US Department of State 

Dispatch, Vol 2, No 17, April 29, 1991


Nicaraguan President's Visit

Bush, Chamorro Source: President Bush Description: Remarks at arrival ceremony; Washington, DC Date: Apr 17, 19914/17/91 Category: Speeches, Testimony, Statements Region: Central America Country: Nicaragua Subject: Development/Relief Aid, Trade/Economics, Democratization [TEXT]
President Bush
. It gives me great pleasure to welcome to the United States a woman of courage, a leader of conviction, a person of morality and vision: Mrs. Violeta Chamorro, President of Nicaragua. We stand here at the White House almost a year to the day after the extraordinary moment when you stood at Managua's national stadium to be sworn in as your nation's first freely elected president. What a moment that was. In you we saw the exhilarating victory of democracy of that glorious new breeze that, in 1 amazing year, swept out oppression and dictatorship, from Prague to Managua. In you we saw your nation's peacemaker, the person who would close the books on 11 years of cruel civil war. In you we saw the symbol of national reconciliation with the inner strength and resolve to turn the face of your country toward the path of healing. In you we saw what your countrymen saw when they cast their ballots in their first fair, open election. We all saw the person who inspired her people to believe in the triumphant return of peace and freedom. On that Inauguration Day we saw Dona Violeta, candidate of compassion, become President Chamorro, leader of reconciliation. On that day you closed a painful chapter in your nation's history, and you began to forge a new one. The beautiful land of Ruben Dario had been exhausted by strife, embittered by repression, polarized by government attempts to dominate every single aspect of society, impoverished by a cynical and mismanaged regime. But you are the leader who once said: "As a mother, I feel with great intensity the obligation to teach while governing and to govern while forming peaceful hearts." And you've begun to bring life and dreams back to your people in your "mission to help them- as you call it, "mission to help them." Your courageous countrymen are showing that they are ready to dig in and work hard to reap the benefits of free government and free enterprise. Following the course of your slogan: "Yes, we can change things," your reforms are realistic-restoration of democratic liberties, religious freedom, economic reconstruction, free market opportunities, reallocation of military funds to vital economic and social programs, and reincorporation of former combatants and refugees. But your reforms also are visionary-the restoration of moral values and human dignity, the importance of an inheritance for your children of reconciliation and respect, and the belief in the goodness of a people that still turns for guidance to its patron Saint, La Purisima. And your reforms, your "new sun of justice and freedom" bring hope to the watching world. For with the democratization of Nicaragua, we are one crucial step closer to the incredible goal of becoming this world's first fully democratic hemisphere. We know that the tasks facing the Nicaraguan people are difficult. Your economic stabilization plan requires hard choices. Economic reform, after years of mismanagement, is never easy and presents challenges to leadership. But sacrifice in the short run is vital to achieve long-term growth and development. We hope that all elements of Nicaraguan society will work with you for the good of your country. The Nicaraguan people do not stand friendless and alone to face these challenges. We are confident that as you confront them, all Nicaraguans will enjoy renewed and widely shared prosperity. Dona Violeta, I am proud to stand with you, and our nation is proud to stand by you. We're offering over $500 million in aid over your first 2 years as President. We've joined with other developed countries to work with the international financial institutions to help Nicaragua. Beyond aid, we're offering opportunities for trade and investment that will benefit both our countries through the Enterprise for the Americas Initiative. And most of all, we're offering something from our hearts to your proud country-your blue and white Nicaragua where, as your national anthem says, "the voice of the cannon no longer roars." We are offering you our respect, our admiration, and our friendship. As your nation renews itself under your leadership, the world shares the view of Nicaraguan poet Pablo Antonio Cuadra, who wrote about your late husband, Pedro Joaquin, who was tragically assassinated for the pure passion of his political idealism. Cuadra said of you: "Pedro's flag could not be in better hands." Madam President, your nation is fortunate to have you as a leader. I am proud to have you as a friend. We salute you. And may God bless you and your proud and courageous land. Welcome to the United States.
President Chamorro
. President Bush, my good friend; Mrs. Barbara Bush, my good friend, also; ladies and gentlemen. Many years have elapsed since the President of Nicaragua has made a state visit to the White House. It is a great honor for me to be here with you this morning, for it represents the establishment of a new and precious relationship between our two nations. The genuine friendship extended by a noble country, such as the United States, deserves in turn the friendship of democratic governments that respect the rights of their people. For only in this manner can there exist a sincere relationship between both nations. As we meet today, Mr. President, it is our responsibility as leaders of two democratic nations to begin fertilizing the seed of a new friendship, a friendship based on our shared belief in democracy and mutual respect. I would also like to take this opportunity to express our gratitude to the people and government of the United States of America for the assistance they have provided to Nicaragua. That assistance was a decisive factor during my first year in office. Now, Nicaragua has begun to recover from the years of political instability and continuous conflict. I must conclude by reiterating my government's firm commitment to the sacred principles of democracy shared by our peoples. This commitment is, and will continue to be, to work toward consolidating peace, strengthening our democratic institutions, respecting human rights, and putting our economy in order. I shall work toward achieving this goal without wavering, because I have adopted as my own those universal truths which Abraham Lincoln bequeathed to mankind: "A government of the people, by the people, and for the people." God bless and protect the peoples and governments of the United States and Nicaragua. Thank you. (###)
US Department of State Dispatch, Vol 2, No 17, April 29, 1991 Title:

Nicaraguan President's Visit

Aronson Source: Bernard W. Aronson, Assistant Secretary of State for Inter-American Affairs Description: Excerpts from remarks at White House press briefing; Washington, DC Date: Apr 17, 19914/17/91 Category: Speeches, Testimony, Statements Region: Central America Country: Nicaragua Subject: Development/Relief Aid, Terrorism, Trade/Economics [TEXT] The President concluded a very warm and very positive bilateral meeting with President Chamorro and her cabinet and members of the President's cabinet. President Chamorro began the discussion-after the President greeted her and told her how personally pleased he was to see her, not just as a fellow head of state, but as a friend-by detailing some of the accomplishments to date in her administration. She mentioned that she's reduced the size of her army by 60%; that they have passed legislation to privatize their banking system; [and] that they have introduced legislation to open up Nicaragua's economy to foreign investment, to privatize state enterprises. She also mentioned that they have passed legislation that makes it a criminal offense to send weapons from Nicaragua to any guerrilla group and that the people who sent weapons to the FMLN [Farabundo Marti National Liberation Front] recently are currently in jail. She also restated what she told the Joint Session of Congress yesterday, that Nicaragua strongly supports the President's Enterprise for the Americas Initiative and the proposed North American Free Trade Agreement and the fast-track authority to negotiate such an agreement. And she expressed the hope that Central America might, at some point, participate in such an agreement. She said that the most critical and most difficult issue facing Nicaragua today is its effort to clear its arrears with [the] World Bank and the Inter-American Development Bank. She noted that there will be a meeting in Paris on May 15th of international donors and said that it was crucial for Nicaragua to normalize its relations with the international financial institutions so that capital flows can return to the country and support their economic recovery program. And she asked for the President's help, especially on this issue. The President pledged strong and firm US assistance to Nicaragua and made it clear that the United States, along with the World Bank, will lead an international effort with the international financial institutions and other donors to help Nicaragua clear its arrears and normalize its relations with the international financial institutions so that financial resources can become available to support Nicaragua's economic reforms and development. And the President said, "One way or another, together we will do it." Secretary Robson said, "We will break our neck to help ensure that this is a success." And Mrs. Chamorro said, "I will sleep better tonight because of that commitment. . . ." Mrs. Chamorro noted that she has introduced legislation to the Nicaraguan National Assembly to rescind the law that the Sandinista government passed in the period between her election and her inauguration, which prohibited the executive from removing the current suit before the International Court of Justice from consideration. She said that that case is a cloud and said that she wants to remove it. They had a long discussion about changes in the world, in Eastern Europe, and the Soviet Union in this wave of democratization. They talked about their conversations with Vaclev Havel, with Lech Walesa, with the wave of democratization and how fluid international relations are today. They compared stories about some conversations with Walesa. Mrs. Chamorro noted that she has all of these tanks left over from the Sandinista government that she doesn't want and would like to destroy. The President told an anecdote about a conversation with Lech Walesa in which he noted that he had inherited a tank factory that was still producing tanks that had no use and needed to convert that to peaceful purposes. Mrs. Chamorro said that when she met with Havel and they compared their situations, she was struck by how much they inherited very similar conditions. They were both trying to practice national reconciliation, economic recovery, and consolidate democracy. The President also noted that in a recent poll in Nicaragua, Mrs. Chamorro was given a favorable approval rating by 77%-[and] congratulated her on that. Mrs. Chamorro also noted that Nicaragua presented an inventory of its weapons to the OAS [Organization of American States] yesterday. Along with Costa Rica, she said that she wants to help inaugurate an OAS program to bring peace to Central America and demilitarize the region. They had a brief discussion that was initiated by the Foreign Minister about the assassination of Enrique Bermudez, and the Foreign Minister pointed out that they've appointed an investigative committee, an independent committee, which includes a former commander of the Nicaraguan Resistance and a representative, Cardinal Obando, and that they've asked for technical assistance from the United States. [Under] Secretary [for Political Affairs Robert] Kimmitt replied that we were prepared to provide such technical assistance. Finally, there was a brief discussion about narco-trafficking. The governor of the Atlantic coast told a very poignant story about some schoolchildren in his region who saw the chalk fall on the floor and picked up the dust and started to sniff it. The teacher asked them why they did that, and they said, well, they had seen their father do that. He-this is Alvin Guthrie-said that there is a threat of additional drug-trafficking on the Caribbean coast of Nicaragua, and the President pledged that we would try to cooperate with the government to assist them in their efforts to combat narco-trafficking....(###)
US Department of State Dispatch, Vol 2, No 17, April 29, 1991 Title:

FY 1992 Foreign Assistance Requests for Latin America and Caribbean

Aronson Source: Bernard W. Aronson, Assistant Secretary of State for Inter-American Affairs Description: Statement before the Subcommittee on Western Hemisphere and Peace Corps Affairs of the Senate Foreign Relations Committee, Washington, DC Date: Apr 18, 19914/18/91 Category: Speeches, Testimony, Statements Region: Central America, Caribbean Country: Haiti, Cuba, Suriname, Nicaragua, Mexico, Guatemala, El Salvador, Panama, Brazil, Colombia, Peru, Bolivia, Chile, Argentina, Uruguay, Paraguay Subject: Development/Relief Aid, Trade/Economics, OAS, International Law, Security Assistance and Sales, United Nations [TEXT] I am pleased to be here this afternoon to share my perspective on the state of our hemisphere and US policy. I want to discuss the Administration's policy priorities with regard to Latin America and the Caribbean and to present our security assistance request for fiscal [fiscal year (FY)] 1992. We want to work with the Congress to achieve five basic objectives in this hemisphere: -- Consolidating democracy and advancing human rights; -- Encouraging economic reform and development in which the poor will benefit; -- Promoting regional peace; -- Ridding the hemisphere of the scourge of drugs; and -- Cooperating with the nations of this hemisphere on a post- Cold War agenda of safeguarding our environment and stopping the spread of missile and nuclear weapons technology around the world. The opportunity to achieve these objectives is great. In the last decade, voters led a political revolution throughout the Americas, burying a tradition of dictatorship through the peaceful act of going to the polls. In this decade, the leaders they elected are driving an economic revolution of equally far-reaching consequence. Revolution is a strong word, but it is no exaggeration. When Argentina sells its state airline and telephone company to private companies, that's revolutionary. When Mexico cuts its tariffs from over 100% to an average of 10%, that's revolutionary. And when Jamaica opens its largest export industry-tourism-to private investment, that's revolutionary. These are but three examples of a sharp turn to a new economic philosophy that sees opportunity, not danger, in economic freedom and full participation in the competitive international marketplace. This revolution is widespread, but it hasn't yet succeeded. In many cases, it involves a political struggle against the entrenched elites that benefit from the privileges of the old, protected economic system. Let there be no doubt that we have a profound interest in its success. A democratic hemisphere with modern, open economies will be a stable hemisphere. It will be a hemisphere that fulfills the promise of human rights, not just as people vote in elections but as they make free choices in the marketplace. It will be a hemisphere of social justice, where greater economic freedom leads to a broad- based prosperity. And it will be a hemisphere that offers increased opportunity for American workers and businesses. Right now about 13% of our exports-$47 billion in 1989-go to Latin America and the Caribbean. If you doubt that successful economic reform in Latin America can make a difference to the US economy, just look at Mexico, a country leading the way in economic reform, where our exports have doubled between 1986 and 1989. To help this economic revolution succeed, and to achieve our broader objectives in this hemisphere, we need the help of Congress. Reauthorization of fast-track negotiating authority for free trade agreements is essential, not just for the North American Free Trade Agreement with Mexico and Canada but also for the President's vision of an entire hemisphere free of trade barriers. The Enterprise for the Americas Initiative offers more than the vision of free trade-it encourages the free flow of international investment and offers new opportunities for debt reduction and environmental protection. To make these investment and debt initiatives possible, we urge Congress to pass the Enterprise for the Americas Initiative Act. As we ask the Andean nations to stop the supply of cocaine, we need to respond to their need for greater export opportunities. The Andean Trade Preferences Act is a key component of the war on drugs, and I urge you to support its passage. Our foreign assistance request is the absolute minimum we need to help our democratic partners to reach the political and security goals we have in common, and we need your help in securing its approval in Congress. I want to underscore one central point: we stand to benefit from a period of nearly unprecedented opportunity in this hemisphere. Democracy is strong. Economic policy is on the right track. Nations want to cooperate with us in the war on drugs. We have ended the rancorous debate over Central America that distanced us from our neighbors and divided us at home. This hemisphere is turning to the democratic processes and free market policies the United States has long espoused. The question before us is whether we can take yes for an answer. We owe it to our neighbors and to ourselves to respond with energy and creativity to the extraordinary opportunities before us.
The Persian Gulf
We have been heartened by the nearly uniform solidarity of the hemisphere to the crisis. Argentina provided two ships for the allied effort, and Honduras offered troops. Venezuela, Mexico, and Colombia all boosted oil production and exports to make up for the Persian Gulf production shortfall. Every country in the hemisphere, except Cuba, supported the sanctions against Iraq-even though for some it meant real economic sacrifice. We also have enjoyed full cooperation in protecting against terrorist threats related to the Gulf situation. Now that the conflict is ended, Argentina, Uruguay, Chile, and Venezuela will participate in the UN's observer force in the Gulf.
The Caribbean
On February 7, I attended the inauguration of the first democratically elected Haitian president in recent memory. The atmosphere in Port au Prince was full of optimism as Haiti joined the hemisphere's democratic mainstream. Under the auspices of the OAS [Organization of American States] and the UN [United Nations], and with US financial support, election observers from 22 countries witnessed the Haitian election and helped guarantee its fairness. The OAS alone sent 200 observers. I am proud that insistent US support for democratization in Haiti, and financial support for the elections, contributed to this happy result. In the past year, this support included an invitation to interim President [Ertha Pascal] Trouillot to meet with President Bush in Washington and a visit to Haiti by Vice President Quayle. I made three trips to Haiti myself. We are now committed to assisting President [Jean Bertrand] Aristide in consolidating democracy and improving the lot of the Haitian people. The task is daunting. The poorest country in the hemisphere, Haiti's needs for both human and infrastructure development are enormous. Its infant mortality rate of 12% is twice the region's average, while the percentage of secondary school age population actually enrolled-17-is one-third of the hemisphere's average. Sound growth-inducing policies and well-targeted social investments can, however, move Haiti rapidly forward. At President Aristide's request, we also are reexamining the sensitive issue of Haitian migration to the United States. The island nations of the Caribbean are among our closest neighbors and best friends. Most of them are poor with a narrow economic base-this leaves them vulnerable to sudden changes in the world economy and, most dangerously, to exploitation by drug traffickers. Through the Caribbean Basin Initiative and the Enterprise for the Americas Initiative, we want to help these nations diversify their economies through expanded trade and investment. In most of the Caribbean, democracy and respect for human rights have quietly flourished for a quarter century. The exceptions to this trend remain Suriname and, of course, Cuba. We deplore the December military coup in Suriname that overthrew a democratically elected government. We urge the interim government in Paramaribo to keep its pledge to hold free and fair elections on May 25, to make them open to full international observation, and to respect the results. OAS Secretary General Baena Soares also has insisted that the present government guarantee the observers' autonomy in carrying out their mission. We also are concerned about indications that Suriname is serving as a transit point for cocaine shipments to Europe and, more recently, the United States. This hemisphere will not tolerate another drug dictatorship. In Cuba, where a Marxist dictator makes all the decisions, there is little consideration of democratic reform, and human rights are systematically denied. Defenders of human rights are routinely intimidated or arrested for exercising their basic right of free speech. One example is Samuel Martinez Lara, the leader of the Cuban Human Rights Party. He was jailed for nearly 1 year without charges, then last month was accused of "non-violent rebellion" and sentenced to 3 years' probation. Even after the wave of democracy that swept Eastern Europe, the Cuban government has rejected international calls for a plebiscite. As Cuba's former allies in Eastern Europe have turned to democracy and economic freedom, they have limited their economic relationship with Cuba. Aid from Eastern Europe is almost non- existent; trade, once amounting to 15% of Cuba's total trade, is less than half its previous level. Soviet oil deliveries fell by 20% from 1989 to 1990 and will remain at 1990 levels this year; aid and technical assistance will be reduced. In an interview February 14, Fidel Castro described the impact on Cuba's economy of changes in Eastern Europe and the Soviet Union as catastrophic. The Soviets have urged Cuba to adopt economic reform in order to compensate for reduced trade and aid; to date this advice has fallen on deaf ears. Castro's response has been extensive rationing, sending people from the cities to do farm labor, replacing farm machinery with animals, and importing hundreds of thousands of bicycles. The Cuban government's behavior has isolated Cuba-from Cuba's former allies, from the rest of the hemisphere, and from the United States. We would like to see a change in our relationship with Cuba, and I believe that change must come. Our relations with the Soviet Union improved because the Soviet Union committed itself to new thinking in foreign policy and undertook economic and political reform. The critical question is when will the Cuban government see that reform-both political and economic-is inevitable. Our hope, like that of many Cubans, is that democratic change will come soon and peacefully.
Nowhere in the hemisphere are the prospects for a closer, more cooperative bilateral relationship brighter than in Mexico. President Carlos Salinas has embarked on a bold course of economic reform. We should assist and encourage his efforts. The Salinas administration has reduced tariffs, privatized state-owned companies, and has announced its readiness to negotiate a free trade agreement with the United States and Canada. A North American Free Trade Agreement is an important goal of this Administration. It will-and already has-given momentum to the entire hemisphere's drive to lower trade barriers. Already, Argentina, Brazil, Uruguay, and Paraguay are negotiating a common market for the Southern Cone. Already, the Andean nations have established an ambitious plan for regional economic liberalization. If Congress fails to approve fast-track negotiating authority, it will send a crushing, negative signal to the entire hemisphere at a time when our neighbors, after a decade of stagnant growth rates, are moving aggressively to remove barriers to global trade and investment. A North American Free Trade Agreement will spur growth in both the United States and Mexico, and it will help make both economies more competitive vis-a-vis the rest of the world. Free trade with Mexico also means jobs-not jobs lost, but jobs gained. According to US Department of Commerce estimates, every $1 billion we add to US exports creates 25,000 new jobs for American workers. In 1990, we exported nearly $30 billion in goods to Mexico, double our exports of only 4 years ago. According to that estimate, those increased exports would translate into 375,000 new jobs. But our interests with Mexico go far beyond trade. I can tell you today that our relations with Mexico are stronger across the board than they have been in many years. To cite just one key example, our cooperation in the war against drugs has never been better. We have established the Northern Border Response Force; we are cooperating on patrol flights by USP-3 aircraft; and we have provided helicopters to Mexico to bolster interdiction efforts. We have seen significant progress in marijuana and opium poppy eradication. Most of Mexico's naval operations and 25% of its army personnel are devoted to counter-narcotics activity.
Central America
Central America has made great progress in the last decade and has great opportunity ahead. Elected governments that took the reins of power from military juntas at the beginning of the last decade have been replaced, peacefully and quietly, by new democratic successors. Elections and dialogue have shown the way to ending military conflict. Full regional peace, once achieved, will allow Central Americans to devote their energies once again to the 20- year-old dream of economic integration. This time, the effort will be led by governments that see strength, not danger, in full participation in the competitive world economy. The Central American republics have a common historical identity dating from their independence in 1821. They think in regional terms, and, in our day, we see that they prefer to address problems through common regional approaches. From Washington, we all see that the crisis atmosphere of the 1980s is past, but we cannot allow this to draw our attention away from this region. Instead, our foreign policy must seize today's opportunities and build on the progress already made. We will keep our focus on Central America, and we want to keep our friends around the world involved as partners in the region's development. During the past year, the Administration has been working to foster an international partnership-the Partnership for Democracy and Development in Central America (PDD). The objective of the PDD is to pool the energies of the governments of the 24 OECD [Organization for Economic Cooperation and Development] nations, the six Central American countries, Colombia, Mexico, Venezuela, and representatives of key international institutions in a common effort to support democracy, peace, and economic development in Central America. This concept is receiving strong support from key European and Far Eastern nations as well as from our Central American neighbors themselves. I just returned from the founding meeting of the Partnership for Democracy and Development, which took place April 11 in San Jose, Costa Rica.
