Dispatch, Volume 3: 1992
US Department of State Dispatch,
Vol 3, No 1, January 1, 1992
Title: US Support for Direct Investment
Bush
Source: President Bush
Description: Statement released by the White House, Office of the
Press Secretary, Washington, DC
Date: Dec, 26 199112/26/91
Category: Speeches, Testimony, Statements
Region: Whole World
Country: United States
Subject: Trade/Economics
[TEXT]
I am today reaffirming the unequivocal and longstanding support of the
United States for a policy of free and open foreign direct investment among
all nations.
The United States' open investment policy is based on the principle of
national treatment: Foreign investors should not be treated differently
from domestic investors. This policy provides the means for economies to
grow and prosper. All countries--both sources and recipients--benefit from
foreign direct investment. The United States, the world's largest source and
recipient of direct investment, has a major interest in fostering open
investment climates. We are committed to our open investment policy in
the United States, and we are aggressively seeking to open markets abroad.
Like domestic investment, foreign direct investment stimulates growth,
creates jobs, fosters competition, and facilitates the creation and exchange
of goods, services, and innovative techniques. It helps our economy
maintain investment, which is vital to our economic performance and
international competitiveness.
Since 1983, the last time the United States issued an investment policy
statement, the world has witnessed enormous changes in the treatment of
foreign investment. Many countries are dismantling inefficient economic
systems and are actively seeking investment from abroad.
As other nations around the globe join us in embracing the concept of free
markets, it is important to reaffirm our commitment to an open investment
policy. It is an essential element of our nation's effort to compete fully in
the global economy and is a constant contributor to worldwide growth and
the prosperity of nations. (###)
Dispatch, Vol 3, No 1, January 1, 1992
Title: US Policy On Foreign Investment
Bush
Source: President Bush
Description: Statement released by the White House, Office of the
Press Secretary, Washington, DC
Date: Dec, 26 199112/26/91
Category: Speeches, Testimony, Statements
Region: Whole World
Country: United States
Subject: Trade/Economics
[TEXT}
The United States welcomes foreign direct investment. Foreign direct
investment is beneficial to the US economy. Like domestic investment,
foreign investment creates jobs, promotes innovation, generates increases
in productivity, and thereby raises US living standards. It strengthens US
firms and makes them more competitive in the global economy.
The United States provides foreign investors fair, equitable, and non-
discriminatory treatment as a matter of both law and practice. While there
are exceptions, generally related to national security, such exceptions are
few; they limit foreign investment only in certain sectors, such as atomic
energy, air and water transport, and telecommunications. These exceptions
are consistent with our international obligations.
Consistent with this policy, the Exon-Florio Amendment to the Defense
Production Act provides the President with authority to suspend or prohibit
foreign mergers, acquisitions, and takeovers, where there is credible
evidence of a threat to the national security.
US Direct Investment Abroad
The United States believes that US investment abroad should also receive
fair, equitable, and non-discriminatory treatment. The basic tenet of our
policy is that US investors should be accorded the better of national or
most-favored-nation treatment. US investors should receive the most
favorable treatment offered by the host country to any investor, foreign or
domestic, at the time of establishment and thereafter.
Accordingly, the United States continues to seek the reduction and
elimination of practices by governments which restrict, distort,
discriminate against, prohibit, or place unreasonable burdens on foreign
direct investment.
Foreign direct investment can help ease the adjustment problems facing
countries moving from centrally administered to market-oriented
economies. For developing countries, particularly those that have embraced
free market principles, foreign direct investment is vital to increase
growth and reduce debt service burdens.
The adoption by all countries of open foreign direct investment policies
would contribute significantly to improved worldwide economic health and
would diminish distortions in an increasingly integrated world economy.
US Initiatives
The United States has a number of initiatives underway to enhance the free
flow of foreign direct investment in accordance with market forces.
-- In the Uruguay Round, the United States is negotiating key multilateral
agreements to eliminate trade-related investment measures; to protect
trade-related intellectual property; and to promote trade in services, an
area where many investment rules have prohibited highly competitive US
service industries from doing business abroad.
-- The United States, Canada, and Mexico are negotiating the North
American Free Trade Agreement, in which we are seeking to liberalize
investment principles consistent with US bilateral investment treaties.
-- In the Enterprise for the Americas Initiative, the United States and its
partner are working with the Inter-American Development Bank to help
nations of Latin America and the Caribbean to liberalize their investment
regimes. To assist in carrying out these reforms, the United States has
spearheaded the formation of a multilateral investment fund for Latin
America and the Caribbean, which will be administered by the Inter-
American Development Bank. Japan, Canada, Spain, Portugal, and several of
the largest Latin American countries have agreed to join the United States
in contributing to this fund. Others are actively considering joining.
-- The United States has signed bilateral investment treaties with 16
countries in Eastern Europe, Latin America, the Caribbean, Africa, and Asia
and is negotiating such agreements with a number of other countries. These
treaties represent important commitments to investment reform. They
incorporate the principle of non-discriminatory treatment; affirm
international law standards for expropriation, including the principle of
prompt, adequate, and effective compensation; provide for freedom of
financial flows; and permit investors to take investment disputes to
international arbitration.
