Postgraduate education will help preserve the special relationship between the Republic and the US, James Kenny, America's ambassador to Ireland, said yesterday.

Speaking after addressing a gathering at the National College of Ireland in Dublin, Mr Kenny said the relationship between the two countries, which is at the moment held together by family ties stemming from emigration, is in danger of disappearing.

"In the future there won't be the emigration [ from Ireland to the US] like there was, so we are going to have to forge our links through other ways," said Mr Kenny, acknowledging that in a reverse of roles, some Americans are now coming to Ireland to work.

"We need these ties in order to understand each other better and both countries are going to have to work hard to keep it up."

Mr Kenny believes that a healthy relationship between the two countries will help the economies of both nations and also play an important role in further enhancing cooperation between the US and the rest of Europe.

"With a population of 450 million, the European Union is a great marketplace to be in," he said. "Globalisation requires that US companies operate in Europe, and within Europe Ireland is a popular destination."

According to Mr Kenny, the best way to increase links between Ireland and the US is to improve student exchange programmes and to encourage Irish students to study for Master's degrees to make them more employable by the American companies based in Ireland.

He also said that in the future Ireland was going to have to start offering something different as competition for foreign direct investment hots up in the wake of European expansion eastwards.

"Ireland will have to ensure that the costs of doing business don't rise any further, otherwise companies may be forced to look elsewhere," he said.

In his address, Mr Kenny spoke about the qualities of leadership and how the ability to delegate, praise and accept responsibility were essential traits of a good leader.