US Department of State 

Dispatch, Vol 1, No 9, October 29, 1990

Title:

One Year Later: Update on Andean Drug Strategy

Levitsky Source: Melvyn Levitsky, Assistant Secretary for International Narcotics Matters (INM) Description: Address before the Task Force on International Narcotics Control, House Foreign Affairs Committee, Washington, DC Date: Oct 10, 199010/10/90 Category: Speeches, Testimony, Statements Region: South America Country: Bolivia, Colombia, Peru Subject: Narcotics [TEXT] On behalf of my colleagues who have joined me today, let me express our appreciation for the opportunity to appear before the House task force to review with you the status of the Andean strategy, the Cartagena summit, and compliance on various legal requirements. We believe that congressional understanding and support for the counter-narcotics effort is essential to the effort and a component in its success. Let me start by reviewing where we stand in implementing the Andean strategy in Colombia, Bolivia, and Peru. Following a general summary, I would like to review highlights of country programs, bring you up to date on developments since the Cartagena summit, and conclude with brief remarks on certain compliance issues. The administration announced the Andean initiative a year ago. There has been progress in some areas and less in others, but we are convinced that we have the right approach. We have developed an integrated program that combines economic assistance and military and law enforcement efforts in a phased plan that takes into consideration the range of complexities inherent in dealing with the drug issue. We are moving ahead, but we still have a long way to go. As we begin the second fiscal year of this effort, we need to look at where we have come from and where we are going. As called for in the President's strategy, decisions on resources for FY [fiscal year] 1991 will be based upon the results of such a review. This evaluation is still underway, but we are happy to share with the Congress our preliminary views. We have come a long way in the past year. We have taken the idea of an integrated counter-narcotics strategy and brought together all of the involved executive branch agencies to develop plans with the three Andean governments aimed at implementing efforts to dismantle the drug trafficking organizations. There have been notable achievements in many areas. New, democratically elected governments in each of the three Andean nations have repeatedly voiced their commitments to the counter- narcotics struggle, and they have each taken steps, in cooperation with the United States, to meet the challenge. Together, we have worked to use intelligence better to focus our efforts on higher- level targets, moving away from a primary focus on eradication programs and low-level interdiction efforts. We have supported the internal programs of the three states to improve the operational capabilities of their law enforcement and military forces engaged in the drug war. These programs have resulted in increased seizures and pressure on the trafficking organizations. We have involved our own military to enhance detection and monitoring in the approaches to the United States, forcing the traffickers to disperse their activities. We have seen increased seizures, arrests, confiscation of assets, and signs of disarray within the trafficking organizations. We have helped to improve counter-narcotics cooperation with the police in all three countries. We have assisted the armed forces in Colombia to assume a more vigorous role, as have elements in the Bolivian air force and navy, which have produced some of the most dramatic seizures in recent years. There are encouraging signs that our air interdiction efforts have hampered the easy movement of drugs by air directly to the United States. We have not, however, limited our efforts to interdiction. We also have looked to economic assistance programs. Scheduled to begin this year, they are designed to provide a mix of activities to assist the Andean governments and people. These include macroeconomic efforts and more focused efforts to give those people involved in coca production a viable economic alternative. Of course, the question remains as to whether and how the Congress will authorize and appropriate narcotics-related economics assistance and whether overall economic assistance funds will be earmarked in such a way as to reduce the amount available to our counter-narcotics programs. Several areas, however, pose problems in implementing an effective narcotics control program in the Andean region. We are continuing our efforts to have a positive influence in these areas, keeping in mind that we are working on an issue that ultimately affects fragile social, economic and political institutions of sovereign countries. -- We are working with law enforcement agencies to increase substantially the pace of laboratory destruction and cocaine seizures. Our goal in this area is to improve performance of host country interdiction operations to a point that eliminates cocaine traffic destined for the US and European markets. -- We are developing new international mechanisms to address money laundering and the flow of precursor and essential chemicals. -- We are seeking better programs to use seized assets for counter-narcotics purposes. We are establishing projects to overcome institutional weaknesses in the legal and judicial systems that enable traffickers to regain these assets. -- We are striving to develop cooperative programs to deal with allegations of violations of human rights and corruption. Our counter-narcotics projects include provisions for end use monitoring of equipment. We knew at the outset, however, that our effort to address these problems in all their complexity was not going to be easy or over quickly. We knew it was going to require a multi-year effort and sustained cooperation between all elements of the US government. As we move into the second year of the Andean implementation plan, we are building on the FY 1990 plan, which involved strengthening of political will, military and law enforcement effectiveness, and the targeting of trafficking organizations. Working in close coordination with our missions in Colombia, Bolivia, and Peru, we are developing sub-plans to address specific problem areas such as judicial reform, public diplomacy, air strategy, ground strategy, riverine strategy, coca containment, control of precursor and essential chemicals, the targeting of drug kingpins, money laundering, and economic support. The intent of this effort, based on a continuing assessment of the performance of the Andean states, is to carry forward the progress we have made and address the shortcomings we have noted. Knowing that we must sustain a vigorous program, we are determined to pursue those efforts that have produced results, reassess those that have not, and seek new approaches that will enhance our chances of success. I would like to turn now to a review of some of the specifics of our efforts in each of the Andean states, noting progress and difficulties. The major successes of the President's Andean strategy to date can be credited to the heroic efforts of Colombia, which deserves the lion's share of the credit. At the same time, the Bolivian government has collaborated in bilateral and multilateral efforts to combat cocaine trafficking and has pursued economic policies to put the country back on a sound footing. The newly inaugurated Fujimori administration in Peru is working to overcome the disruptive policies and practices of the past administration, seeking to lay important groundwork for a comprehensive economic and political strategy to address not only the narcotics problem but the whole range of social and political difficulties that plague Peru.
Colombia
We estimate that Colombian trafficking organizations control some 80% of the cocaine processing industry in the Andes. Colombia's progress in attacking these organizations exceeds what we anticipated a year ago despite unrelenting pressure from drug traffickers and insurgent groups. The government of Colombia has acted forcefully to protect itself and preserve its democratic institutions. US assistance has helped to sustain Colombia's operational efforts and to focus them on key targets. Colombian determination to target the leadership of the drug cartels and their infrastructure, particularly cocaine processing labs and air transportation nodes, has resulted in serious disruption of the operations of the drug trafficking organizations. Both the police and the military played active roles in counter-narcotics activities in 1990, including one combined army and air force operation against a distribution center called La Petrolera, which seized 19 tons of cocaine. Extraditions to the United States continued, reaching 22 people for the period of August 1989 to August 1990. Disrupting these trafficker operations has a "trickle down" effect of lowered demand for coca base and coca paste, thereby influencing coca leaf prices in Peru and Bolivia. While Colombian forces have inflicted significant damage on the Medellin cartel, the Cali cartel as well as emerging new cartels have not yet been targeted as aggressively. In addition, the widespread violence continues in Medellin, and the environment of threat and intimidation aimed at civilian leaders, judges, and the law enforcement establishment continues to make life dangerous for all citizens. We are seeking to address this problem through the programs outlined in our FY 1990 and FY 1991 submissions. Our FY 1990 counter-narcotics assistance to Colombia included the following: -- $20 million in INM-funded programs to support the Colombian National Police as the lead anti-narcotic force, especially to sustain its field presence and air operations; -- $71 million in FMF [foreign military financing] programs to provide equipment, services and training for the Colombian armed forces counter-narcotics efforts (and $500,000 in IMET [international military and educational training] ); -- $1 million in FMF earmarked funds for weapons and ammunition for the Colombian National Police; -- $995,700 in FMF earmarked funds for the defensive arming of aircraft already in the inventory of the Colombian government; -- Currently estimated $3.7 million of economic assistance, which includes ESF [economic support fund] and development assistance. A drawdown of $65 million worth of military equipment, services, and training delivered last fall provided vital resources which have enabled the Colombian government to move aggressively against drug traffickers and their assets. In addition, a drawdown of $20 million worth of military equipment, services and training being delivered this fall for counter-narcotics purposes provides Colombia with resources to sustain momentum against trafficker organizations.
Bolivia