-- The United States is also vigorously promoting the adequate and
effective protection of intellectual property rights. Such protection is
essential for the flow of investment into both developed and developing
countries.
-- At the initiative of the United States, member countries of the
Organization for Economic Cooperation and Development are studying ways
to strengthen multilateral commitment to open, non-discriminatory
treatment of investment.
-- The United States will continue to encourage Japan to remove its
investment barriers as an important goal of the Structural Impediments
Initiative talks.
Conclusion
Throughout our nation's history, foreign direct investment has played an
important role in increasing economic growth and raising living standards.
In order to meet the economic challenges of the 1990s, the United States
will continue to implement its open, non-discriminatory investment policy
at home and its policy of opening markets abroad. (###)
Dispatch, Vol 3, No 1, January 1, 1992
Title: Fact Sheet: US Policy on Foreign Direct
Investment
Source: White House
Description: Released by the White House, Office of the Press
Secretary, Washington, DC
Date: Dec, 26 199112/26/91
Category: Fact Sheets
Region: Whole World
Country: United States
Subject: Trade/Economics
[TEXT]
Book value of foreign direct investment in United States:
-- As of December 1990 (latest available data), the book value of foreign
direct investment totaled $404 billion.
Countries with the largest investment:
-- United Kingdom--$108 billion.
-- Japan--$83 billion.
-- The Netherlands--$64 billion.
Foreign direct investment in relation to US economy:
-- Foreign direct investment represented 5% of the value of US business
assets at the end of 1990.
-- Foreign direct investment is concentrated in manufacturing where it
accounted for almost 15% of sales and 17% of assets in 1989.
Foreign direct investment inflows:
-- Inflows have fallen sharply in the past 2 years, following a rapid
increase in the late 1980s.
-- Inflows in 1990 declined 47% from 1989. Preliminary figures for 1991
suggest inflows are down as much as 70%.
Investment income:
-- In 1990, income payments to foreign direct investors on their
investments in the United States were $1.8 billion.
-- In 1990, receipts of income by US investors on their investments abroad
were $54.4 billion.
Some benefits of foreign direct investment for the United States (aggregate
data):
-- In 1989, employment by US affiliates of foreign companies increased
16%, to 4.4 million workers.
-- In 1989, sales by US affiliates increased 17%, to $1,041 billion.
-- In 1989, research and development expenditures increased 18%, to $9.3
billion.
-- In 1989, foreign owned firms paid, on average, $31,664 per worker.
-- In 1989, foreign-owned firms invested $11,769 in plant and equipment
per worker.
US direct investment abroad:
-- In December 1990, the book value of US investment abroad was $421
billion.
-- Much of this investment was made 10 to 25 years ago. If this
investment is revalued at market value, US investment abroad was $7l4
billion at end of 1990. In contrast, the market value of foreign direct
investment in the United States was $530 billion at the end of 1990.
Countries with which the United States has signed bilateral investment
treaties:
-- Argentina, Bangladesh, Cameroon, Congo, Czech and Slovak Federal
Republic, Egypt, Grenada, Haiti, Morocco, Panama, Poland, Senegal, Sri Lanka,
Tunisia, Turkey, and Zaire.(###)
Dispatch, Vol 3, No 1, January 1, 1992
Title: Individual Claims Against Iraq
Tutwiler
Source: State Department Spokesman Margaret Tutwiler
Description: Statement released by the Office of the Assistant
Secretary/Spokesman, Washington, DC
Date: Dec, 23 199112/23/91
Category: Speeches, Testimony, Statements
Region: MidEast/North Africa
Country: Iraq
Subject: United Nations, Military Affairs
[TEXT]
The UN Compensation Commission, established pursuant to UN Security
Council Resolution 687 (1991), has been working to develop procedures for
providing compensation for losses that were sustained as a result of Iraq's
illegal invasion and occupation of Kuwait. To that end, it has adopted
criteria for the processing of all individual, corporate, and government
claims. Claims of individuals for losses up to $100,000 will be processed
on an expedited basis. This notice deals with such claims.
On December 20, 1991, the commission approved and circulated the forms to
be used by individuals to file their claims for losses up to $100,000.
(Forms for other types of claims will be available at a later time.) Fixed
amounts may be claimed for departure ($2,500 or $4,000, depending on
whether the claimant is filing additional claims), serious personal injury
($2,500), and the death of a spouse, child, or parent ($2,500) without
documentation of the amount of loss. Where adequate documentation is
available, claimants may claim compensation in any amount up to $100,000.
Individuals whose losses exceed $100,000 can file for the first $100,000
now and claim the rest at a later stage.
Instructions on how to complete the forms will be sent with the claims
forms. Claimants should note that since an expedited, simplified process is
envisaged, the commission has decided that no compensation will be given
to pay attorneys' fees or other expenses incurred in the preparation of a
claim. In addition, any compensation, whether in cash or in kind, received
from any source will be deducted from the total amount of losses suffered.
A claim form must be filled out and returned to the Office of the Assistant
Legal Adviser for International Claims and Investment Disputes, Department
of State, regardless of whether claimants have already registered their
claims with the Office of Foreign Assets Control in the Department of the
Treasury. The Assistant Legal Adviser's office will then consolidate the
claims and submit them to the Compensation Commission. The Department
will submit the claims of US citizens and, as authorized by the claims
criteria adopted by the Governing Council of the Compensation Commission,
will be prepared to consider submitting claims of residents of the United
States.
