HEARING OF THE SENATE FOREIGN RELATIONS COMMITTEE

SUBJECT: AMBASSADORIAL NOMINATIONS
CHAIRED BY: SENATOR BILL NELSON (D-FL)

WITNESSES:
-- NICHOLAS BURNS TO BE U.S. PERMANENT REP. TO NATO
-- RICHARD EGAN TO BE AMBASSADOR TO IRELAND
-- DAN COATS TO BE AMBASSADOR TO THE FEDERAL REPUBLIC OF GERMANY

419 Dirksen Senate Office Building
Washington, D.C.
11:06 A.M., EDT, Tuesday, July 31, 2001

SEN. NELSON: The committee will come to order. While we certainly have quite a number of our colleagues here, and one of the things I've learned in the six months I've been here is to defer to my seniors. So I am not even going to make an opening statement, and instead will turn it over to you all. And if there are any of our other colleagues that are here that would like to speak as to the nominees in the second panel, rather than you having to wait until the second panel, I would invite you to go ahead. So why don't we just start with Senator Hutchison.

SEN. KAY BAILEY HUTCHISON (R-TX): Thank you, Mr. Chairman. I certainly appreciate the opportunity to speak on behalf of Nancy

Goodman Brinker to be ambassador to Hungary. I have known Nancy Brinker, who is from Dallas now, for years and years. And I can attest to her diplomatic skills and to her ability to be a great representative for the United States.

When her sister Susan Colman (ph) died from breast cancer, she made a promise to her sister that she would do everything she could to keep other families from suffering in the same way she had. And she started the Susan G. Colman (ph) Foundation in her living room with a group of her friends, including myself, to make women in this country more aware of early detection. And I can truthfully say that I believe that Nancy Brinker, whose foundation is now international, where there are races for the cure all over our country, has saved millions of lives, because early detection has been the very best thing we could do short of cure which we don't have yet.

I think it's wonderful that President Bush has appointed a leader in this sector to represent our country. I think this is the very best representation that we could ask for. So I just want to heartily recommend her. I want to thank you for holding this hearing, which hopefully means that she and the other people that you will interview today will be able to go to their respective designations to have our country represented immediately.

I also just want to speak very briefly and say that I think Dan Coats is a wonderful choice for Germany. He has been a leader in the United States Senate, a spokesman on defense issues, which I think will be very helpful as our representative in Germany. So I just thank you for holding this hearing and hopefully allowing us to confirm these two good people and the others before our August recess. Thank you, Mr. Chairman.

SEN. NELSON: Thank you. Senator Lugar.

SEN. RICHARD LUGAR (R-IN): Well, thank you very much, Mr. Chairman, Senator Helms, Senator Smith, Senator Dole. Great to see you and you my colleagues who are here, as numerous as those on the dais. It's a real privilege to tell of my excitement of the president's intent to nominate Dan Coats as United States ambassador to Germany. I know that he will serve the nation with the same strong character and devotion to public service that he epitomized in his service in the House of Representatives and the United States Senate.

For more than 10 years it has been my privilege to join with Dan in serving the people of Indiana. In fact, we had joint offices together all over the state, and our staff got along as well with each other as we did. He was a partner in many initiatives, and we maintained a unique joint office arrangement which emulates that which Henry Bellmon and others did in earlier time which served our people well.

He will do well in Germany, because throughout his time in the Senate he served on the Armed Services Committee, including several years as chairman of the subcommittee on Air Land Forces. He's a determined advocate for United States national security, but he is also a good listener who has often forged compromises that benefit our nation. And those skills will be at a premium in the near future as the United States-German relationship, and the multilateral relationship they share as members of NATO continues to grow.

Mr. Chairman, it is once again becoming fashionable to suggest that the United States-European relationship is in trouble. And this sentiment is buttressed by those on both sides of the Atlantic who suggest the relationship should be diminished. And some suggest that our shared values and interests are diverging to a point where we find it difficult to pursue common goals. Here in the United States in fact there are those who claim America should focus less on the transatlantic relationship. These sentiments are echoed by some in Europe who suggest that they should distance themselves from our policies.

I can hardly imagine a more strategically short-sighted or dangerous policy shifts by the United States or Europeans. Such arguments ignore the basic fact that Europe and America are increasingly intertwined in security, economic and cultural matters. And the Cold War may be over, but the security and welfare of America and Europe are closely linked. This underlines the importance of the ambassador of the United States to Germany, Dan Coats, at this particular critical moment, because the results of U.S. leadership in Europe over the last decade have been historical. The lines of Yalta have begun to recede, and Central Europe is now not only free but safe. It is increasingly difficult to recall the days of the Cold War when armies and ideologies faced each other across the German border.

But our work is hardly done, and in some ways it is becoming even more difficult. Our nation requires strong, wise, innovative representation in European capitals, and few are more important than Berlin, and few will be more effective than Dan Coats as an effective spokesman, skillful representative for American foreign policy.

Dan was a workhorse in the Senate. I am confident he will take that work ethic to Berlin. And perhaps more importantly, Dan is a thoughtful observer who sees beyond the politics of the moment in an effort to provide perspective on the direction of our country. I am honored to second the president's selection of Dan Coats to be our ambassador to Germany. He will serve our country well in his new post with the same dedication and thoughtful reflection he characterized in his service to the United States Senate.

SEN. NELSON: Thank you, Senator Lugar.

Senator Kennedy, you are here on behalf of two nominees, as I understand.

SEN. EDWARD KENNEDY (D-MA): Yes, Mr. Chairman, if I could proceed. I just wanted to be glad to add a word for a colleague as well from the other side of the aisle with Dan Coats, who served on our Human Resource Committee and was enormously active and involved. He's a real -- he's an outstanding senator and a good friend, and I think he'll make an excellent ambassador, and I welcome his -- he now has a son that is working with the administration in the Labor Department, an outstanding young person as well. So I join in wishing him well.

The reasons I am here, Mr. Chairman -- it's really two -- one first of all to present Richard Egan to the Foreign Relations Committee, who today is joined by his wife Maureen, his daughter Maureen, and sons John, Michael and Christopher, and daughter-in-law Jeanne here as well. Richard Egan has been nominated by the president to serve as the ambassador to Ireland. He was born in Milton, grew up in Dorchester, graduate of Northeastern University, served in the Marine Corps, founder really one of -- the very important information storage systems, EMC, which has been a great success. He is the -- had a great interest in the economic situation in Ireland over a period of time, and he is enthusiastic about the opportunity of service in Ireland.

