US Department of State 

Dispatch, Vol 1, No 18, December 31, 1990

Title:

US-Mexico Free Trade Agreement

Date: Dec 31, 199012/31/90 Category: Policy Briefs (Gist) Region: North America Country: Mexico Subject: Trade/Economics, North America Free Trade [TEXT] The governments of the United States and Mexico are preparing to negotiate a historic free trade and investment agreement. Such an agreement would be a catalyst for economic growth and development in both countries. The two neighbors would obtain significant benefits from increased trade, investment, and jobs.
US Goals
The US government seeks a broad agreement to eliminate restrictions on the flow of goods, services, and investment between the United States and Mexico. US objectives include: -- Reduction of tariffs to zero over a period of years (the period is 10 years in the US-Canada FTA); -- Elimination (as far as possible) of nontariff barriers on goods and services; -- Ensuring an open investment climate; and -- Full protection of intellectual property rights (patents, copyrights, and trademarks).
Expanded Trade
Mexico is our third largest trade partner with bilateral commerce of $52 billion in 1989. An FTA would lead to expanded trade with Mexico and the creation of additional jobs for US workers. It would give US exporters unrestricted access to a Mexican market of 81 million people, which may reach 100 million by the year 2000. Mexico purchases more than two-thirds of its imports from the United States. Traditional US competitive advantages--geographic, cultural, and historic links--in this important market would be further enhanced by an FTA. As the Mexican economy grows, a substantial part of the increased income--as much as 15%--is spent on US goods and services. Strong Mexican growth is expected because of President Salinas' economic reforms. Mexico's middle class is increasing as a percentage of the total population; this means more consumers for American products. The United States benefits from expanded trade. For each additional $1 billion in real net exports, about 25,000 new US jobs are created. About two-thirds of US economic growth in 1988 can be attributed to trade. Increased exports have helped the US economy expand out of recessions in the past. The United States and Mexico are consulting with Canada to determine how it might participate in the US-Mexico trade negotiations. A North American free trade area encompassing all three countries would constitute the world's largest market, with annual production of more than $6 trillion and with almost 370 million consumers.
Investment
The United States is the source for 65% ($25 billion) of foreign direct investment in Mexico. Therefore, the US government has a strong interest in encouraging favorable conditions for new and expanded investments in Mexico. US firms investing there tend to use US suppliers and designing and managerial talent. Overall US and Mexican competitiveness in international markets would be enhanced by the opportunities offered by an FTA. In May 1989, President Salinas expanded foreign ownership (in many cases up to as much as 100%) in sectors accounting for nearly two-thirds of Mexico's economic output. He also streamlined the approval process for foreign investments. An FTA would further enhance the investment climate facing US firms in Mexico. The further partnerships and alliances in industrial agriculture and service sectors that an open trade and investment climate will foster can take advantage of the complementary strengths of our two economies. The result will be that we will both be more competitive against third country competition in our own markets and abroad--and that translates into more jobs and investment in the US and Mexico alike.
US Foreign Policy Benefits
Mexico is a close neighbor and friend, and an FTA would strengthen our good relationship. Mexico also is important as the cornerstone of a comprehensive Western Hemisphere policy. A US-Mexico FTA, added to the existing US-Canada FTA, would give further substance to President Bush's long-range vision of a hemisphere-wide free trade area. Mexico's example of market-oriented economic reform is a significant role model for other developing countries.
Steps Toward an FTA
--June 1990. Presidents Bush and Salinas announce their mutual goal of a comprehensive FTA. --August 1990. President Salinas formally requests negotiations. --September 1990. President Bush notifies the US Congress of US intent to enter into negotiations with Mexico. --Spring 1991. Following notification, the House Ways and Means and Senate Finance Committees have 60 legislative days (i.e., until spring 1991) during which they can disallow the use of "fast-track" procedures. (Under these procedures, Congress can only approve without amendments or reject the bill implementing an FTA.) --Spring or Summer 1991. Formal negotiations begin after the expiration of the 60-day requirement and are expected to conclude in 1992.(###)
US Department of State Dispatch, Vol 1, No 18, December 31, 1990 Title:

Christmas Message to the Troops

Bush Source: President Bush Description: The White House, Washington, DC Date: Dec 24, 199012/24/90 Category: Speeches, Testimony, Statements Subject: Military Affairs [TEXT] Merry Christmas and happy holidays to you who are standing watch around the world. Never have I been prouder of our troops. Never have I been prouder to be your Commander in Chief. Because in this season of peace it is your commitment and your courage that makes peace possible. We think of you in the snowy fields and runways of Europe where, thanks to you, millions are celebrating Christmas and Hanukkah openly for the first time in 45 years. We think of you off the coast of the Philippines and Japan and the DMZ [demilitarized zone] in Korea. We think of you in Panama, where lightning success last Christmas ended the reign of a despot and brought peace to a people. We think of you in the air, on the high seas, and at bases and embassies around the world, who kept our country untouched and at peace throughout the long winter darkness of the Cold War. Back home, some talk of the cost of war. But it is you who understand the price of peace. Each Christmas Day we close our eyes in prayer and think of what Harry Truman called "the humble surroundings of the nativity and how from a straw-littered stable shone a light which for nearly 20 centuries has given men strength, comfort, and peace." It's distant in time but close within our hearts because on this Christmas Day, hour by hour, hand in hand, Americans will send their prayers eastward across the ocean and halfway across the world not only to the town of Bethlehem, but to the sands and shores where you stand in harm's way. We're in the Gulf because the world must not reward aggression, because our vital interests are at stake, and because of the brutality and danger of Saddam Hussein. We're there backed by 12 UN resolutions and the forces of 25 other countries. Barbara and I spent Thanksgiving with our men and women over there. And when we got back, I spoke to the American people, told them of your bravery, and reminded them why we're there. First I put the immorality of the invasion of Kuwait itself. I said I was deeply concerned about what has happened and is happening there--concerned about a ruthless despot's attempt to dominate a volatile and critical region, concerned about his efforts to acquire nuclear arms, and concerned that a promising era is threatened by an international outlaw. And I told the American people something else, that we want peace, not war, and that I will do my level best to bring you home without a single shot fired. And let me say one other thing. The sacrifices you make will never be forgotten. America is behind you. The world is behind you, and history is behind you. When you come home, and we hope it's soon, you'll be welcomed as what you are: all-American heroes. Today at the White House and all across America, candles burn in remembrance of you and all our troops across the country and around the world. There is no way Americans can forget the contribution you are making to world peace and to our country. Whenever we see Old Glory snapping in the breeze, we think of you. Whenever we hear the inspirational words of The Star Spangled Banner, we think of you. And whenever we enjoy the boundless opportunities of a free country, we think of you. History may make men, but you are making history. I think of Lieutenant Mary Danko, the flight nurse whoVOLunteered for Saudi Arabia. Her husband, a C-130 navigator, was already flying in support of Desert Shield. And when asked if leaving their baby with relatives was a hard think to do, Mary said, "It's the right thing to do. We're needed." And when asked, "now what about the kid?" Mary explained, "We're doing it for the kid." Well, she's right. Mary's right. She knows that when peace and freedom triumph, it's not a triumph for one particular country or one particular people, but a triumph for our children--a triumph for all humankind. And so it is with the holidays, for tonight the star of Bethlehem and the candles of the Menorah will cast their light in American outposts around the world with a timeless message of hope and renewal that radiates to people of all faiths. Each of you is precious. Each life is important because it touches so many other lives. And while you may be out of America's sight, rest assured no matter where you serve, you will never be out of America's heart. Merry Christmas and happy holidays to you all. God keep you and watch over you. And God bless America. (###)
US Department of State Dispatch, Vol 1, No 18, December 31, 1990 Title:

State Department Gulf Crisis Information

Date: Dec 31, 199012/31/90 Region: MidEast/North Africa Country: Iraq, Kuwait Subject: Military Affairs, Democratization [TEXT]
Emergencies: 202-647-0900 (24 hours)
Questions or comments about the Administration's Persian Gulf policy: 202-647-6575 or 6576, Monday-Friday, 8:30 am-5 pm (Eastern Standard Time)(###)
US Department of State Dispatch, Vol 1, No 18, December 31, 1990 Title:

The Council of Europe

Date: Dec 31, 199012/31/90 Category: Fact Sheets Region: Europe Country: Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, United Kingdom, Austria, Cyprus, Finland, Hungary, Iceland, Liechtenstein, Malta, Norway, San Marino, Sweden, Switzerland, Turkey, Israel Subject: International Organizations [TEXT]
Background
The Council of Europe is the oldest of the European postwar organizations. It was founded in 1949 to encourage greater European unity and cooperation, pluralistic democracy, and human rights. The location of its headquarters on the French-German border in Strasbourg, France, symbolized postwar reconciliation. The council includes the 12 members of the European Community (Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, and the United Kingdom) as well as Austria, Cyprus, Finland, Hungary, Iceland, Liechtenstein, Malta, Norway, San Marino, Sweden, Switzerland, and Turkey. Israel is an observer. The council is perhaps best known for its work in developing a multilateral system of human rights safeguards and for its contributions in harmonizing European laws and policies with more than 140 intergovernmental conventions. As East and Central European countries began to reestablish democratic institutions in 1989 and to apply for membership, the council has acquired an expanded role in Europe's political reintegration. Hungary became a full member on November 6, 1990, the first formerly communist state to meet the Council of Europe's admission criteria of pluralist democracy and respect for human rights and the rule of law.
Structure
The council includes the Committee of Ministers, the Parliamentary Assembly, the European Commission of Human Rights, and the European Court of Human Rights--all supported by a 900-member secretariat. Each of the council's 24 member countries is represented on the Committee of Ministers by a permanent representative with the rank of ambassador. The committee meets for 1 week each month and at least twice a year at the foreign minister level to discuss matters of common concern to Western Europe. Numerous committees of experts work to harmonize European laws and regulations and to formulate European and international conventions. The Parliamentary Assembly, composed of 177 national representatives selected by member-state legislatures, holds four plenary sessions each year. The assembly has no major decisionmaking power but is a significant voice within Europe on matters such as East-West or Middle East issues. The Commission of Human Rights and the Court of Human Rights serve as a multilateral system to safeguard European civil and political rights.
Relations With the European Community
The growing authority during the 1980s of the European Community (EC) over a wide range of economic, technical, and political matters sparked concern about the possible division of Europe into community and non-community states. In response, the Colombo Commission, created in 1985, urged closer cooperation between the EC and the council, reinforced council activities among its members, and expanded contacts between the council and Eastern Europe and between the council and the United States. In 1989, the EC and the council began to hold regular "quadripartite" meetings between the council's chair of the Committee of Ministers and the secretary general and the presidents of the EC Council and Commission. Working-level contacts between the EC and the Council of Europe also have increased and are becoming frequent. A joint statement issued at the October 1990 quadripartite meeting in Venice gave the council the leading role in welcoming East and Central European states back into the European family. Leaders of the two organizations also pledged to explore ways to bring council members who are not in the EC closer to European political cooperation. The council expanded its own activities on subjects such as terrorism, narcotics, and the environment. In 1989, it opened for signature a convention on cross-border broadcasting and, in 1990, conventions on international bankruptcy and on the seizure of the proceeds of crime. The council continues to be a principal European forum for social, legal, health, and environmental affairs.
Relations With Eastern Europe and the USSR
In a policy declaration issued on its 40th anniversary, May 5, 1989, the council underlined its role as a bridge between Eastern and Western Europe as well as between EC members and non-members. Soviet President Gorbachev addressed the council's Parliamentary Assembly in July 1989. By the fall of 1990, the Soviet Union and all East European countries except Romania and Albania had been granted "special guest" status in the Parliamentary Assembly and were being initiated step-by-step into selected intergovernmental activities. Most of these countries expressed interest in full membership. By policy and statute, council membership requires pluralistic democracy and respect for human rights and the rule of law. The council established a program, Project Demosthenes, for preparing East European countries to meet its standards. Hungary became the first Central European state to meet these criteria. Poland has been invited to join as soon as it holds general elections. Czechoslovakia's application will be debated by the Parliamentary Assembly at the end of January 1991.
Activities Beyond Europe
The council's Parliamentary Assembly has taken an active role in fostering the worldwide development of democracy. Together with the European Parliament, the assembly sponsors major international conferences on parliamentary democracy in Strasbourg, with the next scheduled for 1991, and annual regional conferences such as the one held in Costa Rica in 1989. The United States, Canada, Australia, New Zealand, and Japan are active partners in organizing this endeavor, which created the Strasbourg-based International Institute for Democracy in 1989. As an offshoot of its North-South campaign, the council established in 1990 a Lisbon-based center to promote awareness of global interdependence. The council has worked to strengthen its relations in the West as well as the East and is open to closer cooperation with the United States and Canada. On several occasions during 1990, the council offered to make its resources and expertise available to the Conference on Security and Cooperation in Europe (CSCE) process, particularly for activities related to the human dimension. In this regard, the council has proposed that its Parliamentary Assembly form the basis for a CSCE parliamentary body. The United States participates actively in a wide range of council activities, including legal, social, and health experts' groups. It is a signatory to one council convention (on repatriation of prisoners) and has participated in the development of others (use of drugs in sports and seizure of the proceeds from crime). A delegation from the assembly's Political Affairs Committee visited Washington in March 1990. The council assembly invites US Members of Congress to attend at least one plenary session each year. The council seeks closer relations with the United States and the other Organization for Economic Cooperation and Development countries that are not members.