We believe that the Bolivians have felt constrained by a perceived dependence on the "coca economy" and have been careful to avoid measures that might provoke civil violence or destabilize fragile democratic institutions. In the first half of 1990, there was an increasing convergence between the counter-narcotics policy approaches of the
Paz Zamora government
and those of the United States. The Bolivian congress ratified the 1988 United Nations Convention Against Illicit Trafficking in Narcotics Drugs and Psychotropic Substances. The Bolivians also have signed Cartagena side agreements with the United States on essential chemicals, public awareness and control of weapons. Helped by low coca leaf prices, the coca eradication program attained record rates, although prices began edging higher during the middle of the year. By July 1990, the voluntary coca eradication program surpassed the annual target of 5,000 hectares specified in the Bolivian coca control law of 1988. Bolivia is pursuing a goal of eradicating 7,500 hectares by the end of 1990 to make up for a shortfall in the 1989 eradication program. The current 1990 pace of seizures of cocaine products and arrests in Bolivia should exceed the statistics for 1988 and 1989. The
Bolivian air force counter-narcotics task force
operated 12 US government-owned helicopters for more than 10,000 hours without accidents. The navy counter-narcotics Riverine Task Force improved its performance dramatically, spending the majority of its time in the first half of 1990 on operations away from its base. Among its significant successes was the recent destruction of the largest cocaine HCL production laboratory found in Bolivia. Virtually all officers and more than 60% of the patrolmen assigned to the National Police Rural Mobile Patrol Force (UMOPAR) are now graduates of the US government- supported Chimore training center, which also provided paramilitary rural counter-narcotics training for personnel from several other Latin American countries. These successes, however, have not been unmitigated. While it is our intention to work with the Bolivians to engage the full range of their capabilities in the drug war,
Bolivian army involvement has not been clearly delineated
. We now have assurances from the highest levels of the Bolivian government that the army will participate in the expanded Bolivian armed forces counter-narcotics program as cited in Annex III of the bilateral agreement on cooperation against narcotics trafficking, but the exact degree and nature of that cooperation remains unclear. It is important to note, however, that we are not forcing a military option on the Bolivians. Their air force and navy already cooperate, and the degree of military support to the overall effort is a Bolivian decision. We have made clear, though, and the Bolivians have accepted, the notion of performance-based programs. Our FY 1990 counter-narcotics assistance program to Bolivia included the following elements: -- $15.7 million of INM-funded programs designed to strengthen law enforcement and interdiction capabilities and disrupt trafficking infrastructure; -- $39.1 million in FMF funds to support the role of the armed forces in the war against drugs (and $500,000 in IMET); -- $1 million in earmarked FMF funds for weapons and ammunition for UMOPAR; -- A drawdown of $7.8 million worth of Department of Defense equipment, services, and related training; -- $40.5 million currently estimated in economic assistance.
Peru
Peru presents the most difficult situation because of the complexity of its problems and the newness of the Fujimori administration. Counter-narcotics performance was limited during the final months of the Garcia administration. The Fujimori administration has publicly committed itself to fight narcotics traffickers and insurgents, and to adhere to international human rights standards. But as a new government with a wide range of serious internal problems, it has moved slowly and sometimes uncertainly towards developing a comprehensive strategy. There is, however, significant support within the government and in the public to develop a workable counternarcotics program in cooperation with the United States. We are continuing negotiations with the new government on integrated counter-narcotics programs.
Santa Lucia
, the base of interdiction operations in the Upper Huallaga Valley, is near completion. Security and logistical arrangements are in place. The airstrip is long enough to land a C-130 transport aircraft, providing an air bridge between Santa Lucia and Lima. Hangar and maintenance facilities are also near completion. Police cooperation at Santa Lucia has continued to be strong in the first weeks of the Fujimori administration. In August, the national police at Santa Lucia destroyed 14 cocaine-base labs, one stash house, and four chemical storage sites, and arrested 74 people. A record number of square meters of seed beds were eradicated in August, bringing the total since the program began to an equivalent of 7,365 hectares in potential mature coca plants. Despite additional airlift, new tactics, and improved intelligence, police interdiction results have only been moderately successful. The lack of military support and cooperation for counter-narcotics operations in the Upper Huallaga Valley continues to be a serious drawback to law enforcement operations. The first phase of aerial herbicide testing is complete, and all scientific tests on the treated soil and water indicate that "Spike" is a safe and effective coca herbicide. Peru has signed several side agreements as part of its Cartagena summit commitments, including agreements regarding essential chemicals, public awareness, and tax information exchanges. Peru also has exchanged diplomatic notes with the United States on the current bilateral extradition treaty, which remains in force. But problems remain. The Fujimori administration, still working to define its overall priorities and the essential elements of its programs, declined to participate in the FY 1990 FMF program to provide $35.9 million in military assistance for counter-narcotics programs. President Fujimori has said that he wants to pursue a more comprehensive approach integrating his economic concerns, rather than focus in this first agreement solely on military cooperation. The Fujimori administration, though committed to improving Peru's performance, has not yet taken action to establish firm human rights monitoring and corruption controls. Our
FY 1990 counter-narcotics program
included the following: -- $19 million in INM-funded programs to support law enforcement projects; -- $1 million in FMF earmarked funds for weapons and ammunition for the Peruvian National Police; -- $4.3 million currently estimated in economic support.
Cartagena Update
In summary, we should review the past year in light of the Cartagena summit and the commitments made there by the four countries. The
Declaration of Cartagena
, signed on February 15, 1990, commits the governments of Colombia, Bolivia, Peru, and the United States to a comprehensive multilateral effort to fight drug trafficking. At Cartagena, the United States and the Andean countries reaffirmed their will to attack all facets of the illegal drug trade: production, transportation, and consumption. The role of the United States is to limit domestic demand for drugs and assist other countries to reduce the supply of illegal drugs, develop alternative sources of income for coca growers, and enhance interdiction capabilities. The role of the Andean governments is to disrupt trafficking of illegal drug products, prevent the diversion of essential chemicals, and discourage illicit coca cultivation. To assist the Andean countries in working toward this common goal, the United States agreed to cooperate on economic, military, law enforcement, diplomatic and public awareness initiatives. To assist the United States, the Andean countries agreed to adopt sound economic and investment policies, as well as pursue legislation and regulations to foster private investment. In addition to the agreements previously mentioned, several bilateral side agreements have been concluded: -- Colombia has signed a bilateral agreement on asset sharing. -- Bolivia has signed bilateral agreements on tax information exchange, essential chemicals, public awareness, and weapons control. -- Peru has signed bilateral agreements on tax information exchange, essential chemicals, and public awareness and has exchanged notes on extradition. To follow up on the progress of these agreements, the parties agreed at the summit to hold a high-level follow-up meeting within a timely period after the Cartagena meeting. We fully expect a follow-on meeting will reflect the overall progress in implementing this important strategy to eliminate the threat of drugs facing us all. The record of Cartagena, however, is mixed. Our major area of progress has been in Colombia, where the government has not only been vigorous in its efforts but reasonably successful. But the cartels in Colombia represent more centralized targets and by declaring open warfare on the country they made a counterattack possible practically and politically. Colombia, too, is stronger economically and has a better grip on democratic processes. The leadership in Colombia is more confident of its institutional base and is therefore in a better position to respond. The situations in Bolivia and Peru are more problematic. The economic and political environment in both Bolivia and Peru is not as strong as in Colombia. Years of mismanagement and civil upheaval in Peru, the collapse of significant international markets for Bolivia's major exports plus hyperinflation, and a history of fragile democracy in both countries mean that they have less flexibility to respond to the range of challenges presented by drug trafficking. This range of problems is one reason why the President's strategy focuses on broader political, economic, and law enforcement programs rather than on the narrower problem of drug eradication or interdiction. No one is deceived, however, that success in such an undertaking will be easy or straightforward. Nor should anyone believe that we can establish arbitrary, obligatory standards that pay no heed to the realities of dealing in the international environment or the domestic politics of this or other countries. Cartagena is not a report card that establishes immutable pass-fail demands. More than anything else, Cartagena represents a statement of intent, a hope for the cooperation that is essential if we are to succeed in what must be a joint undertaking; but it will be nothing but words on paper if we are unwilling collectively to live up to its promise. The President's strategy, which formed the basis of our request to Congress, represents a serious effort by the United States to live up to its obligations. (###)
US Department of State Dispatch, Vol 1, No 9, October 29, 1990 Title:

UN Security Council Resolution on Israel

Date: Oct 24, 199010/24/90 Category: Speeches, Testimony, Statements Region: MidEast/North Africa Country: Israel Subject: United Nations [TEXT]
Resolution 673 (October 24, 1990)
The Security Council, Reaffirming the obligations of Member States under the United Nations Charter, Reaffirming also its resolution 672 (1990), Having been briefed by the Secretary-General on 19 October 1990, Expressing alarm at the rejection of Security Council resolution 672 (1990) by the Israeli Government, and its refusal to accept the mission of the Secretary-General, Taking into consideration the statement of the Secretary- General relative to the purpose of the mission he is sending to the region and conveyed to the Council by the President on 12 October 1990, Gravely concerned at the continued deterioration of the situation in the occupied territories, 1. Deplores the refusal of the Israeli Government to receive the mission of the Secretary-General to the region; 2. Urges the Israeli Government to reconsider its decision and insists that it comply fully with resolution 672 (1990) and to permit the mission of the Secretary-General to proceed in keeping with its purpose; 3. Requests the Secretary-General to submit to the Council the report requested in resolution 672 (1990); 4. Affirms its determination to give full and expeditious consideration to the report. VOTE: Unanimous (15-0).(###)
US Department of State Dispatch, Vol 1, No 9, October 29, 1990 Title:

Economic Summits, 1981-1990

Date: Oct 29, 199010/29/90 Category: Fact Sheets Region: Europe, East Asia, North America Country: France, Germany, United Kingdom, Italy, Japan Subject: Trade/Economics [TEXT] Leaders of seven industrial countries--the United States, Japan, France, Germany, the United Kingdom, Italy, and Canada--plus the President of the European Community Commission, have discussed and made decisions on a wide range of international economic and political issues at economic summit meetings that have been held annually since 1975. The following information provides background on each of the 10 summits since 1981.
Houston, July 9-11, 1990
Summary
The Houston summit was held against the backdrop of movement toward democracy and freer markets in many parts of the world, including elections in Central and Eastern Europe and Nicaragua, momentum toward German unification, and political reforms in the Soviet Union. The summit leaders agreed on most international economic and political issues, but intense discussions were needed on agricultural subsidies in the Uruguay Round of multilateral trade negotiations, economic assistance to the Soviet Union, and global warming before consensus could be reached.
Economic Accomplishments
-- Agreement on progressive reductions in internal and external support and protection of agriculture and on a framework for conducting agricultural negotiations in order to successfully conclude by December 1990 the Uruguay Round of multilateral trade talks under the auspices of the General Agreement on Tariffs and Trade (GATT). -- Request to the International Monetary Fund (IMF), the World Bank, the Organization for Economic Cooperation and Development, and the European Bank for Reconstruction and Development to undertake, in close coordination with the European Community (EC), a study of the Soviet economy, to make recommendations, to establish the criteria under which Western economic assistance could effectively support Soviet reforms, and to submit a report by the end of 1990. -- Support for aid to Central and Eastern European nations that are firmly committed to political and economic reform, including freer markets, and encouragement of foreign private investment in those countries and improved markets for their exports by means of trade and investment agreements. -- Pledge to begin talks, to be completed by 1992, on a global forest convention to protect the world's forests.
Political Accomplishments
-- Promotion of democracy throughout the world by assisting in the drafting of laws, advising in fostering independent media, establishing training programs, and expanding exchange programs. -- Endorsement of the maintenance of an effective international nuclear nonproliferation system, including adoption of safeguards and nuclear export control measures, and support for a complete ban on chemical weapons.
Paris, July 14-16, 1989
Summary
The Paris summit marked the celebration of the 200th anniversary of the French Revolution and the Declaration of the Rights of Man. It also was the first economic summit meeting for President Bush, who had just returned from trips to Poland and Hungary. These developments reinforced for the summit leaders the importance of supporting political and economic reform in Eastern Europe. The leaders also expressed strong concern about environmental and narcotics issues; at least one-third of the economic declaration dealt with the environment.
Economic Accomplishments
-- Agreement on several multilateral trade issues, including a pledge to make effective use of the GATT dispute settlement mechanism, to avoid new restrictive trade measures inconsistent with the GATT, and to make further substantial progress in the Uruguay Round in order to complete it by the end of 1990. -- Commitment to a strengthened debt strategy that will rely, on a case-by-case basis, on such actions as economic reforms by developing countries, more resources by a financially stronger World Bank and the IMF, continued debt rescheduling by creditor governments, and more voluntary, market-based debt reductions by commercial banks. -- Continued cooperation in foreign exchange markets. -- Support for ending as soon as possible and not later than the end of the century the production and consumption of chlorofluorocarbons covered by the Montreal Protocol on Substances that Deplete the Ozone Layer. -- Commitment to limit the emissions of carbon dioxide and other greenhouse gases as well as conclusion of an international framework convention on global climate change. -- Support for the preservation of tropical forests and condemnation of the practice of dumping waste in the oceans.
Political Accomplishments
-- Call for a meeting of all interested parties to discuss concerted assistance to Poland and Hungary and a request that the EC coordinate these efforts. -- Support for effective programs to stop illegal drug production and trafficking, including assistance to the anti-drug efforts of producing countries and the United Nations, increased international cooperation to seize drug proceeds and prevent money laundering, and support for a 1990 international conference on cocaine and drug demand reduction. -- Continued strong condemnation of international terrorism by states, including hostage taking and attacks against international civil aviation. -- Condemnation of political repression in China and agreement to suspend the shipment of arms and the extension of loans to China.
Toronto, June 19-21, 1988
Summary
The summit, one of the most harmonious of the 1980s, marked the end of the second 7-year cycle of economic meetings. The leaders expressed satisfaction at their accomplishments in bringing down inflation in the 1980s and laying the basis for sustained strong growth and improved productivity. Among still unresolved problems they noted the emergence of large payments imbalances among major countries, greater exchange rate volatility, and continuing debt service difficulty in developing countries. In response to these developments, the leaders made further refinements in the multilateral surveillance system to improve the coordination of their economic policies. They also committed themselves to further trade liberalization at the Uruguay Round and offered new initiatives to relieve the debt burden of the poorest developing countries.
Economic Accomplishments
-- Improvement of the multilateral surveillance system by adding a commodity price indicator to the existing indicators monitored by the seven nations, and by integrating national structural policies into the economic coordination process. -- Support for efforts at the Uruguay Round to achieve trade liberalization in all areas including trade in services, intellectual property rights (such as copyrights and trademarks), and trade- related investment measures, to strengthen the GATT's surveillance and enforcement mechanism, and to reduce all direct and indirect subsidies affecting agricultural trade. -- Support for a $75-billion general capital increase for the World Bank to strengthen its capacity to promote adjustment in middle-income developing countries. -- Agreement to relieve the debt burdens of the poorest developing countries, particularly in Sub-Saharan Africa, by urging creditors to grant partial debt forgiveness, reduced interest rates, and/or lengthened debt maturities. -- Support for the ratification of the Montreal agreement on the ozone layer and the completion of other ongoing negotiations on emissions and the transport of hazardous wastes.
Political Accomplishments
-- Confirmation of the policy of constructive dialogue and cooperation between East and West, particularly in the light of greater freedom and openness in the Soviet Union. -- Reaffirmation of previous summit agreements to combat terrorism and support for the policy of no takeoffs for hijacked aircraft once they have landed. -- Support for US government initiatives to improve cooperation against narcotics trafficking.
Venice, June 8-10, 1987
Summary
The Venice summit took place against a backdrop of escalating tension in the Persian Gulf. On the economic front, the summit leaders addressed the continuing issue of how to reconcile domestic economic policies with the need for a more stable international monetary, financial, and trading system.
Economic Accomplishments
-- Reaffirmation that further shifts in exchange rates could be counterproductive. -- Agreement on the need for effective structural adjustment policies, especially for creating jobs. -- Agreement to improve the multilateral trading system under the GATT and to bring about wider coverage of world trade under agreed, effective, and enforceable multilateral discipline. -- Agreement that the long-term objective in agriculture is to allow market signals to influence the orientation of production, and to work in concert to adjust agricultural policies, both domestically and in the Uruguay Round. -- Call for newly industrialized countries with rapid growth and large external surpluses to reduce trade barriers and allow their currencies more fully to reflect underlying economic conditions.
Political Accomplishments
-- Agreement affirming the principle of freedom of navigation in the Persian Gulf and the importance of the free flow of oil and other traffic through the waterway, and supporting the adoption of just and effective measures by the UN Security Council to resolve the conflict. -- Agreement on the need for more effective national efforts and international coordination to prevent the acquired immune deficiency syndrome (AIDS) from spreading further.
Tokyo, May 4-6, 1986
Summary