As of July 1, 1992, the commission will begin processing claims submitted
by governments up to that date. The final deadline for the submission of
claims by governments is July 1, 1993, but it is in claimants' interest to
have claims submitted as early as possible. The Department needs time to
review the forms and documentation received, follow up with claimants
where necessary, and prepare a consolidated statement summarizing the
claims. Therefore, claimants wishing to ensure that their claim is
considered as soon as possible should return completed form(s) and
documentation by March 1, 1992. The Department urges claimants to file by
this date but in any event no later than March 1, 1993.
Individuals may obtain claim forms and additional information from the
Office of the Assistant Legal Adviser for International Claims and
Investment Disputes, 2100 K Street, NW, Suite 402, Washington, DC 20037-
7180, telephone (202) 632-5054. (###)
Dispatch, Vol 3, No 1, January 1, 1992
Title: Yugoslavia: UN Peace Efforts
Boucher
Source: State Department Deputy Spokesman Richard
Boucher
Description: Statement, Washington, DC
Date: Jan, 2 19921/2/92
Category: Speeches, Testimony, Statements
Region: E/C Europe
Country: Yugoslavia (former), Serbia-Montenegro,
Ashmore and Cartier Islands
[TEXT]
The United States strongly supports the efforts of the UN Secretary General,
through his personal envoy Cyrus Vance, to establish an effective cease-fire
and obtain agreement by all relevant parties to the terms for the
deployment of the UN peace-keeping force they have requested.
We believe that UN peace-keeping in Yugoslavia as envisaged in the Vance
plan can make a crucial contribution to the European Community's [EC] CSCE
[Conference on Security and Cooperation in Europe]-mandated efforts to
promote a political settlement to the tragic Yugoslav conflict.
The United States welcomes the progress achieved by Mr. Vance. We
commend the public commitments made to Mr. Vance on December 31 and
January 1 by the Serbian, Yugoslav military, and Croatian leaderships to the
unconditional implementation of a cease-fire and to the introduction of a UN
peace-keeping force.
The United States calls on all parties in Yugoslavia to fully observe their
cease-fire commitments and to cooperate constructively with the UN
Secretary General's envoy and to seize this opportunity to move toward
genuine dialogue and a political settlement in the context of the EC-
sponsored conference on Yugoslavia.
The US reiterates its support for the efforts of the CSCE and the European
Community to promote a peaceful, negotiated outcome of the Yugoslav
crisis. (###)
Dispatch, Vol 3, No 1, January 1, 1992
Title: Sub-Saharan Africa and the United States--
Part II
Source: Bureau of Public Affairs
Description: Part II of series; Part I in Vol 2, No 52.
Date: Jan, 6 19931/6/93
Category: Reports
Region: Subsaharan Africa
Country: South Africa, Namibia, Angola, Benin, Botswana,
Burkina Faso, Burundi, Cameroon, Central African Republic,
Chad, Comoros, Equatorial Guinea, Gabon, Gambia, Ghana, Guinea,
Guinea-Bissau, Cote d'Ivoire, Kenya, Lesotho, Mali, Malawi,
Mauritania, Morocco, Niger, Nigeria, Rwanda,
Sao Tome and Principe, Senegal, Seychelles, Sierra Leone,
Swaziland, Tanzania, Bahamas, Zaire, Zimbabwe, Ethiopia,
Estonia, Madagascar
Subject: United Nations, International Organizations,
Development/Relief Aid, Trade/Economics
[TEXT]
The following feature is the second of two parts that are based on the
publication "Sub-Saharan Africa and the United States." The first part
(published in Dispatch, Vol. 2, No. 52), presented an overview of the history
and the current situation in Sub-Saharan Africa. The second part deals with
the US role in the region and challenges for future cooperation. The
complete publication was released by the Office of Public Communication,
Bureau of Public Affairs, in October 1991 and is sold by the Superintendent
of Documents, US Government Printing Office (see order form on inside back
cover).
US Diplomacy Since Independence
Sub-Saharan Africa is important to the United States chiefly for the
following reasons.
-- With its 47 nations, Sub-Saharan Africa plays an important, often
decisive, role in international organizations and at multilateral meetings.
-- The region possesses natural resources important to the American
economy--oil, copper, iron, bauxite, uranium, cobalt, chromium, platinum,
manganese, gold, and diamonds.
-- While the United States needs to buy African raw materials, Africa
requires capital investment, new technology, managerial skills, and markets
to develop other products.
-- The continent is strategically important, as the oil tanker routes from
the Persian Gulf to Europe and the Americas pass through African waters.
Thus, strategic cooperation with African states is important to the exercise
of US global responsibilities.
-- Continuing regional conflicts and economic instability make Sub-Saharan
Africa a potential arena for rivalry and confrontation between external
powers.
-- Africa has a particular significance for the United States because of the
many Americans of African descent who take a deep interest in the
continent's progress.
The guiding principle of US diplomacy toward Sub-Saharan Africa since
1960, the year in which so many countries achieved independence, is to
promote political stability, economic reform, and democracy. None is
possible without the others. And US interests are not served unless these
goals can be achieved.