As you know, Mr. Chairman, what is happening in Ireland today is of enormous importance and consequence, not only in terms of the stability and peace in Northern Ireland, but also in terms of the interests of the United States. It hasn't always been that way. And it's been in the recent years that American leaders -- I think President Clinton and others have played instrumental roles in moving us away from the bomb and the bullet and violence. That whole agreement, the Good Friday agreement, is in real danger of collapse, even as we meet here this morning with the announcements now of new proposals that hopefully may be accepted by the different party interests, and if not then by mid August there is the real possibility of general elections that is generally perceived to be a real challenge in terms of the volatility of that situation, at the present time or a resumption of government by the British over Northern Ireland, which is not something which we -- most of us, and I think most of those that have been involved in Ireland, would want to see.

So it's important that our ambassador to Ireland is going to be someone that is going to be willing to represent in a strong way the interests of the United States in advancing the cause of peace and building stability and constitutional government there, and someone who will be involved and active in working with us, with the president, clearly that has responsibilities in areas of foreign policy and the Congress as well. So this is an extremely important time for Ireland, and this position is extremely important as well. And I know the committee will consider this nomination carefully, and it's important obviously for the institution.

I also welcome the opportunity of recommending an old friend to this committee, Ambassador Burns, who has had an absolutely extraordinary career. He's from Massachusetts, and had an outstanding career at Boston College, Johns Hopkins for the advanced degree -- is part of this new generation of leaders that have come through the department -- has served with great distinction in Egypt and in Israel, and recently the ambassador to Greece, where he has made a score of friends. He has served as the spokesman for American foreign policy in the State Department, and did it with extraordinary ability, and has also served on the National Security Council. This is a person who really represents I think kind of the best of American foreign policy understanding, and I think we are very fortunate to have him. And besides our only regret in sending him to Europe is that we'll have one less person in the stands to cheer for the Boston Red Sox. he is unparalleled. I haven't questioned Mr. Egan closely on that issue, but I am sure he feels the same way. But I know for a fact that Ambassador Burns whenever he is in this country always finds the time to attend the Red Sox games.

I appreciate the courtesy of the committee, and I congratulate both of these candidates. Thank you.

SEN. NELSON: Senator Sarbanes, you were here on behalf of Mr. Burns.

SEN. PAUL SARBANES (D-MD): Well, thank you very much, Mr. Chairman and colleagues.

First of all, I am not quite sure what to draw from the presence of Senator Dole here -- maybe the recent events that have occurred have brought him out of retirement, and a coup may be brewing here. (Laughter.) So I've sent an urgent message to Senator Daschle to alert him to what is taking place here. (Laughter.)

Mr. Chairman, I really have the terrific pleasure of coming and saying a few words on behalf of Ambassador Nick Burns, who has been nominated to be the U.S. permanent representative to NATO with a rank of ambassador. I have known Ambassador Burns for a long time. In fact, I first met him on his first assignment as a Foreign Service officer, which was in the U.S. Embassy in Cairo, and that was back in 1985, and we sort of followed his career ever since, and it's been an almost meteoric career -- includes service in Israel, in the U.S. Consulate in Jerusalem. He then came back to Washington, held important posts with the executive secretariat and with the counselor of the department. He went over to the National Security Council in 1990, and was in charge of Soviet affairs at the time of the breakup of the Soviet Union, which obviously was a very critical and delicate period. And he stayed on at the NSC, working as special assistant to the president for Russia, Ukraine and Eurasia affairs. He then went back to the State Department as its spokesman. Now, that's about as tough a job I think as there is in town, and Nick Burns just did a terrific job at the State Department as spokesman. And he was then sent to Greece as ambassador in 1997. Actually at the time he was the youngest ambassador in the -- when that appointment was made -- the youngest ambassador in the department. I've of course worked closely with him over the years, and I must say he's done an extremely skillful job as our ambassador in Greece and strengthened the partnership and the relationship between our two countries in a most impressive way, and I am especially grateful to him for that contribution.

This is of course a very important job at NATO, as we well know. He has to deal effectively not only with his peers from all the other NATO countries, but with the complex issues of European security, with issues involving Russia and the Balkans. And clearly with his outstanding background he fits the bill.

Now, Mr. Chairman, I hesitated about this, but I think for the sake of candor and full disclosure I ought to express one reservation I have about his judgment. I wondered whether I should do this, and I thought about it long and hard, and I thought for the sake of the committee having all available information it's important I do it. Now, president -- I mean Senator Kennedy has made some reference to that, and that's Nick Burns' devotion to the Boston Red Sox. It really borders on fanaticism -- so much so that it tends to distort his view of other fine baseball teams like the Baltimore Orioles. (Laughter.) But you know, you can't be perfect, and in any event I excuse it by the fact that he was brought up in the Boston area, and we have encountered other similar fanatics. (Laughter.) But I just wanted to lay that out before the committee. He'll do an absolutely terrific job as our ambassador to NATO. I think we're very -- I think it's a real tribute to the Foreign Service that we have people of this caliber, and I want to commend President Bush and Secretary of State Powell for selecting Nick for this very important position. I strongly urge support of his nomination.

Mr. Chairman, while I am here I would like to say just a word or two first about Johnny Young, who is a Marylander, a resident of Kensington, and again -- and another career State Department person who has been nominated to go to the Republic of Slovenia. Ambassador Young has held two previous ambassadorial assignments, in Sierra Leone and in Togo, and in both of them he performed exceedingly well under some very difficult circumstances. And so I strongly commend him to the committee as well.

And obviously I'd be remiss if I didn't say a word or two about our friend Dan Coats, who the president has nominated to go as our ambassador to the Federal Republic of Germany. We all of course know Dan well from his service here in the Senate, and have enormous respect and admiration for his abilities and his dedication. The assignment that he is going to is extremely important in terms of our national interests, given the significance of the Federal Republic of Germany and the role that it plays on the world scene, and the increasingly growing role that it is playing. So I am delighted to see this nomination as well, and I very strongly support it. Thank you very much.

