US Department of State 

Dispatch, Vol 2, No 12, March 25, 1991


Polish President visits the United States

Bush Source: President Bush Description: Statement on the occasion of President Walesa's visit to the White House; Washington, DC Date: Mar 20, 19913/20/91 Category: Speeches, Testimony, Statements Region: E/C Europe Country: Poland\ Subject: Trade/Economics, Democratization [TEXT] President Bush: To all our Polish and American friends here today, a poet once wrote: "Let me address you in the name of millions." Today, I address you in the name of millions who convey their admiration and love: the people of the United States. Two years ago, Lech Walesa became only the second private citizen from abroad to address a joint session of the Congress. And he impressed us then with his commitment to goodness, his passion 0for the hard-fought necessity we call democracy. Today, he returns as his nation's first democratically elected president. You have led by principle and example. You created a solidarity of spirit that inspired millions of Poles to risk their lives in steel mills, shipyards, tenements, and towns. And after winning the fight for independence, you instilled the sense of tolerance essential for letting democracy set down roots in an unsettled world. No wonder your countrymen sing to you: Sto Lat- May he live 100 years. But you also understand that the cause of freedom cannot end at your own borders, and you proved it during the war in the Persian Gulf. You joined us in demonstrating to the entire world that we cannot permit aggression to stand. You taught your countrymen that the answer to tyranny is "international solidarity." And in the process, you helped shape a new world order. That order, of course, began in Europe with the end of the Cold War and the emergence of a continent whole and free. You played a key role in helping Central and Eastern Europe join the commonwealth of freedom. You have worked hard to build a prosperous land upon tyranny's ruins. This is not an easy task. In your New Year's Eve message, you talked of reform-political reform, you've called for fully free parliamentary elections; intellectual reform, that can help man begin the hard work of freedom; spiritual reform, honoring the one through whom all things are possible; and finally, you've spoken of economic reform, upon which so much depends. In your address to Congress, you said: "We are not expecting philanthropy. But we would like to see our country treated as a partner and friend." Today, we rededicate ourselves to the success of free democracy in Poland and throughout Central and Eastern Europe. Last week, the Paris Club agreed to cut Poland's official debt burden by at least 50%. The United States worked long and hard to achieve that unprecedented agreement, and we encourage other creditors to join us in going beyond that 50% level. We certainly shall. We will reduce your indebtedness to us by a full 70%, a portion of which will help Poland fund a new foundation for the environment. I am pleased to tell you that I've asked the Congress to increase next year's grant assistance to these new democracies to $470 million, half again last year's request. And since the real engine of progress is not aid, but trade, I am pleased to announce two new economic initiatives designed to help the nations of Central and Eastern Europe proceed along the path to growth and prosperity. The American Business Initiative and the Trade Enhancement Initiative will encourage businesses to invest in your future. In addition, [US ] Commerce Secretary Robert Mosbacher will lead an investment mission to Poland this summer, letting US businesses see the great opportunity the new Poland offers. So, as you can see, we want your economic transformation to succeed, your new democracy to flourish. And we call on other nations to follow our example. For 2 centuries, the love of liberty has linked our lands. General Kosciusczko was a friend to our Founding Fathers, just as you and His Holiness Pope John Paul II are our steadfast friends today. Our nations and heroes have long fought together to defend the rights of man. This historic commitment forms the core of the Joint Declaration of Principles that we will sign later today. Two hundred years ago, gallant Polish freedom fighters praised these principles when they sang: "Poland is not lost while Poles still live." Today we rejoice. Poland is not lost, but has once again been found because men like you still live. God bless you, your beloved land, and our United States of America.(###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

Polish President Visits the United States

Walesa Description: Washington, DC Date: Mar 20, 19913/20/91 Category: Speeches, Testimony, Statements Region: E/C Europe Country: Poland\ Subject: Trade/Economics, Democratization [TEXT] President Walesa of Poland Remarks upon his arrival at the White House President Walesa (through an interpreter): Thank you for such a nice welcome. Thank you for your friendly words. I am happy that I stepped again on the hospitable American land. I come as the president of a sovereign and democratic Republic of Poland. The country which was the first to challenge communism and today is building a system of freedom, democracy, and free enterprise. It is not a coincidence that it is America which is the target of one of my first trips in my presidential term of office. The United States has, for over 200 years, been exemplifying to the world how to build a system of freedom. The United States led the free world defending values of democracy and humanism. Your determination and your civilization bloom were the hope of Poles opposing alien domination. It was America, in the name of the international community, that restored, recently, peace and justice in the Persian Gulf. Poland is not a world superpower; its actions do not have a global dimension. But it was Poland first in Central Europe to step upon the path of freedom. Poland is the country which paves the way for other nations liberating themselves from communism. Poland also took upon itself the burden of leading in the structuring of a market economy. We use[d] in the past the assistance of the United States of America-political, economic, and, first of all, moral. Today, a major part of our debt burden was reduced. Your personal involvement in this cause has, for Poland, a historical dimension. It gives us new, great possibilities. For this help, I most cordially thank the great American nation. The changes in Poland are not completed yet. The political victory of solidarity should be reflected in economic success. Our success is important not only to us, it is needed for Europe because it is a condition of order and stability. It is needed by the whole free world, for it extends its boundaries by the central region of the continent. It extends the zone of democracy and security. The relations between the Republic of Poland and the United States have today reached their peak after the war. One could even say that they reached their peak in the whole of history. Our countries are linked by common values and the same ideals. We are linked by friendly collaboration on the international arena. I would like this to be followed by a development of mutually advantageous economic cooperation. Free Poland is becoming a country of new economic opportunities. It is worth[while] to broaden the cooperation with it, to trade and to invest. I invite you to this cooperation, for it is going to be advantageous to both sides. I know that you're a sincere friend of Poland. I'm grateful to you for your extremely goodwill[ed] interest in our problems. Our talks shall contribute to the strengthening of cooperation and the friendship of our nations. God bless you, Mr. President. God bless America.(###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

Polish President Visits the United States

Baker, Walesa Source: Secretary Baker and President Walesa Description: Remarks at a working luncheon, Washington, DC Date: Mar 20, 19913/20/91 Category: Speeches, Testimony, Statements Region: E/C Europe Country: Poland\ Subject: Trade/Economics, Democratization [TEXT] Secretary Baker: Ladies and gentlemen, it has been a pleasure to welcome a familiar visitor to the State Department today, particularly pleasant to welcome him in his capacity as President of Poland. We have had a very productive and, of course, friendly working luncheon with President Walesa and his colleagues. I'm particularly pleased also to welcome my colleague, the Foreign Minister of Poland, to the State Department today-a man with whom we work very closely in connection with the remarkable events taking place in Europe over the course of the past year and a half or so: the unification of Germany and other questions involving changes in the faces of the countries of Central Europe. We pointed out to the President that Poland is extraordinarily important to the United States of America. It is very, very important to us that Poland succeeds in its efforts to move toward political pluralism and to free market economics. It is important that it succeeds as an example of democratization and a free market, and the United States wants to do everything we can to assist and assure that success. That's one reason that we have pushed as hard as we have for official debt reduction for Poland's official debt and why the United States has taken the position that it is willing to reduce 70% of the principal amount of the debt that Poland owes to the United States so that, overall, there can be debt reduction in the neighborhood of 51% or 52% by those countries holding Poland's debt. We will continue to be active in international forums to generate additional assistance to Poland, and we will continue to submit to the Congress requests for substantial aid and assistance directly from the United States. Mr. President, Mr. Foreign Minister, it is indeed a pleasure to have you here today. President Walesa (through an interpreter): Taking advantage of the place where I can be heard by a broader audience, I would like to say the following: I am proud that fate has made me-has allowed me-to thank America for all the good that has so far met Poland. I must say that the reforms taking place in post-communist Europe are encountering special understanding here. I must say that our problems and troubles are very well understood both by the President and by Mr. Secretary. I trust that this understanding will help the reforms which are now encountering problems. Of course, today's problems are that we are expecting more participation in doing business. In all the post-communist countries, and particularly in Poland, there is big business to do. And the understanding on the part of today's leadership of the United States does face up to the challenge. I wish to say that at this time we are ashamed to extend our hand as it used to be in the past. The whole American nation does a great lot for all the world in all respects. These actions should be supported, and one should know how to thank all. A grateful Poland will support the actions of the United States. Once more, I thank you very much, Mr. Secretary, for your help in these great and difficult reforms. (###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

