pursuing since he took office; a strategy based on partnership between America and a new Europe, designed to promote democracy, security and prosperity, and able to meet challenges within and beyond our region.

Like any true partnership, the strength of each contributes to the strength of all. That is why America wants a Europe that is united and strong; where democratic practices are deeply-rooted and wars simply do not happen.

Now, more than ever, that kind of Europe exists. But there remains a missing piece, in the continent's southeast corner. And there, last year in Kosovo, we took a decisive stand.

Under the leadership of President Clinton and his NATO counterparts, our Alliance responded forcefully to Milosevic's campaign of ethnic cleansing. We stuck together despite repeated efforts to divide us. And we persisted until Belgrade's forces were withdrawn.

Those who still question whether what we did was right should consider what would have happened if we had sat back and tolerated what was so clearly wrong.

Hundreds of thousands of refugees would still be huddled in camps throughout southeast Europe. In Kosovo itself, many thousands more would be living in terror, without homes, naked to the winter's cold. Within Serbia, there would be no hope for democracy. And the message that ethnic cleansing pays would have spread like a galloping virus through the region.

Instead, because of NATO, the large-scale violence has ended; the vast majority of displaced have returned; rebuilding has begun; and we have conveyed a powerful message that ethnic cleansing is not only wrong, but also self-defeating--for those who practice it will be isolated and opposed.

As we turn from the year that was to the year that will be, we face two fundamental challenges.

The first is to move boldly ahead on our pact to help integrate all of Southeast Europe into the continent's democratic mainstream.

The goals of this Stability Pact are to foster peaceful, tolerant societies; build strong viable economies; replace aid with investment; and transform the region from a source of instability into a full participant and partner in the new Europe. In March, we will meet at a regional financial conference to agree on priorities.

We are under no illusions about the difficulty of the task we have set. It is literally to transform the patterns of history; to replace whirlpools of violence leading nowhere with a steady upward tide. This won't happen unless the international community follows through on commitments to help. And unless those in the region make the hard choices required to create societies based on freedom and law.

Accordingly, we welcome European Commission President Prodi's promise to secure 12 billion Euros for these goals during the next six years, and hope that this pledge will be supported by EU members. And we are encouraged by the commitment leaders within the region are making to curb corruption and create a good climate for doing business.

We are also heartened by democratic progress in the former Yugoslavia. Since Dayton, elections have been held at all levels in Bosnia. In Macedonia, there was a peaceful transfer of power last year.

In Croatia, the ongoing election process is a true breakthrough, representing a triumph for civil society and a major turning point away from excessive nationalism and towards democratic values.

In Montenegro, President Djukanovic is championing democracy. And increasingly in Serbia, the people are asking when they will be given the same right as their neighbors to choose their leaders freely, fairly and without fear.

Finally, in Kosovo, our challenge is to prepare the way for democracy by bringing the same determination to the task of building peace as we did to ending conflict.

Unfortunately, a serious crisis of funding has arisen in Kosovo. The reason is that, too often, the international community has promised money, but not delivered.

Here, as with the region as a whole, it is vital that our partners join us not only in pledging generously, but also in disbursing promptly. For the UN mission in Kosovo cannot restore electric power, provide public security, arrange elections, and revitalize the economy with promises alone. It must have the resources required to help the people rebuild their society and resume normal lives.

The Trans-Atlantic community also faces a more general challenge in the year 2000. And that is to demonstrate that our partnership is still growing fast and going strong.

I cannot emphasize too much how important this is. Because our community rests on the understanding that the destinies of Europe and America are linked. This is the understanding that defeated Hitler, rebuilt Western Europe, faced down Communism, and forged regional and global institutions upon which the world now depends.

The poet Yeats wrote that when the best lack all conviction and the worst are full of passion, anarchy is loosed upon the world, and the center cannot hold.

Our generation has no greater task than to see that the center does hold. We must defend passionately our conviction that America and Europe must remain linked in the tasks of security, the means of prosperity, and the arts of democratic life.

Speaking personally, it is unimaginable that we would not. But we would be running a grave and irresponsible risk if we simply took that outcome for granted.

Because today, there are voices--some strident, others quite subtle--who seek to divide Europe from America. A number are on this side of the Atlantic. They disparage the contributions of our allies; discount legitimate European concerns; and dismiss America's stake in the continent's security and prosperity.

Other voices have European accents and their emphasis is not on the many interests we share, but on narrow differences. They distort American intentions; revel in American setbacks; forget American sacrifice; and tell neighbors they must choose between Europe and the United States.

What a false choice that is. What a fatal choice it would be.

Of course, disagreements arise on both sides of the "pond." We are cousins, not clones. We have disputes over trade. We differ, at times, on sanctions. We must continue to work towards a better mutual understanding on National Missile Defense.

And although Europe is increasingly integrated, it remains far from monolithic. As I expect High Representative Solana could attest, not even a whirling dervish could see eye to eye with all of Europe, all the time.

But the differences we have do not compare to the interests we share, the values we cherish, the friendships we have forged. Nor do they interfere with the day to day cooperation we continue to practice on matters related to Europe and, increasingly, around the world.

Looking back, we know that when we have been together, we have prevailed. When we have been divided, we have invited Depression and war.

Looking ahead, we can see that although we no longer need each other to repel Cold War threats, we must count on each other if the dangers of the 21st Century are to be defeated and the opportunities seized.

To those inclined now to build a new wall, this time not across Europe, but rather the Atlantic, I say we have had enough of walls. The new century will differ greatly from the last, but not in the passion and persistence of we who believe in the Trans-Atlantic community.

Ours is a community not of governments alone, but also of businesses, organizations, academic institutions, and individuals. It is a community diverse in language, history and culture; brought together by shared interests; sustained by the memory of unbearable sacrifice; and inspired by the vision of a world more peaceful, prosperous and free than it has ever been.

To the European Institute, once again, I say thank you for the enormous contributions you are making, and for your attention here tonight.

As you know, I was born in Europe, lived through World War II, was welcomed by America, and came of age during the Cold War. It is no exaggeration to say that our partnership across the sea has made all the difference in my life, as it did in the lives of millions of others who were helped by democratic nations, defended by democratic armies, or inspired by democratic ideals.

Now I have been blessed with the opportunity to see the Trans-Atlantic community cross the threshold into a new century and Millennium. And as I look out across this audience tonight, I am convinced that our best years are still to come.