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Earlier this month, the American people marked the anniversary of the September 11th attacks - and took stock of all that had been accomplished in the two years since this war on terror was visited upon us two years ago.
Thanks to the courage of our men and women in uniform, two brutal regimes have been removed from power, two nations rescued from tyranny. Thanks to those who fight the battles, seen and unseen, in the war on terror, thousands of terrorists have been captured or killed-including nearly two-thirds of known senior al-Qaeda operatives, and most of those responsible for the 9/11 attacks. With the support of dozens of nations, a number of planned attacks have been stopped, terrorist assets seized, and thousands of lives saved.
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Today, Iraq is not yet producing enough income to pay for essential services. The $15 billion the President has requested to pay for urgent repairs to Iraq’s infrastructure will, along with international contributions and Iraqi funds, help Iraqis begin generating the income necessary to eventually pay their own way.
Take oil, for example. Ambassador Bremer testified that Iraq will earn about $2.5 billion in oil revenue in 2003-a substantial sum considering the dilapidated conditions of its oil infrastructure. With improvements to that infrastructure, Ambassador Bremer estimates that Iraq’s oil revenue should grow to about $12 billion next year, and should reach roughly $20 billion by 2005.
Investments are needed in water, sewage, power and other essential services that were allowed to degenerate over three decades-starved of investment as Saddam Hussein built his palaces and weapons. These are critical not only to the lives of Iraqis, but also to Iraq’s ability to attract foreign investors.
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What the President has requested is a $20 billion investment in the future of Iraq. To put that in context, the Marshall plan after World War II cost roughly $90 billion in today’s dollars. Those investments helped transform a region that been a source of violent war and instability for centuries, and turn it into a place of peace, prosperity and mutually beneficial trade.
Today, in Iraq and Afghanistan, we have a similar opportunity to help nations that were sources of terror and war get on a path to becoming sources of freedom and moderation in a turbulent region. If we have the vision to do so, the people of the world will reap the benefits of that investment for generations to come.
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In Iraq the Coalition forces also face real difficulties and danger-including the threat from regime remnants, and foreign fighters who are coming into the country to oppose the Coalition. What is remarkable is that, despite the significant dangers they face, the Coalition civil and military staff in Iraq has - in less than five months - racked up a series of achievements, in both security and civil reconstruction, that may be without precedent.
Consider a few of their accomplishments:
· In less than five months, virtually all major Iraqi hospitals and universities have been re-opened, and hundreds of secondary schools-until a few months ago most often used as weapons caches-have been rebuilt and were ready for the start of the fall semester.
· 70,000 Iraqis have been armed and trained in just a few months, and are contributing to the security and defense of their country. Today, a new Iraqi Army is being trained and more than 40,000 Iraqi police are conducting joint patrols with Coalition forces. By contrast, it took 14 months to establish a police force in post-war Germany-and 10 years to begin training a new German Army.
· As security improves, so does commerce. Some 5,000 Iraqi small businesses opened since liberation on May 1st. The independent Iraqi Central Bank was established and a new currency announced in just two months-accomplishments that took three years in post-war Germany.
· The Iraqi Governing Council has appointed an Iraqi cabinet of ministers-something that took 14 months in Germany.
· In all major cities and most towns and villages, Iraqi municipal councils have been formed-something that took 8 months in Germany.
· To date, the Coalition has completed some 8,000 civil affairs projects-with many more underway.
All this, and more, has taken place in less than five months.
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Of the 19 NATO nations, 11 have already committed troops to Iraq. We are currently in discussions with 14 other countries that have expressed possible interest in sending forces.
Do they equal our forces or financial contributions? No they do not. But do they represent a significant military commitment and a political commitment for those nations? Yes, they do. And we are, as we should be, deeply grateful for their contributions, their political courage, and their friendship.
The international forces in Iraq are extraordinary. Earlier this month, I met many of them when I visited the Polish Multinational Division in Babylon, which had just taken over from the Marines in the South-Central sector of Iraq. That division alone includes troops from 17 nations, with four more nations providing civil support-for a total of 21 countries.
Many were from nations that had only recently recovered their own freedom and independence-and were proud to be helping the Iraqi people recover theirs. It was an honor to meet them, and see their enthusiasm and their commitment.
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Finally, let me conclude by recalling why we are spending that money.
The Wall Street Journal recently tallied the costs to our country and economy, of the September 11th attacks.
They include:
· $7.8 billion in lost income for the families of the more than 3,000 victims-money that would have gone to pay for braces and summer camps, schools and colleges.
· $21 billion sent to New York City for direct damage costs.
· $4 billion for the victims fund.
· $18 billion to clean up the World Trade Center site.
· $700 million to repair the Pentagon.
· As much as $6.4 billion in reduced or lost wages and salaries for workers in New York industries.
· 1.3 million net jobs lost nationwide.
· $150 billion in reduced GDP.
· $50 billion in costs to the insurance industry.
· $11 billion in lost business to the airline industry.
· The bankruptcy of two airlines, even after a $15 billion federal bailout.
· $38 billion in costs for new border security, protection against biological threats, and emergency preparedness.
· $1.3 billion in costs to state governments for homeland security, and
· $33 billion in spending by the private sector for new protective services.
Even assuming for some overlap, the 9/11 attack alone cost the American people literally hundreds of billions of dollars-and that is not counting the enormous price paid in lives, and the immense suffering of their families and loved ones-men and women from all walks of life, of all races and religions, and from most countries of the world.
If September 11th cost more than three thousand lives and hundreds of billions of dollars, it makes $87 billion pale by comparison.
Our nation can afford whatever it needs to defend our people, our way of life and our vital interests. At the height of the Cold War, in the Eisenhower and Kennedy years, we spent roughly 10% of GDP. The last time I was Secretary of Defense, in the 1970s, we spent roughly 5% of GDP on defense. Today, we spend a little over 3%-a great deal of money, to be sure, but a modest fraction of our nation’s wealth.
Our job is to work to prevent another attack like the one we experienced on September 11th - before it happens. There is only one way to do so - by taking the battle to the terrorists, and those who give them support and sanctuary.
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A British author once declared: "If a nation values anything more than freedom, it will lose its freedom; and the irony is that if it is comfort or money that it values more, it will lose that too."
Is $87 billion a great deal of money? Yes. But can we afford it? Without question. Because it is necessary for the security of our nation and the stability of the world-and because the price of sending terrorist a message that we are not willing to spend what it takes or do what it takes-that we value comfort or money more than freedom-would be far greater.
Thank you, Mr. Chairman.
