(The following is an excerpt of Mayor Diepgen's address.)

Nearly fifty years ago, the Soviets decided to blockade Berlin, and the airlift was established. This airlift was a great story of success, and the background for the survival of Berlin and the possibility of great political changes in Europe. It was the background for the unification of Germany and the city of Berlin, and for new cooperation in a new Europe. Because the wall came down nearly nine years ago, we have the chance to build a new Europe with less borders, a Europe of social justice, of freedom, of peace. All that would not have been possible without the commitment of the United States and without the commitment of the airlift, now fifty years ago.

To conclude that story of success, it is perhaps necessary that we build up the united city of Berlin. I shall try to give you a picture of this city—a city in a state of radical change where the mood is one of upward swing. I want to arouse your curiosity about the dynamic metropolis in the heart of Europe. It will be one of the cities of the next century. Of course, I am very well aware of the proverb that says, "To see something once for yourself is more valuable than to hear about one hundred new things." I should therefore like to encourage you to pay Berlin a visit in order to form your own impressions.

There have been many and various ties between our two cities in the past. We like to recall them in order to build on them today and for the future. Last year, we commemorated the great beginning of the unique friendship when we celebrated the thirteenth anniversary of our sister city relationship. This year, we will commemorate the fiftieth anniversary of the airlift during which the American pilots supplied Berlin with food. With the withdrawal of Allied troops, we decided to place the close ties between the German capital and America on a new foundation, with new forms of cooperation, such as the establishment of the American Academy. These new traditions have acquired particular importance and we both can benefit from this exchange. The Germans can and must learn from America. It is, above all, America's economy that can teach Germany a lot about structural adoption, wages flexibility, and the introduction of new technologies.

It seems to me, however, to be just as important for enterprises on the American West Coast to fly their flag in Europe. In my opinion, two strategic considerations favor and increase commitment by American enterprises by Europe. Firstly, trade regions on both sides of the Atlantic will be more closely linked together. The latest initiative towards the European Union to set up a new transatlantic marketplace should be seen in this light. This new transatlantic marketplace should, to a large extent, remove the remaining trade barriers between the European Union and the United States. If this should actually come about, American enterprises which have already established a presence in Europe will quickly gain considerable competitive advantages.

Secondly, U.S. enterprises should commit themselves to the old continent because Europe is in the process of making major changes to its political and economic face. It is a question of nothing less than ensuring the ability of the European continent to face up to competition and challenges for the twenty-first century. With the introduction of the common European currency, Europe is taking an important step in arming itself in economic terms for global competition. The new currency will strengthen the competitiveness of the European enterprises, and that includes Berlin's exporting enterprises. In addition, the new currency will improve the western climate and thus also improve conditions for the creation and preservation of jobs. Together with the dollar and the yen, it will be an important trading and reserve currency so that the importance of Europe as a financial and capital market for foreign investors will be increased. Enterprises should make use of this opportunity because investments abroad guarantee and create jobs at home. Thus, for example, large investments by German automobile enterprises like BMW, Mercedes and Volkswagen in South Carolina, Alabama or Mexico, not only created thousands of jobs on the other side of the Atlantic, but also guaranteed a considerable number of jobs in Germany.

The currency union underlines not only the necessity of monetary convergence in the European Union, its introduction will also increase pressure for further political integration of Europe. In the long-term, monetary union will not succeed without the support of a joint foreign and security policy, as well as an internal and legal policy and efficient institutions. However, we also need a deepening of the European Union because of its approaching expansion to include the countries of Central and Eastern Europe. The expansion of the European Union to the East is the most ambitious project in the history of European integration. The political, economic, and social implications of the European Union expansion to the east cannot be overestimated. This applies, above all, to Berlin, which is situated only sixty kilometers from the Polish border.

Between 1995 and 1997, the volume of Berlin exports to Poland increased from DM 269 million to DM 600 million. This led to the creation of roughly 40,000 new jobs. Berlin's proximity in the reform states of Central and Eastern Europe, Poland and the Czech Republic in particular, is another reason for American enterprises to set up business in Berlin.

Berlin can make great use of this potential in Central and Eastern Europe. Berlin is a gate between the east and west. That is the tradition of the city of Berlin. To build the new communication systems in Europe, Berlin is a very important point in the center of this new network. Its opportunities are in its central, geographical position. Like the spider, the old and the new German capital sits in the web of the trans-European, trans-communication systems. In the future, it will be possible for passengers on trains running from St. Petersburg to Paris, from Stockholm to Rome, to change trains in the new Berlin central station. During the time of division, Berlin was on the edge of hostile blocs. Since then, Berlin has moved to the center of the reunited Europe and all the decisions about the enlargement of the European Union will be made in the next year. This is the European year—building up the European currency, and then the enlargement of the European Union. This is very necessary not only for economic reasons, but to build a continental peace.