SEN. NELSON: Thank you, Senator Sarbanes. Senator Kerry, you are here on behalf of Mr. Egan.

SEN. JOHN KERRY (D-MA): Well, I am. And also I'd like to make a comment about a couple of others. But let me just share with Paul Sarbanes the deep-held belief in Massachusetts that this could be the year. (Laughter.)

SEN. SARBANES: I thought that's what Burns was going to talk about.

SEN. KERRY: There's an old saying up there you know that the Irish say that if you live long enough you might get to meet a leprechaun. It's been replaced in Massachusetts by the belief that if you live long enough the Red Sox might win the World Series.

Let me begin by sharing equally with my colleagues the pleasure that Dan Coats is going to Germany. I watched him during the years he was here on the Armed Services Committee. He was at the center of so many issues that are of concern in that part of the world, and I think everyone here who knew him in the Senate is delighted that he is going to continue in that particular role of public service.

May I also say how proud Massachusetts is of Nick Burns, who did an extraordinary job when he was in the State Department with Warren Christopher and Madeleine Albright, and most recently in Athens. And I think for all of us on this committee where we are always trying to balance -- and Senator Sarbanes has been one of the chief proponents of this -- really trying to make certain that the Foreign Service and career service really mean something. It has been a delight I might say in the last weeks to see a number of career Foreign Service people who are going to important posts. And Nick follows in that tradition and in that line of service, and I think all of us are delighted that he will do so, and very, very proud of what he has accomplished to date.

It is my pleasure also to join with Senator Kennedy in introducing Richard Egan to the committee. Let me say as I do that, Mr. Chairman, that Senator Kennedy on this issue speaks with a voice that is second to nobody in the United States Senate or in the country. He and Senator Dodd together have been leaders for a long time on the issue of peace in Ireland and on Irish affairs. And I might say that it really was because of Senator Kennedy's leadership, and for a long with Tip O'Neill, his great partner in the House, but later with his leadership with Senator Dodd, that the Senate finally, and the president finally sort of encouraged the process to move forward. And Gerry Adams, as we know, made that famous visit to this country, which was not without controversy at the time, and it took Senator Kennedy, Senator Dodd's and other people's leadership to make that happen. So I think he speaks with a special level of credibility. And the concern that he has expressed about this moment in the peace process is an important one. And I know that the nominee, Mr. Egan, shares a sense of that importance, and hopefully in the course of these hearings the committee will come also to understand that.

Dick Egan's story is a wonderful story about America, about immigration, about people who came here to pursue a dream -- who did, whose families made it in America. And, as a son of Dorchester and of Massachusetts, he proved sort of how you pursue that -- over 40 years of efforts in the technology field, which has built one of the great American companies. I might add, a company that, long before it was fashionable, invested in Ireland, created several thousand jobs in Ireland, recognizing his own ties and his own links to that country, and the need for economic development. Ireland, in the most recent years, has been one of the economic stories -- nine percent growth from '93 to '99; about 13 percent of their GDP is exports to the United States. Over 600 U.S. companies have subsidiaries based there, and it's about five percent of the total employment of Ireland that's represented by that linkage today. So, I think he was ahead of the curve in that effort, and has been a part of that story.

Today, obviously, given globalization and technology, and the change in the marketplace everywhere, I think his background and his experience will be important. Like many nominees who come before this committee, he doesn't come with prior diplomatic experience or experience in a country, but I think his leadership of a business, his chairmanship of the board, his involvement in the community in Boston, his involvement with education, with the Catholic schools, with charter schools and other efforts, have all indicated an understanding of how you build community and what relationships are really about.

So, it's my hope that the committee will learn something more personal about him in the course of this hearing, and have a sense, as he does, of how critical this moment is in a very, very sensitive and difficult process. In my judgment, he comes without prior encumbrances or baggage in terms of that process. He has the ability to be a fair-minded, thoughtful broker, and to do the sensitive work of diplomacy, which is going to be so critical. So, I hope that the committee, in the course of this hearing, will come to share that view. And I'll look forward to the deliberations.

And I thank the chair.

SEN. NELSON: Thank you, Senator Kerry. I am going to forgo giving an opening statement on the -- for the sake of time. I'd like to turn to Mr. Smith, Senator Smith.

SEN. GORDON SMITH (R-OR): Mr. Chairman, thank you for holding the hearing. In the spirit of letting them be heard, let me just briefly welcome all of our nominees. I think they're superb. It's wonderful to see Dan Coats back here. I know Richard will do a tremendous job with his contacts over in Ireland, and so his will be a welcome addition. And I want to publicly thank Chairman Biden for allowing this nomination to proceed.

And with that, I would ask that my statement be included in the record.

SEN. NELSON: Without objection and so will mine be entered in the record. Senator Helms, did you have a comment?

SEN. JESSE HELMS (R-NC): Mr. Chairman, I have a prepared statement, but it would take about four to seven minutes, so -- and -- (inaudible) -- has preceded me, and I think we ought to get on to the nominees. But I ask unanimous consent that my statement be printed in the record about Dan Coats and others.

SEN. NELSON: Without objection. Senator Dodd.

SEN. CHRISTOPHER DODD (D-CT): Well, thank you, Mr. Chairman. And let me join with -- and first of all, welcoming back a good friend from Kansas is here, Bob Dole. We miss you up here, and what a pleasure it was to walk in here and see you.

SEN. HELMS: It unnerves you a little bit, doesn't it. (Laughter.)

SEN. DODD: It doesn't unnerve me at all. I'll tell you -- I'd welcome him back here any time. He was a wonderful, wonderful senator, and a great leader, and it's a pleasure to see you sitting up here with us.

I'm -- first of all, just to go down, Dan Coats, I'm delighted for you, Dan. I've always had to be careful not to get him into trouble. Maybe I should make these comments at the end of his confirmation hearing so as not to place it in some jeopardy, but Dan Coats was a great partner on a number of issues we worked on together. I hesitate to mention the adoption of the Family and Medical Leave Act, but it never would have happened without Dan Coats. And so we worked together, chairing -- or working together on the Children and Families Committee, and a number of other issues. So, we're very fortunate you agreed to do this, and I think you're going to do a great, great job. So, I'm pleased to join with all of us up here in welcoming you to the committee. I'm looking forward to your service.