US Assistance to Poland

Date: Mar 20, 19913/20/91 Category: Fact Sheets Region: E/C Europe Country: Poland Subject: Trade/Economics, Development/Relief Aid, Democratization, Environment, Science/Technology, Media/Telecommunications [TEXT] Fact sheet released by the White House, March 20, 1991. In 1990, Poland adopted and implemented a comprehensive program of economic reforms more extensive than that of any other country in Central and Eastern Europe. The new government of President Lech Walesa is taking important steps to further the development of a market economy by speeding up both the pace of reform in general and particularly the process of privatization. Responding to requests for assistance from the Polish government, the US government provided over $300 million in grant assistance in 1990 and offered substantial credits from the Export- Import Bank and the Overseas Private Investment Corporation. The United States has begun projects in agriculture, privatization, technical training, labor training, concentrated ventures in clean fossil fuels, and air and water quality in the Krakow region. All of these activities will continue in 1991, but US technical assistance will expand considerably as we begin new efforts to help restructure the Polish economy. The United States will also substantially increase the amount of funds available for equity investment through the Polish-American Enterprise Fund and will initiate new programs to encourage US private sector investment in Poland.
Assistance Activities
Democratic Initiatives
. US programs in this area will provide: equipment and training for the national legislature, focusing primarily on the establishment of parliamentary procedures and the development of effective research and information systems; training for local and regional legislatures, city and regional managers, and other local public administrators in the basic skills of governance and administration; and support for independent media, including the establishment of a media resource center in Poland.
Food Aid.
In 1990, the United States provided over $90 millionin food aid to Poland. This assistance was intended to help stem Poland's declining standard of living and ease the budget crunch by improving the efficiency of private agriculture. Thanks in part to the effect of the market on supplies, major food aid will not be needed in 1991.
Stabilization Fund
. The United States provided $200 million to the Polish stabilization fund in 1990 as part of a multi-donor hard currency reserve fund to support transformation of the economy. The fund made limited convertibility of the Polish zloty possible by creating a reserve to be used by the Polish government if additional foreign exchange is needed. Poland has not had to draw on the fund to date, and has earned substantial interest which may be used in support of its economic programs.
The Polish-American Enterprise Fund
. The fund, which will be capitalized at $240 million, received $35 million in FY 1990 and will be given an additional $69 million in FY 1991. This privately managed investment fund can take equity or debt positions in new businesses or recently privatized firms, leveraging private capital and often facilitating joint ventures. For instance, the fund is already financing private banking, new housing construction, and agribusinesses.
Environment and Energy.
US programs carried out by the US Agency for International Development, the Environmental Protection Agency, and the Department of Energy will provide equipment and technical assistance for clean fossil fuels, technical assistance for air and water quality, and technical assistance to redress decades of environmental degradation. The United States is also providing assistance in improving energy efficiency.
Labor Market Transition.
The US Department of Labor is providing help in the development of unemployment insurance, job re-training, the creation of regional unemployment centers, and other "safety-net" mechanisms to assist those most disadvantaged during the transition to a market economy. The AFL/CIO is helping to strengthen trade unions and retrain the labor force.
Peace Corps
. Approximately 100 Peace Corps volunteers are in Poland teaching English, working on environmental projects, and assisting with small businesses.
Trade and Development Program (TDP).
TDP is financing more than $4 million in feasibility studies, consultancies, and training programs for major development projects with large export potential for the US private sector. I
nternational Financial Institutions
. The United States, as lead shareholder, has encouraged the World Bank (IBRD) to support Eastern Europe's redevelopment strongly. The bank already has plans to lend $9 billion to countries of the region. We have also led the way in obtaining an additional $7.5 billion in funding to Eastern Europe by the International Monetary Fund (IMF).
USAID Private Sector Development
USAID is launching several new activities which will focus on the development of the private sector in Poland. Some of these projects are:
Privatization and Enterprise Restructuring
will provide technical assistance to prepare state-owned enterprises for privatization, help private firms operate more efficiently, and help government agencies implement the policies, laws, and regulations necessary to privatization.
The American Business and Private Sector Development
Initiative will stimulate the transfer of US technology and the flow of US capital to Eastern Europe by promoting business opportunities in the region for US firms.
The Competition Policies, Laws, and Regulations Project
provides technical assistance in rewriting laws and regulations on taxation, antitrust, and the ownership and transfer of private property.
Financial Services
. USAID will assist in the critical development of a competitive banking industry and help create new financial institutions.
Management Training and Economics Education
will help develop the technical, management, and economics skills necessary to operate a market-oriented economy.
USAID will provide technical assistance for development of housing markets and a competitive construction industry.
Agriculture and Agribusiness
. The United States is helping develop a true cooperative system and create the framework for more privatization. In the
Humanitarian sector
, we are assisting with the improvement of health care and the creation of an improved social safety net. In addition, the Citizens Democracy Corps, a private voluntary organization created with the assistance of a US government grant, is helping to mobilize the resources of the private sector to assist in the Polish transition. CDC Chairman Drew Lewis is directing a major effort to modernize the Polish transportation and distribution system. Hundreds of private US organizations are mounting programs in Poland as well.(###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

