US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: US Efforts To Achieve Compliance With UN Resolutions
Bush
Source: President Bush
Description: Text of a letter from the President to the Speaker of
the House of Representatives and the President Pro Tempore of
the Senate, Washington, DC
Date: Sep 16, 19919/16/91
Category: Speeches, Testimony, Statements
Region: MidEast/North Africa
Country: Iraq
Subject: Arms Control, United Nations,
Nuclear Nonproliferation
[TEXT]
Dear Mr. Speaker: (Dear Mr. President:)
Consistent with the authorization for use of military force against
Iraq resolution (Public Law 102-1), and as part of my continuing
effort to keep the Congress fully informed, I am again reporting on
the status of efforts to obtain compliance by Iraq with the
resolutions adopted by the UN Security Council.
Since my last report, the International Atomic Energy Agency
(IAEA) and the special commission created under Resolution 687
have continued to conduct inspections and other activities related
to Iraqi weapons of mass destruction and ballistic missiles. With
strong support from the United States, these bodies have been
working actively under difficult conditions to identify, inspect, and
arrange for the elimination of these weapons and related items. As
a result, Iraq has permitted some access to facilities related to
these weapons, and inspectors have viewed the destruction of some
ballistic missiles and chemical munitions and catalogued large
volumes of equipment related to Iraq's nuclear and other programs.
Iraq continues, however, to misrepresent the scope of its
programs in these areas, to use deception and concealment to
prevent inspection teams from locating equipment subject to
elimination under Resolution 687, and to deny inspection teams full
and unrestricted access to facilities associated with weapons of
mass destruction and ballistic missiles. This pattern of behavior,
as well as other Iraqi violations of the requirements of Resolution
687, resulted in the adoption on
August 15 of Resolution 707 which condemns Iraq for these actions
and holds it in material breach of its obligations. In addition, the
IAEA Board of Governors voted on July 18 to find Iraq in violation of
its Safeguards Agreement and thus of the Non-Proliferation Treaty.
Recently, Iraq has refused to permit the UN to base helicopters
inside Iraq for these purposes, contrary to an explicit Security
Council demand contained in Resolution 707. The United States will
not tolerate the continuation of this situation, and if necessary will
take action to ensure Iraqi compliance with the Council's decisions
so as to fully implement Resolution 678's call for the restoration of
international peace and security to the Persian Gulf region.
Significant progress has been made since my last report
toward implementation of the resolution of the Security Council
concerning compensation for the victims of the unlawful invasion
and occupation of Kuwait. The first session of the Governing
Council of the new UN Compensation Commission met from July 22-
August 2 in Geneva and adopted criteria for the first category of
claims to be considered by the Commission--namely, claims of
individuals for up to $100,000. The Executive Secretary of the
Commission and his two deputies have been appointed, as well as a
number of experts on the oil industry, banking, and claims
processing. The next session of the Governing Council will begin on
October 14, and will focus on the adoption of a mechanism for
collection and monitoring of Iraqi oil export revenues, as well as
criteria for other categories of claims.
On August 15, the UN Security Council adopted Resolution
705, which approved the earlier recommendation of the Secretary-
General that the ceiling on contributions to the Compensation Fund
be set at 30% of Iraqi annual oil export revenues. On the same date,
the Security Council adopted Resolution 706, which authorized
sales of up to $1.6 billion of Iraqi oil, the proceeds of which would
be paid to a UN escrow account and used as follows:
(1) 30% would go to the Compensation Fund;
(2) the UN would retain the amounts necessary for costs
incurred by the Special Commission, the Boundary Commission, and
other UN efforts pursuant to Resolution 687; and
(3) the remainder would be used for the food, medicine, and
other items for essential civilian needs, which would be provided
under strict UN supervision to ensure their equitable distribution in
Iraq.
We are currently working with the Secretary-General and
other Security Council members to implement this resolution as
soon as possible.
As I stated in my previous reports, the United States remains
concerned about the situation of the Kurds and other internal
population groups that have been the object of repressive measures
by the Government of Iraq. We have informed the Government of
Iraq that we will continue to monitor carefully the treatment of its
citizens, and that we remain prepared to take appropriate steps if
the situation requires. To this end, an appropriate level of forces
will be maintained in the region for as long as required by the
situation in Iraq.
I remain grateful for the support of Congress for these
efforts, and I look forward to continued cooperation toward
achieving our mutual objectives.
Sincerely, George Bush. (###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: UN Security Council Resolution 712 Relating to Iraq
Description: New York, New York
Date: Sep 18, 19919/18/91
Category: Speeches, Testimony, Statements
Region: MidEast/North Africa
Country: Iraq
Subject: United Nations, Trade/Economics, Human Rights
[TEXT]
Resolution 712 (September 18, 1991)
The Security Council,
Recalling its previous relevant resolutions and in particular
resolutions 661 (1990), 686 (1991), 687 (1991), 688 (1991), 692
(1991), 699 (1991), 705 (1991) and 706 (1991),
Expressing its appreciation for the report (S/23006) dated 4
September 1991 submitted by the Secretary-General pursuant to
paragraph 5 of resolution 706 (1991),
Reaffirming its concern about the nutritional and health
situation of the Iraqi civilian population, and the risk of a further
deterioration of this situation, and underlining the need in this
context for fully up-to-date assessments of the situation in all
parts of Iraq as a basis for the equitable distribution of
humanitarian relief to all segments of the Iraqi civilian population,
Recalling that the activities to be carried out by or on behalf
of the Secretary-General to meet the purposes referred to in
resolution 706 (1991) and the present resolution enjoy the
privileges and immunities of the United Nations,
Acting under Chapter VII of the Charter of the United Nations,
1. Confirms the figure mentioned in paragraph 1 of resolution
706 (1991) as the sum authorized for the purpose of that paragraph,
and reaffirms its intention to review this sum on the basis of its
ongoing assessment of the needs and requirements, in accordance
with paragraph 1 (d) of resolution 706 (1991);
2. Invites the Committee established by resolution 661
(1990) to authorize immediately pursuant to paragraph 1 (d) of
resolution 706 (1991), the release by the Secretary-General from
the escrow account of the first one-third portion of the sum
referred to in paragraph 1 above, such release to take place as
required subject to the availability of funds in the account and, in
the case of payments to finance the purchase of foodstuffs,
medicines and materials and supplies for essential civilian needs
which have been notified or approved in accordance with existing
procedures, subject to compliance with the procedures laid down in
the report of the Secretary-General as approved in paragraph 3
below;
3. Approves the recommendations in the Secretary-General
report as contained in its paragraphs 57 (d) and 58;
4. Encourages the Secretary-General and the Committee
established by resolution 661 (1990) to cooperate, in close
consultation with the Government of Iraq, on a continuing basis to
ensure the most effective implementation of the scheme approved
in this resolution;
5. Decides that petroleum and petroleum products subject to
resolution 706 (1991) shall while under Iraqi title be immune from
legal proceedings and not be subject to any form of attachment,
garnishment or execution, and that all States shall take any steps
that may be necessary under their respective domestic legal
systems to assure this protection, and to ensure that the proceeds
of sale are not diverted from the purposes laid down in resolution
706 (1991);
6. Reaffirms that the escrow account to be established by
the United Nations and administered by the Secretary-General to
meet the purposes of resolution 706 (1991) and the present
resolution, like the Compensation Fund established by resolution
692 (1991), enjoys the privileges and immunities of the United
Nations;
7. Reaffirms that the inspectors and other experts on
mission for the United Nations, appointed for the purpose of this
resolution, enjoy privileges and immunities in accordance with the
Convention on the Privileges and Immunities of the United Nations,
and demands that Iraq shall allow them full freedom of movement
and all necessary facilities;
8. Confirms that funds contributed from other sources may if
desired, in accordance with paragraph 1 (c) of resolution 706
(1991), be deposited into the escrow account as a sub-account and
be immediately available to meet Iraq's humanitarian needs as
referred to in paragraph 20 of resolution 687 (1991) without any of
the obligatory deductions and administrative costs specified in
paragraphs 2 and 3 of resolution 706 (1991);
9. Urges that any provision to Iraq of foodstuffs, medicines
or other items of a humanitarian character, in addition to those
purchased with the funds referred to in paragraph 1 of this
resolution, be undertaken through arrangements which assure their
equitable distribution to meet humanitarian needs;
10. Requests the Secretary-General to take the actions
necessary to implement the above decisions, and authorizes him to
enter into any arrangements or agreements necessary to accomplish
this;
11. Calls upon States to cooperate fully in the
implementation of resolution 706 (1991) and the present resolution
in particular with respect to any measures regarding the import of
petroleum and petroleum products and the export of foodstuffs,
medicines and materials and supplies for essential civilian needs as
referred to in paragraph 20 of resolution 687 (1991), and also with
respect to the privileges and immunities of the United Nations and
its personnel implementing this resolution; and to ensure that there
are no diversions from the purposes laid down in these resolutions;
12. Decides to remain seized of the matter.
VOTE: 13 for, 1 against (Cuba), 1 abstention (Yemen).(###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: UN Security Council Resolutions 706 and 712 on Iraq
Date: Sep 23, 19919/23/91
Category: Fact Sheets
Region: MidEast/North Africa
Country: Iraq
Subject: Trade/Economics, United Nations, Human Rights
[TEXT]
Summary
Resolution 706 allows a limited, one-time sale of Iraqi oil to fund
the purchase of humanitarian items needed for the Iraqi people as
well as for Iraqi reparations for war damages. Resolution 712 (see
p. 696) implements Resolution 706 (see Dispatch, Vol. 2, No. 34).
Documentation
-- UN Security Council Resolution 706 (1991), adopted on
August 15, 1991. Sets out the broad elements of the program to
implement the Resolution 706.
-- Report by the Secretary General pursuant to Paragraph 5 of
UN Security Council Resolution 706 (1991); submitted on
September 4, 1991. Provides detailed recommendations on
implementation of the program.
-- UN Security Council Resolution 712, adopted on September
19, 1991. Approves the recommendations in the Secretary General's
report.
Key Elements Of the Program
Sale of Iraqi Oil
-- Iraq will be permitted to export petroleum and petroleum
products up to the value of $1.6 billion over a 6-month period
beginning September 19, 1991.