As well, Craig Stapleton is a constituent of mine, and he is a great friend of the attorney general of the state of Connecticut, Richard Blumenthal, who has called the office and told us about Craig Stapleton's terrific work and I am very confident he as well is going to be a very fine ambassador. So, I welcome him to the committee.

I'm very impressed with Nancy Brinker's background and work. Just tremendous dedication to community. And to recognize that, I think, is certainly worth whole.

And while I have some questions with Mr. Egan, we welcome him as well. I just had a very good meeting. We spent about 45 minutes in my office talking about Ireland. And so, Mr. Chairman, when my turn comes I'll have some questions about Northern Ireland.

But I want to thank you for holding the hearings. And hopefully we can get most of these people done by the end of the week. These are important points and the administration ought to have their people in place.

SEN. NELSON: All right. Let's proceed with the first panel. Mr. Burns, Mr. Egan and Senator Coats, if you all would come up, we would appreciate it.

Your written statements will be entered into the record. And what I would ask, in the sense of time, that you summarize your remarks in two or three minutes, and then we'll open it up to questions, and then we'll proceed with the second panel likewise. So, let's start with Mr. Burns.

MR. DICK BURNS: Thank you, Senator. And it's a pleasure to appear before you this morning, Mr. Chairman, and Senators. I want to thank Senator Kennedy and Senator Kerry and Senator Sarbanes for their very kind remarks this morning.

I do have a prepared statement. It's about five minutes, so I will not read it. It will be entered into the record.

But let me just say, as a career Foreign Service Officer, I'm honored by the confidence that President Bush, Secretary Powell,

Secretary Rumsfeld, who himself was a former NATO ambassador, has shown in me for this appointment. I do consider the position of permanent representative to NATO to be an extraordinarily important one. I think it will be difficult and challenging. I am looking forward to it very much if I am confirmed by the Senate.

We have a very important agenda before us. We have the necessity of getting on with a further round of NATO -- (inaudible) -- because we in this administration believe that that's vital for the alliance. We have the administration's proposal on missile defense, which, of course, is critical for our security and to protect our people against the threat of long-range ballistic missile attack and weapons of mass destruction. We have the challenge of working out with our European allies and NATO a proper arrangement for the European security and defense identity to make sure that NATO remains the central core security institution in Europe, and linking Europe with North America.

We have the further challenge of relations with Russia, which sometimes are difficult, which are always challenging. We're never going to agree on everything with the Russian Federation, but we do have the opportunity to put together a new strategic relationship with Russia and we look forward to that very, very much.

I look forward to these responsibilities if confirmed by the Senate, and I want to thank you for considering me this morning.

SEN. NELSON: Thank you, Mr. Burns. Senator Coats.

MR. DAN COATS: Mr. Chairman and former colleagues, I appreciate the good word that were said this morning, and the confidence that those who made those remarks placed in my ability to serve as an effective ambassador for the United States to the Federal Republic of Germany. I want to thank my former leader in the Senate and law partner, Senator Dole, for his moral support and advice and counsel over the past two-and-a-half years since I've been out of the Senate. We've worked together side-by-side on a number of issues and he's been a great friend and continues to be someone that I greatly respect and admire, and I thank him for coming this morning.

And for those of you on the committee that I've worked with in the Senate, it's a little bit different being on this side of the microphone, looking up instead of looking down at the witness, but it is a great honor that the president has offered me the opportunity serve as the ambassador to Germany. It is not something that I had anticipated, yet it is something that I am looking forward to with a considerable amount of anticipation, because there are significant issues that affect both of our countries and our relationship with Europe as a whole. Dick Burns articulated some of those issues that will be common to those of us that will be representing European nations. Weapons of mass destruction, the proliferation of those weapons, is a serious threat, not just to the United States but to nations all over the world in pursuit of democracy and peace. And it is something that we have to be very vigilant about. The whole missile defense question, ESDP, other security issues are going to be paramount, and one of my primary responsibilities and goals to make sure that this long-standing, cooperative and candid relationship that we have had with the Federal Republic of Germany continues. I want to stress candid because I think at a time when the world is changing, threats are changing, it's important that we show mutual respect, listen to each other, work cooperatively together to address some of these threats that exist in a world that is changing -- something new from what most of us are used to from the Cold War days.

There are a number of other issues that are important in our relationship. This is an historic opportunity, I believe, for the United States and Europe to address questions of NATO enlargement, of creating a whole, united, free and prosperous Europe that can be a significant voice in promoting democracy and freedom around the world.

I thank you for the opportunity to, if confirmed, serve in this position. I would like to introduce to you someone who will be very important both to me, and I think in terms of how this country is represent, Marcia Coats has been a supportive and loyal companion and faithful partner of mine through 18 years of elected office and now prepared to go to a foreign country and leave her grandchildren and children and take up the mantle and once again she's here. I think if there are any questions about whether or not I'll be an effective ambassador, those of you who know Marcia know that we're going to have a terrific ambassador's wife. So, if I could introduce her, I'd like to, along with our daughter, Laura, and our two grandsons, Christopher and Michael, and my son Andrew, who -- there he is -- I thought might had -- as Senator Kennedy said, currently working in the Department of Labor in Congressional Relations.

My experience on the Senate Armed Committee, Intelligence Committee and Commerce Committee in the House hopefully will be a benefit. And more importantly, my experience here in the Senate makes me well aware of the fact that consultation, cooperation with my colleagues, both on this committee and in Congress is important. This is a two-way relationship. I intend to call on you frequently for advice and counsel, and perspective in terms of issues that are important to these two countries. And I look forward, if confirmed, to serving as the next ambassador to Germany. Thank you.

SEN. NELSON: Thank you, Senator Coats. Mr. Egan.

MR. RICHARD EGAN: Mr. Chairman, I am pleased to appear before you today and honored to be chosen as the president's nominee for the position of United States ambassador to the Republic of Ireland. I'd like to thank Senator Kerry, Senator Dodd, obviously Senator Smith and Senator Kennedy for their words of encouragement.