Country Profile: Poland

Date: Mar 20, 19913/20/91 Category: Country Data Region: E/C Europe Country: Poland Subject: History, Trade/Economics, United Nations [TEXT] Official Name: Republic of Poland
Area: 312,680 sq. km. (about 120,725 sq. mi.); about the size of New Mexico. Cities (1988): Capital-Warsaw (pop. 1.7 million). Other cities-Lodz (851,500), Krakow (743,700), Wroclaw (637,400), Poznan (586,500), Gdansk (461,000). Terrain: Flat plain, except mountains along southern border. Climate: Temperate continental.
Nationality: Noun-Pole(s). Adjective-Polish. Population (1990): 37.8 million. Annual growth rate: Negligible. Ethnic groups: Polish 98.7%, Ukrainian 0.6%, Byelorussian 0.5%, Jewish 0.05%. Religions: Roman Catholic 95%, Eastern Orthodox, Uniate, Protestant 5%. Language: Polish. Education: Years compulsory-8. Attendance-97%. Literacy-98%. Health (1989): Infant mortality rate-13/1,000. Life expectancy- males 68 yrs., females 77 yrs. Work force (1988): 17 million. Agriculture-28.5%. Industry and construction-36.5%. Trade, community services, transport, communications-18.2%. Government and other-16.8%.
Type: Republic. Independence: 1918. Constitution: October 1990 (as amended). Branches: Executive-chief of state (president). Legislative- bicameral National Assembly (lower house)-Sejm, upper house- Senate). Judicial-Supreme Court, provincial and local courts. Administrative subdivisions: 49 provinces (voivodships). Political parties: Almost all freely elected seats in the present parliament are held by members who were supported by Citizens Committees organized by Solidarity before the June 1989 elections. These Sejm deputies and senators formed the Citizens Parliamentary Club (OKP). As plans are made for parliamentary elections in which all seats will be freely contested, many new parties are emerging. Suffrage: Universal over age 18. National holiday: Constitution Day, May 3. Flag: Two equal-sized horizontal bands of white (upper) and red (lower).
Growth rate (1989 est.): -1.6% Per capita GNP: $4,565 (purchasing power parity estimate). Inflation rate (1990): 4.9%. (November 1990; equals 60% annually). Natural resources: Coal, sulfur, copper, natural gas, silver, lead, salt. Agriculture: Products-grains, sugar beets, potatoes, livestock, oilseed. Industry: Types-machine-building, iron and steel, extractive industries, chemicals, ship-building, food-processing, glass beverages, textiles. Trade (1989 est.): Exports-$28.5 billion: machinery and equipment, coal, minerals, metals. Imports-$24.4 billion: machinery and equipment, fuels, minerals, metals, agricultural and forestry products.
Membership in International Organizations
UN and several specialized agencies, including the International Monetary Fund (IMF); the World Bank (IBRD); General Agreement on Tariffs and Trade (GATT); Conference on Security and Cooperation in Europe (CSCE).
Government and Politics
Poland has the largest population in Eastern Europe (37.8 million). The government was communist from 1947-89, when, after 9 years of strikes and struggle, the labor union Solidarity, led by electrician Lech Walesa, helped form a government led and dominated by non-communists. In January 1990, the Polish United Workers' (Communist) Party dissolved itself, creating in its place the new party of Social Democracy of the Republic of Poland. Most of the property of the former Communist Party was turned over to the state. Local elections in May 1990 were entirely free. Candidates supported by Solidarity's citizens committees won most of the races they contested. In October 1990, the constitution was amended to allow election of the president by general suffrage and curtail the term of President Wojciech Jaruzelski. In December 1990, Lech Walesa became the first popularly elected president of Poland. The present government structure reflects compromises made in an agreement between the former communists and the opposition. The bicameral legislature (the National Assembly) comprises the 460-member Sejm (lower house) and the 100-member Senate (upper house). The president nominates a prime minister who, together with his cabinet members, must be approved by the Sejm. A new constitution is being drafted, and a new parliament will be elected in 1991, probably in October. Judicial proceedings are carried out through a Supreme Court and provincial and local courts.
The Economy
Poland is undergoing a profound transformation as the government rapidly introduces a free-market system to replace the centrally planned economy of the communists. During 1990, economic reform stopped hyper-inflation, stabilized the currency, brought an end to chronic shortages of consumer goods, and produced a sizable trade surplus. At the same time, however, the economy suffered a recession, with sharp declines in industrial production and real incomes and steadily increasing unemployment. The United States and other Western countries have been supporting the growth of a free-enterprise economy by providing direct economic aid, restructuring the debt, rescheduling payments, and encouraging private investment in Poland. Poland is a member of the International Monetary Fund and the World Bank, has applied to join the Council of Europe, has a trade and cooperation agreement with the European Community (EC), and wants to join the EC by 1995.
Foreign Trade and Debt
Poland had a current account surplus of more than $1.8 billion for the first three quarters of 1990, but its trade balance suffered during the fourth quarter because of rising oil prices and other factors. Oil deliveries from Iraq (made to offset Iraq's $500 million debt to Poland) stopped in August 1990 in keeping with UN sanctions, while at the same time Soviet deliveries fell below projected levels. With the unification of Germany in October 1990, traditional Polish trade ties with East Germany, one of Poland's major trading partners, were disrupted. Poland's external debt exceeds $46 billion, and its debt- service ratio (the ratio of hard debt-service obligations to hard- currency earnings) is one of the world's highest, even after successive reschedulings by Poland's commercial and official creditors. Scheduled debt-service payments in 1989 amounted to $5.2 billion (equivalent to about 60% of the value of total exports in hard currency), but only about $1.5 billion was paid. Most of Poland's foreign debt (about $33 billion) is owed to Paris Club governments (official bilateral creditors including the United States), which extended to Poland a rescheduling agreement in 1990. The fifth rescheduling since 1981, the 1990 agreement included a temporary moratorium on debt-service payments. At a March 15, 1991, meeting, Paris Club members agreed to a minimum 50% reduction of the Polish debt they hold (individual creditors can offer a larger reduction if they choose). They also agreed to a restructuring of Polish debt that will reduce interest payments due over the next 3 years by 80%.
Poland is reducing armaments to levels agreed upon in the Treaty on Conventional Armed Forces in Europe, signed in Paris in November 1990. About 50,000 Soviet troops remain in Poland under Polish-Soviet agreements, mainly to provide logistical support to Soviet troops stationed on the territory of the former East Germany. Negotiations are underway on their withdrawal and on terms for the transit through Poland of Soviet forces being withdrawn from Germany.
Foreign Relations
Poland is developing a new, independent foreign policy, while strengthening friendly ties to the United States and other Western countries. Poland now has a permanent observer at NATO headquarters and is pursuing associate status in the European Community. Poland took part in the Two-Plus-Four meetings concerning the borders of unified Germany. A Polish-German border treaty confirming existing frontiers was signed in November 1990 and awaits ratification by Germany.
US-Polish Relations
The birth of the Solidarity labor movement in 1980 raised US hopes that progress would be made in Poland's foreign relations as well as in its domestic development. US policy throughout the Solidarity period had two goals: -- To encourage greater respect for human rights and individual freedom; and -- To avoid interference in Poland's internal affairs. Toward this end, for example, the US government provided $765 million of agricultural assistance during 1981. The United States responded to grad-ual human rights improvement in Poland in 1983-84 by easing sanctions. After an amnesty for political prisoners was declared in September 1986, the United States began a re-engagement that led to the lifting of sanctions in February 1987, when President Reagan restored Poland's most-favored- nation tariff status. In 1988, the United States and Poland upgraded their diplomatic relations and exchanged ambassadors. President Bush, who visited Poland as vice president in 1987, paid a state visit in July 1989, shortly after the parliamentary elections in which Solidarity candidates scored an overwhelming victory. After Walesa's visit to the United States in November 1989, Congress passed the Support for East European Democracy (SEED) Act, which authorized a $928 million assistance program for Poland and Hungary. Key provisions of the act were a $200 million contribution to the $1 billion international fund to stabilize Poland's currency and a $240 million grant to create an enterprise fund to promote development of Poland's private sector. The Polish-American Enterprise Fund supports training and technical assistance, primarily in Polish-owned companies, Polish- American joint ventures, and occasionally in subsidiaries or affiliates of US companies with business operations in Poland. The fund focuses on small and medium-sized companies. These and other SEED programs were designed to support the Polish government's economic-reform program and the country's rapid transition to a free-market economy. During Mazowiecki's visit to Washington in March 1990, the United States and Poland concluded a business and economic agreement to promote closer economic and trade ties. The Senate has ratified the agreement, which is awaiting action by the Sejm. Poland is reorienting its political and economic relations to pursue an independent foreign policy and to develop a competitive free-market economy. As it does so, the close cooperation that exists in US-Polish relations is expected to continue. (###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