-- Oil will be marketed and sold by the Iraqi state oil
company, SOMO, under the control of the UN Sanctions Committee.
Each contract will be reviewed by UN inspection agents and
approved by the Sanctions Committee under a 24-hour "no objection"
procedure.
-- The full amount of each purchase price will be deposited
by
the purchaser into an escrow account set up and administered by the
United Nations.
-- All oil will be exported via the Kirkuk-Yumurtalik pipeline
which runs through Turkey. UN inspectors, reporting regularly to
the Sanctions Committee, will be posted at points of Iraqi access to
the pipeline, at the loading terminal in Turkey, and at the Iraq-
Turkey border, to monitor the flow of oil and to ensure compliance
with the resolution.
-- Iraq will compensate Turkey for use of the pipeline at a
negotiated price. Iraq will be permitted to export an additional
quantity of oil to pay Turkey in kind for this service.
Disbursements From The UN Escrow Account
Disbursements will be made from the escrow account for the
following purposes (Secretary General's cost estimates in
parentheses):
-- Thirty percent deduction as a contribution to the
Compensation Fund, toward settlement of claims arising from Iraq's
invasion and occupation of Kuwait ($480 million);
-- Deductions to help pay for the activities of the Special
Commission and International Atomic Energy Agency, boundary
demarkation, and the return of Kuwaiti property ($96 million);
-- UN administrative costs in implementing the resolution
($25.3 million);
-- Assistance to be provided by the UN directly to vulnerable
groups in Iraq outside the reach of the official government
distribution system ($65 million);
-- Purchase and transportation of food, medical supplies, and
other essential civilian needs for the Iraqi people to be distributed
through normal Iraqi channels ($933.7 million).
The amount of $1.6 billion in the escrow account will be
released by successive decisions of the UN Sanctions Committee in
three equal tranches. Release of the first tranche was authorized
on September 19, 1991, subject to controls over actual
disbursements as described below.
Purchase and Deliveries of Humanitarian Goods
-- The Government of Iraq will prepare a list of its specific
needs in the way of foodstuffs, medical supplies, and other
essential civilian goods. This list will be reviewed by the
Executive Delegate of the Secretary General, revised as necessary,
and submitted to the UN Sanctions Committee for approval under a
"no objection" procedure.
-- After the list has been approved, the Iraqi Government
(under UN supervision) will arrange for the purchase and delivery of
humanitarian goods. In accordance with Resolution 687, goods other
than food and medical supplies must be approved individually by the
Sanctions Committee, under the "no objection" procedure, upon the
request of the exporting country's government.
-- The Secretary General will approve disbursements from
the
escrow account for approved purchases to the extent that funds are
available in the current authorized tranche.
-- UN inspection agents will be stationed at the relevant
ports of unloading and at the border entry points into Iraq. UN
personnel will monitor the arrival of the supplies at border entry
points and their transportation to designated distribution centers.
-- UN personnel in Iraq, assisted to the extent possible by
non-governmental organizations, will continue to monitor the
movement and impact of these supplies as they are distributed,
through normal Iraqi channels to all segments of the Iraqi
population. (###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: African Democracy and the Rule of Law
Quayle
Source: Vice President Quayle
Description: Excerpts from an address before the African Attorneys
General Conference, Abuja, Nigeria
Date: Sep 9, 19919/9/91
Category: Speeches, Testimony, Statements
Region: Subsaharan Africa
Subject: International Law, Democratization
[TEXT]
Mr. President, Attorneys General from Africa, and friends: This is
my first trip to Africa. Yesterday, I was in Cape Verde and later in
the week I will be visiting Malawi, Namibia, and Cote d'Ivoire. As
we watch the world race toward embracing democracy and
democratic values, it is of great importance to speak to the
Attorneys General who will have the great responsibility of
implementing democracy.
As you may or may not know, both my wife Marilyn and I are
attorneys-at-law. Almost half of our Congress is made up of
lawyers. Unfortunately, the United States is the most litigious
society in the world. This is not necessarily good news, and I, as
President Bush's Chairman of the Competitiveness Council, aim to
do something about it.
I'll share with you a political anecdote that happened to me
when I was running for Congress in Indiana. I was 29 and wanted to
get as many votes as I could. I met one gentleman who told me that
he wouldn't vote for me just because I was a lawyer. I then told
him I was a lawyer, but I had another profession as well. He said,
"What do you do?" I said I was a newspaper publisher. He promptly
told me that was worse.
Mr. President, I bring special greetings from President Bush
and from the American people to you and to the Nigerian people. We
stand with you in your determination to return Nigeria to civilian
rule and to democracy, we appreciate your leadership of the
Organization of African Unity, and we thank you for hosting this
important conference.
Ladies and gentlemen, in his Inaugural Address in January
1989, President George Bush predicted that the world was entering
a new era. "The day of the dictator is over," he declared. "The
totalitarian era is passing, its old ideas blown away like the leaves
from an ancient, lifeless tree."
Today, the truth of these words is clearer than ever. Events
in the Soviet Union have demonstrated that decades of repression
cannot crush the freedom-loving spirit of ordinary people. The
Soviet people were willing to stand up to tanks and guns to preserve
the freedoms they only recently gained. Clearly, democracy is an
idea whose time has come, and no one should underestimate the
world's desire for true democracy.
Today, Africa is in transition. From East to West, from North
to South, an entire continent is moving away from authoritarianism
and one-party states and toward democracy. Democracy is
indivisible. All who enjoy its blessings are duty-bound to help
those who do not. Make no mistake about it: The United States will
do its duty.
But how should we encourage democratic reform? In my
opinion, one of the surest protections for democracy is free and
open criticism. Democracy welcomes criticism from inside and
outside. The true democrat has no fear of opposing views or of
unsolicited advice. We, in America, know that our democracy is far
from perfect, and we welcome the constant reminders--from
friends and foes alike--that much remains to be done.
Yesterday's Africa resisted criticism. We were told that
Africa was not ready for democracy, that tradition called for a
strong leader, that multi-party democracy would always reinforce
tribalism, and that we had no business questioning internal modes
of governance. In contrast, we have been forthright in expressing
our support for democracy and market-oriented economies. In the
current springtime of freedom around the world, new democratic
institutions have blossomed in the Philippines, in Korea, in
Nicaragua, in the Soviet Union, and in Africa.
Let me stress, however, that we will not interfere in the
internal affairs of others. We have no candidates; we have no
favorite parties. But we do have our views about the democratic
process and the rule of law, and we will make them known.
We believe that there is no single model for democracy in
Africa. Presidential systems, parliamentary systems, proportional
representation, and single member districts--we can respect all of
these.
There is no country on the face of the earth whose citizens do
not desire a government that respects the basic principles of
democracy: Freedom of speech, freedom of the press, freedom of
assembly, freedom from arbitrary intimidation and arrest, and the
rule of law, which is the life-blood of democracy.
Ensuring that basic human rights are respected is a
responsibility of the judiciary. Democracies must be governed by
laws, not men. No man, be he rich or powerful, can be above the law.
If justice is denied, democracy cannot survive.
The Attorneys General and other government prosecutors
must be free to pursue justice against whomever they reasonably
suspect of criminal activity. At the same time, the Attorneys
General have a special responsibility to ensure that suspects are
treated in accordance with the law during all phases of their
incarceration. Those who are accused of crimes are entitled to
certain rights: They must be charged expeditiously, they must be
free from physical abuse, the conditions of their imprisonment
must meet minimum standards, and they should be tried quickly and
fairly. All persons, no matter what their status or background, are
entitled to equal treatment under the law.
The Attorneys General assembled here today carry the
awesome responsibility of turning these ideals into reality. If you
do not uphold the rule of law--then who will? If you do not insist
on the independence of the judiciary--then who will? And if you do
not protect the rights of the people--then who will?
In a democratic society, public officials must be held
accountable for their actions, and a free press is the people's
watchdog. The press must be free to investigate and to publish
what it finds to be true--even if it embarrasses or hurts the
careers of powerful figures, in or out of office. The free press,
along with the judiciary, stands guard against abuses of human
rights--preventing them whenever possible, exposing them when
they occur.
If respect for human rights, the rule of law, and a free press
are essential ingredients, then the relationship between democracy
and the market economy is the basic recipe for success. The United
States is encouraged by the growing acceptance by African
governments and African people of the market-oriented economic
model. In the past, African governments adopted policies that
actually inhibited economic growth. There was over-reliance on the
state and under-reliance on the creativity and energy of the private
sector and far too much dependence on foreign aid.
Now, however, almost three-fourths of Africa's countries are
embarked on economic reform programs designed to reduce the role
of the state and free the forces of individual initiative. The full
benefits of economic reform will not be realized unless there is
equally deep democratic reform. Only when the powerful engines of
democracy and the free market are harnessed together, in a single
system, will Africa achieve its full economic potential, and
Africa's potential is tremendous.
There is a revolution sweeping the world today, a revolution
that knows no geographic boundaries. I have recently traveled to
Eastern Europe, where millions of people are struggling to rebuild
their societies after decades of one party domination. I have just
visited South America, where democracy and economic growth are
sweeping away the sad legacy of military rule and statist
economics.
The democratic revolution is spreading all around the globe
because our people want to be empowered. Our people want respect.
Our people want a good life. Our people want hope and an
opportunity to live their dreams. Make no mistake about it--Africa
is part of this global revolution.
You are part of this revolution. Your own efforts as
Attorneys General to uphold the rule of law and the rights of the
individual will be far more vital to the success of the democratic
cause in Africa than any foreign aid program. The United States, as
it always has, will remain engaged. We are a caring, peace-loving
nation. We want peace, not war. We want democracy, not
dictatorships. We want hope, not despair. As a nation, America
will continue to support and assist the democratic cause throughout
Africa. . . .(###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: Africa Must Develop Its Private Sector
Quayle
Source: Vice President Quayle
Description: Address before the African Development Bank, Abidjan,
Cote D'Ivoire
Date: Sep 14, 19919/14/91
Category: Speeches, Testimony, Statements
Region: Subsaharan Africa
Country: Cote d'Ivoire, Mali, Nigeria, Cape Verde,
Namibia
Subject: Trade/Economics
[TEXT]
President N'Diaye, your excellencies, distinguished guests, ladies
and gentlemen, first, on behalf of President Bush and the American
people, I bring you special greetings from the United States, a
country that greatly cares about the future of Africa.
