Mr. Martti Ahtisaari, President of the Republic of Finland at The Royal Institute of International Affairs, Chatham House, London, 18 October 1995

TOWARDS A POSITIVE INTERRELATIONSHIP: THE EUROPEAN UNION, THE UNITED STATES AND RUSSIA IN A CHANGING WORLD

Ladies and Gentlemen,

It gives me great pleasure to speak to this distinguished audience. Since its founding in 1920, The Royal Institute of International Affairs has been one of the most respected fora for research and debate on international relations worldwide.

International relations as a subject of study in the social sciences has been to a great extent developed in Great Britain. The purpose has been, as Professor A.J.R. Groom states, "to examine the causes of war and the conditions of peace in a scientific manner".

Today this purpose is more significant than perhaps ever before. The world has changed dramatically and the reality of international relations is complex. It is time to listen and it is time work together.

Ladies and Gentlemen,

The Cold War was a worldwide confrontation and its end triggered a global process of change which continues without any sign of cessation. It has a revolutionary impact in particular on the Euro-Atlantic community. Today this community is to an increasing degree composed of three key entities: The European Union, The United States and Russia. It is my intention to focus on them and their changing relationship.

A fascinating aspect of the present situation is that the New World - the United States - meets an Old World consisting of new entities. Russia is in historical transition and the European Union is building a stronger and wider community of nations.

The relationship between these entities is like a triangle - two sides must always link with the third. Now they should drive towards a positive interrelationship. Any major effort to strengthen peace, stability and prosperity in Europe must be built on this basic fact.

Finland became a member of the European Union this year. In recent polls my fellow ctizens have shown continued strong support for membership. Our decision to join has been proven right. Finland confirmed its European identity.

The European Union is not a finished product. Europe lost very much its global role as a result of World War II. Through integration it is now gradually strengthening its place among the global players again.

The membership of Great Britain strengthened an Atlantic dimension of the European Community. The Accession of Finland and Sweden has created a Northern dimension to the Union. A geographically balanced European Union will be more able to champion European interests succesfully in the 21st century.

Any European state may seek accession to the Union. As a result of the ongoing process of change the number of member states could double in the future.

The Intergovernmental Conference scheduled for 1996 should improve the economic and institutional conditions for the enlargement of the Union.

For the success of the European Union, the support of citizens is crucial. Integration cannot be pushed ahead. It must be achieved through openness, democracy and respect for diverging views.

Ladies and Gentlemen,

The basically peaceful collapse of the Soviet Union constituted one of the most dramatic events of our era. It takes time to fully comprehend its repercussions.

Russia is in the throes of a long transition. Fortunately, none of the many doomsday visions have materialised. The huge Eurasian state is muddling through.

Russia is seeking its national identity after decades of communist rule. Democracy and market economy are being translated into Russian concepts. We should show understanding when history is being made in Moscow. The speed of change is not always the most important consideration. What matters is that the road chosen is the right one.

However, there is a temptation in Russia to take nationalism to extremes. This could become an obstacle to Russia's integration with the international economy and institutions.

The globalisation of economic activities increasingly influences the shape and form of post-Cold War international relations. Old and emerging patterns of integration are moulding the basic structure of the international system.

The United States is uniquely placed to play regional roles as both an Atlantic and a Pasific power. The United States remains a strategic partner for European states. Some Americans have also been at times tempted, for domestic reasons, to diminis U.S. engagements in Europe. Yet it remains committed to its European role. The interests of the United Sates and Canada are still strongly embedded in Europe.

Ladies and Gentlemen,

How can we, then, develop a more positive interrelationship between the European Union, the United States and Russia? The enlarging European Union will be increasingly at the center of gravity of both trans-Atlantic and pan-European structures of international relations.

As a fortress, Europe can never achieve its goal. We know from history that any attempt to create a self-sustaining European fortress - be it L'empire, Das Reich or any 'ism' - has been unsuccessful and has led to disaster.

There is no need for me to assure anybody here in London of the value of trans-Atlantic relations. A strong trans-Atlantic relationship is a necessary condition for a sustainable and beneficial partnership also between the European Union and Russia.

In a changing world also old relations need and get a new impetus. This is true also for transatlantic relations. We have to discuss a broadening of the basis of this dimension. The European Union has achieved much and the desirability of free trade has long been self-evident among Western European nations. The positive interrelationship between the European Union and North America needs to be reinvigorated by laying the building blocks of a new transatlantic economic space.

In a globalised world economy trade arrangements are judged by their ability to address the challenges of markets. This holds true both for the multilateral trading system and regional trade arrangements. The instruments might include formal free trade treaties.

Looking to the east, trade liberalisation should not end where Europe turns into Eurasia. Isolation of Russia should be avoided in all relevant geographical contexts and Russia should be fully integrated into the multilateral trading system. Consequently the Partnership and Cooperation Agreement (PCA) between the European Union and Russia could be further developed into an agreement answering the needs of trade, investment and production today.

Ladies and Gentlemen,

Economic and political integration is not possible without stable and secure international relations. We Europeans understand this fact very well from our tragic history.

Cooperation is the only credible answer to our common security needs. The history of security cooperation is brief. During the Cold War we learned how to manage a peaceful relationship between two different political systems. Now our task is to manage change. After the collapse of communism, the Paris CSCE summit confirmed Western principles - human rights, the rule of law and economic liberty - as our common value basis for the whole of Europe.

The management of change is not possible without imagination and creativity. It is not easy to get rid of old patterns of Cold War thinking. Yet we have an excellent opportunity not only to witness historical events but to make history.Let us not miss it.

The post-Cold War Europe remains unstable. Today we understand that no new security order can be created overnight. We need time and tolerance. Furthermore, we understand that no panacea is at our disposal. However, today's Europe is not threatened by enemies. Our worst enemy is growing uncertainty.

We need a long-term perspective, a strategy for positive change,for building a common security space where military conflicts are not possible any longer. In our view this strategy should be based on three basic factors. First, the creation of societal stability primarily through the enlargement of the European Union. Second, improvement in cooperative security arrangements through strengthening the OSCE and other relevant arrangements like Partnership-for-Peace. And third, the maintenance of a credible defence capability, implemented either individually or collectively.

In today's situation, we have to get the existing security institutions to function in concert. The aim is to work with everybody, not against anybody.

I would like to see a permanent political dialogue, featuring summits and other relevant arrangements,to be established between the European Union, the United States and Russia. The goal of this dialogue should be to safeguard the building of a new European security structure.

Gradually, more emphasis should be given to truly co-operative security arrangements. This is possible if economic and societal stability on the one hand, and military stability, on the other,are gaining ground simultaneously.

Finland maintains a credible national defence.Our military non-alliance is, we believe, a constructive contribution to security and stability in Northern Europe. We want to develop the European Union into an effective factor for security and stability in Europe and beyond. We are ready to co-operate with NATO as it is developing a continent-wide partnership geared to peacekeeping and conflict management. All European nations have benefitted from the responsible role of the Alliance whether they are members or not.

Ladies and Gentlemen,

Winston Churchill has stated,

"It is not our task or wish to draw frontier lines, but rather smoothe them away. Our aim is to bring about the unity of all nations of all Europe."

This vision has been a source of inspiration for decades. It has not yet been accomplished. It is our common European duty to do it.