Re-establishment of US-Albanian Relations

Seitz, Kapllani Source: Raymond G. H. Seitz, Assistant Secretary for European and Canadian Affairs, and Albanian Foreign Minister Muhamet Kapllani Description: Remarks at the signing ceremony of the Memorandum of Understanding re-establishing diplomatic relations between the United States and Albania, Washington, DC Date: Mar 15, 19913/15/91 Category: Speeches, Testimony, Statements Region: E/C Europe Country: Albania Subject: Democratization, Trade/Economics, CSCE [TEXT] (For text of the memorandum, see Dispatch Vol. 2, No. 11, p. 198) Assistant Secretary Seitz: I welcome you, Foreign Minister [Kapllani], to Washington and to the Department of State for this historic occasion. Today, after a lapse of 52 years, the United States and Albania are re-establishing diplomatic relations with the hope of building friendly and fruitful ties between our two peoples. The relationship between our countries goes back to the early years of this century, when President [Woodrow] Wilson extended American support for the young Albanian state. That relationship was never forgotten by the many thousands of Americans of Albanian origin, some of whom are in this room, who kept contact with their homeland over all these years. Despite differences in political systems, the common interests of our two countries have not altered since President Wilson's time. Both of our countries share an interest in a world in which all states, large and small, can live together without fear. We recognize Albania's independence and territorial integrity within its present borders. We welcome the aspirations of the Albanian people to join the Helsinki process and look forward to the day when Albania will be a full participant in the Conference on Security and Cooperation in Europe (CSCE). Today, Albania stands on the threshold of a new future. The Albanian people have made clear their hopes for a more democratic and prosperous country. The United States supports and encourages the process of political and economic reform which has begun in Albania. This process will mark an important step forward when multi-party elections are held at the end of this month. We are pleased that Americans will be among foreign groups who will observe them. It will be important to the CSCE community of nations and to the world that these elections are both free and fair. We understand the great social and economic hardships now confronting Albania. We believe that these difficulties can be overcome if all Albanian political parties and citizens pursue their goals through peaceful, democratic dialogue. The United States hopes to enter into a constructive and productive relationship with Albania on the basis of mutual interests. We intend to send a delegation to Albania in the near future to expand contact with the Albanian government and people and to begin preparations for establishing a diplomatic mission. Along with other countries and international organizations, the United States is prepared to support the efforts of the Albanian government and people to pursue economic and political reforms. Our ability to help will be linked to Albania's own commitment to reform and to its government's respect for fundamental human rights. We will also encourage private American organizations and individuals to make their own contributions to this process. I would like to thank all of the many people who made this day possible. Among them are a number of distinguished Americans of Albanian origin in this room today who contributed immensely of their time and efforts to forge a new relationship between our two countries. Mr. Foreign Minister, welcome again to the United States. We now begin to build a better future for both of our peoples. Foreign Minister Kapllani: It is a great privilege and honor to have been charged by my government to sign the document on the re-establishment of diplomatic relations between Albania and the United States. We are at a very important ceremony. I call it a historic moment, a big day. It is a big day, for today we are filling a gap which has been felt for too long between us. We are creating the favorable conditions to make up for lost time. This is not simply a symbolic moment of putting a signature in a document. It is a milestone on the road of our relations-a turning point in these relations which we do hope, or I'd rather say, are convinced, will witness successful developments. Albania is living one of the most exciting periods in its history of post-World War II. It is going through a radical democratic process which covers the political field, the superstructure, the economic field, the infrastructure, and all fields of life. We are committed to this process, because it responds to the present and long-term interests of the Albanian people to make Albania a truly-and a productive member of the family of the European nations. Albania believes in the CSCE process. The CSCE process has shown that security in the world of today is not simply a security of arms -military security, political security- it is at the same time, if not more than military, economic security-and economic security means economic development. We in Albania have many difficulties: We are facing economic difficulties, facing difficulties which have to do with political reforms, but these are difficulties which are leading us to a better future. That is why it is worth exerting all our efforts to meet this challenge of the time. We are fully confident that the Albanian people, along with the other European nations, along with this great country and nation with whom we are today re-establishing diplomatic relations, Albania will march ahead on the road of democracy in the interests of its own people, in the interests of peace and security in the Balkans and beyond. (###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

