Shalom and good evening.

On behalf of the State of Israel and the people of Israel, it gives me great pleasure to welcome all of you to the celebration of Israel's 59th birthday.

It is wonderful to see so many of our friends and colleagues, Secretary Chertoff, Ambassadors, members of Congress, Administration officials, great friends of Israel - thank you for joining us.

We just heard the beautiful song "Yerushalaim Shel Zahav", Jerusalem of Gold.

This year also marks the 40th anniversary of Jerusalem's reunification. As a proud son of Jerusalem, I still remember well the agony of a divided city. I can also recall the overwhelming joy when we could once again reconnect with the heart of the Jewish people and pray at the Western Wall.

Today, we pray for Jerusalem as a symbol of peace, we reaffirm that Jerusalem will always be open for all religions, and we vow that Jerusalem will forever be the eternal capital of the State of Israel.

Every day of the year, seven days a week, we deal with the serious threats and dangers facing Israel. And yes, we do face major challenges: our kidnapped sons must be brought back to their families. We face the dangers of Hizballah rearming, Syria's military buildup, and Gaza's descent into a terror base. And above all, Israel and the world face the grave danger of a nuclear-armed Iran, which must, which must be prevented.

But tonight, as Israel enters its 60th year, let us celebrate Israel's extraordinary achievements.

Look at what we have achieved in only 59 years. Israel's population has grown ten-fold. We have ingathered the exiles from every corner of the world. The ancient language of the Bible is used by children in their mother tongue. We have created of the world's most vibrant democracies. We are a young and optimistic society.

Our tiny nation, has produced technological, scientific and medical breakthroughs that benefit all humanity, from developing the microchips that power the world's computers, to finding new treatments for strokes, cancer an Parkinson's disease.

Look inside almost any computer, any internet system or any pharmacy and you will find the fruits of Israeli innovation. Israel is not only about hi-tech and bio-tech, not only about ourselves. Israel is humanitarian - our work extends from sending rescue teams to disaster zones, to helping the poorest nations feed their hungry.

Israel is a country of great spirit, solidarity and devotion. As the entire world witnessed last summer, Israel's society did not give in to terror, but rater displayed great resilience. Our young people left their university classrooms and laptops and rushed to defend their country.

This young generation is the best any nation can hope for. They are the promise, they are the hope, and they are future!

To those enemies, who seem to harm Israel, I say tonight: watch these young Israelis. They are devoted to their country and will defend it if attacked. But their dream is not of war - it is a dream of peace.

Prime Minister Sharon used to say - all that Israel has achieved, it achieved with only one hand, while being forced to defend ourselves with the together. This statement is true, but it is not the entire story. We accomplished all this, largely thanks to our partnership with the Jewish people and the extraordinary friendship and steadfast support of the great American people.

On behalf of the State of Israel, from the bottom of our hearts, I want to say to you tonight, toda rabah, thank you so much!