In his May 9 speech at the University of South Carolina, the President reaffirmed the USG's commitment to promote and support reform in the region through the Middle East Initiative. This Initiative is comprised of two essential elements: the existing Middle East Partnership Initiative (MEPI), and the proposed Middle East Free Trade Area (MEFTA). The President intends for the MEFTA to be completed within a decade; progress will build on existing FTA's (with Israel and Jordan), and will include programs and technical assistance to strengthen and transform the trade and investment environments and climates in the region. Programs conducted in support of the MEFTA will be supported with MEPI funding.

The President reinforced that robust activity will continue through the existing MEPI structure, comprised of three "pillars," one each focused on Economic, Political/Civil Society, and Education issues. Among the hallmark activities conducted under the auspices of MEPI, the President cited: the establishment of the Middle East Finance Corporation (Economic); a Regional Judicial Reform Forum and Regional Campaign Schools (Political/Civil Society); and, improving education in the region, particularly through literacy and stay-in-school incentive programs, as well as with Arabic-language primary reading materials (Education).

The President proposes significant new assistance to the region under the new Middle East Initiative. This is in addition to the substantial bilateral programs already in place or planned. For example, the Administration plans to spend approximately $100 million from FY03 Supplemental funds, and has requested $145 million in FY04 monies.

The Deputy Secretary of State is the Coordinator for the Partnership Initiative. The Partnership programs will be managed by the Department of State, NEA Bureau. We have established a new Office of Partnership Initiative, and are working closely with agencies across the USG as we design and implement new programs.

• Middle East Finance Corporation: This program will assist small- and medium-sized businesses gain access to needed capita, and create jobs.

• Commercial Law Program: This program will provide technical assistance to reform commercial codes, improve the climate for trade and investment, and strengthen property rights.

• Transparency: Programs designed to enhance corporate governance through a series of conferences and workshops will increase corporate transparency and support the rule of law and the protection of shareholders' rights.

• MEET - U.S.: The first phase of "MEET" (Middle East Executive Training) program promotes entrepreneurship and small business development in the Arab Middle East, and is conducted through the Department of Commerce. Initial "MEET U.S." participants are women entrepreneurs.

• Girls and Women's Literacy: Programs in countries such as Morocco and Yemen will continue to support literacy training through the funding of local non-governmental organizations to work on literacy programs.

• Incentives to Keep Girls in School: The Girls Scholarship Program in Morocco, which funds efforts to provide financial support and housing for girls to complete middle school will be replicated in the region.

• Regional Forum on Justice: The U.S. has agreed with Crown Prince Salman of Bahrain to establish a regional forum of judicial reform. Supreme Court Justice Sandra Day O'Connor will head a team of American jurists to Bahrain to launch this effort in Fall 2003.

• Regional Campaign Schools: Regional campaign schools will provide political skills training for Arab political leaders, with an emphasis on female candidates. Topics of focus will include campaigning, management, and elections monitoring.

• Media Training: Internews, an international non-profit organization that supports open media worldwide, will begin media training and media law projects. Initially, participants will come from Algeria, Bahrain, Egypt, Lebanon, Morocco, Saudi Arabia, and Tunisia.

• Parliamentary Training and Election Assistance/Monitoring: Programs in countries such as Bahrain, Jordan, Morocco, and Qatar have assisted in political training and election monitoring. We will also be undertaking parliamentary training programs.

• Young Ambassadors Study of the United States: Through this intensive summer institute, Arab student leaders from the Middle East and North Africa will receive leadership training and the opportunity to gain a deeper understanding of the values, institutions, and conflicts distinguishing American life, from Colonial times to the present.