Economic Relations and Assistance
Development assistance has always been an important element in US
diplomacy in Africa.
Since the countries achieved independence, the United States has been a
major contributor of economic aid in Africa, both bilaterally and through
international financial institutions, primarily the International Monetary
Fund (IMF), the World Bank, and the African Development Bank. Most
bilateral assistance has been administered by the US Agency for
International Development (USAID).
Trade
As the largest single-country market in the world, the United States has
always been an important market for African exports. The largest multi-
country market is the European Community which, since the 1974 Lome
Convention, grants special trade preferences to former European colonies.
But in 1990, with imports totaling almost $11 billion, the US market for
African goods was more than twice as large as that of any other single
country. Most African countries, except for members of the Organization of
Petroleum Exporting Countries--Gabon and Nigeria--qualify for the US
Generalized System of Preferences, which permits the import of more than
1,400 manufactured goods and products at zero tariff rates. Oil, however,
supplied chiefly by Nigeria, accounts for more than half of US imports from
Sub-Saharan Africa.
Emergency Aid
Sub-Saharan Africa repeatedly has required emergency aid, chiefly medical
supplies, food, and refugee resettlement, because of drought, civil strife,
and warfare. The United States is a major contributor of such humanitarian
assistance and does not exact political concessions for such aid. Thus, food
and medical supplies in the past have gone to countries--notably Ethiopia,
Mozambique, and Angola--that rejected Western ideas of democracy, hosted
Cuban combat troops, and granted military and naval facilities to the Soviet
Union.
US systematic food aid began in 1954 with Public Law 480 (Food for Peace),
which authorized low-priced credit sales or outright grants of surplus
agricultural commodities. The United States now is the largest single donor
of aid in the Horn of Africa, where drought and civil strife have caused
famine and displaced millions. The United States also contributes more
than half the supplies distributed by international food aid programs.
In FY 1990, the United States provided more than $61 million toward
UNHCR's African programs and 20% of the relief efforts of the International
Committee of the Red Cross (ICRC). The United States also provided food aid
to African countries valued at $448 million and another $31 million in non-
food disaster assistance.
Political Relations
The goal of US diplomacy is to promote political stability and democracy.
The United States does not support one party over another in any intra-
African territorial disputes, in accordance with the OAU position that the
post-colonial borders must be respected and in support of African efforts to
find peaceful solutions to such conflicts.
US policy considers the interests and the special responsibilities of those
NATO allies who were colonial powers and who have continuing connections
and influence in Africa. Also of importance was the activity of the Soviet
Union and its allies. The Soviet-bloc countries trained and equipped
insurgent movements and sent them large stocks of arms and materiel,
military technicians, secret police advisers, and, in the case of Cuba, field
troops to bolster regimes that had come to power with a Marxist-Leninist
program, as in Ethiopia, Angola, and Mozambique.
The Soviet navy, in its quest for expansion beyond home waters, acquired
bases or facilities in Luba (Equitorial Guinea), Dahlak (Ethiopia), Maputo
(Mozambique), Luanda (Angola), and Conakry (Guinea). The Soviet Union also
acquired a base at Mogadishu, Somalia, but the Somalians expelled them in
1977, when the Soviet Union supported Ethiopia in the Somalian-Ethiopian
dispute over the Ogaden region.
The United States assists countries threatened with aggression--emergency
arms aid went to Somalia when Ethiopian troops began their incursion in
1982; to Chad, after Libya's aggression in 1983; and since 1985, after the
removal of the restrictions of the Clark amendment, to UNITA, the only
viable Angolan resistance to the Soviet- and Cuban-supported one-party
regime in Luanda.
Southern Africa.
Southern Africa has offered a challenging test for
US
diplomacy. Four countries in the region only recently received their
independence--Zimbabwe, Angola, Mozambique, and Namibia. Dominating the
region physically and economically is the Republic of South Africa, the
former self-ruling British dominion. Currently, US policy is to assist the
peaceful transition to a non-racial democracy now underway.
South Africa.
The United States has had an official presence in South Africa
since a consulate was established in Cape Town in 1799. The two countries
cooperated in two World Wars and in the Korean war and have had important
trade and investment relations. Relations have been troubled since 1948,
when the South African Government adopted its policy of apartheid, which
legally separated the various racial groups and imposed new restrictions on
the non-white communities.
US non-diplomatic relations with South Africa suffered a decline in
response to outrage over apartheid. However, President Bush, on July 10,
1991, announced the termination of most trade and investment sanctions
imposed by the 1986 Comprehensive Anti-Apartheid Act, in response to the
progress made by the de Klerk Government toward constitutional
negotiations with the black opposition. Looking forward to an end to
apartheid, the United States began to provide special assistance to non-
white South Africans--with scholarships for study in the United States,
training for trade unionists, support for development of small business, and
support for black education within South Africa. The President also
announced on July 10, 1991, that US aid to blacks would be doubled and
focused on additional education and housing.
Through mediation and diplomatic influence, US policy aims to avoid
violence and destruction. Thus, the United States, through the shuttle
diplomacy of Secretary of State Henry Kissinger in 1976, supported UK
efforts to persuade the white prime minister in Zimbabwe to agree to black
majority rule (achieved in 1980). The United States also helped to bring
about the February 1984 Lusaka accord, under which South Africa agreed to
withdraw its forces from Angola, and the March 1984 non-aggression pact
signed at Nkomati between South Africa and Mozambique.