I'd also, first, Mr. Chairman, with permission, even though Senator Kennedy has mentioned my family, I'd like to just introduce to the committee my wife and partner, who is also honored to be here today -- Maureen Elizabeth O'Sullivan Fitzgerald Egan. And four of our five children -- Jack, Mike, Maureen, my daughter, Christopher and our recent daughter-in-law, Jeanne (sp).

Honorable members of the committee, having spent time over the last several months with the State Department in the Foreign Service Institute, I've come to witness and appreciate the caliber and the quality of our career Foreign Service diplomats. Therefore, my brief remarks are only two points. One is why I believe I'm qualified to join their ranks, and why Ireland.

Although I was educated as an engineer, the majority of my 40 years of professional work experience has been devoted to all of the disciplines essential to building, motivating and managing a successful enterprise. A case in point is the company I founded over 20 years ago, EMC Corporation, which today is one of America's largest and most successful as a reflection of my leadership ability.

My duties required me to serve as the company's principal spokesperson to diverse constituencies, such as customers, employees, local, state and foreign government agencies, and the local communities in which we had facilities. I've also gained considerable international experience through our foreign operations in France, Japan, Israel and Ireland, which brings me to Ireland.

On St. Patrick's Day this year, President Bush stated that peace in Northern Ireland is in our strong national interest. Indeed, we seek the protection and promotion of human rights and civil liberties for all citizens of all Ireland and Northern Ireland. We anticipate vibrant cross-border trade and open economies, conducive to both Irish and U.S. economic interests.

The full implementation of the Good Friday agreement, which some of you helped to bring about, is our principal goal. Helping a real peace in Northern Ireland, helping all sides to implement the Good Friday agreement, will not only be one of my highest priorities as ambassador, if confirmed. It is, as you are presently aware, priority number one from the Embassy Dublin's mission plan.

Approximately 12 years ago, I started what is EMC's largest operation located outside the United States, EMC Cork. This operation, which began with a 30 and 40 commitment to the Irish government, now employs several thousand. It has necessitated innumerable trips by Maureen and I to Ireland over the last dozen years.

Through these visits, we've come to know a lot of the Irish people and many of the country's political leaders. Ireland's economy has traditionally been poor, and its rapid rise over the last 10 years has been phenomenal. As a result, businessmen and women are held in high regard, and American business folks that helped bring about the Celtic -- (inaudible) -- even more so.

In short, I believe I have the skill to build on the good work of Ambassadors Smith and Sullivan to make Embassy Dublin even more efficient, responsive and citizen-friendly than it already is. Being relatively well-known and respected in Ireland will also allow me to develop and further strengthen the diplomatic relationship so essential to fulfilling the ambassadorial responsibilities of promoting and protecting the interests of the United States of America.

Thank you very much for allowing me to introduce myself.

SEN. NELSON: Thank you, Mr. Egan. I will hold my questions until last. Senator Dodd.

SEN. DODD: Well, thank you very much, Mr. Chairman. And as I started to say at the outset here in these remarks, these are very, very critical days. I've talked to Mr. Egan about it. Let me, if I can, take my time here and concentrate on this nomination.

As Mr. Egan has pointed out -- Senator Kerry has, Senator Kennedy and others -- this is a very critical set of issues. And we've seen critical junctures, Mr. Chairman, in the past, and this happens to be one of them again. In the coming days, the prime ministers -- in fact, tomorrow -- the prime minister of Ireland, Bertie Ahern, and the prime minister of Great Britain, Tony Blair, are going to place on the table another proposal, as I know Mr. Egan is aware, for resolving the current impasse.

It's our hope that all parties are going to give serious consideration to this proposal, because they're sort of running out of time here on whether or not we're going to be able to put a successful package together to create the structures that would allow for a political resolution of these issues in the years to come. If not, of course, the danger is that Parliament will be dissolved; that once again there'll be a re-emergence of reinstating direct rule and, of course, elections for another Parliament, which could mean more trouble in that area.

So the stakes, Mr. Chairman, are extremely high here, with the prospect of an increase in violence. We're seeing it already again in Northern Ireland. Some of it is clearly related to summer marching season, as we see each and every year. But some of it is also related, I think, to the events of the last few weeks and months, some of it occurring as a result of the activities of Loyalist paramilitary organizations, some of it obviously occurring from splinter groups with the IRA. Needless to say, innocents are once again dying in the streets of Northern Ireland, despite the fact we've had a cease-fire in place now for the last number of years.

So in the past, when we've talked about ambassadors to Ireland, as I said to Mr. Egan, it was whether or not the ambassador would be showing up at the Rose of Trelee (sp) festival or choosing who would be the grand marshal of the St. Patrick's Day parade in Cork City. The ambassador now in Ireland has to play a much more significant role in light of the events of the last few years.

And so I want to raise, if I could, the first question with you, Mr. Egan, about that role. In addition to being concerned about the issues facing Northern Ireland, clearly the United States ambassador plays a very pivotal role. Your two predecessors, Mike Sullivan, who I know you've met with or talked to, and Jean Kennedy Smith have played very, very important roles working with the governments of Ireland and the United States, as well as Great Britain, have played a very, very important function in trying to bring about, along with obvious involvement of our former colleague, George Mitchell and others, with the Good Friday accords. But I wonder if you might just share with us your views on how you would continue the role of the recent predecessors you've had in this very critical period of time. Let me start there with you.

MR. EGAN: Thank you very much, Senator. That really is the core issue, I believe. I am quite familiar with the Republic of Ireland, having run a factory there for 12 years. And the issues there, while not trivial, are not nearly as significant as the issue we have in Northern Ireland. There's no question about it. That's where the time is going to be devoted.

For the last five and a half months, I've done nothing but study the issues in Northern Ireland. I think I understand the histories. As I mentioned to you earlier today, I don't think I'm into the second generation of subtleties, but I do know a lot of the players. I've met them in the past.

This western plan that is going to be introduced, probably as early as tomorrow, focuses on those key issues that were originated in the Good Friday agreement, and they're basically police reform, demilitarization, stability or stabilizing the institutions, and, of course, decommissioning of the paramilitary. Those are the issues.

It is going to be the responsibility, I feel, of the United States ambassador to the Republic of Ireland to be a participant, to help facilitate and to continue those discussions, to maintain knowledge of what is going on and to convey that to the administration and to call upon the administration and all members of the government of the United States to help facilitate what I would hope to be, perhaps even on my watch, final closure of that issue, which is peace and no violence in Northern Ireland.

