US Department of State Dispatch,
Vol 2, No 17, April 29, 1991
Title: 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.
Mexico
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.
Guatemala.
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.
Nicaragua.
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
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.
Brazil
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.
Colombia
.
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.
Peru
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.
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.
Chile.
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.
Argentina.
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.
Uruguay.
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.
Paraguay.
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.
Conclusion
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
Geography
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.
People
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.).
Government
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.
Economy
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).
Grants
.
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).
Albania
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.
Bulgaria
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.
Czechoslovakia
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.
Hungary
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.
Poland
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.
Romania
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.
Yugoslavia
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(###)