Dear AmCham members, Mister Chairman, Madame the Executive Director, Ladies and Gentlemen, dear friends.

I would like to thank you for welcoming me at this honorable assembly.

I'd like first of all to say that if I didn't visit that much the AmCham so far, it is neither because the French Embassy wants to go it alone nor because in AmCham there is "American". I do not have this kind of problem: even if sometimes there are differences between Washington D.C. and Paris, between our governments, we are more than friends and allies, we are cousins, and we are in the same family. It is very true to say that what is gathering us is stronger than what is dividing us. This is the America that gave us the first "Bill of Rights".

- First, I will speak about the bilateral economic and commercial relations between France and Uzbekistan. Then, I will give you my insight on the future economic developments of Uzbekistan and its
integration to the world economy. Finally, I will say few words about what can be expected with our new French President and new government.

1. Our actual bilateral economic and commercial relations are well under the level of their potential. First, a few words about the institutional and juridical framework for our bilateral relations. The juridical base of our cooperation is a "Treaty of Friendship and Cooperation" signed in 1993 under our French President, Francois MITTERAND, and came into force in 1996. This treaty defines very general orientations for the conduct of our bilateral relations and cooperation. We have an "intergovernmental working group dealing with economic and commercial questions.   That means that this working group does not gather necessarily Ministers, but rather high ranking officials from the French Ministry of Economy and Finance and from the Uzbek Ministry of Foreign Economic Relations as well as other Uzbek administrations.
Since its creation, this working group has met only three times. The last meeting took place this year in Paris on March the 19th. The Uzbek delegation was led by Mister Elyior Ganiev and composed of twelve Deputy Ministers, Chairmen and Deputy Chairmen of State Committees.
Two sides discussed topics dealing with the responsibility of the two governments.  For instance:
-Institutional cooperation between Ministries of Finance: our French Ministry of Finance is currently helping the Uzbek Ministry of Finance to improve the Uzbek financial system and to settle a Treasury Department.
- Another example is the Cooperation between our custom departments. We can also discuss during these meetings disputes if any, obstacles and brakes to the development of our trade exchanges, to the investments and the means to overcome these issues. Moreover, each delegation can introduce to the other his policy and priorities. We can advise the Uzbek side in which areas the French companies can offer their expertise, technologies, and different types of products and so on. We expect the Uzbek side to tell us in which areas they want French companies to work here in Uzbekistan.
 Usually the intergovernmental meeting is followed the day after by a "Business Forum", where the delegations can meet businessmen. Such a forum can be the starting point for new contracts or new cooperation.
Along with the Treaty for Friendship and Cooperation,  we have two    other basic Agreements with Uzbekistan, as it is usually the case with other States:
- An Agreement for Encouraging and Guaranteeing Investment, which came into force in 1996;
-An Agreement to avoid double taxation, which came into force in 2003
I would like to add that since I've arrived three years ago, we had several important delegations of French companies. Until the end of 2006, we had at the French Embassy an Economic and Commercial Mission led by an Economic and Commercial Counselor. For the moment, we have instead a "Junior Commercial Attaché", Mister Gautier Mangenot, here present, and I ask you to consider him as the Chief of the Economic Mission for the French Embassy.
Just few words about our tools for the development of our trade exchanges:
First, as it is the case in most of the countries having export activities, we have a system of credit insurance called COFACE .Secondly, in the area of public aids for the development of emerging countries; we have special loans with low interest rates and for a long period of time. Those loans are dedicated to projects aimed at developing the country and social conditions:  for example developing the production of fresh and clean water in the rural area.
Thirdly, France is taking part in several multilateral programs: in the European Union Aid programs (around 18%), in the OSCE programs and   the   UNDP   programs.   France   is   also participating in international banks (EBRD, World Bank, ADB ...).

 Let's have a look now on the bilateral trade exchange between France and Uzbekistan
What   are   we   exporting   and   what   are   we importing from Uzbekistan?
In 2006 we have mainly exported: Chemical products for industrial use; Informatic equipments; Measure and control instruments; and Pharmaceutical products.
The same year we have imported: Industrial products including products for the nuclear industries; Corns and industrial plants; Basic chemical non organic products.
There are currently around 40 French representative offices registered in Uzbekistan, and most of them are led by Uzbek employees.
Our share in the Uzbek market is around 1, 2% and we are ranking at the twelfth position for trade exchange partner.