Council of Europe Members
Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, Turkey, United Kingdom(###)
US Department of State Dispatch, Vol 1, No 18, December 31, 1990 Title:

Gist: Intellectual Property

Date: Dec 31, 199012/31/90 Category: Policy Briefs (Gist) Subject: Trade/Economics, Science/Technology, Media/Telecommunications [TEXT]
Background
"Intellectual property" refers to: 1) industrial property, chiefly in patents for inventions, trademarks, industrial designs, and trade secrets; 2) copyrights, primarily in literary, scientific, musical, artistic, photographic, and cinematographic works and sound recordings; and 3) computer software and the design of semi-conductor chips. The protection of intellectual property rights stimulates research, technological innovation, and the creative arts. The current emphasis on international high-technology competition highlights the fact that the protection of US intellectual property rights worldwide is essential to our economic and commercial competitiveness. In the past decade, counterfeiting and "piracy" became rampant, especially in some developing countries. Piracy refers to the unauthorized copying of books, films, sound recordings, computer software, and semi-conductor chips. Counterfeiting, once limited to illegal copies of brand-name consumer goods, now occurs in products like pharmaceuticals, agrichemicals, and even spare parts for aircraft. Estimated losses to US rights-holders due to worldwide counterfeiting and piracy of their products total billions of dollars annually.
US Policy
In the Trade and Tariff Act of 1984, Congress linked the designation of the Generalized System of Preferences (GSP--the granting of tariff-free entry for certain developing country exports) to a nation's record of protecting intellectual property rights. Congress also made protection of intellectual property a factor in designating beneficiaries of important US international economic programs such as the Caribbean Basin Initiative. These linkages are part of US policy. An April 1986 US government policy statement outlined a comprehensive strategy to pursue vigorously the strengthening of intellectual property protection.
Multilateral Actions
In September 1986, most major trading nations launched the Uruguay Round of multilateral trade negotiations under the General Agreement on Tariffs and Trade (GATT). The United States seeks the incorporation into the GATT of high standards for the protection of intellectual property, effective enforcement of those standards, and binding dispute settlement. The United States also is working to strengthen existing intellectual property conventions and to develop new agreements under the auspices of the World Intellectual Property Organization, the secretariat for these conventions. Developing new international standards for the protection of high technology such as biotechnological innovations, computer software, and semi-conductor chips are important elements of this approach. The Berne Convention for the Protection of Literary and Artistic Works, which the United States joined in March 1989, significantly broadens the number of countries protecting US copyrighted works.
Bilateral Actions
Since the mid-1980s, the United States has established bilateral copyright relations with Singapore and Indonesia following their enactment of modern copyright legislation. US copyrighted works now are protected in Taiwan. South Korea passed a modern copyright law and joined the Universal Copyright Convention. Malaysia enacted new copyright legislation and is joining the Berne Convention this year. Saudi Arabia and the People's Republic of China also have enacted new legislation. Egypt and Taiwan are currently in the process of enacting modern copyright laws. Korea, Taiwan, Malaysia, Saudi Arabia, and Indonesia have improved their patent laws. Chile, Venezuela, and Mexico have drafted generally modern patent laws which now are under consideration.
Domestic Legislation
The 1988 Trade Act eliminated the injury test (a specific level of imports harmful to US industries) and expanded the definition of domestic industry. This makes it easier for US firms to use Section 337 of the Tariff Act of 1930, the provision of US law that authorizes the International Trade Commission to bar the import of goods infringing US intellectual property rights. The 1988 Omnibus Trade Act also allows process patent holders to prevent the import of products produced by an infringing process.
US Policy Statement, April 1986
The United States provides strong protection for intellectual property rights within our borders for domestic and foreign citizens and businesses. The United States expects other nations to do the same in order to achieve better protection for American intellectual property rights. The US strategy includes: -- Strengthening existing international and national standards for protection and enforcement; -- Extending existing standards, or developing new ones, to cover frontier technologies; -- Improving international standards to eliminate discrimination or unreasonable exceptions or preconditions to protection; -- Encouraging our trading partners to commit themselves to enacting and enforcing laws adequately recognizing intellectual property rights and providing effective penalties for violations; and -- Ensuring that US laws provide a high standard of protection.(###)
US Department of State Dispatch, Vol 1, No 18, December 31, 1990 Title:

Gist: POW-MIAs in Southeast Asia

Date: Dec 31, 199012/31/90 Category: Policy Briefs (Gist) Region: Southeast Asia Country: Vietnam, Laos, Cambodia, China Subject: Human Rights, Military Affairs, POW/MIA Issues [TEXT]
Background
Some 2,288 Americans remain missing or unaccounted for as a result of the conflict in Southeast Asia. Unfortunately, many missing Americans will never be recovered; more than 400 individuals were lost over water. Another 450 loss locations are unknown. While accepting the statistical realities, the US also recognizes that full cooperation from the governments concerned could provide additional information on the fate of hundreds of these missing Americans.
US Policy
Since the fall of Saigon in 1975, the US and Vietnam have not had diplomatic relations, and the US has maintained its trade embargo on Vietnam. This has been part of a regional strategy designed to encourage Hanoi's cooperation in reaching a political settlement for Cambodia and in resolving the POW/MIA [prisoner-of-war/missing- in-action] issue and other humanitarian concerns. Normalization of relations can occur only in the context of a Cambodia settlement; the pace and scope of that process will be directly affected by Vietnam's cooperation on POW-MIAs and on other humanitarian issues of importance to the US. As a matter of the highest national priority, President Bush has committed the US to the return of anyone who might still be held captive, obtaining the fullest possible accounting for those still missing, and repatriating recoverable remains of those who died serving our country. In pursuance of this commitment, the US has kept the live prisoner issue at the forefront of negotiations and intelligence efforts. While we have thus far been unable to confirm that Americans are still detained against their will, the information available precludes ruling out that possibility. Since the end of the war, the US has received 12,973 reports relevant to the POW/MIA issue, most of them from Indochinese refugees. Of that total, 1,477 are first-hand, live-sighting reports. About 68% of these have been correlated with Americans who were in Indochina but who have since returned to the US. Another 24% are known or suspected fabrications. The remaining 8%, or a little more than 100 of the live-sighting reports, are unresolved and under continuing priority investigation. Should we determine that Americans are still under detention, we will take every appropriate action to ensure their return.
Ongoing US Efforts
Vietnam.
In his meeting on September 29, 1990, with Vietnamese Foreign Minister Nguyen Co Thach, Secretary Baker stressed the Administration's unwavering commitment to resolution of the POW/MIA issue. He invited the Foreign Minister to Washington for the express purpose of working out specific steps to expedite the accounting for missing Americans. At that meeting in Washington, Gen. John Vessey, Jr. (ret.), the President's Special Emissary to Hanoi on POW/MIAs, proposed specific steps to obtain more rapid results and to establish an ongoing, viable program to achieve the fullest possible accounting of American POW-MIAs: -- Send a US technical team to Hanoi to plan improved joint investigations; -- Form a joint team of military experts and analysts to search for historical documentation on POW-MIA incidents; and -- Increase unilateral efforts by Vietnam to recover and return the remains of US personnel. Foreign Minister Thach accepted all of General Vessey's proposals, and he announced that Vietnam and Laos had agreed to tripartite cooperation with the US to investigate cases of Americans who disappeared in areas of Laos where Vietnamese forces operated during the war. It is our strong hope that the joint agreement on these proposals will lead to a decision in Hanoi to produce quick, decisive actions that will accelerate results. In the last 2 years, 12 joint investigations have been conducted in Vietnam, focusing on incidents where Americans were last known to have been in the custody of Vietnamese forces or on Americans about whom the Vietnamese would likely have knowledge. Over the same period, several technical meetings have been held to enhance joint efforts and to encourage Vietnam to expand unilateral action to resolve cases. The increased level of joint activities, however, did not produce a commensurate level of results. The greatest progress occurred through Vietnam's unilateral return of remains, and, even in this area, progress dropped sharply in the past year. Then in August a joint investigation showed signs of increased Vietnamese cooperation. In the following month, 20 remains were repatriated for further scientific analysis in Hawaii, and another 10 remains were repatriated in November.
Laos.
The Lao government has increased cooperation on the POW/MIA issue in recent years. In 1989, Laos agreed to conduct year-round activities and, in early 1990, to expand cooperation further. We have conducted a series of 12 joint surveys and 4 joint excavations of 6 aircraft crash sites in the past year. We expect to conduct more activities in early 1991. Because more than 80% of American losses in Laos occurred in areas where Vietnamese forces were operating at the time, resolution of these cases will also require cooperation from Vietnam.
Cambodia.
In July 1990, a US government forensic team traveled to Cambodia to examine the first remains made available by officials in Phnom Penh. The team repatriated six of those remains for further scientific review still underway.
Americans Missing or Unaccounted For:
Vietnam 1,670 Laos 529 Cambodia 83 China (coastal waters) 6 TOTAL 2,288
Americans Accounted For Since 1973:
Vietnam 252 Laos 41 China 2 TOTAL 295 (###)
US Department of State Dispatch, Vol 1, No 18, December 31, 1990 Title:

Focus on Central and Eastern Europe: 12/31/90

Date: Dec 31, 199012/31/90 Category: Focus on Emerging Democracies Region: Eurasia Country: Bulgaria, Hungary, Czechoslovakia (former), Germany, Poland Subject: Trade/Economics, Science/Technology, NATO [TEXT]
Citizens Democracy Corps: President Elected
The Executive Committee of the Citizens Democracy Corps elected Lee Stull to be its president. Mr. Stull was in the Foreign Service for 30 years and is the managing partner of RS International Ltd., an international investment firm. 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.
Bulgaria
NATO Tour
. Four Bulgarian parliamentarians and a foreign ministry official selected by the US Information Agency (USIA) visited NATO head-quarters in Brussels the week of November 19. It was the first such visit for Bulgarians and only the second time that Warsaw Pact nationals had been given a NATO tour (an East German group was the first). The NATO tour program, run by USIA, seeks to acquaint European opinion leaders with the role and continued importance of the Atlantic alliance. The Bulgarians met NATO Secretary General Manfred Woerner and were briefed by NATO political and military officials on NATO's place in post-Cold War Europe.
Czechoslovakia
President Signs Resolution
On November 9, President Bush signed into law a congressional resolution that grants nondiscriminatory tariff treatment to products of the Czech and Slovak Federal Republic. Czechoslovakia is the first East European country to receive most-favored-nation (MFN) treatment for its exports to the United States since the revolutions of 1989. Granting MFN tariff treatment is a significant US step to bring into force the US-Czechoslovakia trade agreement signed last April. An exchange of diplomatic notes ratifying the trade agreement took place during President Bush's visit to Prague on November 17. These sharply lower tariffs will provide the impetus for greatly expanded trade between the two countries and are a first step toward normalization of bilateral trade relations. The trade agreement also contains important guarantees for US businesses engaging in trade with Czechoslovakia, including the right to nondiscrimination in renting office space, in paying for local goods, and in establishing bank accounts. Any hard currency earnings from trade may be repatriated immediately. The Czechoslovak government also has committed itself to upgrade significantly its protection of intellectual property rights (e.g., patents, copyrights, trade secrets, and integrated-circuit-layout designs) and to make its intellectual property regime comparable to those of other industrialized countries.
US Assistance: General
-- Czechoslovakia will receive significant US government assistance under the fiscal year 1991 Foreign Operations Appropriations bill. -- President Bush has announced that he will work with the Congress to establish a $60-million fund to help reinvigorate Czechoslovakia's private sector. Similar to the funds for Hungary and Poland that have already been created, the new Czechoslovak- American Fund would be a nonprofit endowment designed to promote private enterprise in Czechoslovakia and would be funded on a multiyear basis. -- Czechoslovakia has provided a prioritized list of assistance requests. Most were in the category of technical assistance. -- Technical assistance in the energy area will be a top priority in US assistance, which will focus on energy conservation and efficiency, clean-coal technology, and nuclear safety. -- US technical assistance will also be directed to such areas as privatization, management training, banking and financial services, and housing. -- US assistance also will support reform of the political process, encouragement of cultural pluralism, and development of independent media.
Energy Assistance
-- The Iraq-Kuwait crisis has exacerbated the fundamental economic problems facing Czechoslovakia and other new democracies of Central and Eastern Europe in their transition to a market economy. -- In response, the United States has asked the International Monetary Fund to increase its lending to the region by as much as $5 billion, modifying its lending policies as appropriate, and the World Bank to accelerate its assistance in the energy field, drawing on the $9 billion now committed to, or planned for, Central and Eastern Europe. -- The United States also has offered to carry out short-term energy projects in Czechoslovakia and in other countries in the region to improve efficiency in industry and refineries. We will cooperate with the European Community and the International Energy Agency on these projects and on a regional energy program coordinated by the International Bank for Reconstruction and Development that would focus on longer-term energy efficiency measures.
Trade and Investment
-- In addition to the US-Czechoslovak trade agreement discussed above, the two countries are nearing completion of a bilateral investment treaty that would promote increased US private investment in Czechoslovakia. -- Agreements permitting the Export-Import Bank and the Overseas Private Investment Corporation to operate in Czechoslovakia already have been completed. -- The US government has begun the process of evaluating Czechoslovakia's eligibility for the Generalized System of Preferences (GSP) program. If Czechoslovakia meets the requirements, GSP could be extended early in 1991. -- The US Trade and Development Program will make available more than $1.5 million in grants for projects covering feasibility studies of the disposal of hazardous waste, upgrading of coal-fired power plants, and the modernization and improvement of safety and pollution control in the steel industry.
The Environment
-- A team of environmental experts from the US Agency for International Development and the Environmental Protection Agency is assisting the Czechoslovak government and the World Bank in a joint environmental study. The study will recommend Czechoslovak and foreign activities to improve environmental quality. -- The US government, in cooperation with the private sector, launched an initiative in September to address regional environmental issues. Czechoslovakia will participate in this program. -- Czechoslovakia also participates in the regional environmental center, headquartered in Budapest, that was an initiative of President Bush in 1989.
Other Continuing US Initiatives
-- The US government supports a program of the International Executive Service Corps to provide the expertise of retired senior US managers to Czechoslovakian enterprises. -- The Department of Justice and the Federal Trade Commission have provided technical assistance in the areas of anti- monopoly law and competition policy and have assisted in the drafting of legislation. Those agencies are considering further efforts in these areas. -- The Department of Labor plans to offer assistance to Czechoslovakia in labor/management-dispute resolution, institution-building, and the development of a social safety net. -- The US government is making available influenza vaccines and the means of inoculation through nongovernmental organizations such as Project Hope for the "at risk" portion of the Czechoslovakian population this winter. -- The Peace Corps will have about 60VOLunteers in Czechoslovakia to train English teachers.
The International Monetary Fund
-- Czechoslovakia joined the IMF in September 1990. -- The United States has urged the IMF to accelerate lending to Czechoslovakia and other Central and East European countries. -- The IMF assists the government of Czechoslovakia in developing an economic program that could be supported by a 12- month stand-by arrangement beginning in early 1991. -- The IMF program will focus on economic liberalization, supported by appropriate fiscal and monetary policies, and on Czechoslovakia's transition to a market economy. -- Like other IMF members, Czechoslovakia also stands to benefit from the US initiative, now underway, to establish a means for the IMF to respond quickly to countries' increased financing and adjustment needs resulting from the situation in the Persian Gulf. -- The IMF also continues to provide technical assistance to Czechoslovakia in the fields of monetary management and economic policy advice.
The World Bank