Distinguished ladies and gentlemen, in his famous "winds of
change" speech delivered in 1960, former British Prime Minister,
Harold MacMillan, drew the world's attention to the inevitable drive
for independence sweeping across the continent of Africa. Back
then, it was widely believed that the end of colonialism would
usher in a new era in African history--one of hope and opportunity.
For much of Africa, these high hopes, unfortunately, have not been
realized.
Today, however, the winds of change are blowing across the
African continent once again. The revolutionary events occurring
elsewhere--especially in Eastern Europe and the Soviet Union--have
provided an additional impetus for change.
The question is: Do the historic events taking place in Africa
and around the world offer new hope to ordinary men and women in
Africa? Or will future historians look back on the 1990s and
conclude that, once again, high hopes and great expectations went
largely unfulfilled?
I am here to reaffirm America's faith in Africa--in its
people,
in its leaders, in its traditions, and in its future.
I have visited five African countries this past week:
-- In Cape Verde democracy is established.
-- In Nigeria, the military regime has stated it will give way
to civilian rule and hold federal elections in 1992.
-- Unfortunately, Malawi, a small poor country, still has a
one-party system, but changes will come to Malawi as well.
-- In Namibia, independence and democracy have brought new
hope that opportunities for education and investment can be
developed for all of Namibia's people.
-- In Cote d'Ivoire, we have seen the economic openness
which can bring about the full measure of political development in
Africa.
For Africa's movement toward economic and political reform
to succeed, we must first confront the mistakes of the past. In my
judgment, Africa's frustration in trying to fulfill its potential can
be traced back to the pernicious effects of two ideas. Both of these
ideas were once widely held in Africa and in many Western
countries. Both were misguided.
The first idea is that democracy was not an appropriate
political model for Africa. We often heard concern, for example,
that multi-party democracy would only reinforce tribalism and that
African tradition called for a strong leader.
By now, everyone can see how misguided these notions were.
If it only had been recognized that democracy is the best system for
building real unity among culturally diverse peoples, then things
would have been better.
A second idea that has held back Africa's prospects is that
economic development in Africa required a centralized, state-
managed economy. Today, of course, momentous events have taught
the world a lesson in economics--that a command economy is a
recipe for disaster.
Too many of Africa's governments found themselves on a
treadmill of escalating costs, rising debt, and bloated government
payrolls. Large public but uncompetitive investments produced
little, while private producers were punished with excessive
taxation. Unfortunately, the private sector, right from the start,
never had a chance to compete and grow on a level playing field.
I am offering you my candid advice as a friend. My advice
today is no different than what I have said in Eastern Europe and
Latin America and what we are telling the Soviet Union. The age of
large-scale, government-to-government aid is over; Africa must
develop a vigorous private sector if it is to grow.
Foreign aid can help alleviate short-term needs, and lending
from international financial institutions can facilitate medium-
term structural adjustments. Over the long term, however, there is
one and only one path to reaching your full economic potential, and I
will repeat it: Africa must develop its private sector.
So let us talk about plans and policies that will position
Africa for an exciting new era of growth in the 21st century. In
many places, a good start has been made. Today, almost three-
fourths of Africa's countries have adopted economic reform
programs designed to reduce the role of the state and free the
forces of individual initiative. Until full-blown economic reforms,
like privatization, have become a reality, real growth will not
displace decay in Africa.
That is why I am pleased to acknowledge the promising new
initiative of the Africa Development Bank [AFDB] under the able
leadership of President N'Diaye. The AFDB is quickly moving to the
forefront of efforts to promote private enterprise in Africa. The
bank has established a private sector development unit, to provide
direct financing and technical assistance to African private
enterprise.
The United States is pleased to be involved in this important
new initiative. We have supported the AFDB's efforts for a long
time, and we will continue to support it. Through USAID [the US
Agency for International Development], OPIC [the Overseas Private
Investment Corporation], and our trade development program and by
working with the World Bank, we will lend our support to the bank's
new private sector development efforts.
I am very gratified that participation by US private firms in
AFDB projects has doubled. The bank's private sector development
unit is providing exactly the kind of services needed to build on this
promising new trend. Equally importantly, the bank is assisting
African governments in preparing state-owned enterprises for
privatization.
My friends, this is the kind of activity that will bring Africa
out of the economic doldrums. This is the kind of trend the United
States is happy to support.
We are already a major market for African goods. In 1990,
we imported almost $13 billion in goods from Sub-Saharan Africa.
US investment in Sub-Saharan Africa totaled some $2.7 billion at
year-end 1990. This year, the Untied States provided approximately
$150 million in direct assistance to the private sector in Africa.
The United States has also moved decisively to address
Africa's debt burden. In recognition of the economic reforms
undertaken by a number of African nations and based on need, we
have signed agreements to forgive development loans. So far, we
have forgiven some $755 million in development loans.
I am pleased to announce today that the US Government will
provide immediate, additional debt forgiveness of over $419 million
to eight Sub-Saharan African countries: Ghana, Kenya, Madagascar,
Malawi, Mozambique, Senegal, Tanzania, and Uganda.
This new debt relief authority was established for least
developed countries making significant efforts at economic reform
in conjunction with the International Monetary Fund [IMF] or the
World Bank.
We all know Africa needs capital. The investment capital is
out there. It is available, but it is limited--and it will go where it
finds genuine opportunities.
I have worked with private sector leaders to create
enterprise
funds in the reformed economies of Central and Eastern Europe. I
have traveled to Latin America with some of America's top
corporate executives to spur the economic reform process. And this
week, I have participated in candid discussions with African policy
officials and foreign investors.
Everywhere, I have learned the same lesson: I can lead a
horse
to water, but I cannot make him drink. Only the governments of
Africa, working with the AFDB and other reform-minded entities
and governments, can make the investment climate appealing to
foreign capital.
We want you to tell potential investors: "Take a new look at
Africa. You can do business there." We hope you will make it easier
for us to deliver that message. The United States will do its part to
get that message across.
We are prepared to offer seminars to African government and
business executives on how better to use the American generalized
system of preferences (GSP) program. Under this program, Sub-
Saharan nations which are GSP beneficiaries export nearly $150
million in goods duty-free into the United States.
These seminars will show how to use the program more
effectively and shall promote more trade and investment. The
United States currently sponsors numerous investment missions to
Africa.
The United States is also encouraging all parties involved in
South Africa to continue forward to a political settlement
establishing a non-racial, multi-party democracy. We continue to
work vigorously to eliminate the ugly system of apartheid.
So, these are some highlights, not the complete list, of
American commitments to Africa. The US Government's
commitment to Africa is for the long haul. As President Bush has
said, we will not forget our African friends, no matter what
happens elsewhere in the world.
We can help, and we will help, but the bulk of the job must be
done by Africans themselves. You hold your destiny in your own
hands. Africa today stands at the threshold of a bright and
promising future. An era of African history is coming to an end, and
a new one is beginning.
A new breed of politician is rising from the cities and towns
and universities of Africa--ready to participate in multi-party
democracy. A new breed of legal scholar is emerging in Africa--
ready to assume the awesome responsibility of upholding equal
rights for all in an independent judiciary.
Now it is clear to me, we must encourage the development of
a new breed of African businessman, a new breed of African
economist--and with it, we must encourage a new business ethic.
Let's join together to wipe away the corruption, the monopoly
power, and the "robber baron" exploitation of Africa's resources.
This was Africa's sad legacy of elitist, state-run economies in the
post-independence period, and let us never repeat it.
Nationalized industries should be privatized. Small business
should be welcomed. Encouraging the creative energies of Africa's
small entrepreneurs is a key to economic growth--one which will
bring greater social justice.
Government agencies have to welcome private capital sources
instead of "crowding out" private enterprise. Government
bureaucracies have to provide efficient services that private
producers need and can rely upon instead of stifling the competitive
energies of the people. Government leaders have to attack
corruption wherever it is found, starting with the example they set
for the business community and the society as a whole.
Openness, accountability, pluralism, tolerance, and respect
for human rights are the principles of a growing Africa. You are
Africa's economic pioneers, Africa's new breed, and Africa's hope
for the future. The future is yours.
I hope you take every opportunity to compete with reforming
countries all over the world. I hope you can develop Africa to its
fullest potential.
If you do, historians of the future will surely say that this
time, the "winds of change" blowing through the world marked the
start of a new world order--not only in Eastern Europe, not only in
Latin America, not only in Asia and the Middle East, but in Africa as
well. And through it all, we, the United States, will gladly extend
the hand of friendship and partnership. (###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: Angolan President Visits Washington, DC
Date: Sep 23, 19919/23/91
Category: Fact Sheets
Region: Subsaharan Africa
Country: Angola
Subject: International Law, Military Affairs,
Democratization, United Nations
[TEXT]
Angolan President Jose Eduardo dos Santos met with President Bush
at the White House on September 16, 1991, 2 days after Jonas
Savimbi, the President of Angola's other major political party, the
National Union for Total Independence of Angola (UNITA), met Vice
President Quayle in Abidjan, Cote d'Ivoire. The meetings
underscored the US commitment to help promote national
reconciliation in Angola since the warring parties signed a peace
accord on May 31, 1991, which the United States helped to
negotiate. During the signing ceremonies in Lisbon, Secretary Baker
promised that the United States would do all that it could to assist
Angola's transition to democracy. He noted that democracy in
Angola offers the best chance for stability not only in that country,
but for the southern African region as well.
Background
The Angolan civil war began in 1975 between the Luanda
government of the Popular Movement for the Liberation of Angola
(MPLA) and UNITA. It ravaged the countryside, causing considerable
disruption of political and economic life. After 1979, UNITA
effectively controlled the southeastern quarter of the country. The
presence of Cuban and South African forces in Angola complicated
the civil war. In 1988, the United States successfully mediated
negotiations leading to the departure of these foreign forces from
the country, as well as the independence of Namibia. Between April
1990 and May 1991, negotiations between the Luanda government
and UNITA were conducted under the mediation of Portugal. The
United States and the Soviet Union were official observers at these
negotiations and played a facilitative role in helping the two
parties reach the agreements which were signed on May 31.