SEN. DODD: Let me ask you, one of the concerns -- there's been concerns raised about the role of the United States. And this has been a delicate balance here, not to become overly assertive. Obviously this is an issue that must be resolved between the parties in the north of Ireland. And obviously the Republic of Ireland and the prime minister of Great Britain plays an important role here.

But the United States has been a very important player in all of this; obviously the involvement of our former colleague, former Majority Leader George Mitchell, along with others -- certainly the Clinton administration -- about the role of the United States, continuing that role. Do you see any or do you have any hesitancy or do you know of any hesitancy on the part of this administration to in some way diminish the involvement of the United States in this process?

MR. EGAN: I do not believe that this administration has any less interest than prior administrations. I believe it was somewhat -- a couple of months after inauguration that President Bush met with Prime Minister Ahern. At that time the president stated that the activities in Northern Ireland are in the interest of the United States to become resolved. Shortly thereafter, Ambassador Richard Haass was appointed as the point person. He's been there a number of times. He and I speak every week. He's met with all of the leaders of the major parties, and he's also met with the leadership of the British government and the Irish government.

So there's been a lot of activity, perhaps less publicity about it. There's a strong interest, because it's in the United States' interest, to address the Northern Ireland issue. I hope to be a major contributor in that. I think one of the things that has been lacking is, as I said, beat on the street. The general counsel, Ky (sp) Ford (sp), has become the deputy chief of mission for the Dublin embassy. And if I am confirmed, she'll be my second-in-command. I speak to her every day.

SEN. DODD: Well, I hope you'll stay in touch with us on this. Obviously it's very, very important. I mean, you mentioned the proposal is going to be placed on the table here tomorrow. And, of course, we've seen failures in the past of similar efforts. I commend them. I commend Tony Blair. I commend his predecessor, John Major, for making efforts. I'm sorry David Trimble has decided to sort of remove himself from the process here. But I wonder if you might share with us what you think happens if, in fact, the proposals are rejected by one or all parties. What do you think is likely to occur next? What do you think the Blair government is likely to do?

MR. EGAN: Well, first of all, I think, regardless of what the western plan says about the four major issues, I think each of the various factions will probably say it's not enough. But when August 12th rolls around, you know, what they could do is dissolve that government, hold elections. The most likely feelings or theory is that that can be delayed; it can be delayed further. In that process, the seriousness of the situation will rise even further and perhaps some reconciliation can be given by both the Loyalists and the Republicans.

SEN. DODD: I appreciate that. I mentioned to you as well before, there's been some indications in the last few months of people who in the past few years, anyway, have been granted visas to come here, particularly because they have put aside the bullet and the bomb, and pursuing a peaceful process. They have been somewhat harassed in the visa process.

And I would hope that you would communicate to the administration it's very much in our interest to keep these lines of communication open and that the United States is the honest broker here and not perceived as taking one side or the other. I don't know if you want to comment on that, but I mentioned specifically some matters here earlier that are troubling.

MR. EGAN: You're absolutely correct. If the courage was not exhibited by Ambassador Jean Kennedy Smith and the administration and some of the people here in the Senate to grant Gerry Adams' visa, I don't think there would have been -- and then Cahill (sp) later on -- I don't think there would have been a GFA.

SEN. DODD: That's the Good Friday accord, for those of you not --

MR. EGAN: The Good Friday agreement, yes.

SEN. DODD: Let me mention one other thing to you, Mr. Chairman, if I can, before the time runs out. There have been issues raised, Mr. Egan, about campaign contributions. And certainly we in the past have had people who have been strong supporters of both political parties, and candidates have been ambassadors. And that's something which I applaud. I think the fact people are involved in the political life of the country is worthwhile.

But we do have to be careful -- I'm sure you'll agree with this -- in terms of there are laws regarding the amounts of contributions to get paid. You willingly accepted the responsibility of paying a fine, at least reported, some $36,000 for excessive campaign contributions. It's, again, a delicate issue, but I think clearly, because it's been in the public debate and discussion, that I want to give you a chance to respond to that, about the importance of that.

If the word sort of goes out that this doesn't mean much, it doesn't make any difference -- and I'm not talking about the modest amount; people can make a mistake. Clearly all of us have seen that in all of our campaigns. When it becomes excessive, it appears as though these positions are open to sort of a bidding process financially. And that's trouble, I think, to all of us here.

So I wanted to give you a chance to respond in a public forum here about that particular question, and any comments you may have not only about your own particular case but about others who may be supporting candidates when the question comes to contributions that exceed the legal limits.

MR. EGAN: Thank you, Senator. I think I've covered both aspects of that. I did exceed -- there's no question I exceeded the legal amount. I was originally under the impression it was $25,000 per year. It's really $25,000 per election cycle. So the excess contributions over the years was '98, '99 and 2000. I still would have been a little over.

My only explanation is probably carelessness. Last year I received over 1,000 requests for donations, not all political; mostly charitable. I granted over 400 of them. And, quite frankly, I just did not pay a lot of attention where I stood financially. I really looked to see who was asking. It's hard to try to analyze every one of them. But it was carelessness. It wasn't intentional. But it was, in my case, easy to do. I apologize.

SEN. DODD: Well, I thank you for saying that. And I hope others who may be following all of this will hear what you had to say as well. It's very important. Again, I make the point, I happen to be one who believes that political appointees do a terrific job in many of our posts. And people who have been supportive of candidates -- there ought to be no prohibition on that at all.

I don't want my question to imply that at all, but just the importance that we all follow those limits so we don't create the impression that it doesn't make any difference at all. And I think your explanation is one that I accept. We've seen it happen in other cases. So I appreciate your response to it.

Mr. Chairman, I want to be careful on time. Other members have other questions.

SEN. NELSON: (Inaudible.)

SEN. DODD: Well, just lastly, on the European enlargement issue, again, Northern Ireland isn't the only issue you're going to deal with. And obviously Dan Coats and Mr. Burns are going to be involved in this issue as well. And I just wonder -- you saw the rejection of the Nice treaty.