Problems and Opportunities in the Middle East

Kelly Source: John H. Kelly, Assistant Secretary for Near Eastern and South Asian Affairs Description: Opening statement before the Subcommittee on Europe and the Middle East of the House Foreign Affairs Committee, Washington, DC Date: Mar 20, 19913/20/91 Category: Speeches, Testimony, Statements Region: MidEast/North Africa Country: Egypt, Iran, Iraq, Jordan, Lebanon, Oman Subject: Security Assistance and Sales, Human Rights, Terrorism, Mideast Peace Process [TEXT] I am pleased to appear before this committee today as you consider foreign assistance legislation for FY 1992. On March 6, in his address to the Congress, the President identified four challenges which must be met if we are to build a framework for peace in the Middle East: -- Creation of shared security arrangements in the region; -- Control of the proliferation of weapons of mass destruction; -- An end to the Arab-Israeli conflict; and -- Regional economic cooperation and development. I accompanied Secretary Baker on his visit to the Middle East to begin the process of trying to meet these challenges.
Secretary Baker's Trip
In his conversations in the Middle East, Secretary Baker discussed various mechanisms which could help to guarantee against a repetition of Iraq's aggression against other Gulf states. The Damascus declaration, issued on March 6 [1991] by the foreign ministers of Syria, Egypt, and the six Gulf Cooperation Council [GCC] states, noted agreement on creation of an Arab peace force- including troops from Egypt and Syria-which would be stationed in Saudi Arabia and other Gulf states. Secretary Baker consulted with a number of our coalition partners concerning how to win the peace now that we have won the war. We currently are developing those key elements of a UN resolution which would establish a cease-fire, among other issues. We shortly will be consulting with the other members of the Security Council concerning this resolution. We expect that the six member states of the Gulf Cooperation Council will also be taking steps among themselves to improve their capability for cooperative self-defense. In addition, we discussed potential future arrangements for a US role in the Gulf. We included a continued-and perhaps enhanced-American naval presence, maintaining the US naval presence which has existed in the Gulf since 1949. We are also exploring what might be done to increase our air defense presence in the region. President Bush has stated publicly that we seek no permanent ground force presence in the Gulf region. We discussed the potential pre-positioning of military materials and equipment in the region which would be available for US forces in a future emergency. We also discussed combined training exercises which would improve our ability to work together with the states in the region, building on the successful experiences of Operation Desert Storm. All of those governments we consulted agreed on the need to eliminate weapons of mass destruction in Iraqi hands-whether or not Saddam Hussein remains in power. We will be working with our coalition partners on ways to address Iraqi weapons of mass destruction. All the officials with whom we met also agreed on the need to address the issue of weapons of mass destruction on a region-wide basis. Secretary Baker discussed, in each meeting, the Arab-Israeli dispute. We talked of the potential benefit of an approach on two tracks: one at the state-to-state level between Israel and its Arab neighbors and the second between Israel and Palestinians. The Secretary's discussions led to no instant decisions by the parties to the conflict. We did hear, from all those with whom we met, a new openness to consider fresh steps to address the Arab-Israeli dispute. We will be in contact with all parties in the days and weeks ahead to see if we can advance the process. Our principles remain the same: the goal of a comprehensive settlement achieved through direct negotiations based on UN Security Council Resolutions 242 and 338, including the principles of territory for peace, security for Israel, and the legitimate political rights of Palestinians. We do not underestimate the difficulty of the task which confronts all of us who seek to advance the cause of peace. We do believe that there are new opportunities in the aftermath of the unprecedented international cooperation which led to the liberation of Kuwait. Secretary Baker discussed, in each meeting, the question of economic cooperation in the Middle East region. On a preliminary basis there was general agreement that this issue needs to be addressed. Again, there were no decisions reached by the parties consulted, but there was agreement that there is a need to enhance the basis of economic cooperation among the states. We noted that the GCC summit in December [1990] adopted a special program for the creation of a new development fund. It may be that this GCC fund can provide the base for expanded international cooperation for countries inside and outside the region.
US Policy Toward Iraq
As the President has made clear, we believe that Iraq requires special vigilance. Iraq must not have access to the instruments of war. Moreover, Iraq has acknowledged its liabilities for damage resulting from its invasion of Kuwait. The international community will have to decide on appropriate reparations and the conditions for the lifting of economic sanctions. We believe the Iraqi people should decide Saddam Hussein's fate. The current strife derives from his disastrous policies. Clearly, the international community's relations with Iraq will be significantly affected by the resolution of this issue. As Secretary Baker has noted, we are not providing arms to Iraqi opposition groups, and we believe other states should refrain from interfering in Iraq's internal affairs. We support Iraq's territorial integrity as do other members of the coalition.
Foreign Assistance
Let me turn to the considerations which underlie our foreign assistance requests for Egypt and other Arab states in the Middle East. Economic and military assistance remain significant tools in our efforts to bring stability to the region. These assistance programs validated themselves during the recent crisis, as our multi-year assistance to Egypt and other Arab and Muslim states- such as Morocco, Oman, Pakistan, and Bangladesh-was repaid with dividends in the constitution of united will that defeated Iraq's aggression. I know that assistance to Israel and the occupied territories was covered in your previous two hearings with Deputy Assistant Secretary [Daniel C.] Kurtzer. [see Dispatch, Vol. 2, No. 10.]
Egypt played a vital role in shaping Arab reaction to the Iraqi invasion of Kuwait and informing and maintaining the coalition. Egypt deployed two divisions and a ranger battalion to Saudi Arabia and granted the coalition facilities in Egypt. With equipment obtained through US security assistance, Egypt participated actively and valiantly in the liberation of Kuwait. Egypt will continue to be a key partner both in securing stability in the Gulf and in pursuing peace in the broader Middle East region. Iraq's invasion of Kuwait had an adverse economic impact on Egypt, as it forced about 500,000 Egyptian workers to return home, thereby drastically cutting remittances to the Egyptian economy. Suez Canal receipts were reduced, and a virtual cut-off of tourism further devastated Egypt's sources of foreign exchange. US forgiveness of Egypt's foreign military sales (FMS) debt, forgiveness of debt by some other countries, and aid from Kuwait, Saudi Arabia, other Gulf states, and Europe softened, but did not offset, this economic damage. For 1992, we are requesting $1.3 billion in FMF [foreign military funds] and $815 million in ESF [economic support funds] for Egypt.
Lebanon has been in a state of turmoil for 16 years. Now, for almost 6 months, there has been no fighting in Lebanon. The Lebanese armed forces have consolidated their control over most of greater Beirut, and have opened up the "Green Line" that for so long divided Christians and Muslims in East and West Beirut. The army has also begun to deploy into parts of south Lebanon, which government forces have not entered for 12 years. This progress in large measure is due to the Taif agreement, which we continue to support as the best formula for achieving a Lebanon truly united, sovereign, independent, and in control of all its territory. The agreement provides a basis for other major goals such as the withdrawal of all non-Lebanese forces from Lebanon and the dissolution of all armed militias. We believe that Lebanon now has an unprecedented opportunity to achieve these goals through the extension of the authority of President Hrawi and the government throughout Lebanon. Lebanon still faces formidable problems. The fighting has stopped, but political differences are not yet settled. The army is extending its authority, but it remains under-equipped and poorly trained. The Gulf crisis caused an exodus from the Gulf of expatriate Lebanese workers, which deprived Lebanon's fragile economy of vital worker remittances. In FY 1990, we provided a total of about $28 million in assistance to Lebanon, mainly in the form of PL 480 Title II food aid [Food for Peace]; we also provided aid in the form of ESF, developmental assistance, and American Schools and Hospitals Abroad funds. We expect to maintain total assistance to Lebanon at approximately the same level in 1992. We are requesting $2 million in ESF for Lebanon; as in previous years, ESF will be expended largely for humanitarian and relief purposes. We are examining the possibility of redefining the focus of our aid to Lebanon from humanitarian assistance to development and for FY 1992 are requesting $4 million in developmental assistance.
The United States enjoys access to Omani military facilities under the terms of an agreement signed in 1980; that agreement was renewed in December [1990] for an additional 10 years. Access to these facilities proved essential for allied military operations several public references to our serious disappointment with Jordan's political position.
Jordan generally observed the sanctions against Iraq, with serious consequences for Jordan's economy. Moreover, we have not been able to substantiate any of the allegations of Jordanian military assistance to Iraq since August 2. We continue to believe that Jordan can play an important role in attaining stability in the area and in moving towards resolution of the Arab-Israeli dispute. We believe that we must maintain the flexibility to respond to possible Jordanian efforts to improve relations and to play a constructive role in the region. Therefore, we are requesting $25 million in FMF and $30 million in ESF assistance in FY 1992 in the hope and expectation that, with the defeat of Saddam Hussein, the Jordanian government will adopt policies which will enable us to re-establish our previously friendly relationship. For the present, our overall aid program for Jordan remains under review.
We have no quarrel with the way Iran conducted itself in the Gulf crisis. It obviously has pursued its own interests, but it has acted throughout the crisis in a generally responsible manner. It condemned the Iraqi invasion, insisted on immediate and unconditional withdrawal of Iraqi forces from Kuwait and generally enforced economic sanctions. It has cooperated with international agencies on war refugees. It pledged that Iraqi aircraft which fled to Iran would not be returned to Iraq during the war, consistent with Iran's obligations under UN Security Council Resolution 678. In our view, no Iraqi civilian or military aircraft should be returned to Iraq unless authorized by the UN Security Council. We have consistently made clear to the Iranians that the US is prepared to improve bilateral relations with Iran and that we are willing to engage in direct contacts with authoritative officials of the government of Iran. However, we also have made it clear to the Iranians that real improvement in our bilateral relationship depends upon a cessation of Iranian support for terrorism and positive Iranian action to free the hostages now held in Lebanon by groups supported by Iran. We believe that Iran should not expect the benefit of normal relations with the international community until it acts responsibly on these key issues. We continue to maintain an indirect dialogue with Iran through the Swiss, who serve as our protecting power in Tehran. We also deal directly on legal and financial matters at the Claims Tribunal in The Hague.
In conclusion, let me say that in his conversations in the Middle East, Secretary Baker underlined the need for movement on the hostage issue. We continue to press the question and to look for ways to secure their safe and quick release. (###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

Secretary Baker's Remarks on Middle East Trip

Baker Source: Secretary Baker Description: Opening remarks from a news conference in Moscow Date: Mar 16, 19913/16/91 Category: Speeches, Testimony, Statements Region: MidEast/North Africa Subject: Mideast Peace Process [TEXT] The main purpose of this trip was to consult on ways to create a different basis of peace and stability in the Middle East. We hoped that there would be a positive response to our ideas. There was, and we found a broad consensus on the four parts of our approach. We found broad support for our ideas on security, a consensus that now was the time to try and move on arms control and the peace process. The Soviets were responsive, and I think that there is a basis for us to continue to work together. I will be giving the President additional briefings on my talks when we get back, having sent him detailed reports each day as we go along. Now that we have broad agreement on some of our concepts, we will begin to follow up on specifics. In my opinion, we have laid a necessary foundation for doing this and, while I think we have to recognize that we've got a long ways to go, I am pleased that the foundation has jelled as quickly as it has....(###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