US Policy in Angola
US policy in Angola has long sought a negotiated settlement to the
civil conflict, including free and fair elections in which UNITA and
all other Angolan political parties are free to participate. A little
more than 1 year ago, Secretary Baker met with President dos
Santos in Windhoek during the Namibian independence celebrations.
He assured him that US policy was aimed at promoting negotiations
to achieve peace and stability, and he urged President dos Santos to
accept negotiations leading to free and fair elections. President
dos Santos accepted Secretary Baker's recommendation and asked
the Portuguese Government to mediate negotiations, at which the
United States and the Soviet Union were official observers. The
resulting negotiations progressed, but in December 1990 reached an
impasse.
During their meetings in Houston in December 1990,
Secretary
Baker and then Soviet Foreign Minister Eduard Shevardnadze
reviewed the status of the negotiations for a settlement in Angola.
They expressed their continued support for the important role
played by Portugal. To facilitate the negotiations, and to advance
the achievement of peace and stability, they made a special effort
to break the impasse. The United States and the Soviet Union co-
sponsored a meeting in Washington, DC, with all parties on
December 13. On the previous day, Secretary Baker met with the
Angolan Foreign Minister, and Foreign Minister Shevardnadze met
with President Savimbi of UNITA, demonstrating their
determination to bring the two parties together. These meetings
resulted in a document called the Washington Concepts Paper, which
established a framework for an overall settlement. This
intervention by Secretary Baker and the Soviet Foreign Minister
demonstrated the overall success of US policy toward Angola and
US-Soviet cooperation in resolving regional conflicts.
The Peace Accords for Angola
On May 1, 1991, following weeks of intensive discussions in
Lisbon, the parties reached agreement in substance on all issues
related to a cease-fire and political settlement. At Estoril, high-
level UNITA and Luanda government officials initialed agreements
on a UN-monitored cease-fire and supplementary principles guiding
a final settlement, including free and fair multi-party elections and
the formation of new, politically neutral, national armed forces.
On May 15, a de facto cease-fire began when the parties
informed the Portuguese Government of their acceptance of the
agreements reached. A formal cease-fire entered into force when
the final agreements were signed by President dos Santos and
UNITA President Savimbi on May 31.
US Role Under the Accords
Under the cease-fire agreements, the United States, as an observer
to the JPMC and the JVMC, is supporting implementation of the
agreements. In June, it opened an office in Luanda, where the JPMC
is headquartered. This did not constitute establishment of
diplomatic relations with the Luanda government. The United
States will establish diplomatic relations with the government in
Angola which emerges from free and fair, internationally monitored
elections scheduled to be held between September and November
1992. The accord binds both parties to avoid further importation of
lethal materiel into Angola. The US and the USSR are complying
with this provision. Non-lethal aid is specifically permitted.
UN Role
The UN was asked to authorize the establishment of a mission of
several hundred observers to assist in monitoring the cease-fire.
They began to arrive in Angola as soon as the cease-fire
agreements were signed and will remain until the results of
national elections have been proclaimed.
Provisions of the Agreement
Cease-Fire Agreement, which includes the formation of a Joint
Verification and Monitoring Commission (JVMC) to monitor cease-
fire implementation.
Fundamental Principles for the Establishment of Peace, which
includes the formation of a Joint Political and Military Commission
(JPMC), with overarching responsibility for implementation of all
aspects of the agreements.
Washington Concepts Paper, which contains fundamental concepts
underlying a framework for settlement.
The "Estoril Accords," (named after the Portuguese town, near
Lisbon, where they were negotiated), which include six annexes on:
-- Free and fair multi-party elections between September
and November 1992;
-- Internal security (neutrality of the police force will be
guaranteed by the presence of UN monitors);
-- Structure and mandate of JPMC;
-- Administrative structures for the UNITA-held areas;
-- A definition of UNITA's political rights once the cease-
fire
is signed; and
-- The formation of a new, politically neutral, national
armed
forces.(###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: Angola Peace Accords
Fitzwater
Source: White House Press Secretary Marlin Fitzwater
Description: Washington, DC
Date: Sep 16, 19919/16/91
Category: Speeches, Testimony, Statements
Region: Subsaharan Africa
Country: Angola
Subject: Democratization, United Nations
[TEXT]
The President used the occasion of the private visit of President
Jose Eduardo dos Santos of Angola to review with him the status of
the Angola peace accords. The President reiterated our firm
commitment to the Angola peace process and to the full and timely
implementation of all aspects of the accords. In light of the recent
difficulties concerning the assembly and cantonment of troops and
the slow pace at which discussions are proceeding toward
agreement on an electoral calendar, including a precise date for
elections, the President urged President dos Santos to resolve these
issues quickly so that the peace process will maintain its
momentum and genuine national reconciliation can finally be
established in Angola. The President informed President dos Santos
that we remain committed to establishing diplomatic relations
with the government which emerges from free and fair
internationally monitored elections. The President noted that he is
looking forward to Angola's elections next year and reiterated our
preference, also contained with the accords, that they be held in
September.(###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: US Support for Peruvian Reform
Bush, Fujimori
Source: President Bush, Peruvian President Fujimori
Description: Remarks upon President Fujimori's departure, the White
House, Washington, DC
Date: Sep 17, 19919/17/91
Category: Speeches, Testimony, Statements
Region: South America
Country: Peru
Subject: Trade/Economics, Democratization, Narcotics
[TEXT]
President Bush:
Mr. President, it has been a great
pleasure and a privilege to meet with you today and exchange views
on the important issues that our two countries must overcome
together. You, sir--you, Mr. President--are Peru's hope for the
future. We have spoken openly, discussing the tough challenges Peru
faces--from economic hardship to renegade insurgencies, from the
war against drugs to the battle to preserve human rights.
Much has been done on all these fronts--but much more waits
to be achieved.
Mr. President, since taking office, you have cut government
spending, eliminated price controls, knocked down barriers to trade
and investment. Those reforms have begun paying off. They've
begun paying dividends. Inflation has eased; net international
reserves have risen. Peruvians feel confident in themselves, their
economy, and their nation.
We want to be a full partner in your efforts to restore Peru's
economy because your people deserve the fruits of economic growth
after so many years of suffering.
We also discussed narcotics trafficking and production, a
scourge that blocks Peru's path to a peaceful and prosperous future,
drains its resources, drives insurgency, and dampens its hope for a
better tomorrow.
Under your leadership, sir, Peru has moved to combat this
deadly threat. You've both strengthened police and military
operations against the drug industry and stressed the need for
alternative crop production.
The United States and other nations have joined to support
Peru's efforts with training, resources, and equipment. And in this
spirit, I was pleased to reaffirm last May's accords in which we
agreed to cooperate closely in combating drug trafficking.
To support these efforts, my Administration wants to send
$94 million in economic and military assistance to fight drugs.
Unfortunately, Congress has placed a hold on disbursement of these
funds, chiefly because of stated human rights concerns. We share
these concerns and so do you, Mr. President. But you have made
progress on human rights, and let's also, then, see progress on
releasing these funds.
Without this needed aid, cocaine traffic will continue
unabated, and violence and abuses will increase unredressed. So I
urge Congress to help Peru and the Andean nations create economic
alternatives to coca production by passing my Andean Trade
Preference Initiative.
Mr. President, you've combined strong leadership with swift
action. You've replaced police officers suspected of corruption and
abuse, begun to open up detention centers to prosecutors, and
pledged to strengthen your military code.
Your reforms have begun to help improve the human rights
record of the security forces, and your deeds echo the words of
your country's constitution, "That all men, equal in dignity, have
rights of universal validity." Rights abuses have fallen sharply
since you took office last year. And Mr. President, your leadership
and your nation deserve our support, and you have it.
Our Government is pleased to co-chair with Japan an
international group to help Peru with its debt problems and hasten
its reintegration into the international financial community. A
number of other countries, including several in Latin America, have
joined this process which is so important for Peru's future.
We hope the democratic community will rally generously to
support your people.
Mr. President, you are confronting the challenge of change
with courage and vision. And you're building a new Peru with a
sound economy, respect for law, and a new sense of social justice
and national reconciliation. You're steering your country steadily
toward a place of renewed leadership in the community of
democratic nations which Peruvian patriot Juan Pablo Viscardo y
Guzman once called "the great family of brothers."
And so, once again, sir, it has been an honor to welcome you
and, yes, your family to the White House and your excellent team
that you brought with you. We welcome you once again, and let me
just say may God bless you and the people of Peru.
President Fujimori:
Mr. President, as President of
Peru, I would like to express my appreciation and that of the
Peruvian people for all your hospitality during our trip and for the
considerable assistance that your government has provided to my
country through your leadership of the [inaudible] group. Thanks to
your support, Peru will be able to resume normalized relations with
the international financial community.
As we have discussed together, Peru and the United States
have joined in a terrible intimacy in the war against drugs. Our
country can play a significant role in the effort to wipe out drug
trafficking. Peru produces 60% of the world's cocaine, while the
United States consumes 80% of the world's coca leaf. The efforts
on the part of both our countries to fight this scourge, within the
framework of the anti-drug agreement which we have signed and
with the support of the coca-growing farmers of Peru, are critical.
And we all recognize that each victory in this fight will benefit the
youth of the entire world.
In order to replace the coca leaf with other crops in Peru, it
will be necessary to change our systems and create the conditions
for a true market economy. It is only in this manner that the coca-
growing farmer can switch to alternative and profitable crops.
We are making progress in this difficult war. We have
achieved a national consensus which includes all of the coca-
growing farm organizations for a move to legal crops and
alternative development. Through intelligent efforts based on the
shared vision between our two countries, we can consolidate a
relationship which will vanquish drug trafficking.
As I informed you, we have established a new policy in Peru
for the protection of human rights which will complement our fight
against drug trafficking and terrorists and will guarantee the full
respect of those rights.
We are committed to ending the problems in Peru without
abandoning the rule of law and democracy. Our plan for fighting
drugs in Peru calls for identifying the coca-growing farmers. By
identifying the coca farmers, we will also be able to identify the
drug traffickers. I wish to assure you that our efforts to put an end
to the activities of drug trafficking will be implacable.
