It’s a great privilege for me to be here both at this prestigious conference and in Israel as well. It is my first visit to the region, and since I have arrived here on Saturday, I have seen, learned, and appreciated a great deal.

I know that it was from the same platform that PM Sharon articulated his vision for disengagement that has been applied in Gaza.

I will explain a little about Canada’s new government. We are sure that Israel’s vision we will clear. We are giving Canada’s police and military the resources they need to get the job done. We are improving the effectiveness of our international assistance and are bringing new force to our diplomatic effort abroad. My vision as I joined the Foreign Ministry was to reinvigorate Canada’s relations with our allies.

This month I visited Afghanistan. Canadian diplomats and aid workers are assisting the democratically elected Afghani government stand on its feet to help its people. Some 2,500 soldiers are stationed on the border with Pakistan, which is one of the most volatile places on the face of the earth. The terrain, terrorist elements, and the nature of campaign make it very complex. We have already lost 44 soldiers and one diplomat. Canada’s whole approach is beginning to see results. Afghanis are starting to believe that their new government will bring them the security they need, and we are starting to see the weakening of the terrorists.

Sharing prosperity is an important value for Canada. This is not a uniquely Canadian value, nor is it a uniquely western value. They belong to anyone who wants access to them. Freedom and democracy give people hope. Indeed, it is these two values that make Canada and Israel so close. Our history of relations is long. We chaired the committee that authorized Israel’s existence as a state in 1947.

However, our record is not unblemished. We were among those who turned our backs on Jews fleeing the Holocaust. But we have learned from our mistakes.

We aim to increase and diversify economic partnership. We have even brought hockey to the farthest reaches of Israel. I was at the Canada Center in Metulla.

Our relations have strengthened over the past six decades. We are committed to Israel’s’ security. The best way to ensure Israel’s security is the formation of an independent Palestinian state. It is also critical that Israel’s legitimacy be recognized by its neighbors.

We haven’t only made declarations; we have also acted on this. We were of the first governments to cut off ties with the Hamas government. We have also taken action in the UN against unfair resolutions against Israel.

Canada believes in a two-state solution for reasons of principle and practicality. In the current environment, critics will say, and will be right, that we have been at the brink of peace and it has fallen through. They will also say that conditions for peace have been better in the past and still nothing came of this. But there are new conditions that change the picture – the nuclear threat from Iran, threats in Lebanon and Iraq. Many Arab leaders from the Gulf to the Maghreb, Arab leaders are willing to help. And with the exception of a few extremists, there is an acceptance that Israel is here to stay.

In fact I can share with you that just this morning there was criticism of my visit here for not visiting Hamas leaders. When it comes to standing against terrorism that is criticism I am willing to take.

There is real potential for success, yet we must be prepared for the potential for failure. I met with Abbas recently, and told him that the Road Map is a critical first step to peace, and that without the Palestinians taking responsibility for their own security, and the security of their neighbor, Israel, peace will not be a reality. Fatah reform is a top priority. Abbas seemed willing. He needs support – form his Arab brothers, from Israel, and from us. Canada is willing.

We have learned that you need to manage crisis and conflict. They can’t be resolved.

We are ready to give strong support to the work of Gen. Dayton and his team, on which there are Canadians. We have contributed millions to improving the Karni Crossing. Olmert’s recent release of 100 million dollars to Abbas is a good sign. There are other simple, practical measures Israel can make: take away the arbitrariness at border crossings, treat average Palestinians with respect and dignity, issue work permits.

But Canada recognizes that Israel has a duty first and foremost to protect its citizens. But I want to point out that Israel’s security depends on the Palestinians’ ability to prosper in dignity. The increasing growth of settlements and settlement building in the West Bank is also a hindrance to this process.

There is finally one more thing I would like to discuss and it has been a topic of great discussion here. That is Iran. Canada is deeply concerned. Tehran must not be allowed to obtain nuclear weapons. We need to start talking seriously and creatively about what the international community can do and can do now and what resources we can draw upon. We will continue to speak up loudly to support Israel and to defend Israel as a democratic, legitimate nation in the UN, NATO, and other forums. 

I know that this is a distinguished platform, a great gathering, and an extraordinary county.