I happen to have been in Ireland with John McCain and Fred Thompson at the time that debate was going on, and many of us thought that this was going to be slam dunk in light of Ireland being such a recipient of European largesse that contributed to the creation of the Celtic tiger, then to have them turn around and reject the Nice treaty seems a little surprising -- not only to us, but I think to a lot of people throughout Europe. I wonder if you have any thoughts on that issue. MR. EGAN: It certainly was ironic. There are a number of reasons given. I counted about a half a dozen. The ones that seem to be most repeated are there was a very low voter turnout was one of the reasons given -- the electorate felt like they were being taken for granted. Another area was Ireland has been traditionally very neutral, and it was a neutrality issue. There are a number of other reasons. Fundamentally Ireland's position would be one vote out of 14 changing to one out of 27. And then there was another theory that basically the countries that would be entering the EU were less financially advantaged that it would now start to cost the incumbents money. These are four of about a half a dozen reasons. But I understand that the government is going to pick it up again and have another vote on it.

SEN. DODD: That's what I understand as well. And just lastly, Mr. Chairman, again I appreciate very much Mr. Egan's willingness to sit down and talk with me this morning. I know his involvement with Senator Kennedy, Senator Kerry, Senator Colins of Maine is very interested as you know in the Irish issue, John McCain. This is becoming more and more people want to follow this, and we hope that you will keep that door open in Dublin to all the parties in the North. I think there's been a feeling that our embassy was a place where they could come, those within the political process I mean now particularly, express their views and always had good listeners there. That's been very valuable I think to our administration and members of Congress, and those of us who are interested in this -- and it crosses ethnic lines obviously -- would like to be kept well informed as to how the progress is proceeding.

So you are going to be confirmed. You'll have my vote on this committee.

MR. EGAN: Thank you.

SEN. DODD: And I appreciate your willingness to take on this responsibility. And it's at an extremely critical time. So we look forward to working with you. And --

MR. EGAN: Thank you --

SEN. DODD: -- Mr. Chairman.

SEN. NELSON: Thank you, Senator Dodd.

Senator Smith?

SEN. SMITH: Thank you. Mr. Egan, I want to assure you that there's hardly a U.S. senator who has not run afoul of the Federal Election Commission in some respect. It takes a full-time accountant, a phalanx of lawyers just to run an election campaign anymore, because our laws would make Dysantheum (ph) proud. And so I think it's important to say for the record that you're in good company I think, because our election laws are extremely difficult. So I do adhere, as Senator Dodd -- we have got to do our best to comply. But it is difficult.

I would like to follow up on one other point that Senator Dodd made. You responded to him on the European enlargement issue as though maybe the Irish people didn't turn out very much. It is my experience in Europe that the greatest disconnect on the European enlargement question is between the leadership in Brussels and the people on the streets of Europe. I rather suspect if every Irishman and woman were asked to vote this would be defeated even more resoundingly. But obviously they're a democracy, and it's up to them to make that decision. It will be interesting to me to see if they do revote this how it will turn out the second time, and whether the European Union will actually respond to the wishes of this democratic country. That's something to be seen yet.

Ambassador Burns, on the issue of NATO enlargement that is somewhat I suppose colored by many issues -- Bosnia, ESDP, and it is of concern to me that ESDP goes forward as budgets continue to decline. And I wonder if you can offer your opinion as to whether or not this is just institution building, and what will be the consequence upon NATO's future and our ability to coordinate matters of the military with our European allies.

MR. BURNS: Senator, thank you for the question. I know having talked to many members of the Senate and the House and the staffers that this is an important issue for this body, and I can assure you if confirmed it's going to be one of the major challenges as my tenure as ambassador to NATO.

President Bush has welcomed the European Security and Defense Identity, or Policy if you will, really for one principal reason: because we believe that as the Europeans go forward to build a new capability it will have to raise the military capabilities of all the

European forces that are also a part of NATO. And this ought to speak to one of the central concerns that Americans have had for decades and I know that have been part of many debates up here on Capitol Hill, burden sharing; the fact that the United States for a very, very long time has carried a great deal of the burden, the military burden for NATO's success. We saw that in Bosnia in 1995, and we saw it in Kosovo in 1999 when the United States had to shoulder a disproportionate share of the burden.

So if one of the by-products of this European Security and Defense Policy is in fact -- results in increased defense capabilities, that will be good for the United States.

NATO also in any conceivable major security action in Europe would have right of first refusal. So a European force as it is developed or capability would only deploy when NATO chose not to deploy.

SEN. SMITH: There is a dispute though among our European allies as to whether NATO would have right of first refusal. There is certainly a school of thought there that they should no in any way be coordinated. Are you aware of that?

MR. BURNS: I am aware of it, senator. I know that at least one country, perhaps a few, have that point of view. But I think it's fair to say that the majority opinion in the alliance is that NATO ought to remain and will remain the core security institution in Europe. I think from an American point of view, given our own national interests, it must be the core security institution.

We also understand from our allies that as they proceed the European Union will not duplicate critical and core NATO functions, such as command and control and planning. We are also interested in the rights and the wishes of our non-EU NATO allies, such as Turkey. They might be taken into account. We spent -- President Bush, Secretary Powell, Secretary Rumsfeld, have spent a lot of time discussing this with Prime Minister Blair and Chancellor Schroeder and others, and I think we are arriving at a consensus that will enable NATO to continue as the core institution, enable the Europeans to develop a capability, and hopefully in the process NATO is strengthened. That's the objective.

SEN. SMITH: Senator Coats, when I served with you, you were one of those voices on the Armed Services Committee to whom freshmen senators listened. And I wonder if on this issue of military budgets do you have any message for our German allies whose leadership is critical in NATO, but whose budgets continue to decline even in the face of this new institution building. Do you have a message for them, or does the administration rather?

MR. COATS: Well, I have some personal thoughts at this point in time, but I am not carrying a message from the administration yet, obviously until I am confirmed. But clearly there has to be a recognition on the part of the Federal Republic of Germany that if they are to maintain a central partnership and position in NATO it has to be accompanied by more than rhetoric; it has to be accompanied by resources. And there has been a concern on the part of the United States that a declining military budget and defense budget jeopardizes that critical role that they need to play.

