This is particularly critical now. Ex-Im Bank is a key player on the Bush Administration's trade policy, foreign policy, and economic stimulus policy teams. And we are carrying out our mission at a time of great global challenges.

America was reshaped on September 11. We are operating in a new global reality. A strong economy supporting U.S. jobs and export growth is critical to our war against terrorism.

Ex-Im Bank also stands at the confluence of powerful forces that are changing the business environment throughout the world. Trade and cross-border investment flows have grown so rapidly in the last few decades that there is hardly a business, much less a country or even a community that is not touched by globalization. One hallmark of globalization is a heightened degree of economic interconnectedness. A financial crisis in an emerging market could just as surely affect the United States, as a slowdown in the U.S. will impact growth prospects in other countries.

Not only has global commerce been rapidly growing in recent years, but American exporters face increased competition for overseas markets. At the same time, some emerging markets appear to be riskier. From the onset of the currency devaluations in Thailand to the crises in Russia in 1997 and 1998 and most recently Argentina, emerging markets have been battered by swiftly moving capital flows. Today, many private-sector lenders are reluctant to provide long-term financing to emerging markets, and most investment flows are seeking short-term gains.

The events of September 11, of course, also have had an effect on investor confidence. According to the IMF, 2001 marked the lowest level of net private capital flows - including bonds, equity and loans - to emerging markets since the early 1990s. This occurred during the same year that world trade growth fell from 13 percent in 2000 to 1 percent in 2001.

Ex-Im Bank's job in this changed world is to play the role of the first guys to hit the beach in the U.S. commercial effort to penetrate risky emerging markets. In a sense, we are the Marines of foreign trade financing. We find opportunities, take risks and try to draw the private sector in. We also step up in times of crisis -- as we did during the 1997-98 global financial crisis, and as we did this past fall in supporting the airline industry in the wake of the September 11 attacks. In so doing, we foster stability and economic growth at home and abroad.

FIGHTING THOSE RESPONSIBLE FOR TERRORISM

We are finding many old friends to be true friends indeed. We must be careful in the government and financial sectors, however, that we know who we are dealing with, that our customers are not doing business with terrorists or supporters of terrorism, or money launderers or drug traffickers. I'm not just talking about exporters and banks, but about foreign buyers. We need to be sure that we don't unwittingly add to the horrors of terrorism.

Since the September attacks, the United States government has been at war with those responsible for terrorism and those who continue to threaten our nation and innocent civilians all over the world.

One of the most important aspects of this campaign is our government's effort to deny terrorists access to money and resources. The U.S. Treasury Department is the lead agency on the financial front of the war on terrorism, working closely with other agencies, especially the Department of Justice and the FBI, the State Department, and the intelligence agencies, and of course Ex-Im Bank.

By the same token, we are working with our friends to support their purchases of U.S. goods and services, which benefits their economic development, promotes global stability and supports U.S. jobs.

Ex-Im Bank, OPIC and TDA together are exploring ways to support U.S. exports for a privatization program for Pakistan's health, education and infrastructure development.

We've signed a memorandum of understanding with Uzbekistan to cooperate in developing a $50 million facility to support purchases of U.S. goods and services by small and medium-sized Uzbekistan enterprises.

Nacional Financiera (NAFIN) in Mexico has become the first bank in the world to sign a foreign currency supplement to Ex-Im Bank's Master Guarantee Agreement. This will help small- and medium-sized Mexican businesses buy from the United States.

To help airlines operating Ex-Im Bank-supported aircraft, following the September 11 attacks, we are refraining through March 31 from enforcing our rights regarding required amounts of third party war risk liability insurance. However, we are encouraging airlines to acquire the necessary insurance coverage either from the private market or through available government programs.

To provide one-stop-shop export financing for foreign buyers of U.S. goods, we have signed co-financing agreements with the export credit agencies of the UK and Canada. We look forward to entering into more such agreements. They increase U.S. export competitiveness, and sustain U.S. jobs.

And just last month we signed a memorandum of cooperation with the Black Sea Trade and Development Bank that will make financing more accessible for sales in the Black Sea region.

CONCLUSION

Through these and future initiatives, Ex-Im Bank is committed to supporting U.S. exports and jobs. You, the banks, are our key partners in these ventures. And the stakes have never been higher. We are in a new global reality, marked by increased interconnectedness, competition and risk, and declining investor confidence following the events of September 11.

Ex-Im Bank may be the first to hit the beach in emerging markets. But we need you to come with us. For my part, I will do everything in my power to make Ex-Im Bank accessible and responsive to your needs. Together we can promote a strong U.S. economy as well as global stability. Together we can help contribute to the fight against terrorism around the world. Together, we can ensure that American companies can compete in foreign markets and sustain well-paying jobs at home.

Thank you. And now I'll take questions.