I am certain that with the cooperation of the United States of
America, with its friendship and fraternity, together we will be
able to free humanity of the terrible scourge of drug trafficking.
Mr. President, again, my sincere thanks. Your support and
concern for the reconstruction of my country will long be
remembered by myself and the people of Peru. Many thanks. (###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: Visit of Peruvian President Fujimori
Date: Sep 17, 19919/17/91
Category: Fact Sheets
Region: South America
Country: Peru
Subject: Democratization, Trade/Economics, Narcotics
[TEXT]
Peruvian President Alberto Fujimori made his first official visit to
Washington, DC, on September 17, 1991. He met with a wide array
of government and business leaders, including President Bush and
Acting Secretary Eagleburger. There was discussion on a full range
of issues, notably US assistance and human rights concerns as well
as Peru's efforts to stabilize its economy and control narcotics
production/trafficking.
US-Peru Relations
President Fujimori has pursued a pragmatic approach to challenges
facing Peruvian democracy and has strengthened relations with the
United States. His Administration has moved to address the
problems he inherited from the previous government: a severe
economic recession, insurgent violence, corruption, and narcotics
production/trafficking. In particular, Fujimori has aimed to restore
international confidence in Peru's economy by substantially
increasing reliance upon a free market system and seeking to
reinsert Peru into the world financial community. In addition,
President Fujimori's democratically elected government has
repeatedly affirmed its commitment to the counter-narcotics
struggle.
Under the Andean strategy, a 5-year cooperative program
with
the Andean countries designed to combat cocaine production and
trafficking, the US has sought to improve the operational
capabilities of the Peruvian, Colombian, and Bolivian law
enforcement and military forces engaged in the drug war. In
addition, the United States has sought to put in place economic
programs designed to encourage alternatives to coca cultivation.
To achieve these goals, the US and Peru have signed four
counter-narcotics agreements in the last 4 months: an umbrella
agreement in May, followed by three supplemental agreements
specifically concerning law enforcement aid and economic and
military assistance. Disbursement of funds for economic and
military assistance cannot take place until Congress releases these
funds.
Consolidation of Democracy
Since 1980, when the constitution drafted in 1979 went into effect,
Peru has had a freely elected democratic government, composed of
an executive branch headed by a president, a bicameral legislature,
and a separate and independent judiciary. Elections are held every 5
years for both the office of president (who serves a single 5-year
term) and for the Senate and Chamber of Deputies. The president
appoints the Council of Ministers which approves all presidential
decrees and proposed legislation before they are sent to the
legislature. After two rounds of intensely contested national
elections for president, Alberto Fujimori, a former university
president, was inaugurated in July 1990. Presently, no single party
holds a majority in the legislature.
Peru's democratic government must confront a troubled
economy, which is suffering from the disastrous economic policies
of the prior Administration. In addition, Peru faces threats from
the Maoist Sendero Luminoso (Shining Path) and the pro-Cuban Tupac
Amaru Revolutionary Movement (MRTA). Both groups have some
control over parts of Peru's major coca-growing region, the Upper
Huallaga Valley, where they have been linked to the illegal drug
trade. In the face of a violent, brutal insurgency, the Government of
Peru has taken measures that demonstrate President Fujimori's
personal commitment to human rights. While much work remains to
be done, there has been progress and important steps have been
taken. With 1 year in office, the new Government of Peru has
announced that prosecuting attorneys will have full access to all
military barracks and police detention centers to verify that
detainees' human rights are respected and has granted the
International Committee of the Red Cross permission to staff and
operate additional offices.
Economy and Trade
President Fujimori's Administration inherited a government without
international reserves, shunned by external credit markets, and
burdened with a number of extraordinarily unprofitable public
sector companies. The economy was in deep recession with an
accelerating four-digit inflation rate (more than 7,600% at its
height in 1990 ) and seriously deteriorated infrastructure.
In response, President Fujimori instituted an economic
stabilization and adjustment program. As a result, inflation is
expected to decline to about 220% in 1991. Government price
controls and subsidies have been eliminated, along with nearly all
barriers to foreign trade and investment. Foreign ownership and
investment are welcome; foreign exchange is unlimited; Peruvian
banks may now accept foreign currency deposits. The exchange rate
system has been unified, controls on commercial bank interest
rates have been eliminated, and the national currency has been
allowed to float. Consequently, government revenues and
expenditures are in balance and net international revenues have
increased.
The United States is Peru's largest trading partner. Other
major trading partners are the European Community and Japan.
Exports include petroleum, copper, silver, zinc, lead, fishmeal,
coffee, cotton, and canned or frozen fish. Peru imports machinery,
cereals, chemicals, pharmaceuticals, and equipment for petroleum
and minerals extraction. The Fujimori Government eliminated the
requirement for import licenses and the ban on imports of 300
items.
Most US investment in Peru is concentrated in the mining and
petroleum sectors, and many US subsidiaries manufacture consumer
products or provide services.(###)
Peru at a Glance
The third largest country in South America, Peru is bordered by
Ecuador, Colombia, Bolivia, Chile, and Brazil and has a 2,240-
kilometer (1,400 mi.) Pacific Ocean coastline. It has three
topographical and climatic regions: the coastal area, the Andes
Mountains, and the eastern jungle. Lima, the capital, has no extreme
temperatures and little daily variation.
When the Spanish explorer Francisco Pizarro arrived in 1531,
Peru's territory was the nucleus of the highly developed Incan
civilization. By the time of the wars of independence, Peru had
become the chief Spanish stronghold in America. Spain recognized
its independence in 1879. Until 1980, when civilian government
was restored under the 1979 constitution, the Peruvian military
repeatedly interrupted civilian constitutional government.
Peru's population of 20 million is mainly comprised of
Indians, mestizos, and Hispanic Europeans. Since 1980, primary
school education has been free and compulsory. Public school
attendance at all levels is about 84%. Education and urban
migration are helping develop a more homogeneous national culture,
especially in major cities. Literacy is 72% in urban areas, where
the fiction of such internationally famous writers as Mario Vargas
Llosa and Alfredo Bryce Echenique is popular. Probably the most
prominent world figure from Peru at the present is Javier Perez de
Cuellar, Secretary General of the UN since 1982. (###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: Country Profile: Peru
Date: Sep 23, 19919/23/91
Category: Country Data
Region: South America
Country: Peru
Subject: History, Trade/Economics,
International Organizations
[TEXT]
Official Name: Republic of Peru
Geography
Area: 1.3 million sq. km. (496,222 sq. mi.); three times larger than
California.
Cities: Capital--Lima (pop. 6.5 million, 1989 est.). Other Cities--
Arequipa, Trujillo, Chiclayo, Piura, Chimbote, Cuzco, Huancayo,
Iquitos, Tacna.
Terrain: Western coastal plains, central rugged mountains (Andes),
eastern lowlands with tropical jungle (the Amazon headwaters).
Climate: Coastal area, arid and mild; Andes, temperate to frigid;
eastern lowlands, warm and humid.
People
Nationality: Noun and adjective--Peruvian(s).
Population (1990 est.): 22 million (69% urban).
Annual growth rate (1989 est.): 2.5%.
Ethnic groups: Indian 45%, mestizo 37%, white 15%, black, Asian,
and other 3%.
Religion: Predominantly Roman Catholic.
Official languages: Spanish, Quechua, and Aymara.
Education: Years compulsory--11. Literacy--88%.
Health: Infant mortality rate--83/1,000. Life expectancy--61 yrs.
Work force (7.4 million): Agriculture--35%. Industry and mining--
13%. Government and other services--52%.
Government
Type: Constitutional republic.
Independence: July 28, 1821.
Constitution: Took effect July 28, 1980, but often referred to as the
1979 constitution because constituent assembly met to write it
that year.
Branches: Executive--president, two vice presidents, Council of
Ministers. Legislative--Senate and Chamber of Deputies. Judicial--
Supreme Court and lower courts, Tribunal of Constitutional
Guarantees.
Administrative subdivisions: Historically divided into 24
departments and 1 constitutional province; currently being
reorganized into 12 regions (under the terms of the 1979
constitution).
Political parties: American Popular Revolutionary Alliance (APRA),
Popular Action (AP), Popular Christian Party (PPC), Liberty
Movement (LIBERTAD), Change 1990 (CAMBIO '90), plus United Left
(IU) and Socialist Left (IS) coalitions.
Suffrage: Universal and mandatory, ages 18 to 70 (members of the
military and police may not vote).
Central government budget (1991): $4.6 billion.
Defense (1990): $506 million.
Flag: Three vertical stripes--red, white, red--with coat of arms on
center stripe.
Economy
GDP (1990 est.): $19 billion.
Annual real growth rate (1990): -4.6%.
Average annual real growth (1985-90): -9%.
Per capita GDP (1990 est.): $1,377.
Inflation rate (1990): 7,650%.
Natural resources: Minerals, metals, petroleum, forests, fish.
Agriculture (11% of GDP): Products--coffee, cotton, sugar, rice,
corn, potatoes.
Industry (25% of GDP): Types--mineral processing, oil refining,
fishmeal, textile, food processing, light manufacturing, automobile
assembly.
Trade (1990): Exports--$3 billion: copper, fishmeal, zinc,
petroleum, lead, coffee, silver, cotton, textiles. Major markets--US
(24%), European Community, Japan. Imports--$3 billion: cereals,
machinery, chemicals, pharmaceuticals, petroleum and mining
equipment. Major suppliers--US (27%), Andean Pact countries, EC,
Brazil, Japan.
Fiscal year: Calendar year.
US assistance (FY 1990): Economic-- $70 million. Military--$1.5
million. Law enforcement--$10 million.