North American Free Trade Agreement

Date: Mar 25, 19913/25/91 Category: Fact Sheets Region: North America Country: Mexico, Canada, United States Subject: Trade/Economics, North America Free Trade [TEXT] On February 5, 1991, President Bush announced that the governments of the United States, Canada, and Mexico are preparing to negotiate a historic free trade and investment agreement. The United States and Canada have a similar bilateral free trade agreement (FTA), which was signed in 1988. The trilateral negotiations will give us an opportunity to build upon the US-Canada agreement. The proposed North American agreement would be a catalyst for economic growth and development. The United States, Canada, and Mexico would all obtain significant benefits from increased trade, investment, and jobs. A North American free trade area encompassing all three countries would constitute the world's largest market, with annual production of $6 trillion and more than 360 million people.
The negotiations seek a broad agreement to eliminate restrictions on the flow of goods, services, and investment among the United States, Canada, 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 non-tariff barriers on goods and services; -- Ensuring an open investment climate; and -- Full protection of intellectual property rights (patents, copyrights, and trademarks).
Expanded Trade With Mexico
Mexico is our third largest trade partner with bilateral commerce of $52 billion in 1989 and an estimated $59 billion in 1990. 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 86 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 was attributed to trade. Increased exports have helped the US economy expand out of recessions.
Investment Opportunities in Mexico
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 US 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. An open trade and investment climate will foster further partnerships and alliances in industrial agriculture and service sectors. These partnerships 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, Canada, and Mexico alike.
US Foreign Policy Benefits
Mexico is a close neighbor and friend, and an FTA would strengthen our good relationship. Mexico's example of market-oriented economic reform is a significant role model for other developing countries. It also is important as the cornerstone of a comprehensive Western Hemisphere policy. A North American FTA would give further substance to President Bush's long-range vision of a hemisphere-wide free trade area.
North American Free Trade Agreement
Following is a joint statement issued by the United States, Canada, and Mexico on February 5, 1991. The President of the United States, George Bush; the President of the United Mexican States, Carlos Salinas de Gortari; and the Prime Minister of Canada, Brian Mulroney, announced today their intention to pursue a North American free trade agreement creating one of the world's largest liberalized markets. Following consultations among their ministers responsible for international trade, the three leaders concluded that a North American free trade agreement would foster sustained economic growth through expanded trade and investment in a market comprising over 360 million people and $6 trillion in output. In so doing, the agreement would help all three countries meet the economic challenges they will face over the next decade. Accordingly, the three leaders have agreed that their trade ministers should proceed as soon as possible, in accordance with each country's domestic procedures, with trilateral negotiations aimed at a comprehensive North American free trade agreement. The goal would be to progressively eliminate obstacles to the flow of goods and services and to investment, provide for the protection of intellectual property rights, and establish a fair and expeditious dispute settlement mechanism.
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. The Canadian government formally requests participation in the negotiations. President Bush notifies the US Congress of US intent to enter into negotiations with Mexico. In the same letter, he notifies the Congress of Canada's interest in participating in the negotiations and US intent to consult trilaterally about the prospect of Canadian participation. (Following notification, the House Ways and Means and Senate Finance Committees have 60 legislative days 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.) February 1991. President Bush notifies the US Congress of US intent to enter into negotiations with Canada. Congress does not deny fast track authority for negotiations with Mexico. Spring 1991. Formal negotiations begin after the expiration of the 60-day requirements and are expected to conclude in 1992.(###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

US-USSR Joint Statement on El Salvador

Tutwiler Source: Statement; Department Spokesman Margaret Tutwiler Description: Washington, DC Date: Mar 16, 19913/16/91 Category: Speeches, Testimony, Statements Region: Central America Country: El Salvador, USSR (former), United States Subject: International Law, Terrorism [TEXT] The US Department of State and the Soviet Foreign Ministry today issued the following joint statement on El Salvador. The negotiations which have taken place during the last several months-under the mediation of the UN Secretary General [Javier Perez de Cuellar]-between the government of El Salvador and the FMLN [Farabundo Marti National Liberation Front], although not yet successful in producing final comprehensive accords for restoring peace to the country, nevertheless, offer hope that both sides involved in the conflict recognize the uselessness of reliance on military force and the necessity of searching for political means to overcome the differences between them. Both the government and the FMLN have narrowed their differences on important issues defined by the Caracas and Geneva agreements. The Foreign Minister and Secretary of State reiterated their conviction that only through political means, worked out over the negotiating table, will it be possible to reach mutually acceptable decisions which would help resolve the crisis in El Salvador. They reaffirmed their willingness to offer full assistance to support the speedy achievement of a successful negotiation. They again emphasized the importance of the UN Secretary General's mediation efforts and affirmed their hope that the "friends of the Secretary General" (Spain, Mexico, Venezuela, and Colombia) can play an active role in support of the negotiations. The ministers noted especially, in this regard, the importance of the Salvadoran legislative and municipal elections of March 10, 1991, for the normalization of conditions in that country and in Central America, and noted the determination of the majority of Salvadorans not to engage in violent activities during this period. They expressed the hope that the elections, which have been held, will accelerate the process of national reconciliation in El Salvador and will strengthen those forces seeking to end the conflict through negotiations. The USSR and the United States called on both parties to accelerate the process of negotiations. They noted the importance of reaching political agreements leading to a cease-fire and reaffirmed that a negotiated political settlement in El Salvador, which respects the political rights and security of all Salvadorans, also will contribute to progress in democratization, development, and regional disarmament throughout Central America. (###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