The Tokyo meeting, by achieving significant economic and political declarations, was hailed as one of the most successful economic summits in recent memory. There was greater specificity about attempts to increase policy coordination and a decision to begin a new round of trade talks. On the political side, the joint statement on terrorism was a landmark achievement. One reason for the success was that leaders at the Tokyo meeting had considerable experience dealing with each other at previous summits.
Economic Accomplishments
-- Establishment of new arrangements to assess the consistency and compatibility of their economic policies, based on economic indicators, and including enhanced surveillance over exchange rates. -- Formation of a new Group of 7 (finance ministers of summit nations) to achieve greater economic policy coordination. -- Agreement to use the September 1986 GATT ministerial meeting in Uruguay as a platform for launching the new round of multilateral trade negotiations and to support an extension of GATT discipline to new areas such as services, intellectual property, and investment. -- Recognition of the need to cooperate to redirect agricultural policies and adjust the structure of agricultural production in light of world demand. -- Endorsement of measures to assist Third World development, including the US initiative to alleviate debtor country problems, in order to encourage implementation of effective structural adjustment policies, and increased financial support to the International Development Association and the IMF.
Political Accomplishments
-- Agreement on a tough statement denouncing international terrorism, vowing to fight it relentlessly and singling out Libya as a key target in the fight against terrorism. -- Call for a new international convention requiring information exchanges on nuclear accidents and emergencies, in the wake of the accident at the Chernobyl nuclear power station. -- Commitment to continued East-West dialogue and negotiation, and support for a balanced, substantial, and verifiable arms reduction agreement.
Bonn, May 2-4, 1985
Summary
The summit participants undertook to pursue, individually and cooperatively, policies conducive to sustained growth and higher employment. Building on common, agreed principles for achieving these goals, the leaders indicated specific priorities for their own national policies. The United States asked the Federal Republic of Germany and Japan to stimulate their economies. The leaders undertook to seek to make the functioning of the world monetary system more stable and more effective and discussed ways to reach more realistic exchange rate relationships.
Economic Accomplishments
-- Agreement to work to strengthen their economies, halt protectionism, improve international monetary stability, increase employment, and reduce social inequities. -- Promise to follow prudent economic policies, including the exercise of firm control over public spending to reduce budget deficits. -- Agreement to give increased impetus to preparations for the launching of new multilateral trade negotiations under the auspices of the GATT.
Political Accomplishments
-- Support for the US negotiating position in the arms control talks with the Soviet Union, which was urged to act positively and constructively to reach agreement. -- Commitment to fighting the common threat posed by growing international drug trafficking and abuse, including the coordination of legislation to thwart international drug smuggling.
London, June 7-9, 1984
Summary
The meeting marked the passage from a period of constructing firm domestic bases for noninflationary growth to one of enhancing the openness of international trade and finance. As the previous Williamsburg summit signaled the beginning of recovery and offered an outline of future strategies in the international economy, the London summit gave a clearer focus to future tasks and actions. There was a strong endorsement of the basic anti-inflationary stance first advocated by President Reagan at the Ottawa summit in 1981. The political declarations were the cornerstone of the London summit.
Economic Accomplishments
-- Agreement to continue and strengthen policies to reduce inflation, interest rates, and budget deficits and to control monetary growth. -- Commitment to work toward making their economies more competitive and flexible to reduce unemployment and develop new technologies. -- Agreement to take steps to ease the repayment terms of Third World debtor countries working to improve their economic performance.
Political Accomplishments
-- In a 500-word Declaration on Democratic Values, affirmation of their commitment to a rule of law which respects and protects the rights and liberties of every citizen and provides a setting in which the human spirit could develop in freedom and diversity. -- Determination to pursue the search for extended political dialogue and long-term cooperation with the Soviet Union and its allies and endorsement of US willingness to resume nuclear arms control talks with the Soviet Union. -- Commitment to consult and cooperate in expelling or excluding known terrorists from their countries. -- Hope for a peaceful and honorable settlement to the Iran- Iraq conflict.
Williamsburg, May 28-30, 1983
Summary
The United States hosted a very successful summit as virtually all President Reagan's economic and political objectives were fulfilled. As Western economies were beginning to recover, the allied leaders accepted several US economic policies (e.g., lower taxes, more emphasis on private sector initiative). The allies acknowledged the need for united action to bring about domestic and global economic growth. The joint statement on intermediate-range nuclear forces (INF) also was an important victory for the United States because it specifically endorsed the diplomatic and military strategy that the United States and its NATO allies were pursuing in relation to the Soviet Union. The introduction of more flexibility and informality into the proceedings (e.g., fewer previously prepared texts) contributed to the successful meeting.
Economic Accomplishments
-- Agreement on broad strategies to consolidate domestic and international economic recovery, including steps to reverse the trend toward protectionism, promote greater convergence of economic performance, and encourage the development of new technologies. -- Commitment to reduce structural budget deficits by limiting the growth of expenditures and to pursue appropriate budgetary and monetary policies to lower interest rates, inflation, and unemployment. -- Decision to convene a meeting of finance ministers to review and improve the operation of the international monetary system. -- Commitment to energy conservation and the development of alternative energy sources. -- Reaffirmation that East-West economic relations should be compatible with the security interests of the allies.
Political Accomplishments
-- Agreement to achieve lower levels of arms through serious arms control negotiations with the Soviet Union, and a commitment to proceed with INF deployment if the negotiations failed to result in an accord.
Versailles, June 4-6, 1982
Summary
The summit was surrounded by controversy over the issue (settled 6 months later) of oil pipeline equipment sanctions against the Soviet Union, including the question of the applicability of US law to European companies. The leaders agreed to pursue greater coordination of their economic policies and to seek convergence of economic performance, at a time of recession in the Western industrial countries.
Economic Accomplishments
-- Establishment of a multilateral surveillance system to enable countries to consult on economic policies and seek convergence of economic performance as the primary vehicle for achieving stable exchange rates. -- Agreement to pursue prudent monetary policies and achieve greater control of budgetary deficits in order to bring down high interest rates. -- Prudent use of government export credits to the Soviet Union and its allies. -- Efforts to improve the multilateral system controlling the export of strategic goods to the Soviet Union and its allies. -- Approval of a preparatory process of negotiations on assistance to developing countries and development of other forms of practical cooperation with them.
Political Accomplishments
-- Call for an immediate halt to violence by all parties in Lebanon, in the wake of the Israeli invasion there.
Ottawa, July 19-21, 1981
Summary
This summit was a "get-acquainted" session between President Reagan and the other allied leaders. The President emphasized his domestic economic policies to promote sustainable, market- oriented, and non-inflationary growth. He also called attention to the potential for erosion of Western security resulting from excessive dependence on Soviet energy resources (notably natural gas) and the export of strategic goods to the Soviet Union.
Economic Accomplishments
-- Agreement that the goals of reducing inflation and unemployment were highest priority and that low and stable monetary growth was essential to bring down inflation. -- Commitment to liberal international trade policies and continued opposition to protectionist pressures. -- Commitment to accelerated development and use of all energy sources and encouragement of greater public acceptance of nuclear energy. -- Agreement to consult and coordinate economic policies relating to East-West trade and to ensure that these policies were compatible with political and security objectives. Agreement on the need to upgrade existing controls on exports of strategic goods to the Soviet Union and its allies.
Political Accomplishments
-- Condemnation of the continuing Soviet occupation of Afghanistan. -- Condemnation of international terrorism. -- Disapproval of the escalation of tension and the continuing acts of violence in the Middle East.(###)
US Department of State Dispatch, Vol 1, No 9, October 29, 1990 Title:

Feature: Security Computer Network: Strategic Resource for US Business

Category: Features Region: North America Country: United States Subject: Terrorism, State Department [TEXT] The State Department and more than 500 US corporations are sharing vital information on terrorism and other criminal acts to protect American lives abroad. "It's a bit of a bad news network," explains Stefanie Stauffer, manager of the Overseas Security Electronic Bulletin Board (EBB), a cooperative computer service that provides security snapshots of some 190 countries. "But we know business and can seek out the information they need to protect American personnel and property overseas." The EBB was established by the Overseas Security Advisory Council (OSAC), a joint venture between the Department and the private sector to collaborate on overseas security problems of mutual concern. As a result, worldwide employees of the State Department and major US firms such as Exxon, BF Goodrich, American Airlines, Procter and Gamble, Ford Motor, Bank of America, McDonald's, and IBM have become the "eyes and ears" of the EBB.
A Free Service for Corporate America
The Bureau of Diplomatic Security offers the EBB free of charge to any US corporation doing substantial business abroad. Its information is specific to each country and spans security and crime, travel advisories, terrorist profiles, key US points of contact in-country, local holidays, significant anniversary dates, and police emergency telephone numbers. All a US firm needs to access EBB is a computer, a telephone modem, and the appropriate software. "Our objective," explains Stauffer, a 19-year veteran security officer and chief of Diplomatic Security's Private Sector Liaison Staff, "is to provide the kind of nitty-gritty information that will help a corporation assess the security climate in a country and determine if it's safe to travel or keep workers there."
Sharing Security Information: Key to EBB Success
Although the EBB does not carry aviation threat notifications, it does provide information generally unavailable anywhere else. "The fact that security information is on the EBB stimulates other companies to step forward with details they might generally be reluctant to share," Stauffer explains. "The more they share, the more information we're able to put together on a country. In the end, we all benefit." EBB sources come from US companies in the region, unclassified US government reports, and the media. "After an incident, we also call a company to be sure a report is accurate and to see if they've had other problems as well. We then give the heads-up on the EBB." The two-way nature of the EBB is its strength, according to Bartley Railing, the office's Middle East analyst. "US companies have good contacts and have learned to look out for their security," he says. "They want us not only as a resource for information but as a facilitator to help turn it around." In late summer, Railing, Stauffer, and three other geographic analysts fielded more than 800 calls from US firms operating in the gulf or the Philippines--two major crisis spots in mid-1990--and served as a focal point for US corporations airlifting employees from Iraq. As a result, the EBB and office briefings for private businesses crackled with critical details: updates on the status of American hostages in Iraq; facts behind a major US multinational's rumored gulf withdrawal; threat information on anti-American targeting for bombings and assassinations in the Philippines. "Our assistance really varied from interpreting travel advisories to more substantive briefings on a region's history or culture," explains Railing, who continues to work closely with State's 24-hour Kuwait Task Force. "So many companies had employees stuck there and still do." The Private Sector Liaison Staff also helps US firms develop contingency plans for emergency evacuations. "Their main concern is if and when something does happen, they're ready," says Railing. "They bounce the plan off us to make sure it's a legitimate operation and that it will work."
Security Information Strategic For US Firms Overseas
The EBB's popularity reflects changing security priorities among large corporations. "Security has moved from the boiler room to the boardroom in terms of its strategic importance to corporate decisionmaking," says Raymond Humphrey, corporate security director for the Digital Equipment Corporation and chair of the advisory council's Information Interchange Committee. "Being able to access a central pocket of security information with just a telephone call makes the EBB an invaluable tool for keeping abreast of events around the world."
Joining the Security Network
The Overseas Security Electronic Bulletin Board (EBB) disseminates timely information on problem areas of the world, providing US corporations with current unclassified threat information and resources for help. The EBB is available to American firms and wholly owned US subsidiaries engaged in substantial business abroad. A software packet purchased from a private firm may be required for successful access. To apply, a corporate security director should send a letter describing the company and its reasons for wanting EBB access to: Executive Director OSAC Bureau of Diplomatic Security US Department of State PO Box 3590 Washington DC 20007-0090. (by Deborah Guido-O'Grady, Dispatch Staff)(###)
US Department of State Dispatch, Vol 1, No 9, October 29, 1990 Title:

Ambassador Kampelman Honored for Distinguished Service

Zoellick Source: Counselor Robert B. Zoellick Description: Remarks delivered on October 9, 1990, at the Woodrow Wilson International Center for Scholars in Washington, DC Date: Oct 9, 199010/9/90 Category: Speeches, Testimony, Statements Region: Eurasia, Europe Country: USSR (former) Subject: State Department [TEXT] Remarks delivered on October 9, 1990, at the Woodrow Wilson International Center for Scholars in Washington, DC, during a farewell dinner for Ambassador Max M. Kampelman. Ambassador Kampelman retired after serving 12 years on the Wilson Center's Board of Trustees. During a long and prestigious diplomatic career, he headed US delegations to many important negotiations, including the Conference on Security and Cooperation in Europe (CSCE). Ambassador Kampelman is also a former Counselor of the Department. Many young men and women are drawn to Washington. It's been that way for many years. They come for various reasons: excitement, challenge, influence, and, I think, more than we sometimes recognize, that they also come to serve their nation. Over time, these early dreams fade. Some people become diverted. Many never seem to grasp the opportunity. Others make an effort but then grow weary and turn away. It's a rare man or woman who perseveres, who seems to gain energy as the years go on, who seems to be able to accomplish more and more for the public interest. Tonight we have the opportunity to recognize and thank one of these most special individuals: Ambassador Max Kampelman. It's interesting to take a moment to glance at the written record of his accomplishments and honors. Too often, for most men and women, even for public leaders, these lists have a certain black-and-white, formal quality. But not for the man who brings us together tonight. Instead, one encounters a 50-year history that demonstrates respect for his fellow man--through local, regional, national, international, professional, academic, and religious venues. Ambassador Kampelman's diversity of interest is a picture of the very society he has lived in--and has striven to make better. This is a fitting setting for us to thank this public servant. We meet between the White House, the Capitol, and the courts-- places that mark Ambassador Kampelman's varied career. We go about our business privately, without great fanfare, as he does. And the Wilson Center itself calls for both scholarship and an awareness of the need to act--a hallmark of Ambassador Kampelman's work. Perhaps most important, Ambassador Kampelman has helped carry forward in the late 20th century some of the finest principles that our 28th President pursued during the first part of this century.
Realist and Idealist
Whenever I think of Woodrow Wilson, one particular book, written by Robert Osgood, comes to my mind. It's titled Ideals and Self- Interest in America's Foreign Relations. Published in 1953, about the time Mr. Kampelman was pursuing his academic career, the book was prepared under the auspices of a center at the University of Chicago under the direction of Hans Morgenthau. The book deals with America's experience in reconciling national self-interest with universal ideals that transcend the interests of particular nations. I think this book is an especially fitting one to recall tonight, because Ambassador Kampelman's career is a successful reconciliation of those two strands of American diplomacy--the realist and idealist. He offered clear-eyed recognition of the need for American military strength, but he also played a leading role in some of our age's major efforts to reduce and control weapons of mass destruction. He stood for human rights and democratic principles, not as abstract concepts but as the means that move the lives of men and nations. He comprehended the true, distorted nature of the Soviet Union, but he also never relented in efforts to encourage its leaders and people to aspire to make their nation a place that respects the rights of man. He has countered some on the far left who believe America should not engage the world because we will corrupt it, and he has refuted some on the far right who believe American foreign policy has no obligation to try to project our values to distant lands. Indeed, Ambassador Kampelman stands for American engagement in the world--realist and idealist. This is the tradition of American leadership of the post-war era. And now we must apply it to the problems of a new era. Just last week, I attended a conference of a group that played a special role during the Cold War; it is now setting its future course. This conference was the first meeting of the CSCE--the Helsinki process--on American soil. It's a group Ambassador Kampelman knows well, and its leaders know him. As I looked around the large conference center at that meeting, I had cause to recall the past agenda--because I could see people who might not be alive except for the Helsinki process. But I also had cause to reflect on the new agenda, because some of those former prisoners of conscience were now foreign ministers. They remind all of us that the best days of CSCE must still lie ahead, because the problems ahead--ensuring fair elections, strengthening young parliaments, protecting the rights of national minorities, securing the opportunity of economic liberty for all the citizens of Europe and North America, enhancing security through measures to build confidence against aggression--all these require the CSCE process to build on past success. In doing so, the United States will continue to look to Ambassador Kampelman's counsel--both realist and idealist. If anyone can fuse the best of what came before with the opportunities for new roles, I think he can do so. If anyone can encourage the next generation of Americans to approach CSCE, as well as America's global role, with intelligence, practicality, and hope, I think it is Ambassador Kampelman. So I want to close with a simple message from Secretary Baker and from myself. Thank you, Ambassador Kampelman, for what you've done, for what you will still do, and, perhaps most important of all, for demonstrating to America what it can be. (###)
US Department of State Dispatch, Vol 1, No 9, October 29, 1990 Title:

Focus on Central and Eastern Europe: 10/29/90

Date: Oct 29, 199010/29/90 Category: Focus on Emerging Democracies Region: E/C Europe Country: USSR (former), Bulgaria, Hungary, Poland, Romania, Yugoslavia (former) Subject: Trade/Economics, Democratization [TEXT]
Citizens Democracy Corps: Leadership Named; USSR Added to List of Recipient Nations
Chairman and Executive Committee Named
. White House Press Secretary Marlin Fitzwater announced on October 19 that President Bush had named a Chairman and Executive Committee for the Citizens Democracy Corps: Chairman of the Board-- -- Drew Lewis, Chairman of the Board, Union Pacific Corporation; former Secretary of Transportation Executive Committee-- -- John R. Block, President, National American Wholesale Grocers' Association; former Secretary of Agriculture -- Derek Bok, President, Harvard University -- Lodwrick M. Cook, Chairman and CEO, ARCO -- William A. Hewitt, former Chairman, Deere ∧ Company; former US Ambassador to Jamaica -- Barbara Jordan, The Lyndon B. Johnson Chair in National Policy, University of Texas; former congresswoman -- Nancy Kassebaum; United States Senate -- Lane Kirkland, President AFL-CIO -- Henry A. Kissinger, Chairman, Kissinger Associates, Inc.; former Secretary of State -- Robert H. Krieble, President, Krieble Associates -- Frederic V. Malek, Vice Chairman, Northwest Airlines; Co- Chairman, Coldwell Banker Commercial Groups -- Frank N. Piasecki, President and CEO, Piasecki Aircraft -- Robert S. Strauss, partner, Akin, Gump, Strauss, Hauer ∧ Feld; former Chairman, Democratic National Committee; former US Trade Representative -- William T. Ylvisaker, President and CEO, Corporate Focus, Inc. A Board of Directors will be announced later.
USSR Added
. Secretary Baker announced on October 19 (see Dispatch, October 22, 1990, p. 203) that President Bush had decided to include the Soviet Union in the work of the Citizens Democracy Corps. Secretary Baker said that: "We know a Europe whole and free must include the Soviet Union. We know Soviet reform can be accelerated by multiplied contacts with the American people. Through the Citizens Democracy Corps, we will try to help the leaders of the Soviet Union by increasing their knowledge of democratic processes and market economics, by increasing their opportunities for interchange with our citizens and institutions, and above all, by giving them greater hope."
Clearinghouse Established
. As President Bush noted in announcing the creation of the Citizens Democracy Corps in a speech at the University of South Carolina on May 12, "the real strength of our democracy is its citizens, the collective strength of individual Americans." Through a clearinghouse now being established, the Citizens Democracy Corps will gather information about available American capabilities in the private sector and about priority programs and requirements in Central and Eastern Europe and the Soviet Union. The clearinghouse will serve as a focal point for Americans able to provide technical assistance, donated supplies, and talent, and it will respond to priority requests from the region that can best be met by the US private sector. The Citizens Democracy Corps will advise corporate and other nongovernmental organizations as to where they might concentrate their efforts, matching them with partners in the recipient countries. The Board of Directors may also selectively initiate major projects with support from the private sector.
New Bulletin
. The Citizens Democracy Corps is publishing a bulletin. For information about the Democracy Corps, or to receive future mailings of its bulletin, call 800-321- 1945 or, in Washington, DC, 202-872-0933. You may write to Citizens Democracy Corps Clearinghouse, 1815 H Street, NW, Suite 1010, Washington, DC 20006.
USIA Youth Exchanges; Congressional internships
In September, two groups of youths arrived from Central and Eastern Europe to participate in a United States Information Agency (USIA) youth-exchange program. The first group is here for a 2- month congressional internship. After a 1-week orientation, each member of the group (one Bulgarian, two Czechoslovaks, one German, three Hungarians, and three Poles) will have a 6-week internship with a member of the House of Representatives, followed by a 1-week visit to a congressional district. The Members of Congress who are hosting the interns are Nancy Johnson (R- Connecticut), Dale Kildee (D-Michigan), Jim McDermott (D- Washington), Mary Rose Oakar (D-Ohio), Donald Pease (D-Ohio), Tim Penny (D-Minnesota), Thomas Sawyer (D-Ohio), Craig Thomas (R- Wyoming), William Thomas (R-California), and Barbara Vucanovich (R-Nevada). The second group (two Bulgarians, one Czechoslovak, two Germans, two Hungarians, two Poles, and one Yugoslav) is in the United States for 1 month to examine the role of youth in the political process. Following an introductory week in Washington, DC, they will travel to Chicago and Geneseo, Illinois; Sacramento and San Francisco, California; and Chapel Hill, North Carolina.
Voices of Freedom '90
The World Press Freedom Committee held a 1-day coordination meeting called "Voices of Freedom '90" on October 10 in the National Press Club in Washington, DC, on efforts to aid journalists and news media in Central and Eastern Europe. Representatives of more than 70 journalistic, governmental, and other groups from the United States and Europe participated. The purpose of the meeting was to share information on what is being done, what is not being done, and what could improve US assistance, both public and private. Participants were given an overview of print and broadcast press needs in Central and Eastern Europe, views of leading journalists, and a chance to participate in a general discussion of what more can be done. Documents made available at the meeting included a new regional survey of news media needs and a presentation of what the 70 groups themselves are doing. A written report of the meeting will be available later. The World Press Freedom Committee has surveyed needs in Central and Eastern Europe, produced a 160-page Handbook for Journalists of Central and Eastern Europe, aided the establishment of a regional training center in Warsaw, Poland, helped equip the new headquarters of the independent Polish Journalists Association, and conducted the inaugural training course in that association. The committee aims to promote close cooperation between US or Canadian newspapers and newspapers from roughly similar media markets in Central and Eastern Europe. In conjunction with other international press organizations, it also administers a Central and Eastern Europe News Media Aid Project that helped move a donated printing press to Gazeta Wyborcza in Warsaw and assisted the startup of Lidove Noviny in Prague, Czechoslovakia. For additional information, or to obtain documents mentioned above, call Dana Bullen or Malcolm Mallette at 703-648-1000.
Bulgaria
US-Bulgarian Agreement
. On October 5, representatives of the United States and Bulgaria initialed an agreement covering trade and financial matters, intellectual property, and tourism. "This agreement is an important step in the reintegration of Bulgaria into the global economy and the community of free nations," said Acting US Trade Representative Julius Katz. The agreement, when approved formally by both sides, will provide several important improvements for business in each country: -- The two countries agreed to extend most-favored-nation (MFN) tariff treatment to each other's products. -- US firms will be offered MFN treatment in currency convertibility and will have national treatment in establishing bank accounts and in paying for goods and services with local currency in Bulgaria. Hard currency earnings from trade may be immediately repatriated. -- The Bulgarian government has committed itself to strengthening its intellectual property legislation in the areas of patents, copyrights and trademarks, and to introducing new legislation in the areas of proprietary information (trade secrets) and integrated circuit layout designs. Once implemented, the new legislation will be on a par with that of the principal industrialized trading partners of the United States. -- Several changes will make it easier for US companies' commercial representatives to do business in Bulgaria (e.g., permission to advertise, to engage local agents and distributors, and to contact end-users directly, and the right to non- discrimination in renting office space, paying for local goods, and establishing bank accounts). -- Both sides also agreed not to mandate the use of barter or countertrade in commercial transactions. Before it takes effect, the agreement must be formally signed by both countries, then approved by the Bulgarian parliament and the US Congress.
Hungary
US TV Experts Help Hungarian Counterparts
. USIA sponsored a trip to Budapest in September by former NBC executives Robert Mulholland and Robert Walsh and ex-PBS official Neil Welling to help restructure Hungarian State Television (MTV). MTV President Elemer Hankiss praised USIA's quick response to his request for assistance and endorsed the team's suggestions. The US team said that MTV could turn things around with strong leadership.
Poland
Investing in Poland Business Conference
. Direct Polish and US business contacts and networking is the purpose of "Investing in Poland Business Conference--A Blueprint for Action," to be hosted by the Michigan Solidarnosc and the Polish-US Economic Council of the US Chamber of Commerce, November 19-20, in Grand Rapids, Michigan. The conference will provide hands-on, how-to information and will offer on-going services to establish successful joint-venture agreements. Michigan Solidarnosc currently has 252 joint-venture proposals on file, access to an additional 7,000, and regular information updates on laws, regulations, initiatives, and joint-venture proposals throughout Poland. The conference will address such concerns of US business as: -- What are the Polish economic reforms? -- What incentives exist to attract US business? -- What are the foreign investment opportunities in Poland? -- Where, and how, does one find those opportunities? -- What are the day-to-day realities of getting started and doing business in Poland? -- What risk assurances and insurances exist? -- How do US business perspectives and practices fit with a newly forming free-market system? Michigan Solidarnosc, a non-profit business league, has written authorization from Polish government, business, and regional Solidarnosc leaders to act as a conduit of information and to facilitate economic development between Poland and the United States. All speakers will be available for direct discussion and include: -- Dr. Andrej Zawislak--co-author of the Polish economic reforms -- Dr. Zbigniew Piotrowski--President, Polish Foreign Investment Agency -- Jan Krzysztof Bielecki--President and co-founder of the Polish Junior Chamber of Commerce; adviser to Lech Walesa; member of the Board of Directors of the Polish-American Enterprise Fund -- Thaddeus Kopinski--Executive Director, Polish-US Economic Council -- Dr. Beurt Servaas--Chairman and CEO, SerVaas Inc. -- Sheila Murray Bethel and William Bethel--Bethel Leadership Institute -- Stanley Bokota--US Department of Commerce -- US Overseas Private Investment Corporation (OPIC) Conference supporters include Dow Chemical Company, SerVaas Inc., LOT Polish Airlines, the US Foreign Commercial Service/International Trade Administration in Chicago, and the World Trade Center in Detroit. For more information, call Michigan Solidarnosc at 517-882- 4179 or the Eberhard Conference Center at 616-771-6626.
US Mayors Help Polish Mayors
. The US Conference of Mayors is developing a leadership training program for new mayors in Central and Eastern Europe, supported by a grant from USIA. On October 5, a US delegation that included four mayors left for Poland. In Krakow, the mayors met with 115 of their counterparts to discuss such issues as leadership, managing and resolving conflict, involving citizens in governmental processes, building effective coalitions, building an effective city government, drafting the city budget, dealing successfully with the media, and developing and implementing the best economic development plan. The four US mayors were William J. Althaus of York, Pennsylvania, Cardell Cooper of East Orange, New Jersey, Theodore D. Mann of Newton, Massachusetts, and Carol Whiteside of Modesto, California.
Polish TV to Feature USIA's English-Teaching Series
. Polish national television will feature teaching materials from USIA's English Language Programs Division, including Macmillan Company's "Family Album, USA." Also, the Spectrum English-teaching series will be used at 20 Polish teacher-training colleges. Peace Corps volunteers assigned to other teachers colleges will also use sets of the Spectrum series.
Boston Police Help Polish Police
. A six- member delegation of Boston police officers and union officials visited Poland from September 26 to October 6 to help that country's police adapt to democracy. In what was described as the first visit by US police officers since Poland became a democracy, the Boston police contingent rode in patrol cars and advised their counterparts on issues such as internal investigations, community relations, and union-state relationships. The delegation had been invited by Solidarity's newly created police union and was scheduled to meet with Lech Walesa and Poland's Minister of the State Office of Protection.
Romania
US Library Reopens in Bucharest
. On September 10, the US library in Bucharest reopened to huge crowds after being closed for 5 weeks for renovation. More than 1,300 people visited the library during the first 2 days it was open, which was triple the level of the pre-revolution days. The library staff also is distributing tens of thousands of US books donated through the Romanian Relief Fund to universities, polytechnic institutes, and research institutions throughout Romania.
Economic Update on Yugoslavia
Economic Trends--
-- Industrial production increased 1% in 1989. In January- August 1990, industrial production by the socialized sector was 10% lower than a year earlier. Private sector economic activity appears to be increasing. -- Inflation was 2,665% and rising in 1989. The program introduced by Premier Markovic at the beginning of 1990 slowed inflation to near zero by the second quarter (March-June), but the retail price level of all goods and services rose 5% in July when prices controlled by the government were raised. Wages increased during the summer. -- Unemployment probably is increasing in 1990. Reliable figures are not available.
Hard Currency Trade and Debt--
-- Yugoslavia posted a hard currency trade deficit of $1.5 billion and a current account surplus of $2 billion in 1989. The hard currency trade deficit was $1.3 billion in the first half of 1990 although exports were up by one-third. In the services account, receipts from tourism increased 50% over the 1989 level. -- Foreign debt totals $16.5 billion. Reserves are $10 billion. The debt-service ratio is 20%.
Trade With the USSR--
-- Trade with the USSR was changed to a hard currency basis at the beginning of August 1990, which probably shifted the terms of trade against Yugoslavia. -- Yugoslavia imports oil, coking coal, raw materials, and some machinery from the USSR. Yugoslavia exports machinery, medicines, and consumer goods to the USSR.
Status of Economic Reform--
-- The Yugoslav currency, the dinar, has been convertible since January 1, 1990 (1 dinar = about $0.10). -- Most restrictions on private activity and foreign investment have been removed. Some 10,200 private firms were started in January-May. By late July, foreign companies had signed 1,960 contracts to invest a total of $1 billion. -- The Yugoslav Assembly passed a law this year to regulate wage increases. Premier Markovic has proposed laws to require privatization of enterprises, to restructure failing banks, and to strengthen the hand of managers in labor relations. The Republic of Serbia, however, opposes privatization and the Republics of Croatia and Slovenia are blocking efforts to strengthen federal taxing powers. Moreover, republics are propping up inefficient enterprises, authorizing big pay increases, and withholding payments due to the federal government.(###)
US Department of State Dispatch, Vol 1, No 9, October 29, 1990 Title:

Ambassadorial Appointments, August-September 1990

Date: Oct 29, 199010/29/90 Category: Ambassadorial Appointments Country: Austria, Bulgaria, Comoros, Micronesia, Mozambique, Namibia, Poland Subject: State Department [TEXT] Austria--Roy M. Huffington, August 6, 1990 Bulgaria--Hugh Kenneth Hill, August 6, 1990 Comoros--Kenneth Noel Peltier, August 6, 1990 Micronesia--Aurelia Erskine Brazeal, August 6, 1990 Mozambique--Townsend B. Friedman Jr., August 6, 1990 Namibia--Genta Hawkins Holmes, August 6, 1990 Poland--Thomas W. Simons Jr., August 6, 1990 (###)