Principal Government Officials
President--Alberto Fujimori
Prime Minister--Carlos Torres y Torres Lara
Foreign Minister--Carlos Torres y Torres Lara
Ambassador to the United States--Roberto MacLean
Ambassador to the United Nations--Ricardo V. Luna
Ambassador to the Organization of American States (OAS)--Luis
Marchand Stens (###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: Proposed US Economic and Military Aid to Peru
Aronson
Source: Bernard Aronson, Assistant Secretary for Inter-
American Affairs
Description: Statement before the Subcommittee on Western Hemisphere
Affairs of the House Foreign Affairs Committee, Washington,
DC
Date: Sep 12, 19919/12/91
Category: Speeches, Testimony, Statements
Region: South America
Country: Peru
Subject: Development/Relief Aid, Trade/Economics,
Security Assistance and Sales, Narcotics,
Human Rights, Terrorism
[TEXT]
I welcome this opportunity to discuss with you our relations with
Peru and the economic and military aid we propose to provide to
Peru in fiscal year 1991. My colleagues and I also appreciate the
participation of so many members of the Subcommittee on Human
Rights and the Task Force on International Narcotics Control,
because this program deserves wide attention and scrutiny in
Congress.
Let me speak plainly: The Administration believes that this
year's aid to Peru is indispensable to the war on drugs. Without
that aid--$60 million of economic aid and $34 of million military
aid--we would suffer a setback not just in our work to stop cocaine
trafficking in Peru. Because of Peru's leading position as a coca
leaf supplier and its central geographical position, we also would
suffer a setback in our overall Andean effort. We would offer a
sanctuary to traffickers who are now feeling the heat of successful
interdiction operations in Bolivia and Colombia.
Make no mistake: If this aid is denied, more cocaine will
enter the United States. We will also miss an opportunity to
collaborate closely with a brave democratic leader who is working
to improve respect for human rights and strengthen a democracy
under attack by a brutal guerrilla insurgency.
The Peruvian Context
Many of the problems facing Peru can be described in superlatives:
Peru is the world's largest producer of coca leaf; it is plagued by
Latin America's most brutal and ruthless guerrilla group, the
Sendero Luminoso (Shining Path); it confronts the most severe
economic crisis in this hemisphere. All of these crises were
inherited by the current government. To add to Peru's troubles, its
people have been hardest hit by the cholera epidemic, with over
240,000 cases recorded.
When President Fujimori took office in July 1990, he faced
almost 3,000% inflation, a bankrupt treasury, real wages down 60%
since 1985, and about one-third of the country's children suffering
moderate to severe malnutrition. His predecessor made very
limited payments on Peru's international debt, and as a result Peru
was isolated from international financial institutions and cut off
from new credit. Just to return to its 1987 level of per capita
economic production, Peru will need 8 consecutive years of 5%
annual growth.
I have described the full dimensions of Peru's problems to
give you a sense of the immense tasks President Fujimori faces in
governing Peru. While we seek to help President Fujimori as much
as possible, our principal foreign policy interests lie in helping the
Government and people of Peru to consolidate democracy, stop drug
traffic, and protect human rights.
These principles govern our counter-narcotics efforts.
First, any serious international effort to stop the supply of
cocaine requires that we work in Peru fully engaged with the
Government of Peru. Because Peru supplies 60% of the world's coca
leaf, any effort that leaves Peru out is a partial effort at best.
Second, the cocaine problem in Peru cannot be solved in
isolation, strictly as a problem of law enforcement. Any permanent
solution also requires comprehensive action in the areas of
economic development, human rights, and security.
Third, economic aid alone, without other effective counter-
narcotics efforts, will fail. Coca growers will switch to
alternative crops when relative prices favor that choice, markets
are accessible, and the required infrastructure is in place. To drive
down the price of coca, we have to disrupt the cartels' production
and transportation systems.
Fourth, security is essential both for an effective counter-
narcotics program and an effective economic development program.
Economic development workers cannot do their jobs if they are
attacked and killed by guerrillas and narco-traffickers. On August
14, a rocket attack gutted a drug awareness office in the Education
Ministry; this is a project funded by the US Agency for
International Development.
Fifth, while the police have the lead role in counter-narcotics,
the participation of the Peruvian military is essential in a country
where two powerful insurgencies are allied with drug producers.
Only the military can provide the security that is essential for law
enforcement, interdiction, eradication and economic development
efforts.
Sixth, improved respect for human rights is essential to our
program. It is a fundamental goal of US policy. Moreover, improved
respect for human rights will help Peru's police and military earn
the trust of the people and their elected government, thus
strengthening democracy.
Finally, seventh, the war on drugs will not be waged or won
like Desert Storm. We need patience, long-term vision, and
commitment to work steadily in our schools and streets, in the
Caribbean where drugs are transported, and all the way to the
Andean highlands where coca is grown.
Next week, President Fujimori will arrive in Washington for
an official working visit with President Bush. I know that many of
you will have a chance to meet him, and you will see what those of
us who work closely with Peru see on a regular basis--that he is a
thoughtful, sincere, and highly determined President committed not
just to fight poverty and drug trafficking but to lead Peru into a
new historical era.
In his inaugural address, he boldly decried Peru's system of
"injustice." That was not just rhetoric. In 1 year in office, he has
done more to advance the cause of human rights than all of his
predecessors. President Fujimori gave civilian prosecutors access
to police and military detention centers nationwide; he dismissed
246 majors, colonels, and generals from the national police; he
invited the Inter-American Human Rights Commission to visit Peru
in October; he began the first programs of human rights training for
Army cadets and military officers; and he is revising both the
military code of justice and the civilian penal code to create new
prohibitions and penalties for human rights abuses. This is just a
partial list of President Fujimori's actions.
President Fujimori's actions have been equally bold in
economic policy. He reduced the government payroll by 50,000
employees in 6 months, cut government spending from 10% of gross
domestic product (GDP) to 8%, boosted government revenues from
4% to 8% of GDP, cut average tariffs from over 80% to 17%. Foreign
ownership restrictions, commercial bank interest rate limits, and
controls on foreign exchange remittances have all been lifted.
President Fujimori has stated his personal determination to
fight drug trafficking in addresses to the Peruvian people and
Congress, and he has negotiated and signed four agreements with
the United States which define a broad counter-narcotics program.
President Fujimori is determined to make a difference, and we are
committed to work with him.
Peru and the Andean Strategy
In February 1990, President Bush traveled to Cartagena, Colombia,
for a summit with the presidents of Peru, Bolivia, and Colombia.
This meeting was long overdue. For too long, producer and consumer
nations allowed the drug problem to fester and grow, then we
engaged in a sterile, finger- pointing debate over who is to blame.
At Cartagena, we ended that debate and agreed on a common agenda
to attack a problem that confronts us all.
At home, demand for drugs is down, and cocaine prices are up.
This seemingly paradoxical result can only be explained by the
difficulties and increased risks drug dealers face in supplying the
US market. In the United States, cocaine use is down 29% from
1988 levels. Drug-related medical emergencies are down 18%. Best
of all as a sign for the future, current adolescent drug use
decreased by 13% from 1988 to 1990, and adolescent cocaine use
has fallen 49% over the same period. Young Americans are also
changing their attitudes, increasingly saying they disapprove of
drug use. This change in our youth mirrors societal changes. An
estimated 40% fewer Americans use drugs now as compared to
1985.
In the Andes, we also see positive results of our efforts to
disrupt cocaine production and transportation networks. For the
first time in a decade, the land area under coca cultivation in the
Andes did not grow in 1990. The price coca farmers receive for
their crop is down. In the Andes, coca leaves sell in hundred-pound
units which brought prices as high as $200 as recently as 1987.
Today, the high prices are in the $60-$80 range, and the price at
times dips to $10, well below the estimated $30-$40 breakeven
point. This reflects success in disrupting the cartels' production
and transportation operations, which causes backups in the
processing of cocaine and a glut of unprocessed coca.
Our cooperation has been closest, and our work most
advanced,
in Colombia and Bolivia. Now we are prepared to build on those
programs by greatly expanding our work in Peru.
President Fujimori took office committed to combat[ing]
cocaine production. In a speech to the Peruvian people last October,
he said:
"Peru produces more than 60% of the world's coca production. More
than 200,000 peasant families--that is, approximately 1 million
people--currently depend on coca production. This illegal and black
market upsets the national economy and generates, in alliance with
terrorism, a criminality that is increasing every day....We cannot
think about overcoming our national crisis and attaining our
economic and social development without the disappearance of the
illegal production of coca leaves."
From the first, President Fujimori has emphasized the need
to provide legal, profitable economic alternatives for those who
now make their livelihood in the coca economy.
The small farmers who produce coca leaf receive as little as
one dime for every coca dollar coming into Peru; this gives them an
average yearly income under $2000. Most would welcome an
economic alternative to the dangerous, high-risk, low-profit job of
cultivating coca. No one knows what long-term health damage will
by suffered by those who work with the highly toxic chemicals
involved in cocaine processing. Moreover, as President Fujimori has
said, "Very few Peruvians are happy earning their living at the cost
of enslaving others with drugs."
President Fujimori draws his expertise from his professional
experience as an agronomist, and we agree with his belief that our
strategy won't work if it doesn't provide for economic development.
Starting last December, we worked with his government to reach
agreements that met his concerns about the prominent role of
economic development. On May 16, we signed an umbrella
agreement to define the overall effort. President Fujimori
addressed a joint session of the Peruvian Congress and called the
agreement "another pillar on which a different Peru will be built."
Later in May we signed a law enforcement annex, and, in July, we
signed the military and economic assistance annexes to set out the
terms of these programs in greater detail. To unify the Peruvian
Government's counter-narcotics effort, President Fujimori will
unite law enforcement, economic development, military, and health
agencies under a single coordinating mechanism, the Autonomous
Authority for Development Alternatives.
Through a March 1990 agreement, we are already providing
over $19 million in equipment and training to the Peruvian National
Police to support counter-narcotics operations primarily in the
Upper Huallaga Valley of Peru. The center of this effort is the
Santa Lucia counter-narcotics base. In the 1-year period ending in
March 1991, the police have mounted air operations which have
destroyed 150 labs, seized over five metric tons (mt) of coca paste,
and disrupted trafficking networks based in the Upper Huallaga
Valley. With support from the Peruvian military, we hope that the
Peruvian national police will be able to extend their operations into
areas currently held by insurgents.