Namibia.
A major diplomatic success was achieved by the accords providing
for Namibian independence. Having administered the former German colony
of South West Africa as a League of Nations mandate, South Africa refused
to subordinate its control to the UN Trusteeship Council and treated the area
as a South African province. Of necessity, the negotiations involved Angola,
because of the presence of Soviet-bloc military personnel and some 60,000
Cuban combat troops--which South Africa wished to see removed--and the
use of Angolan bases by the main Southwest African independence movement
(South West African People's Organization--SWAPO). South Africa had made
incursions in Angola, both to strike at SWAPO and to halt the Angolan
regime's campaigns against UNITA.
The negotiations, sponsored by the United States and led by former
Assistant Secretary of State for African Affairs Chester Crocker, began in
1981 with US, Angolan, and South African participation. Cuban
representatives joined the Angolan delegation in 1988 in Brazzaville, Congo.
Finally, on December 22, 1988, in New York City, Angola, Cuba, and South
Africa signed the Tripartite Agreement linking phased and total withdrawal
of Cuban troops from Angola to implementation of UN Resolution 435 (1978)
calling for Namibian independence following a UN-sponsored transition.
Angola also signed an agreement for the phased withdrawal of Cuban troops
to be monitored by a UN verification mission. Cuban troops began to
withdraw in March 1989, and all remaining troops were withdrawn ahead of
the July 1, 1991, schedule.
In November 1989, democratic elections for a Constituent Assembly were
held in Namibia. SWAPO emerged as the victor, with 57% of the votes. The
Constituent Assembly, in less than 90 days, finished a constitution
guaranteeing civil rights and proclaimed March 21, 1990, the date for
Namibia's independence. The new government is committed to multi-party
democracy and maintaining a mixed economy.
Toward the Year 2000: Six Challenges for the Future
US diplomacy toward Africa is committed to the achievement of the
following goals:
-- A continent of increasingly democratic states and, through democracy, a
greater respect for human rights;
-- A non-racial, democratic society in South Africa (through the
dismantling of apartheid by peaceful negotiations);
-- Cooperation among the southern African countries to secure political
stability and economic progress in this region;
-- Peaceful solutions to conflicts in the Horn and other regions;
-- Relief of economic distress and stagnation through the establishment of
market economies; and
-- The adoption of sound environmental policies and practices.
Democracy
Democracy and human rights recently have made great strides in Central and
Eastern Europe and Latin America. African countries also are moving in a
democratic direction. Democracy had a foothold in Africa even before the
stunning changes in Eastern Europe. Botswana, The Gambia, Mauritius, and
Senegal are longstanding examples of African pluralism. But over the past
few years, African countries have been engaged in a process of democratic
reform which some consider the most significant phenomenon since
decolonization three decades ago. Significant developments include:
-- Namibia's entry into independence under a democratic constitution;
-- The repeal in South Africa of the remaining legislative "pillars of
apartheid" and the "Pretoria Minute" agreement between the government and
the African National Congress (ANC) on preparing the way toward
negotiations;
-- The holding of democratic elections in Benin, Cape Verde, Cote d'Ivoire,
Gabon, and Sao Tome and Principe;
-- Nigeria's continued progress toward restoration of civilian democratic
rule, a process to be completed in 1992; and
-- The announcement of plans to establish democratic political systems,
and concrete steps toward their implementation, by Congo, Mozambique,
Togo, Zambia, and many other African countries.
The United States supports the democratic trend in Africa and welcomes the
entry of African countries into the democratic ranks. One of the most
important US contributions to the democratic movement is a series of
projects, carried out under the auspices of the Human Rights Fund for
Africa, to strengthen the values and institutions on which democracy rests-
-the electoral process, a free press, an independent judiciary, and the rule
of law, among others. These projects have included the provision of training
and support to African judicial systems in numerous countries, including
Guinea, Mozambique, and Namibia; assistance to private legal and human
rights organizations in countries such as Burundi, Kenya, and Zaire; and the
dispatch of constitutional experts and election observers at the request of
countries such as Benin and Sao Tome and Principe.
For fiscal year (FY) 1992, the Bush Administration has requested $10
million from Congress to establish an African Democracy Support Fund,
intended to provide assistance to countries undertaking fundamental
political reforms.
South Africa
US policy toward South Africa is based on fundamental opposition to
apartheid (that is, the segregation of races and white political domination).
It supports the process of peaceful change now underway. The US
Government urges all parties to commit themselves fully to negotiations in
establishing a new non-racial and multi-party democracy in South Africa.
Cooperation in Southern Africa
Cooperation among the countries of Southern Africa is essential to each
country's welfare--the ties to South Africa with its industry, rail system,
and ports must be revised and extended.
The United States has been instrumental in lessening Southern African
conflict. The most notable achievement has been the independence of
Namibia consummated in March 1990. The United States played the major
role in the negotiations that led to South Africa's agreement to give up
control over the territory. The uninhibited formation of political parties
and free elections in Namibia give hope for future political stability in that
country.
