VZCZCXYZ0009
RR RUEHWEB

DE RUEHPG #0614/01 1491354
ZNR UUUUU ZZH
R 291354Z MAY 07
FM AMEMBASSY PRAGUE
TO SECSTATE WASHDC 9128

UNCLAS PRAGUE 000614 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
EUR/NCE, EUR/PPD CHRIS FITZGERALD, R KARYN POSNER-MULLEN 
 
E.O. 12958: N/A 
TAGS: PREL EZ
SUBJECT: SCENESETTER FOR KAREN HUGHES VISIT TO PRAGUE ON 
JUNE 4 
 
¶1. (U) Under Secretary Hughes, we look forward to welcoming 
you to Prague on June 4. In anticipation of your visit, we 
offer the following background information on the Czech 
economy, bilateral relations, Czech democracy promotion, and 
plans for your stay. 
 
¶2. (U) Seventeen years after the Velvet Revolution, the Czech 
Republic is today a stable and rapidly developing country. 
The economy has grown at 6% for the past two years and is 
fueled by healthy export and foreign investment. Inflation is 
low and the country intends to adopt the Euro in 2012. The 
current center-right government has an ambitious agenda to 
lower taxes and tackle overdue reforms in health care and 
pensions, although it remains to be seen if they will be able 
to overcome political opposition to these reforms. Many U.S. 
companies are active in the country. While most are satisfied 
with the business climate, the country is hampered by a 
prevalence of corruption that had lingered since the 
communist era. Promoting transparency and ethics is a top 
priority of the U.S. Embassy. 
 
¶3. (U) As you know, the United States and the Czech Republic 
enjoy excellent relations. All governments since 1989 have 
placed a high priority on transatlantic relations. The Czech 
Republic entered NATO in 1999 and joined the European Union 
in 2004. The military has been reformed and cooperates 
closely with the United States in Afghanistan, Iraq, the 
Balkans and elsewhere. 
 
¶4. (SBU) The Czechs place a high priority on spreading the 
lessons learned from their successful political 
transformation. They are particularly active in support of 
democratic reform and human rights in Cuba, Belarus, and 
Burma (although they prefer not to place the public spotlight 
on these efforts). Radio Free Europe/Radio Liberty is another 
example of Czech support for people striving to be free in 
distant lands. 
 
¶5. (U) There are only two sensitive issues in our bilateral 
relations. The first is visas. Although Americans can travel 
freely to this country, Czechs still need visas to travel to 
the United States. As an American ally in NATO, a strong 
supporter of the war on terror, and an EU member, the Czechs 
believe they should be able to travel to the United States on 
the same terms as Germans, French and other Western European 
countries in the U.S. visa waiver program. President Bush 
recognized the aspirations of our Central European allies, 
and the importance of cementing closer ties with the Czech 
Republic and its neighbors, when he announced in Tallinn in 
November 2006 that he would seek legislation to revise the 
terms of the visa waiver program. The proposed terms would 
place greater emphasis on security cooperation, which would 
accelerate entry into the program for countries like the 
Czech Republic. The Czechs follow closely any proposed U.S. 
legislation dealing with the immigration issue. 
 
¶6. (U) The second sensitive issue is missile defense. In 
January, after several years of quiet talks, we asked the 
Czech Republic to host a radar station as part of the U.S. 
missile defense network. This facility, together with a small 
number of interceptor missiles to be based in Poland, would 
protect the eastern United States as well as U.S. allies and 
troops in Europe against ballistic missiles launched from the 
Middle East. While the current government supports the 
proposal, the issue is controversial. About 70% of Czechs say 
they oppose the radar. With memories of the Soviet invasion 
of 1968 still fresh in many minds -- the last Russian troops 
did not leave the country until 1992 -- many Czechs are 
instinctively wary of the idea of foreign troops on their 
soil. Many also believe the country should only take on 
military obligations through NATO, not on a bilateral basis. 
Negotiations have begun and are likely to last through the 
end of the year. The deal will need to be approved by 
Parliament. As with the visa issue, the Czechs are following 
closely any proposed U.S. legislation dealing with funding 
for missile defense. 
 
¶7. (U) While in Prague, you will help the Central and Eastern 
European Law Initiative (CEELI) celebrate the inauguration of 
its new building. You will also explore issues of common 
concern over lunch with leading Czech women. These meetings 
will allow you to gain a better understanding of how ordinary 
Czechs view the future of their country, and the United 
States. 
 
¶8. (U) We hope a highlight of your trip will be a day trip to 
nearby Pilsen, where you will meet with some of the Embassy's 
Junior Ambassadors (top high school students who have visited 
the U.S. Embassy as part of a new Embassy youth outreach 
program) at Pilsen's American Corner. You will also have 
 
lunch with a few regional leaders at Pilsen's pride and joy, 
its brewery. 
 
¶9. (U) We look forward to welcoming you again to Prague. 
GRABER