The 1991 Aid Package
New resources from our 1991 aid package will extend the reach of
existing counter-narcotics programs and add to the pressure narco-
traffickers are now feeling. These resources will add significantly
to work being done in Peru's Huallaga Valley, a vast underdeveloped
area over twice the size of El Salvador. Coca accounts for three-
fourths of the valley agriculture, and is integral to the economic
survival of its half-million residents. In the past, cocaine
producers have operated there with near-impunity. Their allies, the
Sendero Luminoso guerrillas, control much of the land area and have
effectively supplanted many local governing authorities.
I will begin my discussion of our military aid programs by
telling you what they are not. First, they are not a militarization of
anti-drug efforts. Throughout Peru, and particularly in the Upper
Huallaga Valley, both the drug traffickers and the insurgents have
been heavily armed and violent for a long time. Sendero Luminoso
has forced campesinos to abandon other crops and begin the
cultivation of coca. In many areas, alternative development
projects have been attacked and destroyed, and foreign and Peruvian
development workers have been murdered.
Sendero is one of the most brutal guerrilla groups in the
world; its barbaric practices remind many of the notorious Khmer
Rouge. Sendero Luminoso has long-targeted Peruvians in positions
of civil authority such as mayors and police, suspected
collaborators with the security forces, and those it finds to be tied
to foreign "imperialism." Since 1980, 42 Peruvians working with
US Government-supported development programs in the Upper
Huallaga Valley have been killed. This year, Sendero has stepped up
attacks on foreign development workers and projects. On May 18,
Sendero killed an Australian nun, Sister Irene McCormick, who
worked with Caritas, the Catholic charity. She was killed in a
public execution in a village in the Department of Junin. On August
9, two Polish priests who worked with poor children were killed by
Sendero in the Department of Ancash. On August 25, an Italian
priest from the same diocese was executed. Three Japanese
development workers were killed near Huaral on July 12; this and
other attacks led the Japanese to withdraw most of their aid
workers.
I cite these cases to demonstrate the vital need to provide
security for those who risk their lives in counter-narcotics operations,
whether they involve economic development, coca eradication, or police work.
The guerrilla threat is so formidable that only by working with the Peruvian
military and police can security be provided.
Our aid will give Peru's military more resources to challenge
the narco-traffickers by controlling Peru's airspace and the roads in
the Huallaga valley. Peru's military is asked to take on two armies,
those of the guerrillas and those of the traffickers, without enough
resources to keep its precious few helicopters flying and without
funds to keep its soldiers in boots, and sometimes even lacking
basic foodstuffs for military maneuvers.
Second, our aid is not a back door attempt to get into a fight
against Peru's insurgent groups. Both the Tupac Amaru
Revolutionary Movement (MRTA) and Sendero Luminoso are violent
and dangerous communist movements which are attempting to
overthrow the constitutionally elected government of President
Fujimori. We are ideologically opposed to both groups and find the
ultra-violent tactics of Sendero Luminoso--perhaps the most brutal
subversive group in the history of the hemisphere--to be singularly
repugnant.
While President Fujimori and his people deserve our sympathy
and support in their fight to maintain democratic and constitutional
government, we cannot assume their burden or make their battles
with Sendero and MRTA our own.
Third, our military assistance programs are not designed to
attack coca growers; we have no plans which would support the
Peruvian military or police [in] forcibly eradicating producing crops.
On the contrary, we are working with the Peruvian military in a
program which will eventually help the coca growers work in other
crops and businesses. Part of the military assistance will go for
civic action companies to help repair roads, repair or construct
bridges, drill wells, offer some medical treatment, and otherwise
improve the delivery of public services to the inhabitants of the
Huallaga Valley. Because of the extensive Sendero presence in much
of the Huallaga, much of this work cannot be done solely by ordinary
construction firms. Military units will be required.
Overall, this military assistance will be used to meet the
goals President Bush articulated in the first National Drug Control
Strategy in 1989, "to isolate the major coca-growing areas; to
destroy cocaine hydrochloride processing labs; and to dismantle the
trafficking organizations. . . ."
Our economic aid program will support the counter-narcotics
efforts by:
-- Supporting the government's economic reform program
which is key to changing incentives so that legal crops can better
compete with coca in a dynamic and growing economy;
-- Helping private businesses, especially small businesses
and those that create new export products, to grow, create jobs, and
earn foreign exchange;
-- Providing opportunities for coca growers through support
for legal crops, rehabilitation of the transportation network, and
development of legal businesses to supply the agricultural sector
and market its products; and by
-- Helping build democratic institutions--especially the
judicial system--to better protect human rights.
As this program takes hold, it should have several effects
which will benefit both our countries:
-- The price of coca leaf should fall, making other crops
more
attractive;
-- Improved security conditions should permit more
development work--including the improvement of vitally needed
road networks--to go forward, thus improving the prospects for
alternative economic development; and
-- The loss of revenues from drug trafficking should weaken
the guerrillas just as they confront a stronger military and police
presence.
Human Rights
Neither we nor President Fujimori will tell you that Peru does not
have a serious human rights problem. The State Department's
Human Rights Report for 1990 describes the situation clearly:
The chief causes of human rights violations in Peru remain the
terrorist activities of the Sendero Luminoso (Shining Path) Maoist
guerrillas and, secondarily, the government's difficulty in mounting
a disciplined response. Security forces personnel were responsible
for widespread and egregious violations. . . . Peruvian human rights
observers have determined that Sendero is responsible for the
majority of killings in the Upper Huallaga Valley. Human rights
abuses by government security forces also increased in 1990,
although independent investigations remained difficult to carry out
due to fears of Sendero reprisals and because military commanders
restrict access to emergency zones.
Unfortunately, in the past, police and military abuses have
included summary executions, torture, rape, arbitrary detention, and
other offenses, often in the emergency zones where the security
forces are struggling to contain guerrilla activity. Our human
rights report details some of these cases.
President Fujimori began to confront the problem of human
rights abuse immediately after his inauguration, when he dismissed
246 officers of the Peruvian police. Since then, he has:
-- Given civilian prosecutors full access to police and
military installations nationwide, including in the emergency zones,
to check conditions of detainees;
-- Invited the Inter-American Commission on Human Rights
to visit Peru in October to assess the human rights situation. The
Commission will visit detention centers, interview judges and
human rights activists, and issue a comprehensive report;
-- Begun the first program of human rights training for all
army cadets in officers' training. This program is conducted by
military officers, human rights experts affiliated with the Catholic
Church and the International Committee of the Red Cross;
-- Incorporated human rights instruction into training for
military officers above cadet level;
-- Initiated revision of the military code of justice to codify
and emphasize human rights abuses;
-- Adopted a new penal code for the first time in 60 years,
which explicitly penalizes genocide and disappearances;
-- Disciplined 61 members of the armed forces for abuse of
authority and other crimes;
-- Discharged 1,500 police officers in 1990 and 400 in 1991
for unethical conduct;
-- Established an office of human rights within the joint
chiefs of staff;
-- Received international human rights groups such as
Amnesty International and the World Council of Churches;
-- Removed from command the non-commissioned army
officer known as "Centurion"--he is now being prosecuted for
suspected complicity in the Chilcahuaycco massacre;
-- Resumed criminal proceedings against two army officers
accused in the November 1988 killing of journalist Hugo Bustios;
and
-- Dismissed the police officers accused of the recent
murder of three Lima students, Carlos Rodriguez and brothers
Emilio and Rafael Gomez. The officers are awaiting trial for murder
and their superiors are suspended pending review of their
culpability.
We have also received assurances from senior officials of the
Peruvian Government that the International Committee of the Red
Cross will soon have access to all military detention facilities.
According to the United Nations, there were 340
disappearances in Peru from July of 1989 to July 1990. In the first
year of the Fujimori Government--from July 1990 to 1991--that
rate was cut by 70%.
International human rights monitors have played a role in
improving respect for human rights in Peru. But it would be a
serious mistake to give foreigners the credit for actions that
overwhelmingly reflect the initiative and courage of Peruvians,
including Peru's courageous human rights community. As a
candidate and as President, Fujimori has called for fair, even
application of the rule of law and protection of basic rights from
the abuse of state power. This message resonated with Peruvians,
who in the past decade have seen the rule of law violated as never
before in their history. Their sense of revulsion has created a
political consensus for reform, and we see the past year's actions
as the beginnings of a long-term effort to reassert a basic sense of
justice.
In all the objections I have heard raised against our
involvement with Peru, I have seen no argument that the cocaine
problem or human rights abuses would be reduced if we curtail our
involvement. In fact, it is clear that if we withdraw to the
sidelines, there will be less resources to combat both problems, and
both will surely worsen.
Conclusion
In sum, Mr. Chairman, we are convinced that our aid to Peru is
necessary to continue the progress that we have made to date in the
war on drugs. It builds on a sound, comprehensive strategy. It will
greatly add to the pressures narco-traffickers are already feeling
in the Andes, and it will better enable us to work with Andean
governments to bring coca growers into the legal economy. There is
no short-term panacea to stop cocaine or guarantee human rights.
But our efforts to engage seriously and effectively with President
Fujimori will help his government continue the progress he has
made in both areas. We welcome the attention you are giving this
important program, and we urge your support. (###)
US Department of State Dispatch,
Vol 2, No 38, September 23, 1991
Title: Mexico
Date: Sep 23, 19919/23/91
Category: Fact Sheets
Region: North America
Country: Mexico
Subject: History, Trade/Economics, Democratization,
Media/Telecommunications, Resource Management,
Science/Technology, Environment
[TEXT]
Government
The Constitution of 1917 provides for a federal republic with
powers separated into independent executive, legislative, and
judicial branches. The executive is the dominant branch, with power
vested in the President, who promulgates and executes the laws of
the Congress. The President also legislates by executive decree in
certain economic and financial fields, using powers delegated from
the Congress. The President is elected by universal adult suffrage
for a 6-year term and may not hold office a second time. There is no
Vice President; in the event of the removal or death of the
President, a provisional president is elected by the Congress. The
next presidential election will be held in August 1994.
The Mexican Congress is empowered to legislate on all
matters pertaining to the national government. Congress is
composed of a Senate and a Chamber of Deputies. Consecutive
reelection to the Congress is prohibited; 64 senators, 2 from each
state and the Federal District (Mexico City), are elected to 6-year
terms. Deputies serve 3-year terms. Under constitutional and
legislative reforms adopted in 1986, the Chamber of Deputies was
enlarged in 1988 from 400 to 500 members. In the expanded lower
chamber, 300 deputies are directly elected to represent single-
member districts, and 200 are selected on an at-large basis by a
modified form of proportional representation. The 200 at-large
seats were created to give the opposition parties more of a voice in
the Chamber of Deputies.