Part of the agreement on Namibia required the withdrawal of Cuban troops
from Angola, lessening the possibility of continuing conflict with South
Africa. US policy in Angola promoted a negotiated settlement to the civil
war between the ruling party, the MPLA, and the opposition party, UNITA, as
well as free and fair internationally supervised elections.
US-Mozambican relations have expanded rapidly as the Government of
Mozambique has moved to establish greater democracy and a more pro-
Western orientation since 1986. The United States facilitates national
reconciliation and peace talks, which are taking place between the
government and the Mozambican National Resistance.
Other Conflict Resolution
Civil war has been raging in Ethiopia since 1962, in Sudan periodically since
1955, and in Liberia since early 1989. These and other internal conflicts,
generating vast numbers of refugees and causing hunger and disease
requiring food and medical assistance from international organizations and
countries, have become global problems. With the end of the Cold War, there
are new opportunities for the resolution of Africa's internal conflicts. The
United States will help facilitate conflict resolution whenever it and the
African parties involved believe US participation would be useful. The US
Government is ready to do so because of its concern for peace and because
these conflicts place a major strain on US assistance resources and retard
Africa's development.
However, resolution of Africa's internal conflicts is primarily the
responsibility of the parties directly involved--with important roles to be
played by the OAU and other African regional organizations. The United
States was impressed by the emphasis placed on conflict resolution at the
1990 OAU summit and supports the OAU's current efforts to bring peace to
several parts of the continent.
In Liberia, peace-keeping forces from the Economic Community of West
African States (ECOWAS) have been deployed around the capital of Monrovia.
The forces are drawn from and supported by six West African states. Their
presence has allowed for the establishment of a cease-fire, food
distribution, and negotiations on free and fair elections. As of August 1991,
the conflict in Liberia remains unresolved, but ECOWAS cooperation to end
the bloodshed is an important precedent in responding to African conflicts
with African solutions.
Economic Reform
Faced with a steady decline in their economies, African governments, in the
early 1980s, began to recognize that the centrally directed economic models
adopted at independence were failing to bring about prosperity. Between
1979 and 1983, Ghana, Cote d'Ivoire, Madagascar, and Senegal all adopted
economic reform programs under the tutelage of the International Monetary
Fund (IMF) and the World Bank. However, moving from a centrally directed
economy to a market-oriented economy is difficult, painful, and therefore,
politically hard to sustain. The reduction of subsidies and the removal of
price controls required by such reform programs can mean a rapid decline in
the standard of living of urban dwellers long before the benefits of higher
prices reach the farmers, who are the majority in most African countries.
For these reasons, most reform programs do not last more than a couple of
years.
In spite of these difficulties, some countries do manage to continue their
reform programs. Ghana, for example, is entering its eighth year of reform
and is exhibiting steady economic growth averaging almost 5% per year
since 1983. Other African countries are seeing the wisdom of such reform
programs, and there are now more than 30 Sub-Saharan African countries on
various IMF-World Bank approved plans.
The United States strongly supports these programs and has taken important
steps to promote economic reform in Sub-Saharan Africa. For some 30
years, the United States has provided economic assistance to African
countries.
A special Development Fund for Africa (DFA) was established in late 1987
to channel all development assistance to the region. It was Congress' clear
intent in approving this mechanism that Africa was to receive special
attention. Funding for the DFA increased some 44% in FY 1991 to $800
million. While promoting policy reform, USAID emphasizes certain critical
sectors in carrying out programs under the DFA: agricultural production in
connection with preservation of natural resources, health, voluntary family
planning, education, and income generation.
The United States provides grants to bolster the economies of countries of
special political or security interest (increasingly those undertaking
political reforms), through the Economic Support Fund (ESF). The United
States also provides grants to friendly countries to acquire certain
American military equipment. And through the International Military
Education and Training (IMET) program, the United States provides military
education and instruction in technical skills to foreign military forces. In
FY 1990, 659 African students were trained under IMET; 748 were proposed
for FY 1991.
The United States has joined the international effort to relieve the
international debt burden of Sub-Saharan Africa. The agreement reached at
the Toronto economic summit in June 1988 provides for generous
rescheduling of official bilateral non-concessional debt (provided at market
rates) for severely indebted low-income countries that have undertaken
economic reform programs.
In addition, following the 1990 Houston summit, agreement was reached to
provide better rescheduling terms for lower- and middle-income countries.
And as a result of the 1991 London summit, the developed countries are
considering further action to improve the 1988 "Toronto terms."
In July 1989, President Bush announced that the United States would forgive
Sub-Saharan African debt resulting from official US development assistance
loans. The program began in November 1989. To qualify for the relief, a
country must be implementing economic reform programs endorsed by the
World Bank or the IMF. So far, 15 African countries have been eligible for
this relief: $755 million of this debt already has been forgiven.
Environment
African countries also have had to face the environmental consequences of
economic activity. Population growth--the world's fastest--has forced
food producers to take over forest and scrublands and further strain the
delicate ecosystem. Where governments have embarked on development
programs stressing industrial growth, little attention is paid to the problem
of industrial waste. And a worldwide demand for ivory, hunting trophies, and
animal pelts has endangered many wildlife species and threatened to reduce
the continent's biological diversity.