The recent elections in Guatemala and the inauguration of President Jorge Serrano are clear signs of progress and hope. This marks the first time in Guatemala in 40 years that the candidate of an opposition party has been elected in a free, honest vote and allowed to assume office peacefully. During the Cerezo administration, Guatemala's failure to effectively pursue the investigation of the murder of an American citizen, Michael Devine, made it necessary to suspend security assistance in December 1990. Earlier, other failures to prosecute human rights cases led us to recall our Ambassador in March 1990. In contrast, the first signals from President Serrano-starting in his inaugural address, when he warned the security forces that their human rights violations would no longer be met with impunity-tell us that Guatemala has a president who is firmly committed to establishing civilian authority over security forces and instituting broad respect for human rights and the rule of law. President Serrano's economic policies show similar promise, and we are engaged in an active dialogue with him and his government to help him meet these important goals.
El Salvador
Voters in El Salvador went to the polls March 10 to elect all 84 members of the Legislative Assembly, plus mayors and municipal council members in all 262 municipalities. Twenty-four seats were added to the Legislative Assembly as the result of an agreement reached by the full range of Salvadoran political parties; 20 of these seats will be filled by at-large candidates running on national lists. This reform was intended to help smaller opposition parties win seats. The Convergencia Democratica, a leftist coalition formerly affiliated with the FMLN's [Farabundo Marti National Liberation Front] political front, won eight seats and the National Democratic Union, the communist party of El Salvador, won one seat. This shows the democratic process is open to reform and open to candidates of all ideologies. This was the seventh election since an era of democratic reform began in El Salvador in 1979. The people of El Salvador alone deserve the credit for this achievement and for the broad political space beginning to be enjoyed by people of all points of view. But we should be proud of our role-consistent US support for the democratically elected governments of the late President Jose Napoleon Duarte and President Alfredo Cristiani has been an important factor in the expansion of democracy in El Salvador. Like previous elections in El Salvador, this election took place under the microscope of international observation. The OAS, to its great credit, led the observation effort with 160 observers deployed in El Salvador's 14 departments, including those where military conflict has been most intense. I would note as well that last year El Salvador's economy- despite the systematic destruction and violence wreaked upon it by the FMLN-enjoyed 2.8% real growth in 1990 and one of the lowest inflation rates in the hemisphere. That is a tribute to the reform policies of the Cristiani government, but bipartisan US support for economic reform-steady, patient, continuing-also contributed significantly to this achievement. Over a year ago, the world was shocked by the brutal murder of six Jesuits, their housekeeper, and her daughter in San Salvador. Even though nine Salvadoran officers and enlisted personnel were arraigned in this case, and four others were charged with obstructing justice, the armed forces have not done all they could to further the investigation. In a very significant step, however, Defense Minister [Rene Emilio] Ponce, on February 22, informed the Justice Minister of three areas in which the military is acting to further the investigation. He named 10 officers present at a November 15, 1989, military academy meeting and ordered them to cooperate with the investigation; he named three intelligence service officers and ordered them to cooperate in an investigation of that service's November 13, 1989, search of the Jesuit Central American University campus; and he offered to give testimony in person in addition to the three depositions he has already submitted. The government of El Salvador knows that the disposition of this case will deeply influence our future relationship. At the same time, under the auspices of the United Nations, negotiations continue between the government of El Salvador and the FMLN aimed at bringing an end to El Salvador's decade-long civil conflict. The United States fully supports these negotiations and hopes that the international community will energetically support a prompt negotiated solution to El Salvador's civil war. There are many obstacles in the path of a lasting peace and sustained democratic rule in El Salvador, but I am still optimistic that this is the year for peace in El Salvador.
In Nicaragua, the democratically elected government of Violeta Chamorro will soon celebrate its first anniversary. Nicaraguans still bear the heavy burden of a decade of Sandinista misrule-high inflation, unemployment, a bloated and costly collection of bureaucracies and state enterprises, and deep social division. But President Chamorro has brought a new spirit of optimism with her tireless effort to heal old wounds and the promise of thorough economic reform. She already has several achievements to her credit-the war is ended, the resistance peacefully demobilized, the state's foreign trade monopoly is abolished, wasteful subsidies have been eliminated, confiscated properties are being returned, and the army has been reduced by over 50%, to name just a few. National reconciliation is moving forward despite the tragic assassination of Enrique Bermudez and the killing of some 40 former resistance fighters over the past year. We join with President Chamorro in condemning such violence and urging those responsible to end the last vestiges of political polarization and join in the effort to move the country toward greater individual freedom and economic well-being. Our aid programs are playing a significant role. Working with $30 million in funds we provided, the International Commission of Verification and Assistance-directed by the OAS and the UN-has helped some 90,000 former combatants and family members of the Nicaraguan resistance to return to civilian life. Since Mrs. Chamorro's election, we have pledged $541 million in economic assistance to Nicaragua. Of that total, $39 million was in immediate emergency assistance. A $300-million assistance package was approved for FY 1990, and an additional $202 million for FY 1991. Since April 1990, the United States has signed agreements obligating $345 million. Of these funds, $207 million have been disbursed. Of the 1990 funds, $128 million have been set aside to provide balance-of-payments assistance in support of Nicaragua's economic stabilization and structural reform. An additional $50 million has been set aside for the international effort to clear Nicaragua's IDB [Inter-American Development Bank] and World Bank debt arrearages. Forty-seven million dollars has been allocated for the repatriation of the ex-resistance and refugees. Seventy-five million dollars is being used for long-term development projects, to generate immediate jobs, to provide new textbooks for the public school system, and for emergency medical supplies.
Panama is another Central American democracy emerging from a debilitating period of dictatorship. We are working closely with President [Guillermo] Endara and his government to strengthen democracy and spur economic recovery. Under President Endara's administration and with US assistance, Panama's economy grew last year at an annual rate of nearly 4%, among the highest in the region. To assist the recovery, we are providing Panama with some $452 million in economic aid and $500 million in loans and guarantees for FY 1990-91, the largest aid package in the hemisphere and the third largest in the world. The United States also made immediately available to the new democratic government some $430 million in canal fees which was held in escrow for the government of Panama during the last 2 years of the [General Manuel] Noriega regime. Part of our aid is repairing war damage, providing new housing for the residents of the Chorillo neighborhood in Panama City, which was destroyed by the fleeing Noriega forces during Operation Just Cause. Other aid has been used for the health care system, public works, and to provide new credit for the private sector. Panama is committed to transform the former corrupt, Noriega-dominated Panama Defense Forces into a civilian-led national police. Most officers above the rank of captain have been replaced. Of our aid, $13.2 million is devoted to an extensive police training program administered by the [US] Justice Department's International Criminal Investigative and Training Assistance Program. The first class of police trainees at the newly established US-supported police academy graduated last February 22. At the end of this decade, Panama will assume full control of the canal and its operations, as provided in the 1979 treaties. Last September, in accord with the treaties, the first Panamanian citizen, Gilberto Guardia, was installed as administrator of the Panama Canal Commission. Panamanian participation in the canal work force has grown to 86%. It is fashionable to denigrate the achievements of Panama's new democratic government-measuring it against a standard of perfection instead of how far it has come from where it began. But a little over 1 year since American forces bravely liberated Panama in Operation Just Cause, Panama is free; honest and open elections for National Assembly seats have been held; the economy is growing, and unemployment has been reduced by 10 full percentage points; civilians-not the military-make political decisions; the country successfully restructured its official bilateral debt at the Paris Club and is moving to regularize its financial relations with the World Bank, IMF [International Monetary Fund], and IDB; tough statutes have been enacted on money laundering; the Panama Canal treaties are being implemented; and Panama has been welcomed into the Central American regional economic and political summit talks. The United States can be proud of the role it has played in the liberation of Panama.
South America
The democratic governments of South America today are eager to define their new role in a post-Cold War world and their relationship to the United States and need our continued support. The large countries of South America-notably Brazil and Argentina- are increasingly important global actors. Democratic Chile also will assert itself on the international stage in the period ahead. We hope to strengthen our cooperation with these countries in key areas, such as curbing nuclear proliferation and supporting for regional stability elsewhere in the world. Argentina, Brazil, and Peru are still grappling with serious inflationary pressures and a daunting array of related economic problems. These problems derive from the ingrained statist and protectionist economic model, which resulted in the region's poor growth record during the 1980s. Most countries in the region have begun to pursue market-oriented and private-sector driven policies. Some, such as Chile, Bolivia, Colombia, and Mexico, have made significant progress and achieved deep structural changes. Although reform often carries short-term social costs, these costs pale in comparison to the prospect of repeating another "lost decade" under the old economic policies. The new thinking is taking hold, and, in key countries, investor confidence is beginning to return.
In Brazil, President Fernando Collor, the first directly elected president in 29 years, has embarked on a bold economic reform program designed to break Brazil's inflationary spiral and liberalize economic and trade policy. Much remains to be done, including reduction of the government's deficit and privatizing state industries, in order to reduce Brazil's high inflation. We are working closely with the Collor government to improve our cooperation in scientific research. We also are working to address the problem of controlling the spread of technologies with potential military applications. The survival and preservation of Brazil's Amazon region is an important environmental concern. In April 1989, the government of Brazil introduced a program called "Our Nature" to preserve the Amazon; it included suspension of certain tax incentives that encouraged deforestation. When President Collor took office, he eliminated those tax incentives permanently. His government is moving aggressively to create guidelines and zoning regulations for land use, with an emphasis on the Amazon. As a further sign of President Collor's commitment to work with the international community to address environmental concerns, Brazil will host the 1992 UN Conference on Environment and Development. The US Agency for International Development (USAID) also has recently initiated a new cooperative program with Brazil to address problems related to the issue of global climate change. In the struggle against narcotics, the United States continues to assist the signatories of the Declaration of Cartagena in their efforts to reduce production, improve interdiction, control precursor chemicals, and stop money laundering. Just 2 months after Cartagena, Attorney General Thornburgh joined some 20 other ministers of justice in an OAS-sponsored meeting in Ixtapa, Mexico, to give regionwide application to the Cartagena principles. With full support from the Administration, the OAS has developed the world's toughest model standards on the export and import of precursor chemicals. Our Justice Department is helping OAS experts to draft comprehensive model codes to curb money laundering in the hemisphere.
. In Colombia, President [Cesar Trujillo] Gaviria, like his predecessor, has shown great political courage in dealing with the problems of violent drug traffickers and insurgency. In 1990, Colombia seized over 50 tons of cocaine, destroyed more than 200 cocaine labs, and arrested over 7,000 suspects on trafficking charges. This year, over 34 tons have been seized to date. In February [1991], President Gaviria came to Washington for a working visit with President Bush and signed an agreement that will help our two governments share evidence in narcotics investigations. No nation has shown more courage or commitment in the war against narco-trafficking or paid a greater price than Colombia. We also are encouraged by recent successes in negotiating a peaceful end to Colombia's guerrilla insurgencies. We support the initiative of President Gaviria to offer dialogue to the EPL [Popular Liberation Army] and FAR [Revolutionary Armed Forces of Colombia] guerrillas and hope they respond affirmatively.
President [Alberto Kenyo] Fujimori of Peru faces the triple scourges of an entrenched, brutal guerrilla war, powerful cocaine trafficking organizations, and now pandemic cholera. In the past, anti-narcotics programs in Peru have suffered from a lack of firm policy guidance, but President Fujimori is working on comprehensive approaches to stop drug trafficking and provide economic alternatives for peasants now dependent on the cocaine economy. We are funding a $27.9-million Upper Huallaga Valley special project to provide agricultural services and community development support to ex-coca farmers who switch to alternate crops. The Fujimori government has courageously sought to address the economic and debt crises it inherited. It needs and deserves the international community's continued support as it moves forward on the path of economic reform.
Bolivia, the region's second largest producer of coca leaves, is making steady progress toward its commitment to reduce and, eventually, eliminate illicit coca production. Nevertheless, the threats of corruption and growing terrorism remain of serious concern. In 1990, the United States provided $45.5 million to Bolivia for basic economic reform and for alternative development projects. For the past 3 years, a USAID-funded project has provided irrigation to the arid and poor Cochabamba high valleys to eliminate the population's need to earn extra income through seasonal work in the Chapare coca region. Before the program started, surveys showed that up to 75% of the available men migrated from the high valleys to the Chapare for temporary work. This year, almost none have left. Other projects we fund have employed over 100,000 laborers in roadbuilding and other community development work. Five years ago, Bolivia faced a 25,000% inflation rate; today their inflation is lower than ours-a testament to Bolivia's steadfast commitment to sound economic policy.