For more than 60 years, Mexico's Government has been
controlled by the Institutional Revolutionary Party (PRI), which has
won every presidential and most gubernatorial races. To secure its
continuance in power, the PRI has relied on extensive patronage and
massive government and party organizational resources.
Following federal elections in 1988, six parties gained
representation in the Chamber of Deputies and two in the Senate--
the latter a first in Mexican history. The combined opposition won
an unprecedented 237 seats out of a total of 500 in the lower house
and 4 of 64 in the upper. In municipal elections held through
December 1989, the government recognized several opposition
victories by both left-of-center and right-of-center parties. In the
state of Michoacan, for example, the center-left Party of the
Democratic Revolution won almost half of the state's
municipalities, including the state's capital and most populous city,
Morelia.
In midterm elections held in August 1991, the PRI bounced
back with a major victory. It increased its representation to 320 in
the Chamber of Deputies, won numerous local and municipal offices,
and, based on official figures released, appeared to have won five
gubernatorial contests; one gubernatorial race will be recontested.
The judiciary is divided into federal and state court systems,
with federal courts having jurisdiction over most civil cases and
those involving major felonies. Under the constitution, trial and
sentencing must be completed within 12 months of arrest for
crimes that would carry at least a 2-year sentence. Trial is by
judge, not jury, in nearly all criminal cases. Defendants have a right
to counsel, and public defenders are available. Other rights include
defense against self-incrimination, the right to confront one's
accusers, and the right to a public trial. Supreme Court justices are
appointed by the President and approved by the Senate.
Mexico's armed forces in 1991 numbered about 170,000. The
army makes up about three-fourths of the total. One year of limited
training is required of all males reaching age 18. A paramilitary
force of communal landholders is maintained in the countryside.
Principal military roles include narcotics control, maintenance of
public order, and civic action assignments such as road-building and
disaster relief. Military expenditures constituted about 0.4% of GDP
in 1990.
Political Conditions
President Carlos Salinas de Gortari began his 6-year term in 1988.
Salinas, who received a Ph.D. from Harvard, was Secretary of
Programing and Budget in the de la Madrid Administration (1982-
88), where he played a prominent role in formulating economic
policy. Significant themes of the Salinas Administration have
included facilitating economic recovery by adopting market-
oriented economic policies, lowering inflation and reducing the
foreign debt burden, pursuing a free trade agreement with the US
and Canada, opening the political system, combating narcotics
trafficking, bolstering environmental protection, and curtailing
corruption and human right abuse.
Economy
The Mexican Government has taken bold steps in recent years to
restructure the economy. Monetary and fiscal discipline and a
wage/price stabilization program have reduced inflation from more
than 150% in 1987 to 10% for the first half of 1991. With the
acceleration of market-oriented reforms, Mexico's real GDP growth
rate went from 2% in 1987 to 4% in 1990. The Mexican economy has
gradually decreased its dependence on petroleum exports, which
accounted for 34% of 1990 exports, down from 75% in 1982.
The government has taken steps to put public finance on a
sound footing through privatization and deregulation of state-owned
companies, elimination of subsidies to inefficient industries,
dramatic reduction of tariff rates, and shrinking the overall
financial deficit from nearly 17% of GDP in 1987 to a projected 2%
of GDP in 1991. In 1982, the Mexican Government owned 1,155
parastatal enterprises; by late 1990, the number had dropped to
452. Real short-term interest rates were down to about 9% in mid-
1991 from 30% a year earlier.
In addition, in 1989 Mexico was the first country to
participate in a US-sponsored plan, the "Brady Plan," to help
developing countries reduce their foreign debt to foreign
commercial banks. This helped reduce Mexico's foreign debt from a
high of $107 billion in 1987 to about $93 billion in 1990. This has
further restored business confidence and sparked a return of
expatriated capital.
One of the Mexican Government's most important initiatives
is
a proposed North American Free Trade Agreement (NAFTA) with the
US and Canada, as well as similar agreements with several Latin
American neighbors. The NAFTA is part of President Bush's
Enterprise for the America's Initiative, which envisions a
hemispheric-wide system of free trade.
Mexico's economic growth is vital to its political prospects,
thus of great interest to the United States. Mexico's economy also
has a substantial and direct impact on US border communities. Our
close economic interrelationship is important to the stability and
growth of both countries. Mexico is our third-ranked trading
partner, purchasing two-thirds of its imports and sending two-
thirds of its exports here. Chief US exports to Mexico are motor
vehicle parts, office equipment, and agricultural products; top
imports from Mexico include petroleum, cars, piston engines, and
coffee. The US is the source of two-thirds of direct foreign
investment in Mexico. Both US exports and investment have
increased as Mexico has progressively opened its economy.
Agriculture
Mexico's agrarian reform program began more than 50 years ago;
lands have been distributed to hitherto landless farmers. By now,
almost all available land has been distributed. Raising the
productivity and living standards of subsistence farmers has been
slow, however, due to poor soils and a burgeoning rural population.
Nevertheless, increased production of basic crops, such as corn and
beans, has been stressed by the government. Emphasis is also given
to export crops such as coffee, tomatoes, and winter vegetables.
The government hopes to revitalize food production by extending its
economic reform program to the agricultural sector.
After several years of stagnant agricultural production,
improved weather conditions in 1990 helped boost Mexico's
production of corn, sorghum, and beans. On the other hand, rice and
soybean production fell, as farmers shifted toward more profitable
crops.
Minerals and Energy Resources
Mexico is rich in mineral and energy resources, and mineral exports
are an important element in foreign trade. A leading producer of
silver, sulfur, lead, and zinc, Mexico also produces gold, copper,
manganese, coal, and iron ore. The discovery of extensive oil fields
in the coastal regions along the Gulf of Mexico in 1974 enabled
Mexico to become self-sufficient in crude oil and to export
significant amounts. With crude oil production averaging 3 million
barrels per day during 1990, Mexico ranks as the world's fifth
largest oil producer. About half of the oil is refined and consumed
domestically, leaving the remainder for export. Proven oil reserves
total 45 billion barrels, about 7% of the world's proven reserves.
Total hydrocarbon reserves, including natural gas, are estimated at
67 billion barrels.
Manufacturing and Foreign Investment
During 1990, Mexico's manufacturing sector accounted for about
one-fourth of the GDP and nearly 52% of exports. It grew by 5%
during that year. Important gains have been made in the production
of cement, aluminum, synthetic fibers, chemicals, fertilizers,
petrochemicals, and paper. A growing automobile industry has
become one of Mexico's most important industrial and export
sectors.
Approvals for foreign investment in 1990 exceeded $4 billion,
up from the 1989 total of $3 billion. The Secretariat of Commerce
and Industrial Development in 1989 announced sweeping revisions
of Mexico's foreign investment regulations. Among the most
important of these is the explicit permission for foreigners to have
majority ownership in companies. This is, in effect, a reversal of
the intent of the 1973 Foreign Investment Law which in most cases
limited foreign ownership to 49%. The government also has
announced that special trust funds will be set up to liberalize
foreign access to the Mexican stock market.
Key sectors of the economy remain restricted to Mexicans or
the state, including energy, power generation, and railroads.
Transportation and Communications
Mexico's land transportation network is one of the most extensive
in Latin America. The 36,000 kilometers of railroads are
government owned. Tampico and Veracruz on the Gulf of Mexico are
Mexico's two major ports, although the government is developing
additional ports on the Gulf of Mexico and on the Pacific as well. A
number of international airlines serve Mexico, with direct or
connecting flights from most major cities in the United States,
Canada, Europe, and Japan. Most Mexican regional capitals and
resorts have direct air links with Mexico or the United States.
The Salinas Administration is attempting to enhance
transportation through modernization of infrastructure and
services, deregulation and development of more efficient
intermodal transport, and privatization in all sectors except as
constitutionally restricted.
Mexico has a well-developed telecommunications system,
with its own satellites, hundreds of television stations, more than
1,000 radio stations, and a number of satellite receiver stations.
Mexico is a member of the International Telecommunications
Satellite Consortium (INTELSAT).
In 1990, the communications sector grew by 16%. A major
development during that year was the privatization of the national
telephone company, Telefonos de Mexico (TELMEX), with one-fifth of
the shares going to private owners.
Principal Government Officials
President--Carlos SALINAS de Gortari
Foreign Minister--Fernando SOLANA Morales
Ambassador to the US--Gustavo PETRICIOLI Iturbe
Ambassador to the UN--Jorge MONTANO Martinez
Ambassador to the OAS--Santiago ONATE Laborde (###)
International Boundary and Water Commission
Preceded by several short-term commissions to survey and mark
the boundary after its creation in 1848 and modification in 1853,
the International Boundary Commission was established as a
permanent joint commission by treaty in 1889. The Water Treaty of
1944 extended its authority to the land boundary and added to its
responsibilities boundary water problems then becoming more
important. The 1944 treaty renamed the body the Intenational
Boundary and Water Commission, United States and Mexico (IBWC).
It also required that the US and Mexican comissioners be engineers.
The IBWC has a wide range of responsibilities and specific
programs for solution of US-Mexican water and boundary problems.
These include distribution between the two countries of the waters
of the Colorado River and the Rio Grande; joint operation of
international dams on the Rio Grande to control floods, conserve
waters, and generate electricity; other joint flood control works
along boundary rivers; solution of border water quality control
problems; and stabilization of the river boundaries. These
responsibilities and programs are carried out in accordance with
various treaties and agreements.
The IBWC has successfully resolved many difficult and
longstanding problems. For example, the Chamizal Settlement of
1963 resolved a 100-year-old dispute at El Paso/Ciudad Juarez by
exchange of territory and rechanneling the Rio Grande. A permanent
solution to the international problem related to the salinity of the
Colorado River was reached in 1973. Since the early 1980s, the
IBWC has focused on troublesome border sanitation problems and
has been studying groundwater resources along the boundary. (###)