US Department of State 
Dispatch,
Vol 1, No 16, December 17, 1990

Title:         
US Assistance to the Soviet Union

Bush

Source:         President Bush

Description:    Statement at a White House news conference, Washington,
                 DC

Date:           Dec 12, 199012/12/90

Category:       Speeches, Testimony, Statements

Region:         Eurasia

Country:        USSR (former)

Subject:        Human Rights, Development/Relief Aid

[TEXT]

I have just had an opportunity to discuss with Foreign Minister
[Eduard] Shevardnadze a number of issues of US-Soviet relations,
including our cooperation in the Gulf.  And I'm pleased with the
great progress that we made on START [strategic arms reduction
talks] and hopeful that we will be ready to sign a treaty at a
summit in Moscow on February 11-13.

       We also talked at length about the situation in the Soviet
Union and the response of the United States to the economic
problems there.  I asked Minister Shevardnadze to convey to
President Gorbachev my desire to respond both to the short-term
needs of the Soviet Union and to contribute to fundamental
economic reform--[we've] long supported perestroika and continue
to [do so].

Jackson-Vanik Amendment Waiver

We discussed frankly the relationship of economic change in
the Soviet Union to the critical task of democratization.  I
reiterated our strong desire to see both political and economic
reform continue because they are inextricably linked.  I outlined
specific and important steps that we're willing to take in support
of reform.  After consulting closely with [Agriculture] Secretary
[Clayton] Yeutter as well as Secretaries [Nicholas] Brady [Treasury]
and Baker [State], I told Minister Shevardnadze that I am prepared to
respond to a Soviet request for credit guarantees for purchase of
agricultural commodities through a waiver of the Jackson-Vanik
Amendment.

       While I've taken this step, I still look forward to a passage of
the Soviet emigration law codifying the generally excellent
practices of the past year.  This then will permit us to make further
progress toward the normalization of the US-Soviet economic
relationship.

       In addition, we have proposed to the Soviets a special
technical assistance project to help in assessing their food
distribution problem and to support market reforms.  I will also
authorize a joint public-private medical assistance effort to help
the Soviet Union cope with immediate shortages of pharmaceuticals
and basic medical supplies.

New Economic Associations Proposed

In the longer term, only steps that the Soviet Union itself
takes can assure the economic health there.  Thus, to promote
fundamental economic reform I will propose that the World Bank
and the IMF [International Monetary Fund] work out with the Soviet
Union a special association to give the USSR access to the
considerable financial and economic expertise of those institutions.

       I have asked Secretary of the Treasury Nick Brady, as US
governor of both institutions, to pursue this proposal with them and
also with our other allies, who I'm sure will be in accord.

       As I have said before, I want perestroika to succeed.  The
Soviet Union is facing tough times, difficult times.  But I believe
that this is a good reason to act now in order to help the Soviet
Union stay the course of democratization and to undertake market
reforms.  The United States has an interest in the Soviet Union, able
to play a role as a full and prosperous member of the international
community of states.  I am hopeful that these initiatives will
further that goal.