In the Southern Cone, our relations with the new democratic government of Chile continue to expand and strengthen. In his December visit to Chile, President Bush addressed a joint session of the Chilean Congress and supported Chile's democratic transition and pace-setting free-market policies. In many ways, Chile is emerging as a model for Latin America-a model of democratic consolidation and national reconciliation and a model of economic reform that produces real gains, as Chile's steady record of growth and new investment demonstrates. Chile has expressed interest in a free trade agreement similar to the one being negotiated with Mexico. We have restored GSP [Generalized Systems of Preferences] benefits to Chile, lifted sanctions imposed on the previous regime, and made progress in bilateral trade and investment issues. We are concerned, however, about the escalation of terrorism against US interests in Chile.
Perhaps nowhere in the region has the shift in foreign policy emphasis been clearer than in Argentina under President Carlos Menem. Argentina has renewed diplomatic relations with the United Kingdom and contributed naval vessels to the Gulf coalition. Just before President Bush's South America trip, on November 28, 1990, Presidents [Carlos Saul] Menem and [Fernando] Collor [de Mello] announced that they will place all their nuclear facilities under International Atomic Energy Administration safeguards and work to bring the Treaty of Tlatelolco, the Latin American non-proliferation treaty, into force. This agreement is a major step forward, and it could be a model for similar agreements elsewhere in the world. On the economic front, privatizations of the national telephone company (Entel) and airline (Aerolineas Argentinas) are beginning to reverse state domination of the economy. Politically, it is clear after the failed military revolt last December that the Argentine people have no desire to return to authoritarian rule.
President Bush also visited Uruguay on his five- nation tour of South America, underscoring our support for democracy and for President [Luis Alberto] Lacalle's efforts to create a more open, market-oriented economy, and spelling out the benefits to be derived from the Enterprise for the Americas Initiative. Uruguay, as a middle-income developing country, is not eligible for some kinds of US assistance, but we have provided some security assistance to enhance Uruguay's ability to interdict drugs. We also made a surplus food grant last year, the sale of which provided about $2.8 million for Uruguay's Social Investment Fund. To their credit, both Uruguay and Brazil adhered with great integrity to UN economic sanctions against Iraq, despite the serious cost.
In Paraguay, President [General Andres Pedotti] Rodriguez is steadily, courageously leading his nation-so long locked into dictatorship-into the mainstream of the hemisphere's democracies. The United States has reinstated GSP benefits contingent on the reform of labor practices, including the right to organize. We also are providing, through the National Endowment for Democracy, money to train observers for the May 1991 municipal elections, the first such vote in Paraguay's history. Finally, Paraguay has joined its Southern Cone neighbors in negotiations for a common market and in negotiating a joint framework agreement with the United States under the Enterprise for the Americas Initiative.
The Enterprise for the Americas Initiative (EAI)
When I began my statement, I discussed a revolution in economic thought and policy in this hemisphere-a sharp turn away from statist, protectionist policy and toward economic freedoms. For the poor of this hemisphere, for those who want to see democracy succeed, for those who look to participate in the economy of the Americas, this change in thinking represents a profound opportunity, and its impact can be far greater than any amount of aid we would extend. President Bush got a strong sense of this new thinking in February 1990 when he went to the Andean drug summit in Cartagena, Colombia. The presidents he met gave him an emphatic message-more than aid, they want their citizens to have the opportunity to sell their goods in the world economy, including the US market. On the flight home from Cartagena, President Bush told his advisers that we owe our neighbors a bold response. Within 4 months, on June 27, 1990, the Enterprise for the Americas Initiative was born. In its spirit, it is an offer of partnership among countries eager to forge ahead with economic reform. It is based not on dependency and aid but on concerted action to free our economies from restrictions that have helped economic elites and stifled the poor and the industrious. It offers a vision of free trade throughout the Americas. The programs of EAI promote prosperity through trade and investment liberalization and debt relief, with a new emphasis on environmental protection. EAI offers the most to those that are doing the most to reform. We are encouraging other nations, especially Japan, to pursue similar objectives for the region. We hope that Japan and the European Community will contribute to a proposed EAI multilateral investment fund to be administered by the IDB. The fund would provide $300 million in grants annually over the next 5 years to support comprehensive reforms in investment policy, privatization, and human capital needs. Since the EAI was launched, we have negotiated framework agreements with five countries, and discussions are underway with nine others. These agreements establish principles for cooperation on trade and investment and can set the framework for negotiating free trade agreements. We trust that the Congress will provide the President the authority necessary to move ahead in expanding free trade in this hemisphere. We also are working with the IDB on a new program that will provide lending to support countries that removing impediments to international investment. I also urge the Congress to take rapid action on the remaining portions of the debt element of the EAI. We plan to move forward with debt reduction agreements on PL 480 [Food for Peace] programs under the authority granted by the 1990 farm legislation. We still need authority for debt-reduction agreements on concessional debt administered by USAID, and for debt-for-equity and debt-for-nature swaps relating to Commodity Credit Corporation and Ex-Im [Export-Import Bank] programs. The Latin American region today is in a position to launch self-sustaining growth within a democratic and stable political framework. There is nothing automatic nor guaranteed about continued progress, but it is certain that the programs of the EAI provide powerful leverage to continue economic reforms.
The Organization of American States
The Organization of American States, after stumbling on Panama, is becoming a key player in the democratic development of our hemisphere and is a good investment in pursuing US interests. The OAS has an excellent track record of election observation in Nicaragua, Haiti, and El Salvador and, within budget, has just established a democracy unit to continue this type of work. The OAS also plans to monitor the important upcoming elections in Suriname. In Nicaragua, at the request of the Chamorro government, the OAS is playing a vital role in helping resettle and monitor the human rights of the demobilized resistance. A new OAS anti-drug program is well underway, producing model legislation and innovative educational programs in a concerted, regionwide fight against illicit drugs. Other US priorities-the environment, trade, debt-are being addressed by the OAS. We have requested $10 million to support OAS development assistance programs. Training, technical assistance, and scientific and cultural programs by the OAS act as catalysts for broader cooperation and frequently attract third-party funding.
Overview of Budget Request
The Administration's request for assistance for Latin America and the Caribbean for fiscal 1992 balances the vital interests of the United States, the need to meet the challenges that the region poses, and the reality of ever-increasing fiscal constraints. For FY 1992, we are requesting $1.520 billion for economic and anti-narcotics assistance and $280.2 million for security aid. This represents an increase of $104 million, or 6% over levels requested for FY 1991. The total requested, $1.799 billion, accounts for less than 17% of our worldwide assistance request, a modest sum considering the importance of the region to the United States.
Security Assistance
In FY l992, we have requested $713.9 million in Economic Support Funds (ESF) and $280.2 million for military assistance (FMF [Foreign Military Financing] and IMET [International Military Education and Training]), totaling $994.1 million, or 12.1% of the requested worldwide security assistance. In addition, USAID has targeted $406 million in development assistance with special emphasis on job creation to benefit the poor, primary health care, education, strengthening of democratic institutions, and preserving the environment. Of the sum requested for military assistance, $13.75 million will go to the IMET program. As you know, in past years, this popular program has provided professional and technical training to Latin American military officers and noncommissioned officers. Through well-structured courses, this program gives the future military leaders of our region important training in human rights and civil-military relations. In the hope that we can build on the successes of the past, we are requesting IMET programs in virtually all countries in Latin America and the Caribbean with which we maintain diplomatic relations. This year, thanks to the initiative of friends in the Congress, we have a revision in the FY 1991 IMET legislation, which enables us to include civilian officials in our IMET training programs. Effective civilian control of the military will become reality only when there are enough well-trained civilians who can play leading roles in defense programs and budgets, strategic planning, force structure management, and, of course, the management of the US military assistance programs. We are working to make IMET-funded courses for civilians begin within the next few weeks. Of the $266.4 million in FMF that we have requested, $137 million will support the Andean counter-narcotics strategy in Bolivia, Colombia, and Peru. It also includes $5 million for Ecuador. A total of $108.9 million in FMF will support the key democratic countries in Central America. This leaves only a request for $15.5 million in FMF outside the Andes and Central America. Of that amount, $11.9 million is for the drug-threatened Caribbean. The remaining $3.5 million will go toward reinforcing civil-military relations in Argentina, Chile, Paraguay, and Uruguay. We have taken steps to ensure that our security assistance, including that provided to fight narcotics trafficking, supports our key policy objectives in the region. Together with the [US] Defense Department, the DEA [US Drug Enforcement Agency], and other agencies, we have developed a human rights training program which will be administered to our officials, both military and civilian, before they assume duties related to the implementation of our counter-narcotics and military assistance programs in our embassies. The training will provide our personnel with a thorough understanding of human rights law and policy, as well as information about the human rights situation in the country to which they will be assigned. Our security assistance has helped us make progress in the drug war in the first year of the Andean strategy. We have helped Colombia to maintain its vigorous campaign against narcotics traffickers, yielding a 37% increase in seizures over the previous year. Accomplishments include the seizure of more than 50 metric tons of cocaine, the destruction of over 300 processing labs, and 7,000 arrests. Colombian police also have eradicated virtually all marijuana cultivation in traditional growing areas. The government has dealt severe blows to the leadership structure of the Medellin cartel by keeping drug kingpins such as Pablo Escobar constantly on the run. Colombia extradited 14 drug suspects to the United States in 1990; the total extradited since August 1989 is 26. Three other major traffickers have surrendered under President Gaviria's amnesty decrees which guarantee confessing traffickers a shortened sentence and no extradition. However, Colombian security forces continue to pay a heavy price. In the last year, over 400 national policemen have died at the hands of the traffickers. Our narcotics-related security assistance has yielded good results in Bolivia as well. Coca eradication during the year reached a record level of over 8,000 hectares, making possible a net reduction in the amount of coca cultivation for the first time. Joint police, air force, and navy task forces have expanded counter- narcotics operations, disrupting trafficking patterns. A major narco-trafficker was arrested, along with his lieutenants, planes, laboratories, and other personal assets, in a combined operation. In Peru, President Fujimori has expressed his government's commitment to fight narcotics trafficking. Though concrete actions have, until recently, been limited, we are beginning to see promising signs. There are increasing reports of effective Peruvian military and police coordination against traffickers in the Upper Huallaga Valley. In addition, the Peruvian Air Force has forced down two planes in the Upper Huallaga Valley, both laden with narcotics. President Fujimori has proposed an innovative, comprehensive agreement, integrating alternative development and law enforcement, which should provide a solid framework for our future counter-narcotics cooperation. Negotiations should conclude shortly. We, thus, are hopeful that our two governments will soon be jointly working effectively against narcotics production and trafficking. Our focus is fighting narcotics, not insurgency, notwithstanding the evidence of collusion between narco- traffickers and guerrilla groups in Colombia and Peru. Our assistance is in all instances channeled through the civilian governments. While our preference is to work with established police forces, we have seen that these units are often not trained or equipped to engage the paramilitary forces of narcotics traffickers in remote and dangerous areas. Thus, we believe that specially trained military units can bring a significant resource in the war on drugs, if properly coordinated and directed by civilian authorities. I want to stress that our military trainers will be limited in number and will not become directly involved in counter-narcotics operations. As their title conveys, they will only train.
I have submitted this detailed statement to give you a full picture of the challenges and opportunities we face in this hemisphere. I am optimistic about the future of the Americas, and I believe our policies respond to our interests and to our neighbors' concerns. Moreover, I am confident that we are delivering a dollar's worth of good for US interests for every dollar we spend in the region. My staff and I look forward to working with all of you to make our policies and programs a success.
US Department of State Dispatch, Vol 2, No 17, April 29, 1991 Title:

Country Profile: Nicaragua

Date: Apr 29, 19914/29/91 Category: Country Data Region: Central America Country: Nicaragua Subject: Trade/Economics, International Organizations, History [TEXT] Official Name: Republic of Nicaragua
Area: 148,000 sq. km. (57,000 sq. mi.); about the size of Iowa. Cities: Capital-Managua (pop. 1 million). Other cities-Leon, Granada, Jinotega, Matagalpa, Chinandega, Masaya.
Nationality: Noun and adjective-Nicaraguan(s). Population: 3.9 million (1990 est.). Annual growth rate (1990): 2.8%. Density: 24 per sq. km. (59/sq. mi.). Ethnic groups: mestizo (mixed) 69%, white 17%, black 9%, Indian 5%. Religion: Roman Catholic 85%. Education: Years compulsory-11 yrs. or 16 yrs. old. Literacy-60%. Health (1987): Infant mortality rate-68/1,000. Life expectancy- (1990) 61 years male, 62 years female. Work force (1989): about 1.2 million: Agriculture-42%. Industry- 14%. Service-44%. Unemployment-25% (government est.).
Type: Republic. Independence: 1821. Constitution: Draft presented February 1986. Passed by the Sandinista-controlled National Assembly and signed January 9, 1987. Branches: Executive-president and vice president. Legislative- National Assembly. Judicial-Supreme Court; subordinate appeals, district, and local courts, separate labor and administrative tribunals. Electoral-Supreme Electoral Council; 9 Regional Electoral Councils; local Ballot Receiving Boards. Political parties: National Opposition Union (UNO)-14 parties (Conservative Popular Alliance, Democratic Conservative, National Conservative, National Democratic Confidence, National Action, Nicaraguan Democratic Movement, Popular Social Christian, Integration of Central America, Independent Liberal, Liberal Constitutionalist, Neo-Liberal, Social Democratic, Socialist, Communist); Sandinista National Liberation Front (FSLN); eight others. Administrative subdivisions: 16 departments, 137 municipalities and 1 national district. The government has divided the country into 6 regions and 3 special zones for administrative and military purposes. Central government budget (1991): $496 million. Defense: The Sandinistas spent about half of the government's budget on defense; President Chamorro has cut defense spending. Flag: Two blue horizontal bands separated by a central white band with encircled triangle denoting justice, truth, and peace.
GDP (1990 est.): $1.5 billion. Annual growth rate: (1989) -5.0%. 1990 projected -5.7%. Per capita income: (1988) $536. (1989) $470. Per capita growth rate (in real terms): (1988) -11.0% (1989) - 4.9%(1990) -5.7%. Inflation rate: (1989) 1,700%. (Average for 1990, 13,500%). Foreign debt (1990): $10.5 billion. Natural resources: Arable land, timber, livestock, fisheries. Agriculture (24% of GDP): Products-corn, cotton, coffee, sugar, meat. Arable land-25%. Industry (24% of GDP): Types-processed food, beverages, textiles, chemicals, petroleum, and metal products. Trade (1990 est.): Exports-$321 million: coffee, cotton, sugar, beef, bananas, gold, shellfish. Major markets (1989)-COMECON 30%, Central American Common Market (CACM) 8%, European Community (EC) and Japan 50%. Imports-$592 million: petroleum, agricultural supplies, manufactured goods. Major suppliers-CACM, EC. Economic aid received (1964-80): $6.5 billion. Soviet bloc aid (1980-88)-$5.5 billion. Multilateral and US-$537 million. US (1964-83)- $424 million; (1979-83)-$117 million; (1990)-$300 million; (1991 est.)-$202 million.
Membership in International Organizations
UN and several of its specialized and related agencies, including the World Bank, the International Monetary Fund (IMF), UN Educational, Scientific, and Cultural Organization (UNESCO), World Health Organization (WHO), Food and Agriculture Organization (FAO), International Labor Organization (ILO); also the Inter-American Development Bank, Central American Common Market, Central American Bank for Economic Integration (CABEI), Non-Aligned Movement. (###)
US Department of State Dispatch, Vol 2, No 17, April 29, 1991 Title:

Joint Communique of the US-Mexico Coordinating Committee

Date: Apr 26, 19914/26/91 Category: Fact Sheets Region: North America Country: United States, Mexico Subject: Trade/Economics, International Law [TEXT] Fact Sheet: Text of the Joint Communique of the US-Mexico Coordinating Committee. The US-Mexico Coordinating Committee, which works under the aegis of the two countries' Binational Commission (BNC), met April 26 in Washington, DC, to review key aspects of the bilateral relationship. The US delegation, drawn from 11 US government agencies, was led by the Counselor of the Department of State Robert Zoellick. The Mexican delegation was led by Under Secretary for Foreign Relations Sergio Gonzalez Galvez and likewise included senior officials and representatives from throughout the Mexican government. In addition, the Mexican Ambassador to the United States, H.E. Gustavo Petricioli, and the US Ambassador to Mexico, John D. Negroponte, participated in the meeting. The Coordinating Committee was established at the sub- cabinet level to provide a forum in which the two governments could address issues and opportunities for advancing the bilateral relationship between the annual cabinet-level meetings of the Binational Commission. The committee first met in April 1990. It provides further structure to the increasingly important ties between the two countries and helps prepare for the annual Binational Commission meeting. During their discussion, the two sides reviewed the progress of the 11 BNC working groups, which are active in all key areas of the relationship: bilateral as well as other international issues, border affairs, migration, the environment, trade, investment, commercial and financial cooperation, agriculture, fisheries and maritime matters, legal affairs, anti-narcotics cooperation, labor cooperation, and educational and cultural relations. This array of working groups and issues is evidence of the common interest of the two governments in strengthening relations in all areas and maintaining a productive dialogue that is respectful of the sovereignty of both parties. The two delegations gave priority attention to the positive impact that successful negotiation of a North American Free Trade Agreement (NAFTA) would have on prospects for growth, jobs, higher incomes, competitiveness, and economic strength in the United States, Mexico, and Canada. The NAFTA would create the largest market in the world: 360 million consumers with a total output of $6 trillion. The recent meeting of Presidents Salinas and Bush in Houston, Texas, reaffirmed the determination of both nations to attain a free trade agreement which can enhance their own prosperity and contribute to continued progress toward economic reform, trade liberalization, and development throughout the hemisphere. With respect to cooperation in the area of tourism, the two delegations expressed their satisfaction with the progress achieved in this important field. The two delegation chairmen also expressed their satisfaction at their countries having recently reached agreement to bring the Mutual Legal Assistance Treaty into force shortly. They also noted with satisfaction the two countries' cooperative efforts to combat the shared problem of narcotics production and demand and bring drug traffickers to justice and to strengthen the already close working relationship between their law enforcement agencies. The chairmen also noted the ongoing efforts and the progress made by the two governments in dealing with the problem of money laundering. The two delegation chairmen gave special recognition to the progress made in developing the integrated environmental plan for the US-Mexico border area and the increased pace of bilateral environmental cooperation. They welcomed the addition of the Labor Departments of both countries to the Binational Commission structure, providing a forum in which to pursue jointly enhanced cooperation and exchanges in this important area of concern. Noting the increasing contact between the peoples of the two countries through migration, tourism, and commerce, officials of both governments held separate meetings to discuss the expressed satisfaction with the progress in the ongoing dialogue on this issue, which has resulted in a reduction of violent incidents in recent months. They also agreed to meet again in June for more in-depth discussions aimed at strengthening joint law enforcement and other efforts to reduce border violence. The two chairmen expressed their satisfaction at the strengthening of mutual understanding through the inaugural meeting of the US-Mexico Commission for Educational and Cultural Exchange on April 16 in Mexico City and with the opportunities for binationally funded educational and cultural exchange scholarship programs the new commission will facilitate. They also noted that implementation has begun of the Memorandum of Understanding on Education, which is increasing educational cooperation at all levels. In addition, the two chairmen reviewed the overall state of US-Mexican relations and discussed in detail a variety of foreign policy issues, such as developments in the Gulf, Europe, and Asia. They also discussed the Enterprise for the Americas Initiative (EAI), prospects for peace in Central America, and the Project for Democracy and Development (PDD). They expressed satisfaction at these and other ongoing efforts to strengthen ties within the hemisphere and to improve economic prospects for all nations in the inter-American system. Both delegations agreed to hold the next cabinet-level meeting of the Binational Commission in Mexico City later this year. (###)
US Department of State Dispatch, Vol 2, No 17, April 29, 1991 Title:

Department "Gets Down to Business" by Assisting US firms, Promoting American Exports

Date: Apr 29, 19914/29/91 Category: Features Country: United States Subject: Trade/Economics [TEXT] On November 7, 1990, Deputy Secretary of State Lawrence Eagleburger received a phone call in his seventh-floor office from senior officials of Pan American World Airways asking for assistance. The officials told Mr. Eagleburger that Pan Am wanted to sell five of its routes between US cities and London's Heathrow Airport to United Airlines in a package deal worth about $400 million. However, British authorities insisted that the proposed sale would require amendment of a US-British aviation agreement. Mr. Eagleburger assured officials at Pan Am and United that the Department would provide all possible assistance-and it did so. Secretary of State James A. Baker, III, raised the matter with British Prime Minister John Major and Foreign Minister Douglas Hurd. Mr. Eagleburger himself met with Anthony Acland, the United Kingdom's Ambassador to the United States, to press for early British agreement to the transfer. Meanwhile, the Department's chief aviation negotiator, Charles Angevine, pursued the issue through six rounds of tough, intensive talks. All those efforts culminated in British agreement to the transfer of Heathrow service from Pan Am to United, which was announced in February 1991. On April 3, United began operating flights between Heathrow and Washington, DC, Miami, Chicago, and New York. "The business of America," so the saying goes, "is business," and that credo is followed at the Department of State, exemplified by its work on the Heathrow negotiations. Secretary Baker has established US assistance to business and expansion of American exports as top priorities for Department personnel. In a message last year to all US diplomatic and consular posts, he urged diplomats "to develop programs to promote trade, solicit views of resident American business and other private sector people on trade policies and problems, and help meet the challenge of foreign competition." "America's economic health is the country's number one national security interest," says Mr. Eagleburger. "As that trend continues, the Department will assume a greater and more vigorous role in the promotion of America's economic interests overseas." US companies must compete with foreign businesses that have the full support of their governments. "American firms should be assured that the US government is interested and active on their behalf," Mr. Eagle-burger declares. "Business people should know that the State Department is their friend and ally." The Deputy Secretary has established what he calls a "bill of rights" for American business that outlines what they can expect from the Department. US firms, he says, have a right to: -- Have their views heard on foreign policy issues that affect their interests; -- Be assured that the ground rules for the conduct of international trade are fair and non-discriminatory; -- Receive assistance from well-trained and knowledgeable trade specialists in each overseas mission; -- Receive sound professional advice and analysis on the local political and business environment; -- Receive assistance in contacts with key public and private decision-makers; -- Receive active promotion in international bids and, in cases in which more than one US firm is involved, even-handed support for all interested firms; and -- Receive assistance in achieving amicable settlement of investment and trade disputes and, in cases of expropriation or similar action, to obtain prompt, adequate, and effective compensation. The State Department gets down to business in carrying out the goals established by its leadership, says Eugene J. McAllister, Assistant Secretary for the Bureau of Economic and Business Affairs. "In accordance with the priorities outlined by Secretary Baker, our bureaus stress full support to US business overseas," he notes. "The Department works to provide help for American businesses facing specific problems and to reinforce an institutional attitude of support and helpfulness." Abroad, the Department's efforts include supporting individual firms as they bid for contracts overseas; negotiating with governments in other countries to expand access to their markets for American companies and working with those governments to promote free trade and lower investment barriers; finding US suppliers for foreign companies; providing political, economic and cultural background on a country to business people; and meeting with American business people and groups to provide information and support. The Department also offers an array of consular, medical, and educational services to Americans living or doing business abroad. At home, the Bureau of Economic and Business Affairs maintains liaison with US business and industry, advising them on political and economic conditions in other countries. It also works with global organizations such as the International Monetary Fund and the World Bank and strives to eliminate trade and investment barriers. The Department sponsors conferences and seminars to inform businesses about potential opportunities in other countries and to address their specific problems and concerns. Other programs are designed to promote US trade in specific regions such as Africa and the Caribbean. In addition, Department publications and its Computer Information Delivery Service (CIDS) provide information on economic policies in countries and regions around the world. By supporting American free enterprise abroad, the Department helps other countries promote sustainable growth based on political and economic freedom. And that, in turn, leads to market-oriented economies that represent potentially vast markets for US goods, services, and investment. "Political and economic liberties go hand in hand," Secretary Baker noted in testimony before Congress on February 1, 1990. "Fragile democracies are reinforced by strong economies. And open societies give scope to the creativity and entrepreneurship essential to economic success." America's "commitment to private enterprise, individual initiative, and a pioneering spirit" are strong assets, he declared. "Our long-term investment in these values and the international institutions that reflect them has benefited us and ensured the strength of today's thriving global trading system." The Department works closely with the Department of Commerce and the Foreign Commercial Service in overseas posts. State officers handle all commercial work in 84 embassies and 35 consulates around the world. "Our embassy economic and commercial staffs come in close touch with American firms operating in various countries," says Mr. McAllister. "We encourage any US firms interested in doing business in a country to visit our embassies for political and economic briefings, as well as advice on the business culture and practices of the country." American embassy officials strive to establish a partnership with US business executives in the countries to which they are assigned. "Ambassadors hold regularly scheduled meetings with US Chambers of Commerce in almost every country where such groups exist," says Mr. McAllister. "Our posts have shown concern and creativity in assisting US business abroad." Many non-career ambassadors have been high-level business executives with contacts in the country to which they are assigned, Deputy Secretary Eagleburger adds, which has made their work in assisting US business and promoting exports particularly effective. All of these efforts have paid off handsomely for American firms. For example: -- After 2 years of grueling negotiations, the US Ambassador reached an agreement with the Argentine government on more than 30 projects representing about $750 million in new American investment in the country. -- In Indonesia, persistence by the embassy, bolstered at a crucial juncture by expressions of interest at the most senior levels of the US government, ensured that the bid of a major US telecommunication company received a full and fair hearing on its technical and financial merits. Because of the economic and development potential of this $2-billion project, US economic support money backed part of the financing package. The Export- Import Bank provided use of its "war chest" authority, which can be used to offset subsidized financing from foreign competitors. Eventually, the American firm obtained a substantial role in the huge project. -- In Bulgaria, embassy staff helped a US company receive timely financing and payment when the Bulgarian Foreign Trade Bank suspended payment of hard currency debt. A company representative later said the embassy's work made him "glad to be a taxpayer." -- In Togo, the embassy paired US textile suppliers with local importers, leading to a 58% increase in textile sales in 1989, and helped a local grocery chain find US suppliers, leading to the first American-made grocery products on Togo's shelves since the 1970s. -- In Brazil, a US firm was awarded a $155-million contract to supply two communications satellites after protracted international bidding. The embassy staff did everything from explaining to the Brazilians US laws on export licensing and technology transfer to combating negative press reports instigated by the US firm's competitors. State Department expertise and assistance are appreciated. The Department receives numerous letters every month from American business executives thanking the Department and its personnel for their assistance. -- After a long battle to help a US oil company and an American engineering firm sign a joint venture in a Caribbean country, an executive with the oil firm told the US Ambassador that the embassy's work with the company on the project was the best example of support he had seen in his 30 years of business. -- The president of a major US firm sent the Department a letter citing a dozen specific instances in which an embassy had helped his company. -- The US Embassy in Budapest has received kudos from several major American firms praising the Ambassador and his staff for "invaluable assistance" in promoting their products and services and ensuring that they receive fair treatment from the government. -- The chairman of a large chemical manufacturer said his company never would have received South Korean government approval for a major investment without the support of the Ambassador, his staff, and other Department officials. "Embassy staffs do the right thing on behalf of American business and take action on behalf of large US corporations and small companies," says Mr. McAllister. "State officers also work to ensure that American firms are treated fairly." Foreign countries and companies have begun to notice the increased efforts by the US government on behalf of American firms, he adds.
Emphasis on Training
Training is an integral part of the Department's efforts to improve service to American business people. Training opportunities provide invaluable "hands-on" experience for officers assigned overseas. The Foreign Service Institute (FSI) has assigned top priority to the development of a training strategy for improving commercial work. The strategy has focused on two key areas: -- Changing the way in which Foreign Service officers from the junior level through the ambassadorial ranks view their roles in assisting business people; and -- Providing these officers with specific training that enables them to render effective assistance. The centerpiece of FSI's training strategy is an intensive 1- week commercial course titled "Export Promotion-Assisting US Business." Officers of all backgrounds are invited to apply. The course, designed in conjunction with the Department of Commerce, the Economic Affairs Bureau, and the World Trade Center of New Orleans, played to capacity audiences of Foreign Service officers and newly hired personnel from the Commerce Department's Foreign Commercial Service, says Lisa Fox, director of commercial training at FSI. Participants receive training in all aspects of exporting, from specialists in fields such as market assessment, tax and legal matters, transportation and shipping documentation, methods of payment, and other financial topics, she notes. Participants also are instructed in the design and implementation of an effective trade promotion program. "The program relies heavily on private sector participation," says Ms. Fox. "Panels of experienced business people representing large and small firms engage in frank discussions with class members regarding their dealings with embassy staffs in the field." Experience from the design and conduct of the course is being used to expand and upgrade the treatment of commercial objectives in other FSI courses ranging from basic orientation for new junior officers to the seminars for ambassadors and their deputies. The Department also places FSOs in short- and long-term assignments in US industry. In 1990, four US firms (Rockwell International, Bechtel, Chevron, and the Bank of America) had FSOs on board. In 1991, five FSOs will participate in the program, up from only one or two a few years ago.
Points of Contact
The Economic Bureau's primary point of contact to the private sector is the Office of Commercial, Legislative and Public Affairs (EB/CLP). In addition to answering inquiries from businesses, individuals, and Congress, the office keeps in touch with commercial coordinators in other bureaus, country desks, the Department of Commerce, the US Agency for International Development, and other government agencies, as well as business organizations such as the US Chamber of Commerce. EB/CLP has become the focal point of inquiries on Kuwait reconstruction. EB also works closely with Deputy Secretary Eagleburger's office to institutionalize export promotion efforts. The underlying philosophy is to, in Eagleburger's words, "change the culture of the Foreign Service" and make export promotion and assistance to US business top priorities. EB's Office of Transportation Affairs deals with international aviation and maritime issues. In addition to the negotiations with the United Kingdom on the sale of landing rights at London's Heathrow Airport, State Department diplomats won Japan's approval for expanded US commercial air service to that country and negotiated a major expansion for US carriers to Italy, France, Venezuela, and other countries. EB's Office of Energy, Resources and Food Policy meets regularly with representatives of the trade groups on coffee, sugar, wheat, and feedgrains, as well as the metal and mining industry and other sectors affected by US participation in international commodity organization. The office also supports private sector efforts to expand markets for American coal, natural gas, and oil and gas equipment. The Department devotes special efforts in key fields such as international telecommunications that yield direct and indirect benefits to the United States. The Bureau of International Communications and Information Policy (CIP) helps US business by encouraging the growth of these international networks and the services carried over them. They provide the vital linkages used by American business to maintain its competitive edge in international operations. In addition, by facilitating the flow of information of all kinds, telecommunication networks strengthen the underpinnings of democracy and economic growth. As President Bush said, "Today, more and more countries are discovering that an open and competitive telecommunications environment, coupled with the free flow of information, is a key to success in our increasingly competitive world." CIP reaches out to US telecommunications manufacturers, network operators, service providers, and users. "This is one of the bureau's premier and showcase activities," says Bradley P. Holmes, director of the bureau. An advisory committee of senior executives and others involving hundreds of firms involved in telecommunications and radio standards "enables CIP and business to keep in close touch, exchange information, assess priorities and needs, and serve to spark the interest of US companies to enter the international market." CIP's negotiations to liberalize the use of international telecommunications will save hundreds of millions of dollars in direct costs for US service providers and other users, plus untold millions more in increased opportunities for US firms. The Department chairs several advisory committees on trade- related issues, including panels on intellectual property, international investment, international law, shipping, security, telecommunications developments, telephone standards, radio frequency allocations, and international communications and information policy. The Bureau of Public Affairs (PA) conducts Executive Diplomat Seminars, in which corporate executives meet with Department policy-level officials to exchange views on current trade issues. PA also helps coordinate information on issues of concern to business, such as new opportunities in Eastern Europe and of the challenges presented by the European Community's move toward a single market in 1992. PA has published several documents, including a pamphlet, "Europe 1992: A Business Guide to US Government Resources," that provides detailed information about EC institutions, plans for 1992, and US government offices and agencies that can help. Information on Eastern Europe can be found in "Resource Guide to Doing Business in Central and Eastern Europe" and "Focus on Central and Eastern Europe," which is published periodically in the Department of State Dispatch, the weekly record of US foreign policy. (Both are sold through the Superintendent of Documents, Government Printing Office, Washington, DC, 20402.) Dispatch and other Department information is available immediately through PA's Computer Information Delivery Service (CIDS), an established computer network that provides access within minutes of release of time-sensitive US government information to any location in the world. Economic trends reports, country profiles, travel advisories, human rights reports, and statements by Department officials are among the information that business can obtain to keep its competitive edge in a global economy. Assistance to US business abroad and expansion of US private sector participation in the global economy "remain critical elements in achieving our overall foreign policy objectives," says Secretary Baker. "The Department's leadership is essential to accomplish that task." (-Jim Pinkelman, Dispatch Staff)
More Information
The Bureau of Economic and Business Affairs is the Department's primary point of contact for US business. To get in touch with the Bureau, contact the Office of Commercial, Legislative and Public Affairs, Room 6822, US State Department, 2201 C St. NW, Washington, DC, 20520 (tel.) 202-647-1683.(###)
US Department of State Dispatch, Vol 2, No 17, April 29, 1991 Title:

World War I and Isolationism, 1913-33

Date: Apr 29, 19914/29/91 Category: Features Country: United States Subject: History, State Department, Military Affairs [TEXT] Feature: World War I and Isolationism, 1913-33 The following was prepared by the Offices of Public Communication and the Historian. The 1912 election of Princeton professor Woodrow Wilson and the outbreak of World War I in 1914, ushered in a turbulent period of change and growth in the Department of State. The new Administration replaced 38 chiefs of mission overseas, and the President-in conjunction with his close confidant Col. Edward House-personally chose all of the European ambassadors and most of those sent to the Far East. House also persuaded Wilson to choose three-time presidential candidate William Jennings Bryan as his Secretary of State. Bryan was determined to breathe new life into the diplomatic corps. Although the new Secretary held the traditional American view that no particular background or experience was needed to represent the United States abroad, Bryan affirmed Wilson's belief in examinations for consular appointments and in merit as a basis for promotion. With the outbreak of a general European war in August 1914, the United States tried to maintain its neutrality while mediating an end to the conflict, but the policy proved extremely difficult to pursue. Although many members of the Administration openly favored Britain and France, Secretary Bryan felt strongly that the US should remain absolutely neutral. He resigned in June 1915 and was replaced by Robert Lansing, a highly respected international lawyer serving as the Department's Counselor. Lansing was a popular choice, warmly welcomed as an experienced diplomat who had represented the United States in many international arbitration negotiations.
The United States in War and Peace
Once the United States entered the war on April 6, 1917, President Wilson directed policy-making during the crisis. He asked Colonel House to devise a US peace plan, and House created an independent body of specialists called "the Inquiry" which laid the groundwork for Wilson's statement of war aims in the Fourteen Points. When the fighting stopped on November 11, 1918, the President was determined to base the peace on his Fourteen Points and personally headed the US delegation to the peace conference at Versailles in France. Even though he was advised to remain in Washington, DC, the President insisted on breaking tradition and stayed in Europe for almost 6 months.
Normalcy and Isolationism
Disillusioned by the war and the cynical peace-making of the European victors, America tried to turn its back on the world by rejecting not only the Treaty of Versailles but also the League of Nations. Responding to the mood of the country, President Warren G. Harding promised, in his 1921 inaugural address, to bring the nation "back to normalcy." Although American foreign policy during this period has been called "isolationist," the United States had overseas investments and loans totaling more than $110 billion during 1919- 30 and was deeply concerned about Japan's Far Eastern ambitions. Presidents Harding, Coolidge, and Hoover were served by three Secretaries of State-Charles Evans Hughes, Frank B. Kellogg, and Henry L. Stimson. Charles Evans Hughes (1921-25) was the most distinguished. Former Governor of New York, 1916 presidential candidate, and Associate Justice of the Supreme Court, Hughes went on to become Chief Justice of the Supreme Court in 1930. Hughes, concerned about growing tensions between the United States and Japan, convened an international conference on naval disarmament in Washington during the winter of 1921-22, attended by representatives of 9 nations. Those who heard his opening speech said that Hughes "sank" more ships in 35 minutes, "than all the admirals of the world have sunk in a cycle of centuries." The structure of limitation built by Hughes remained the basis of US security policy until 1936. Foreign policy under Coolidge and his Secretary, Frank B. Kellogg, is most noted for the effort to outlaw war in the Kellogg- Briand Pact of 1928. Although he was initially skeptical, Kellogg enthusiastically supported the treaty, which was signed by 46 nations. Unfortunately, the treaty had no lasting value. One month after its proclamation, Japan invaded China. Herbert Hoover and Henry L. Stimson faced the most difficult period of the inter-war era, in which the accepted economic and political order shattered twice-first in the Great Depression and then with Japan's 1931 invasion of Manchuria. Under Stimson's guidance, the Department tried to curb Japanese aggression through "moral support" to the League of Nations and by refusing to recognize territorial gains won as a result of aggression. Stimson and Hoover also laid the groundwork for President Roosevelt's Good Neighbor Policy toward Latin America.
Changes in the Department
Consular work grew tremendously during this period. For the first time, all Americans traveling abroad were required to have a passport, and all aliens entering the United States were required to have a visa. After the war, American products flooded the international market, and demands on the consular service increased dramatically. At the start of the boom in 1921, American consular officers answered 82,000 trade inquiries, provided services to 28,000 US vessels, discharged 27,000 seamen, issued 40,000 bills of health for ships bound for the United States, and notarized 235,000 documents. Increased pressure on both the diplomatic and consular services exposed the inadequacies of the system and set the stage for reform. In the Rogers Act of 1924, the diplomatic and consular services were combined into a new Foreign Service of the United States, "foreign service officers" could be assigned were needed and were promoted on the basis of merit.
War and the State Department
When war broke out in the late summer of 1914, most high-level officials, as well as many clerks, were on summer vacation, as were US ambassadors in London, Berlin, and Rome. But with the outbreak of the war, US missions were catapulted into intense activity. On August 1, an estimated 50,000 American citizens-most of them traveling abroad without passports-were stranded in war zones. Many were penniless because European banks had closed and stranded because the military had requisitioned the railroads and the shipping companies, fearful of German submarines, had recalled their ships. In the first few weeks of the war, the Department received 60,000 requests for assistance. Ambassador Page in London later described the throngs that descended on the embassy as "crazy men and weeping women imploring and cursing and demanding; God knows it was bedlam turned loose." The embassy in Berlin remained open until midnight every evening because the waiting crowd extended well into the street. On August 7, the State, Treasury, War, and Navy Departments formed a relief board, headed by Consular Director Wilbur Carr. Congress appropriated $2.8 million to assist Americans caught in Europe. Two Navy cruisers, carrying gold to reinforce US credit and officers to organize the relief work, were sent to Europe, while ships willing to bring Americans home were found overseas. Some Americans began to return at the end of August, but most were unable to leave until late September. The workload intensified further when Great Britain, France, Belgium, Russia, Germany, Austria, Romania, and Serbia asked the United States to represent their interests in various enemy countries; a practice which continued as long as the US remained neutral. The US consular service became responsible for the welfare of nationals of the belligerent powers who were caught in the same predicament as Americans, and then later, for the welfare of several million prisoners of war held in enemy camps.
Key Events
1917: The United States enters World War I. 1918: The Allies and Germany accept Wilson's Fourteen Points as the basis for ending World War I. 1920: US Senate rejected Treaty of Versailles with Germany, thus keeping the US out of the League of Nations. 1922: The United States hosts the Washington Naval Disarmament Conference, attended by representatives of nine nations. 1928: Kellogg-Briand Pact, outlawing war, signed by 46 nations. 1930: Secretary Stimson signs London Naval Treaty. (###)
US Department of State Dispatch, Vol 2, No 17, April 29, 1991 Title:

Focus on Central and Eastern Europe: Summary of Initiatives

Date: Apr 29, 19914/29/91 Category: Focus on Emerging Democracies Region: E/C Europe Country: Albania, Bulgaria, Czechoslovakia (former), Poland, Hungary, Yugoslavia (former), Romania Subject: Trade/Economics, Development/Relief Aid, Media/Telecommunications, Human Rights [TEXT] The US Government is leading unprecedented public- and private- sector initiatives to promote democracy and free-market economies in Central and Eastern Europe. Focus on Central and Eastern Europe is a periodic update of those initiatives.
Aid and Grants
FY 1992 Budget
. As the fiscal year 1992 budget talks continue in Washington, the Bush Administration is asking Congress to appropriate $470 million in assistance to Central and Eastern Europe, a $30-million increase from the 1991 enacted level, including $70 million for a contribution to the new European Bank for Reconstruction and Development. These programs support the transition to democracy and market economies in Central and Eastern Europe and help improve the quality of life in those societies. In addition to special assistance programs in the federal budget, the United States also provides food aid to the region and is the major contributor to the World Bank and the International Monetary Fund, which have committed significant resources to Central and Eastern Europe. US assistance programs complement other traditional programs carried out by various US agencies, such as the Department of Commerce and the US Information Agency (USIA).
. The US Agency for International Development (USAID) has given a $5.4-million grant to the World Environment Center to improve industrial health, safety, and pollution control and to support environmental policy and legal reforms throughout Central and Eastern Europe. The project is a joint undertaking between USAID and the center, which is a New York-based, non-profit organization that works to strengthen the management of industry- related environmental, health, and safety practices worldwide. The project provides training and technical aid in environmental protection practices to private sector environmental groups and federal, state, and local government officials. Activities so far have included: -- A joint environmental study on Czechoslovakia by USAID, the World Bank, and the US Environmental Protection Agency that was presented to the Czechoslovak government in February; -- Training seminars in environmental law in Czechoslovakia and Poland; -- US technical assistance and training missions to benefit Czechoslovak, Hungarian, Polish, and Yugoslav environmental specialists. For more information, call USAID's Doug Eldred at 202-647-4274. The Washington Workshops Foundation will receive a $200,000 grant to conduct 7- and 10-day seminars for high-school and university students from Central and Eastern Europe and the USSR. Known as the "Claude and Mildred Pepper Scholarship Program," the seminars will teach the international students about the workings of the US federal government and will examine issues on the federal agenda. The foreign students will participate in seminars together with their peers from the United States.
Central and East European Business Schools
"In every Central and East European country, management training is at the top of the list of priorities for education." Daniel S. Fogel of the University of Pittsburgh, who expressed this view at the February 27 White House Conference on Management Training and Market Economics Education, is in a position to know. He is director of special programs in Europe at his university, which is the leading foreign partner in two new management training centers in the region, one in Czechoslovakia and the other in Hungary. The obvious need of the economies in the region is for managers with the practical expertise to guide either new or existing enterprises in emerging market economies. But Fogel said that he and his colleagues found that "education in economic and managerial concepts is needed, at least as much, if not more than, practical training" because students need a conceptual understanding of a market economy. The Hungarian International Management Center was established in Budapest in 1986. The University of Pittsburgh supports the center by providing faculty, curriculum, credits toward a Masters in Business Administration (MBA) degree, scholarships for students to study in Pittsburgh, the administrative infrastructure for a degree program, and faculty development for the Hungarian professors. While the center is currently training primarily Hungarians, next year's executive programs will include managers from the Soviet Union and other countries in the region. The Czechoslovak Management Center, based in the small town of Celakovice, about 15 miles north of the capital of Prague, was started in mid-1990. It is planned as a much larger and more complex center than the one in Hungary but is still in the developmental stage. Included in the plans are an MBA program, research and consulting operations, a small-business center, short- term specialized executive courses, specialized courses for government administrators, a middle-management internship program, and English-language training. One of the unique aspects of the center will be direct work with the government aimed at influencing economic reform and policy decisions of government officials through training and research. For more information, contact Dr. Fogel at the University of Pittsburgh (412-648-1642).
USAID Visit. A USAID team visited Albania April 3-13 to determine humanitarian needs in that country after a request for assistance from Albanian Foreign Minister Muhamet Kapllani and leaders of the opposition Democratic Party, Dr. Salih Berisha and Gramoz Pashko. The five-member team, led by the director of USAID's Office of US Foreign Disaster Assistance, Andrew Natsios, focused on medical and food needs and related humanitarian issues. Albania is in the third year of a drought that has led to food shortages throughout the country. When the USAID team's assessment is completed and the humanitarian-assistance requirements are determined, the US response is expected to be implemented through US private voluntary agencies and other international organizations. For additional information, call USAID's Renee Bafalis at 202- 647-3539.
Libraries. The window display "American Public Libraries," produced by USIA's Regional Printing Office in Vienna, Austria, was adopted by the National Library in the Bulgarian capital of Sofia. The library, which is Bulgaria's most important, arranged the USIA- produced panels around its circulation desk along with a collection of US books and periodicals on library science. In a ceremony opening the exhibit, the library's administrator stressed the importance of public libraries to citizen participation and democracy.
VOA and Radio Prague. On March 27, the Voice of America's Czechoslovak Service and Radio Prague aired a jointly organized, hour-long radio bridge on paths to privatization and the workings of democratic institutions and economies. Washington-based guests included Madeleine Albright of George-town University, M.J. Mazur of McDonnell Douglas Space Systems, and constitutional lawyer Katerina Mathernova of the firm Wilmer, Cutler, and Pickering. Conference on the Federalist Papers. Louisiana State University/Eric Vogelin Institute will receive a $22,000 grant to support a high-level colloquium in Czechoslovakia on the Federalist Papers as a means of initiating a pilot program on curriculum among interested Czechoslovak political scientists.
State Secretary for Public Administration Visits USA. Dr. Imre Verebelyi, Hungarian State Secretary for Public Administration in the Ministry of Interior visited the United States April 7-13 under the auspices of USIA. Dr. Verebelyi met with several key organizations, such as the US Conference of Mayors, the Association of Schools of Public Administration, and the American Society for Public Administration, where he was a panelist in the plenary session on "Public Management Challenges in Eastern Europe" during that organization's national conference. In Ohio, Dr. Verebelyi met with officials from four universities to learn about different types of public-administration programs. While visiting USIA, he noted the need in Hungary for handbooks and manuals for national and local government officials.
Stock Trading Begins. Poland's first stock trading since 1939 began on April 15 when post-communist Poland inaugurated its new stock market, which is in the former headquarters of the Communist Party - "poetic justice for the communists' 45 years of destroying our country," said one trader. Weekly 2-hour sessions are planned until the stock exchange opens formally in June. The Polish government hopes that stock trading will help it meet its goal of privatizing half of state-run industry in 3 years. The stocks traded now are shares in Poland's first five privatized companies. Poland is the third East European country to launch a stock exchange, after Hungary and Yugoslavia, and spent more than 1 year in preparation. Western consultants trained 80 traders and developed Polish- language computer software and accounting systems. Polish-US Consortium. Five rectors from Polish technical universities will attend a conference at Rochester Institute of Technology (RIT) designed to create a consortium of Polish and US technical universities. With the creation of this consortium, RIT's Office of East European Dialogue and Development personnel hope to forge closer ties with Poland, especially in areas such as technology transfer. RIT is working with US corporations such as IBM, Kodak, Xerox, and smaller companies as well as with an advisory group of Polish engineers. For more information call RIT's Office of East European Dialogue and Development Director Ken Nash at 716-475-5298.
Reform Process. The US government continues to urge rapid reform toward a market economy in Romania and welcomes Romania's agreement with the International Monetary Fund on an economic- reform program. The US government still has concerns about the pace of developments in the areas of democratization, human rights, independent media, and treatment of citizens belonging to minority groups in Romania. Because of those concerns about political and economic reform in Romania, US aid is limited to technical assistance to support democratic institutions and organizations, protection of human rights and the rule of law, independent media, and market reform, as well as humanitarian food aid and assistance to Romanian children. The United States has not gone beyond this type of aid to provide bilateral financial assistance to the Romanian government, but the US government does not object to others doing so. Further progress on reform is needed before the US government considers restoration of Romania's most-favored-nation trade status.
USAID Medical Program a Success
Dozens of Romanian children enjoy better vision today, and hundreds more will soon, thanks to a joint initiative by USAID and Project Concern International (PCI). A team of ophthalmologists and surgical nurses from Northwest Medical Teams of Portland, Oregon, operated on 68 orphaned children in Bucharest in February, removing six cataracts and correcting 62 cases of crossed eyes. The operations were performed in a 135-bed receiving and post-operative-care center donated by Romania's health ministry. The US government-funded project also trained 50 hospital physicians and residents in up-to-date diagnostic, surgical, and recovery methods and the use of equipment and supplies left by the Northwest team. The director of Bucharest's Ophthalmic Hospital, who observed the eye operations, told PCI surgeons that he was confident he and his staff could perform similar operations because of the on-site training. The operations and training were arranged by PCI which, together with World Vision and Private Agencies Collaborating Together (PACT), shared a $2-million US government grant. Those private voluntary organizations expect to raise an additional $9 million in resources from the US private sector. PCI also is organizing teams of orthopedic surgeons, plastic surgeons, and ear, nose, and throat specialists to help in Romania this summer. PCI volunteers also will be placed in children's institutions throughout Romania to provide direct medical services, on-site training of Romanian colleagues, and follow-up treatment related to the work of the surgical teams. For more information, contact USAID's John Riddle at 202-647-4274.
Referenda. At the April 11 meeting of the presidents of the six Yugoslav republics, which was part of the ongoing dialogue on Yugoslavia's future, agreement was reached on holding referenda in each republic before the end of May. No specifics have been announced as to what questions will be asked in these referenda. The US government supports unity, democracy, dialogue, full respect for human rights, and market reform in Yugoslavia. The US government has consistently encouraged the Yugoslav government and the leaderships of the republics to address political differences through peaceful dialogue and to refrain from the use of force or intimidation. The US government also has urged all parties to refrain from unilateral measures that would foreclose dialogue.
Freedom of the Press.
The political turmoil and ethnic strife gripping Yugoslavia provided a dramatic backdrop to a February 20 USIA/TV "Worldnet" interactive program for USIA posts in Belgrade, Ljubljana, and Zagreb on freedom of the press. The program, entitled "Media Laws and Regulations," was particularly timely because the issues of free speech and government control of the media are in the forefront of public debate in Yugoslavia today. Many in the audience, including government information officials and prominent journalists, have dealt with these issues on a practical level every day.(###)
US Department of State Dispatch, Vol 2, No 17, April 29, 1991 Title:

Ambassadorial Appointments, January-March 1991

Date: Mar 30, 19913/30/91 Category: Ambassadorial Appointments Country: Djibouti, Malawi, Niger, Paraguay, Senegal Subject: State Department [TEXT] Ambassadorial Appointments - January-March 1991 Djibouti-Charles R. Baquet III, March 25, 1991 Malawi-Michael T.F. Pistor, March 25, 1991 Niger-Jennifer C. Ward, March 25, 1991 Paraguay-Jon David Glassman, March 25, 1991 Senegal-Katherine Shirley, March 25, 1991(###)