To confront desertification in the Sahel, several African governments, along
with the United States and several European countries as members of the
Club du Sahel,* have assisted affected countries with plans to alleviate this
problem. In 1985, the African environmental ministers--all African
countries have such ministries devoted to the environment--held their first
summit, at which they agreed that the African countries themselves must
bear primary responsibility for improving the environment. Many African
countries have initiated local community action programs for planting trees
and improving soil and water quality.
But with limited financial and technical resources, African countries must
depend on international development programs for technical and economic
assistance.
The United States is an important contributor to multilateral agencies and
programs and long has made the environment a focus in its development
strategy for Africa. The USAID's Plan for Supporting Natural Resources
Management in Sub-Saharan Africa, initiated in 1987, aims to strengthen
African capacity to manage natural resources in order to prevent soil
erosion and declining soil fertility, loss of vegetative cover, surface and
groundwater degradation, mismanagement of coastal resources, and loss of
biological diversity.
Wildlife preservation is an important US policy goal. The United States was
an original party to the Convention on International Trade in Endangered
Species of Wild Fauna and Flora (CITES) signed in Washington in 1973. The
convention remains the centerpiece of US conservation policy abroad, and it
has special relevance for Africa.
The United States has taken a leading role in protecting the African
elephant. In 9 years, Africa's elephant population has fallen, due to poaching,
from an estimated 1.3 million to 600,000. In October 1988, Congress
enacted the African Elephant Conservation Act, establishing an African
elephant conservation fund. In June 1989, the Administration banned the
import of ivory. And in October 1989, all CITES members agreed to halt
trade in ivory, providing for its resumption only under a secure system in
the future for countries with a healthy and well-managed elephant
population.
Under the 1988 African Elephant Conservation Act, the Interior Department
provides anti-poaching assistance to African elephant management
programs. USAID, through its biodiversity program, also is involved in
elephant conservation; FY 1990 funding for such activities exceeded the
congressional earmark of $2 million.
Congress provided $15 million in FY 1991 Foreign Military Financing grant
funds to encourage African military establishments to become involved in
anti-poaching activities, wildlife protection, and other efforts in support of
Africa's environment.
The United States also was instrumental in executing the Montreal Protocol,
which established measures to protect the ozone layer by decreasing the
production of chlorofluorocarbon chemicals. This is an important step
regarding Africa, which--because of its growing population and less
flexible economies--is more vulnerable to problems caused by climatic
change.
*The Club du Sahel, also known as the "Club des Amis du Sahel," is an
informal association of the nine members of CILSS (Comite inter-etats pour
la Lutte Contre la Secheresse au Sahel) and any other governments and
multilateral development agencies that share in finding long-range
solutions to the problems of the Sahelian zone countries.
Peace Corps
President John F. Kennedy launched the Peace Corps in 1961. The first 50
volunteers went to Ghana to teach secondary school students. The
President, describing the purpose of the Peace Corps, stated: "We will only
send abroad Americans who are wanted by the host country--who have a real
job to do--and who are qualified to do that job." Today, the Peace Corps
functions in 70 countries and has volunteers in 34 Sub-Saharan African
countries. Above, in addition to teaching English, a Peace Corps Volunteer
helps Nigerian students improve their gardening techniques at a school
garden. (Peace Corps photo)
African Countries With Peace Corps Volunteers
Benin
Ghana
Niger
Botswana
Guinea
Nigeria
Burundi
Guinea-Bissau
Rwanda
Cameroon
Cote d'Ivoire
Sao Tome and Principe
Cape Verde
Kenya
Senegal
Central African Republic
Lesotho
Seychelles
Chad
Mali
Sierra Leone
Comoros
Malawi
Swaziland
Equatorial Guinea
Mauritania
Tanzania
Gabon
Morocco
Togo
The Gambia
Namibia
Zaire
Zimbabwe
US Assistance to Sub-Saharan Africa, FY 1991 ($ million)
Country DFA ESF PL 480
Total
Angola 5.2
15.2
Benin 16.2 1.3 1.9
19.4
Botswana 7.3
7.3
Burkina Faso 3.0 23.6
26.6
Burundi 15.0
15.0
Cameroon 20.0
20.0
Cape Verde 3.0 3.4
6.4
Central African Republic 4.0 0.6
4.6
Chad 15.0 13.1
28.1
Comoros 0.7
0.7
Congo 1.0 2.1
3.1
Cote d'Ivoire 7.0 6.0 12.3
25.3
Djibouti 0.0 4.1
4.1
Equatorial Guinea 1.0
1.0
Ethiopia 111.2
111.2
Gabon
The Gambia 12.8 1.7
14.5
Ghana 25.0 15.9
40.9
Guinea 25.0 10.0
35.0
Guinea-Bissau 5.0 0.1
5.1
Kenya 26.0 13.0
39.0
Lesotho 7.3 2.1
9.4
Liberia 77.3
77.3
Madagascar 44.0 11.0
55.0
Malawi 55.3 29.6
84.9
Mali 33.0 11.4
44.4
Mauritania 2.8
2.8
Mauritius 1.5
1.5
Mozambique 60.2 45.4
105.6
Namibia 7.3 10.0
17.3
Niger 26.0 13.0
39.0
Nigeria 11.0
11.0
Rwanda 35.0
35.0
Sao Tome and Principe 0.4 0.6
1.0
Senegal 22.0 1.0 14.1
37.1
Seychelles 3.3
3.3
Sierra Leone 0.5 6.0
6.5
Somalia 4.6
4.6
South Africa 40.0 10.0
50.0
Sudan 104.1
104.1
Swaziland 6.3 0.4
6.7
Tanzania 30.3
30.3
Togo 9.0 3.9
12.9
Uganda 43.0 13.2
56.2
Zaire 23.0 23.0
46.0
Zambia 14.5 6.2
20.7
Zimbabwe 40.3
40.3
Regional/Other* 109.6
109.6
Total 806.5 35.7 592.8
1,435.0
*At the beginning of the fiscal year, the regional account also includes
Southern Africa regional program and regional economic policy reform
program funds which are later allocated to bilateral programs. It also
includes some operating expenses and centrally funded and regional
programs.