According to our information we have two little French investments in Uzbekistan.
- The first one was made by the company DAGRIS, which is specialized in the cotton and oleaginous. This company is mainly working in Africa and South America. They settled in 2000, two joint ventures with Uzbek associations of cotton farmers, one in Bukhara and the other in Namangan, with the purpose of improving cotton seeds. The total French investment in these two joint ventures is around 1, 17 Million US Dollars. One can say that technically they are doing well, but from the management point of view they have many problems. The joint ventures have to sell the seeds to the State but they are not paid or after several months.  Waiting for these  payments, they  don' t have the  cash  flow  to  pay  the producers who don't have therefore money to buy either  the  seeds the equipments.  It is a permanent vicious circle.
- The other investment is very recent and dating back to August 2006. It is the company JC DECAUX who has invested around 1 Million Euro to settle a Joint Venture with a subsidiary of the Tashkent city hall. They are furnishing urban furniture, bus shelter and billboards. So far as I know they are doing well.
You see that the French investments are low. At the end, we have a good institutional framework for cooperation but the results are a bit disappointing.

2. We are considering that Uzbekistan has very high potential.
With Kazakhstan, Uzbekistan is one of the two key players in Central Asia, with fewer natural resources in quantity than Kazakhstan but more diversified.
Furthermore, Uzbekistan is presenting good macro economic results; even if we are not all agreed on the figures and the way statistics are done by the State Committee of Statistics. If I take a look on the last IMF report:
-              There is a good and regular GDP growth
-              Uzbekistan has a positive balance of payments, even if resulting most of all from the custom barriers that over protect the domestic market.
-              An external public debt quiet low and well managed,    but    inducing obstacles to the investments. The most important thing is that Uzbekistan has the reputation of a quite good payer.
We are considering all these points very positively; moreover we think that OECD should rank Uzbekistan in the sixth category and not the seventh with countries that are presenting very less favorable conditions.
We have very favorably welcomed last speeches by President Karimov, first held during the meeting of the two chambers of the Parliament Olii Majlis in January 2005, and most recently the President declarations in February 2007 on the importance of measures to be implemented in order to improve the investment environment in Uzbekistan and the call of the President to open the economy, to create a legal and regulatory framework that will attract more foreign investments, to reduce interference of State into business affairs, to accelerate privatization, to encourage small and medium enterprises and to increase the efficiency of the banking sector. Personally, I am not a partisan of a quick move to the Liberal Economy; I am not a partisan of the so called "Shock Therapy". And I do understand that all the reforms cannot be done in one night. But I do believe that some reforms have to be done in order to improve the conditions of investments in Uzbekistan, to allow Uzbekistan to benefit from his rich potential and to participate more in the World Economy.
For example, it is crucial for investors to be sure that Uzbekistan recognizes international arbitration. It is one of the first questions of the foreign businessmen. The reform of the banking sector and improvement of financial services are another prerequisite for a good development of the economy, in particular the access of the small and medium enterprises and of the farmers to good conditions of credit facilities.
I have said that Uzbekistan is presenting a high potential and I do believe that all our compatriots are interested in Uzbekistan. You know that Europeans have just adopted a strategy for a partnership and strengthened cooperation with Central Asian countries. This strategy includes naturally Uzbekistan. I would like to say my deeply hope for the progressive elimination of barriers to the development of cooperation, that enterprises will be soon on the way back to Uzbekistan and that this country could take his place among new economies - the so called "emerging economies”-  the new key actors of the world economy.

 3. My last point will be dedicated to answer one question that you will ask to me: France has a new president, a new government, a new Parliament. What is going to change in France? Will French policy change?

I do believe that the important thing is that there is a correlation between the will of a majority of French and the will of the new President to modernize the way our society is working, the Institutions, the relations between enterprises and employees and the education. There is a really new will to change things, to modernize. The new President is very active in this way and takes in charge himself most of the problems, takes his responsibilities. He has called for a rupture with the past and has already taken many initiatives to return the French the will to win. He wants to overcome some obstacles and brakes to the development of French initiatives. The new government is the symbol of this policy, of this new adventure and this will to take back the initiative.

The new president is not an ideologist but just a pragmatic man who will look where the French and European interests are for the long term. We have to fully restore our links with the United States of America, because as I told you what is linking us is stronger than what is dividing us, we have to continue looking at Russia as a key international player and our great neighbor we have to continue working with all the Mediterranean   countries   who   are   also   our neighbors we have certainly to face with the great challenges  of the  modern  world  :  terrorism, drugs, organized crime, environment and climate changes,    problems    with    the    migration    of populations,    the    under    development,   the prevention    and    resolution    of   international disputes. Naturally in this contest, Europe has to strengthen his relations with Central Asia.
In order to cope with these great challenges we need all the good wills. The unique ambition of France is to contribute to a more stable world, to a world faire and safe. Once again I believe that the French politic will be more active in this way.