-- Czechoslovakia rejoined the World Bank in September 1990. -- The United States has asked the bank to accelerate assistance to Central and Eastern Europe, focusing on economic restructuring, the development of the private sector, and energy efficiency. The bank is rapidly expanding its presence in the region, and its lending over the next 3 years may exceed $9 billion. -- The bank is seeking a quick start to lending operations in Czechoslovakia. It has sent several missions to the country to review the overall economy and sectoral plans. -- The bank is processing a structural adjustment loan that could involve several hundred million dollars and should be ready for bank board action after IMF approval of a stand-by arrangement (possibly early 1991). This follows normal practice whereby the bank's quick-disbursing adjustment loans are linked to stabilization programs developed between borrower and the IMF. The loan is intended to support Czechoslovakia's transition to a market- oriented economy. -- A technical assistance loan to help plan the reform effort is tentatively scheduled for board consideration in March or April 1991. -- The International Financial Corporation (IFC) is assisting Czechoslovakia in designing a mutual-fund system to aid the privatization effort. The IFC expects to have several operations supportive of foreign and domestic private-sector joint venture investments in Czechoslovakia. The IFC is opening a resident representative office in Prague. -- The Multilateral Investment Guarantee Agency, which is the bank's investment-insurance arm, also is targeting Czechoslovakia for possible investment-insurance operations and has received an application for a guarantee. Czechoslovakia also has requested technical assistance in drafting its foreign investment code and in designing its foreign investment promotion agency.
English Teaching
"Education for Democracy USA" is a nonprofit organization that has been sendingVOLunteers to Czechoslovakia to teach English. Begun a year ago as a small, local operation based in the Alabama home of Ms. Ann Gardner, the organization has grown exponentially since receiving national press coverage earlier this year. The organization has sent about 500 English teachers, including recent university graduates, mid-career people, and retirees. It is considering expanding into other Central and East European countries. For additional information, call Ann Gardner or Ross Phelps at 205-434-3889.
Germany
OPIC Mission Successful
. The first mission of the Overseas Private Investment Corporation (OPIC) to what formerly was the German Democratic Republic was very successful. According to OPIC President Fred Zeder, "The 15 US corporations participating [in the October mission] were able to explore some of the most attractive investment opportunities we have yet to see in the former communist bloc." The participants met German officials from the Ministry of Economics and the Treuhandanstalt, the bureau charged with overseeing the privatization of the more than 8,000 companies in eastern Germany. The participants also were able to investigate specific opportunities in construction, aerospace manufacturing, environmental management and pollution clean-up, financial services, medical and health services, and entertainment. Zeder also noted the structural difficulties facing the Germans in their enormous task of privatizing and restructuring the former East German economy. "There are a lot of unresolved issues and the privatization process is still in flux. If US companies wait until all of these problems are sorted before they begin looking at projects, many of the most appealing opportunities will be snatched up. Now is the time to lay down your marker," said Zeder. OPIC's mission participants included senior representatives from Hughes Aircraft, United Technologies, Fisher Controls, Westinghouse Electric, Pittsburg Corning Corp., J.P. Morgan, Smith Barney, American Multi-Cinema, Inc., Gray Construction Co., Northwest Enviroservice Inc., Professional Medical Products, Inc., Brown ∧ Root, Inc., and the law firms Wilmer, Cutler ∧ Pickering, and Hogan ∧ Hartson. By providing investment information, financing, and a unique set of risk assurances, OPIC facilitates US private investment in 119 economies around the world. For more information, call OPIC's John Hereford at 202-457-8210.
Poland
Supreme Court Justices Visit US.
Three Polish Supreme Court justices, including the chief justice, visited the United States in November under the auspices of the international visitor program of the US Information Agency (USIA). Their schedule was designed to give them an understanding of the US legal system, including the jurisdiction of state and federal courts, and legal education. They also met with US jurists working in the criminal and civil rights fields.
Business-Higher Education Forum Visit
The Business-Higher Education Forum's Coalition for Democracy and Enterprise sent a 12-member delegation to Poland for a November 27-29 roundtable and workshop. Lee Stull, president of the Citizens Democracy Corps, accompanied the delegation as a special guest. The purpose of the trip was to learn what kinds of technical assistance would be most valuable to Poland. Topics discussed included privatization, small business development, employee- employer relationships, quality control, and sociological and legal conditions of Polish companies. For additional information, call Don Blandin, Director, Business-Higher Education Forum at 202-939- 9345.
Congressional Interns
On November 8, personnel in USIA's Youth Programs Division conducted the final debriefing and evaluation of 10 Central and East European political leaders who participated in the 7-week "Congressional Interns" young leaders project. The 10 participants spoke highly of their experiences, which included writing press releases, campaigning with Members of Congress, responding to constituent requests, and working on legislative issues.
ABA Law Workshops
The American Bar Association (ABA) has responded to the immediate legal priorities of the new democracies in Central and Eastern Europe and to the common concerns of that region by creating the Central and East European Law Initiative (CEELI). The ABA hopes that CEELI will foster a commitment to an economic and political culture based on the rule of law. CEELI conducted its first regional technical-assistance workshop in Prague, Czechoslovakia, November 12-17, focusing on criminal law revision. The elements and structure of the workshop were shaped by consultations with senior government officials, legal scholars, and practitioners in Central and Eastern Europe. Nine Americans, four West Europeans, and representatives from Bulgaria, Czechoslovakia, Hungary, Poland, Romania, and Yugoslavia participated. The four topics of the workshop were: -- The role of the state's attorney in a democratic society. -- A comparison of the nature and conduct of preliminary proceedings in continental and American law. -- The role of lay judges and juries. -- What types of speech should be forbidden by the penal law? The intended result of the workshop was to stimulate a greater understanding of the tenets necessary to create an internationally accepted criminal justice system, particularly identifying specific provisions of criminal codes that are inconsistent with instituting a new system. Another important outcome was the publication and distribution of a workshop report summarizing the discussions and recommendations. That report will serve as a basis for organizing follow-up consultations in Central and Eastern Europe. Similar workshops are planned for this winter on the independence of the judiciary (to be held in Yugoslavia February 4- 8) and constitutional reform (to be held in Bulgaria February 17- 21). CEELI also has arranged for two US constitutional experts to help the Constitutional Drafting Committee of the Romanian parliament. Justice Ben F. Overton of the Florida Supreme Court and Jerome A. Barron, former dean and current professor of law at George Washington University, went to Romania November 19-23 and will continue to help in this on-going project. CEELI is supported in part by a $400,000 grant from the US Agency for International Development through the National Endowment for Democracy. CEELI recently was awarded a $50,000 grant from the International Academy of Trial Lawyers Foundation for technical assistance workshops. The academy also provided funds for a lawyer-exchange program, which will be administered by the ABA's Section on Individual Rights and Responsibilities. The first exchange attorneys are scheduled to arrive from Czechoslovakia in early 1991. For copies of the workshop report mentioned above or for additional information about CEELI, contact Mark Ellis, Executive Director, The Central and East European Law Initiative, American Bar Association, 1800 M Street, NW, Suite 450, Washington, DC 20036. Telephone: 202-331-2619. Fax: 202-457-1163.
USIA TV Inaugurates Special Service
On December 3, USIA TV launched a new 2-hour special feed to Central and East European broadcasters. Initial recipients of the 5- day-a-week service will include stations in Czechoslovakia, Hungary, and Romania, which have received satellite antennas donated by USIA. Polish TV also may carry the programs. Thanks to special arrangements with ABC News, Time-Warner, and Nickelodeon, the service will feature segments from programs such as "This Week With David Brinkley," "Business World," "20/20," and "Nightline," plus news and documentaries on US history, culture and society, the environment, economics, science, and the English language from both private-sector and USIA TV productions. (###)
US Department of State Dispatch, Vol 1, No 18, December 31, 1990 Title:

Feature: Foreign Policy Goes On-Line; Computer News Service Begins in 1991

Date: Dec 31, 199012/31/90 Category: Features Region: North America Subject: State Department, Media/Telecommunications [TEXT] The Department of State is putting foreign policy information "on- line" by following the successful launch of its new weekly magazine, the US Department of State Dispatch, with a computerized news and information service. Dispatch, the flagship of the Department's Bureau of Public Affairs streamlined publication program, offers major speeches and congressional testimony by senior US officials, foreign policy summaries, chronologies, country profiles, fact sheets, feature articles, and updates on events around the world, including public and private sector assistance to Eastern and Central Europe and events in the Gulf. In addition, the magazine regularly publishes current Current Treaty Actions and is indexed every 6 months.
Information Access Expanded
An electronic version of Dispatch, plus the official transcript of the daily press briefing, travel advisories, and other key foreign policy information, will go "on-line" when the Department joins the federal Computer Information Delivery Service (CIDS) in February 1991. Accessed by computer modem through commercial vendors, CIDS will complement the department's traditional methods of printing and distributing information. Anyone wanting current information soon after it is released by the department may subscribe to CIDS, although most expected users will be electronic information and database services that further distribute foreign policy information to their customers. "The demand for immediate access to current and accurate foreign policy information has grown dramatically," explains Anthony A. Das, Director of the Office of Public Communication. "Our objective is to provide foreign policy information in greaterVOLume and faster than ever before. "
User Benefits
Expected users of State Department information on CIDS-- commercial electronic and videotex services, publishers, news services, libraries, and the international business and legal communities--also will have access to time-sensitive information released by the US Department of Agriculture, which developed the system in 1985. The system is available: -- Monday-Fridays: 6 am-4 am [all times are Eastern Standard Time], -- Saturdays, 6 am-midnight, -- Sundays, 7 am-2 am "With advances in technology such that cost-effective computer-based systems and communications are within the reach of the average American, we no longer can rely only on traditional means to disseminate department information," said Mr. Das. "This is especially true during the current period of great fiscal restraint and shifting world events." Those who use the CIDS service will pay for the direct cost of accessing the information from the computer-based system provided under contract by the Martin Marietta Corporation, which maintains the information exactly as defined and transmitted by the State Department. The minimum commercial rate for the basic CIDS service will be $75 a month, a fee used to offset actual telecommunications charges. Users can review the data on-line or establish profiles for downloading the information at medium to high computer transmission speeds. Government users of CIDS do not pay the monthly minimum and receive discounts for use. Dispatch and other Department printed publications continue to be available at federal depository libraries, as well as at many other educational and public libraries nationwide.
Available on CIDS:
-- Official Press Briefing transcript -- Full text of US Department of State Dispatch, the new weekly record of US foreign policy -- Major speeches and congressional testimony by senior officials -- Travel advisories -- Foreign policy summaries and updates on world events -- Chronologies, Fact Sheets, and Country Profiles -- Full text of Background Notes, which profile countries and international organizations -- Current Treaty Actions
Subscription Information:
Computer Information Delivery Service (CIDS)--To receive a CIDS information packet, call the CIDS Message Center at 703-802- 5700. Dispatch Magazine-- Paid subscriptions to The US Department of State Dispatch are available as follows: -- For 1st and 3rd-Class Delivery: Superintendent of Documents (telephone: 202-783-3238; fax: 202-275-0019), US Government Printing Office. -- For 1st and Overnight Delivery: National Technical Information Service (telephone: 703-487-4630), US Department of Commerce. --Deborah Guido-O'Grady, Dispatch Staff(###)
US Department of State Dispatch, Vol 1, No 18, December 31, 1990 Title:

State Department Publication Program Streamlined

Date: Dec 31, 199012/31/90 Category: Features Region: North America Subject: State Department, EC [TEXT] The US Department of State has streamlined its publications program as part of the Administration's commitment to cut spending. In order to maintain services to the public during this period of great fiscal restraint, the Department's Bureau of Public Affairs has adopted desktop publishing and electronic distribution technologies to ensure that information on US foreign policy is available to those who need it. Even with modern technology, we have found it necessary to distribute our information in a more focused fashion.
New Weekly Magazine
The Department's new weekly paid subscription magazine, the US Department of State Dispatch, is the most comprehensive source of official information on US foreign policy. Dispatch provides a diverse compilation of speeches, congressional testimony, fact sheets, Gists, country profiles, treaty actions, and more--and is indexed every 6 months. Dispatch is available only by paid subscription via first- and third-class delivery from the Superintendent of Documents, or via first-class and overnight delivery from the National Technical Information Service (see order form inside back cover). In February 1991, Dispatch, Gists, Background Notes, and other information will be available through electronic distribution as well see p. 373).
Appearing in Dispatch
Most of the Bureau's publications are now available only in Dispatch. -- Focus on Central and Eastern Europe: Already a regular Dispatch feature, Focus will be phased out as a separate publication by March 1991. -- Current Policy: Eliminated. Major foreign policy speeches by the President, Vice President, the Secretary of State, and senior State Department officials are published in Dispatch. -- Update from State: Eliminated. Feature material formerly carried in Update is now included in Dispatch. -- Selected State Department Publications: Eliminated. All Bureau of Public Affairs publications now appear in Dispatch, which is indexed. A catalog of government publications is available from the Superintendent of Documents, US Government Printing Office.
Continuing Series
-- Gist: Available in Dispatch and, until 1992, distributed as a free publication to libraries, academic and research organizations; federal, state, and local governments; media, public- policy organizations; etc. -- Background Notes: Continues as a paid subscription sales item. Annual subscriptions to the series--about 60 Notes--are available from the Superintendent of Documents, Government Printing Office, for $18. Individual copies are priced at $1. Complete sets of about 190 Notes are available for $58. -- NATO Review: Continues as a separate free publication. Published by the North Atlantic Treaty Organization, the bimonthly magazine will continue to be distributed in the continental United States by the Department of State. If you reside outside the continental United States and want to receive the magazine, please request copies directly from the Editor, NATO Review, NATO Information Service, 1110 Brussels, Belgium.
Mailing List
Our mailing list is being phased out, therefore new applications will not be accepted. In order to receive information from the Department, you must either subscribe to Dispatch or Background Notes--or review them at a library or academic institution.
Electronic Service in 1991
In February 1991, full texts of Dispatch, transcripts of the daily press briefing, major speeches and congressional testimony, and other foreign policy information will be available by paid subscription in electronic form as well. To learn more about State's new Computer Information Delivery Service (CIDS), a federal news and information service, call the CIDS Message Center at 703-802-5700.(###)