Figures for ESF and DFA are from the Operating Year Budget. PL 480 figures
are on disbursement basis and include transport costs paid.
Source: US Agency for International Development(###)
USAID-Supported Projects
The Forestry Land Use Planning Project in Niger, designed to reverse the
deterioration of the Guesselbodi National Forest, a 5,000-hectare tract near
the capital city of Niamey.
A plan of action for Madagascar's parks, conducted in conjunction with other
international organizations and the Madagascar Government to preserve the
ecosystems of this unique island.
The Mountain Gorilla Project in Rwanda, which seeks to preserve the animal
and its habitat. (###)
US Department of State Dispatch,
Vol 3, No 2, January 13, 1992
Title: Visit to Asia-Pacific Nations--Building A
Foundation for Increased Trade
Bush
Source: President Bush
Description: Remarks upon departure for Australia, Singapore, South
Korea, and Japan, Andrews Air Force Base, Maryland
Date: Dec, 30 199112/30/91
Category: Speeches, Testimony, Statements
Region: East Asia, Pacific, Southeast Asia
Country: Japan, Singapore, Australia, South Korea,
United States
Subject: Trade/Economics
[TEXT]
Today I leave on a 12-day journey to a region of critical importance to the
interests of this nation. We'll be visiting four Asia-Pacific nations, home
to some of the world's most dynamic economies. On my visits to Australia
and Singapore, to Korea and Japan, I will get a first-hand glimpse of
America's economic future--a world in which we will conduct more and
more business and trade with partners in Asia, Europe, and Latin America.
In this new world, old notions no longer apply. The sharp lines that once
separated foreign and domestic policy have been overtaken by a new reality.
If we want to put people to work here at home, we've got to expand trade
and to open markets. These new economic realities have not eclipsed the
security concerns that continued to demand our attention throughout East
Asia. I'll make very clear to each country I visit that America remains
committed to the cause of freedom and democracy [and] that America will
remain engaged in the Pacific area economically, politically, and militarily.
After all, we are a Pacific nation, and we should care about what our allies
in that region have to say. Our Asia-Pacific friends will play a crucial role
in helping us build a post-Cold War world defined by prosperity and trade,
not poverty and isolationism.
But let me make very clear the focus of this trip. My highest priority is
jobs, and I want us to build a foundation for sustained economic growth and
an ever-increasing supply of good jobs for American workers. Here at home,
all of us are concerned about our sluggish economy. One way to get this
economy growing again is to open up markets abroad for American goods and
services. The goods we make here in America, the services we provide, are
second to none. More exports mean new jobs. Each billion dollars in new
manufactured exports supports 20,000 new American jobs.
The markets of East Asia offer great opportunity. Last year, we conducted
more than $300-billion worth of two-way trade with the nations of the
Pacific Rim. That is more than with the nations of Europe. And, yet, we
know that for many industries and sectors of our economy, the potential of
our Pacific markets remains largely untapped.
My message in each country I visit will be this: Free trade is a two-way
street. Certainly, American companies ought to show greater commitment
to these markets. And while nations such as Singapore have taken great
strides to build a tradition of free and open trade, there are still too many
countries where markets are closed to quality American goods and services.
There are still too many countries whose consumers want but cannot buy
American products. We seek no special benefits, no rules stacked in our
favor--just open markets [and] trade that is free and fair.
I'll have help driving this message home. Executives from 21 of
America's leading companies and business organizations will travel with
me. Some of them now do business in Asia. All of them are ready to work
hard in these markets to blaze a trail other American companies large and
small can follow. They are also realistic about what we cannot expect from
this trip. We cannot expect to achieve complete accord. This trip won't
solve all the trade issues that now concern us or produce a new export boom
overnight. But we will do all we can to make progress [and] to drive down
the barriers abroad that inhibit the creation of jobs and opportunity at
home. Actions such as that taken yesterday by the Central Bank of Japan to
lower the discount rate 0.5% certainly do help.
America can meet the challenges of the new world taking shape around us.
Some nations fear the future. They see chaos in change. But America is a
nation drawn forward by what is new. I am certain--I am absolutely
confident--that America can continue to lead and that in the new world
Americans will prosper.
Thank you, and may God bless our great country, and now we'll head off to
Australia. Thank you very much. (###)