The creation of the European defense force is a good example, as Nick Burns just discussed. There's great danger that that force will be a hollow force -- it will be on paper, but it won't have the necessary infrastructure with training and equipment to be an effective fighting force unless it is supported by a sufficient budget. So not only Germany, but I think a number of European nations have to address that question.

But getting back to your central question, there is a debate going on currently in Germany -- there are national elections in 2000 -- I suspect that this will be one of the primary issues in that election, and that is sufficient resources and funding for defense so that Germany can remain in a central and important fashion a critical part of NATO.

SEN. SMITH: I heard it said by the former Oregon senator, and I thought it made a lot of sense -- when we look at burden sharing in NATO, and we sometimes can be critical from this vantage point across the pond, the German people are doing their part in burden sharing. I mean, I do think we credibly speaking they need to do more in terms of their budgets. But they live amongst NATO armies, and the screaming jets taking off and our soldiers in their towns, and we hope that that presence is still a good and welcomed one. But I do think it's important for us to say publicly that we recognize that Germany in particular is sharing a burden as few other nations do in the NATO alliance.

MR. COATS: And I would support that -- and not only from the standpoint that they have been gracious and accommodating and supportive hosts for hundreds of thousands of American troops over the years, and even after the drawdown of the '90s we still have about 91,000 U.S. service people and their families in Germany. And I think for the most part, with a few exceptions, there has been very gracious accommodation for the training needs and support for the American troops, and we hope that that will continue.

And secondly, I think it's important to recognize historically Germany has been reluctant to commit its troops outside of its borders. But yet it has taken a very active role in the Balkans, and German defense forces joining with our forces and others have played a very significant role in trying to bring stability to that part of the world. This is a big step for Germany, and they've stepped up to the plate. Hopefully that attitude will continue. And again I think the question is more of resources for their forces rather than will and commitment.

SEN. SMITH: Thank you, Mr. Chairman.

SEN. NELSON: Senator Helms.

SEN. HELMS: Just a moment, Mr. Chairman. Mr. Burns, I want to thank you personally for the great work you've done in making so many people aware of the terrorism problem. You have been very helpful to a lot of folks, including members of my staff, and I thank you, sir.

To my long-time friend, Mr. Ambassador Coats -- soon to be -- I want you to take a look at the German judiciary when you get there. Are you familiar with the enormous problem that the wife of the British ambassador to the United States is having with this?

MR. COATS: Senator, I am. And not only Lady Mayor, but many other American citizens also have --

SEN. HELMS: You bet.

MR. COATS: -- real concerns about this. It's clearly an issue that has gained the attention of the Department of State, I think in large part due to your concerns that have been expressed. I have met and consulted with a number of people at State about this. They have formed a working team. I know President Clinton discussed this with Chancellor Schroeder. I intend to make it one of my top priorities, to be engaged and have our mission engaged in resolving these difficulties, part of which goes to the judicial enforcement of orders that are rendered even by German courts or accepted by German courts, but yet the enforcement is not there in returning these children to their parents and under court order. It's a tragic situation for all involved.

SEN. HELMS: It certainly is. And you can imagine it happening to your own in-law or your own daughter or son, when a child is taken by the divorced member, and taken to a foreign country. They will not even let the wife in this case see her two sons, except on a street corner. He is said to be a distinguished surgeon, but he will never measure up to anything worthwhile as far as I am concerned, because anybody who will do that does not have much character, and I hope he gets the message.

Now, Mr. Egan, I have a couple of suggestions -- Mr. Ambassador Egan. When you get to Ireland two people -- have you ever heard of a fellow named Bono?

MR. EGAN: Yes, sir. Yes, sir. (Laughter.)

SEN. HELMS: He is a citizen of Ireland, and I have become very close friends. He has persuaded me that I am supposed to understand rock music, but this man has as much character as anybody I've met. When you get there you might invite him to come to see you. He's a good family man. He is a student of the Bible, and so many other good features that I was frankly surprised. But Bono is a good man, and give him my regards.

Then there's one who is a historic novelist. Her name is Morgan Llewellyn. I am going to drop her a note and tell her to call you after you have had time to get settled there, because she is the most amazing writer in terms of the history of Ireland. I have five volumes that she wrote and it took me about six months to get through each one of them. But what a job she does. And they are two people that I recommend to your interest and friendship --

MR. EGAN: Morgan Llewellyn --

SEN. HELMS: Mr. Chairman, beyond that, I have nothing else. I wish all three of you well. God bless you.

MR. EGAN: Thank you.

SEN. NELSON: Mr. Chairman, because you introduced me to Bono, I have a new-found respect among my household, among my children -- (laughter) -- among our Senate staff. I want to thank you for that new-found respect.

SEN. HELMS: You're quite welcome. (Laughter.) I am glad to do something for a distinguished senator of whom I am very proud who is chairing this meeting.

SEN. NELSON: Well, the feeling is mutual, Mr. Chairman. I just want to say as we close out this hearing that ever since I was a second lieutenant and went abroad I always felt a great responsibility to represent America well, and have so tried to comport myself when traveling in foreign lands. And what greater responsibility could our official representative of this country have than comport yourself with dignity and with utmost sensitivity that the eyes of other lands are upon you in representing what our nation stands for. It's an awesome responsibility, and I wish you well.

And, Mr. Egan, the part of the world that you will be going to -- I just shake my head in amazement how in the name of faith and religion how it has been so often in the history of humankind to be used as an instrument of division and hate. Clearly we have seen that in other parts of the world. And here in a part of the world to which you are now going to represent America, people of basically the same faith, drawn by minor distinctions, let that be the cause for separation, division and hate, when in fact in the basic tenets of that tradition of faith it is a message of unity, love, peace.

I saw in a report this morning on the television that the immediate past president may have some interest in wanting to help foster peace. And that would be a delicate situation for you as it has been for examplein other administrations with regard to the very prominent role that President Carter has played. And yet he has played a very constructive role when utilized appropriately. And should that occur under your ambassadorship, I would wish you well and hope that others offering assistance might be of benefit in bringing about peace and reconciliation in that part of the world.

I want to thank all of the panelists -- appreciate it very much. Now what we'll do is we will bring up panel number two, and that would be Ms. Brinker, Mr. Stapleton and Mr. Young.

END.