The United States Enters The Global Community, 1895-1913

Date: Mar 25, 19913/25/91 Category: Features Country: United States Subject: History [TEXT] The following was prepared by the Offices of the Historian and of Public Communication. At the turn of the century, the unprecedented US involvement in international affairs and the assumption of complex diplomatic tasks around the world inaugurated a period of growth and change for the Department of State and for the emergence of modern diplomatic and consular services. Under President William McKinley (1897-1900) and his successors, Theodore Roosevelt and William Howard Taft, the United States played a leading role in the momentous international developments that characterized the period from the turn of the century to the eve of World War I. The Spanish-American War freed Cuba from colonial rule in 1898, and the Treaty of Paris (1900) which ended the conflict, left the United States with other remnants of Spain's colonial empire, including Puerto Rico, the Philippine Islands, and Guam. At the end of the Spanish-American War, President McKinley recalled John Hay, who was serving as American Ambassador in London, to succeed William Day as Secretary of State. Secretary Hay was the primary architect of America's new assertiveness in international affairs. He directed-in close concert with McKinley's successor, Theodore Roosevelt-the diplomatic arrangements for a canal across Central America, culminating in the establishment of an independent Panama and the creation of a Panama Canal Zone under US control. The construction of the canal demonstrated American industrial might and its growing economic and political interest in Central America and the Caribbean. In his annual message to Congress in December 1904, Roosevelt enunciated his "corollary" to the Monroe Doctrine, when he asserted the right and duty of the United States to intervene in the affairs of other nations in the hemisphere in order to assure the domestic stability essential for their economic and political development. Roosevelt saw the United States as the hemisphere's policeman, a policeman who "spoke softly but carried a big stick." Secretary Hay's personal leadership was even more apparent in the expanding US role in the Far East. His "Open Door" policy in China clearly signaled to other nations that the political and economic future of China could not be decided without the full participation of the United States. The US role in handling the Boxer Rebellion in 1901 gave Hay an opportunity to enunciate America's position against any dismemberment of China. Hay's policies were carried on after his death in office by his successor, Elihu Root. Root ably handled the new complex colonial responsibilities of the United States and was notably successful in defining and expanding inter-American friendship and mutual respect. He was the first Secretary of State to travel to the area and was a powerful promoter of the Pan-American Union. This robust foreign policy was only one side of the growing involvement of the United States in world affairs. The peaceful settlement of disputes remained a fundamental principle of American foreign affairs and received renewed emphasis in the first years of the 20th century. Americans believed that their spirit of justice and fair play could be an antidote to the dangerous suspicions and rivalries of the Old World. The United States played active roles in both the First and Second Hague Peace Conferences (1900 and 1907) where diplomats from many nations explored alternatives to war in the settlement of disputes. Secretary Root campaigned for a permanent international court to settle disputes, and Secretaries Hay and Root worked to establish arbitration agreements with other nations. The United States also participated in major international efforts to resolve ongoing conflicts. President Roosevelt was particularly successful in bringing Russian and Japanese negotiators to peace talks in Portsmouth, New Hampshire, in the summer of 1905, exerting his influence to end the war between the two countries.
The Department Reorganizes
To meet the growing challenges of international diplomacy, it was necessary to reform and reorganize the Department of State. By the turn of the century, persistent complaints about the quality of assistance abroad to American travelers and businesses led to demands for the reform of the consular service. President McKinley took the first step in 1895 by ordering written and oral examinations for prospective appointees to most consular posts, but significant reform did not begin until 1906 when merit was firmly fixed as the criterion for promotion. In 1909, under Secretary Philander Knox, the Department was reorganized and four geographical divisions were established to cover Latin America, the Far East, Western Europe, and the Near East. Experienced diplomats were brought back from posts abroad to direct these new divisions. This marked the beginning of the policy of regularly rotating officers between overseas posts and assignments in Washington, DC. Reform of the diplomatic service itself also began to gain momentum. Professionalization of the service was sought in order to exempt recruitment, tenure, and promotion from political control. Efforts were made to open the service to a wider representation of persons with specialized skills.
Intrepid Consuls Abroad
In the absence of a full-fledged diplomatic service, consuls at the turn of the century sometimes found themselves at the center of major international hot spots. American consuls in Cuba in the 1890s reported on the deplorable conditions that led to the revolt against Spanish rule, and the reporting of Consul General Fitzhugh Lee was a key link in the chain of events that led to the dispatch of the battleship Maine to Havana harbor. Oscar Williams, Consul at Manila, cabled valuable military information on the situation in the Philippines to Admiral Dewey and paved the way for the Admiral's victory over the Spanish battle fleet in Manila Bay. And Willard Straight, Vice Consul at Seoul, Korea, in 1905 and Consul General in Mukden, Manchuria, until 1909, formulated a plan for a consortium of international bankers to provide urgently needed loans to the Chinese government that would allow it to resist dismemberment at the hands of imperialist powers.
Key Events
1900: Treaty of Paris ending the Spanish-American War gave the US Puerto Rico, Guam, and the Philippines, expanding US power in the Pacific. 1901: Secretary Hay enunciates the Open Door policy of the United States and warns other powers against dismembering China. 1903: Hay-Bunau-Varilla treaty conveyed the Panama Canal zone to the United States. 1904: President Theodore Roosevelt announces his corollary to the Monroe Doctrine.
Secretaries of State, 1985-1913.
Richard Olney: 1895-97 John Sherman:1897-98 William Rufus Day: 1898 John Hay: 1898-1905 Elihu Root: 1905-09 Robert Bacon : 1909 Philander Chase Knox: 1909-13 (###)
US Department of State Dispatch, Vol 2, No 12, March 25, 1991 Title:

Focus on Central and Eastern Europe

Date: Mar 25, 19913/25/91 Category: Focus on Emerging Democracies Region: E/C Europe Subject: Development/Relief Aid, Trade/Economics [TEXT]
Summary of Initiatives
White House Conference on Management Training and Market Economics Education
The importance that the Bush Administration attaches to economic development in Central and Eastern Europe was underscored again on February 27, 1991: as US and coalition forces battled the Iraqi army in the Gulf, President Bush attended a White House conference seeking private-sector support for the education and training needed to make the emerging Central and East European market economies work. The President told the attendees: "Historic events in Central and Eastern Europe-I called it the Revolution of '89 and its aftermath-have, indeed, inspired us all. These countries are committed to free societies and free-market economies. And we have been strong supporters of economic reform in Central and Eastern Europe through major bilateral commitments and supportive stabilization programs, enterprise funds for the private sectors of Poland, Hungary, and Czechoslovakia, and improved trade and investment relations. . . . But Central and East Europeans cry out for one thing that the federal government- our federal government-alone certainly cannot offer, and that is private investment and practical free-market expertise and involvement from Americans. . . . Universities, businesses, foundations, government- all have something to contribute." More than 200 corporate executives, university presidents and deans, philanthropists, and representatives from non-profit organizations attended the conference. Also attending were Yugoslav Vice President Pregl, Bulgarian Deputy Prime Minister Pirinski, and ministers from Czechoslovakia, Hungary, Poland, and Romania. As a result of the meeting, some business schools are now offering scholarships for Central and East Europeans for a full school year and for shorter advanced management courses.
International Media Fund
The International Media Fund, created in 1990, was the product of Secretary Baker's call for a nongovernmental organization to foster independent media in Central and Eastern Europe. Among other projects, the fund draws on US media organizations and individual journalists, editors, and others to help independent broadcasting and print media in the Central and East European region. In January, the Media Fund hosted a seminar held at the Gannett Foundation. More than 25 US organizations were represented. In many cases, news organizations can provide free training, tuition, and room and board to Central and East Europeans but lack funds for international travel. For additional information about the International Media Fund, call its Executive Director, Mr. Aurelius Fernandez, at 202-296-9787.
Central and East European Law Initiative
The American Bar Association's Central and East European Law Initiative (CEELI) sent a delegation to Bulgaria January 28-February 1 to discuss that country's draft laws on judicial restructuring. The discussions were co-sponsored by the Bulgarian Ministry of Justice and included representatives from the Constitutional Drafting Committee of the newly elected Grand National Assembly, the Office of the President of Bulgaria, the Central Committee of the Bulgarian Bar Association, the Union Lawyers of Bulgaria, and the Ministry of Justice, plus faculty and students of Sofia University, judges, and practicing lawyers and prosecutors. The discussions provided the CEELI delegation with the opportunity to address general concepts about instituting an independent judiciary and to comment on the many provisions contemplated in Bulgaria's new laws on the judiciary. The discussions were so successful that CEELI was asked to send another delegation in March to discuss separation of powers, with special emphasis on the office of the president. CEELI also has been asked to comment on drafts of the proposed constitution, a land-use law, and legislation on commercial transactions, anti-trust, and foreign investment. A CEELI working group has reviewed Romania's draft constitution and will go to Bucharest in March to discuss it. CEELI is trying to include opposition and nongovernmental representatives in CEELI projects in Romania. CEELI conducted a workshop in Ljubljana, Yugoslavia, on the independence of the judiciary February 4-8. The workshop brought together US, West European, and Yugoslav law experts, plus observers from Czechoslovakia, Hungary, Poland, and Romania. In an unusual display of common Yugoslav interest, more than 35 judges, law professors, lawyers, and government representatives came from the national federation and each of Yugoslavia's six republics and autonomous provinces to attend the workshop, which was developed in cooperation with the Yugoslav Federal Ministry of Justice and Slovenia's Ministry of Justice. A workshop report will be published and distributed. It will summarize the discussions and recommendations and will serve as the basis for follow-up consultations. A major objective of the Ljubljana and other CEELI workshops is to expand the discussions beyond the issues and boundaries of the host country. In the case of the Ljubljana workshop, the experiences and insights of the observers from other Central and East European countries contributed to the discussions. Moreover, Dr. Jan Pelikan, a Czechoslovakian Supreme Court justice, brought his country's draft law on judicial restructuring for review by the CEELI delegation. A CEELI workshop addressing issues affecting local governments and municipalities is scheduled for April in Poland. For additional information, call CEELI's Executive Director, Mark Ellis, at 202-331-2619 (fax: 202-457-1163).
International Book Bank Opens
The International Book Bank, which provides a computerized clearinghouse for donated books for Central and Eastern Europe and elsewhere, officially opened its doors in Baltimore, Maryland, on February 28. First Lady Barbara Bush helped celebrate the opening. For more information about the bank, call 301-633-2929.
National Forum Foundation
Fifteen young professionals from Czechoslovakia, Hungary, and Poland are taking part in a January-April internship sponsored by the National Forum Foundation and partly funded by a grant from the US Information Agency (USIA). The 15 are leaders in the fields of business, law, politics, and the media. This is the fourth such group sponsored by the National Forum Foundation.
Teaching English
In February, USIA's Bureau of Educational and Cultural Affairs approved a $218,042 grant to the Center for Applied Linguistics to provide for the recruitment, placement, and support of 40 English- as-a-foreign-language fellows. The fellows will be placed in universities and pedagogical institutions in the six Central and East European countries in consultation with local education officials. Their assignments will be for 1 year.
Private-Sector Initiatives
The Citizens Democracy Corps is a national non-profit organization that encourages cooperation between US citizens and organizations and the countries of Central and Eastern Europe and the Soviet Union. Its December newsletter contained the following examples of private-sector initiatives:
. Three residents of Mackay, Idaho, decided to renovate horse- and tractor-drawn potato planters and harvesters that were no longer being used in Idaho and donate them to Poland. High school students renovated the equipment in their high school shop. With the help of the Morrison Knudson Company, the Polish-American Congress, and a Polish steamship line, four planters were shipped to Poland last spring in time for the planting season. For more information, contact Ms. Kristen Thompson, President, Idaho Poland Project, Inc., P.O. Box 146, Mackay, ID 83251 (tel: 208-343-2454).
Law Books
. Robert Bradspies of California found out that law books were needed in Central and Eastern Europe. He and volunteers then contacted more than 660 law firms, publishers, and libraries for contributions of books. The first planeload of books was delivered to Prague, Czechoslovakia, last November-just in time for the first in a series of legal seminars being held there by the American Bar Association's Central and East European Law Initiative. The books were used as reference materials for the seminar. For additional information, contact Robert Bradspies, Chief Operating Officer, Project Booklift, POB 25925, Los Angeles, CA 91025 (tel: 213-216-1108) or Mark Ellis, American Bar Association, Suite 450 South, 1800 M St., NW, Washington, DC 20036-5886 (tel: 202-331-2619).
Book Program Successful. USIA reached agreement in February with three Bulgarian publishers to translate and print eight titles in 1991. As many as 15 additional publishing agreements could be concluded by the end of September, bringing the projected total of books in production under this Bulgarian program to 23. The titles selected emphasize entrepreneurship, market economics, and democratic theory.
Fulbright Commission Established. A cultural agreement between the United States and the Czech and Slovak Federal Republic was signed on January 14, marking the establishment of the second Fulbright Commission in Central and Eastern Europe (Hungary was the first). Independent Media. Thanks to a USIA/TV-donated satellite antenna, an independent Czech station is now broadcasting a wide range of USIA/TV-produced and -acquired programs.
Center for Parliamentary Management. Since its official inauguration last fall, the US government-supported Center for Parliamentary Management in Budapest has conducted training, provided information, and reached out to involve Hungarians in activities that support the parliament. The center is off to a good start and complements Rep. Martin Frost's (D-Texas) task force on assistance to the democratically elected parliaments of Central and Eastern Europe.
Small-Business Development
. When the Hungarian Foundation for Small-Enterprise Economic Development was founded more than a year ago, no foreign organization was willing to support it. USIA then stepped in to offer a support package that included a long-term academic specialist grant, a one-country international- visitor program, and, under the Fulbright program, an Alexander Hamilton lecturer on entrepreneurship. Today, the fledgling foundation is Hungary's premier institution in small-business development.
Union Pacific Helps. Union Pacific Railroad was one of the first US companies to offer private aid to the new democracies of Central and Eastern Europe. A three-member Union Pacific team visited Warsaw in December to advise the Ministry of Transportation on key transportation, technology, and distribution issues.
Krakow and Rochester Are Sister Cities
. As the Sister City relationship grows between Krakow and Rochester, New York, Rochester has provided medical and technical assistance, hosted an intern from Krakow, and invited Krakow to plan a program of additional municipal cooperation. For information about starting a Sister Cities program, call the national office of Sister Cities International at 703-836-3535.
Western Assistance. The 24 Western industrialized countries called the Group of 24 agreed in January to bring Romania into the economic aid program that helps Central and East European countries. On January 31, the Department of State's press spokesman made the following statement: In recent weeks, a consensus emerged among the G-24 in favor of permitting economic assistance for Romania. The US notes that Romania has made progress on G-24 eligibility criteria. We, therefore, did not object to the G-24 consensus. We still have concerns about developments in Romania, including democratization, independent media, and treatment of minorities. We continue to encourage Romania to work toward creation of a democratic system with full protection for civil and human rights, and a market economy. In this fiscal year, the US will provide Romania technical assistance to suppport democratic institutions and organizations, protection of human rights and the rule of law, and independent media, as well as humanitarian food aid and assistance to Romanian children.
World Vision Helps Orphans
In response to the severe health-service crisis and training needs in Romania, the Romanian government in 1990 invited World Vision to develop the Romanian Orphans' Social and Educational Services (ROSES) Project. This project, which is only one component of World Vision's overall Romanian focus, provides direct professional care for up to 15,000 orphans via teams of child-development specialists and counseling, training, and assistance to Romanian professionals, paraprofessionals, and volunteers. The interrelated disciplines involved are development pediatrics, occupational therapy, pediatric nursing, speech pathology, physical therapy, child psychology, early childhood education, and social work. World Vision is currently operational in five of nine targeted locations and expects to become operational in the other four by this summer. Twenty of the 28 specialized medical positions have been filled with people from Austria, Australia, Canada, Switzerland, the United Kingdom, and the United States. The remaining eight positions will be filled as the final four project locations become operational. The ROSES grant budget totals $1,356,920, of which World Vision will receive $608,000 from the US Agency for International Development during fiscal years 1991-92. World Vision estimates that it also will receive an additional $4 million in donations. To volunteer, to donate money or goods, or to obtain additional information, call or write World Vision, 919 West Huntington Drive, Monrovia, California 91016 (telephone: CA: 818-357-7979; Washington, DC: 202-547-3743).
Romanians Learning English
. A USIA book exhibit in Bucharest that offered English-language study materials for sale in Romanian currency drew such big crowds that hundreds of people had to be turned away each day. Meanwhile, USIA's library in Bucharest continues to draw huge crowds and set a new attendance record of more than 9,300 patrons during a recent week. Articles Welcome If your organization wants to publicize its activities in Central and Eastern Europe, seek more volunteers or donations, or suggest ways that US individuals and businesses can help the new democracies, please send short articles (maximum length two 8"x11" pages single spaced) to Tony Allitto, PA/PC - Room 6808, US Department of State, Washington, DC 20520-6810 (fax: 202-647-6738). (###)