US Department of State 

Dispatch, Vol 3, No 20, May 18, 1992

Title:

President Bush To Attend Rio Conference on the Environment

Bush Source: President Bush Description: Statement released by the White House, Office of the Press Secretary, Washington, DC Date: May, 12 19925/12/92 Category: Speeches, Testimony, Statements Region: South America Country: Brazil Subject: Environment [TEXT] I have just informed President [Fernando de Mello] Collor of Brazil, UN Secretary General Boutros Ghali, and Maurice Strong, Secretary General of the UN Conference on the Environment and Development (UNCED) that I will attend the Rio conference in early June. Today's environmental problems are global, and every nation must help in solving them. As the United States has demonstrated over more than 2 decades, protecting the environment and encouraging economic growth can go hand in hand--in fact, it is our conviction that they must go hand in hand. In the early 1980s, we phased out leaded gasoline. Other countries are now looking to follow suit. We phased out aerosol propellants as early as 1978, and, this year, we announced that we will phase out all CFCs [chlorofluorocarbons] by the end of 1995. In the last 3 years, we have worked to extend that record--signing a new clean air act and an oil pollution act, placing a moratorium on oil and gas drilling in areas off our coasts, investing in our national parks, launching a program to plant 1 billion trees a year, and enforcing our environmental laws to make the polluter pay. Abroad, the United States has worked hard to promote responsible environmental policies through our bilateral aid programs and through the World Bank and the UN system. I believe our decades-long experience in developing and implementing economically sound policies can help others in improving the environment. In Rio, world leaders will have before them a number of documents. One of those documents will be a framework convention on climate change, which was concluded successfully this past weekend. We are pleased with the outcome, and I congratulate the negotiators for joining together in taking this historic step. This framework convention would not impede economic growth and our ability to create new jobs. Climate change is only one subject to be addressed at Rio. It is vitally important that progress be made as well in protecting our oceans and living marine resources, in promoting openness and public participation in environmental decision-making, in promoting sound management and protection of the world's forests and biodiversity, and [in] many other areas. I look forward to discussing how all nations, working together, can ensure that we hand over to our children and grandchildren a healthy and safe planet. (###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

Northern Iraq Elections

Tutwiler Source: State Department Spokesman Margaret Tutwiler Description: Statement, Washington, DC Date: May, 15 19925/15/92 Category: Speeches, Testimony, Statements Region: MidEast/North Africa Country: Iraq Subject: Democratization, United Nations [TEXT] On May 17, the people of northern Iraq will vote in free elections to choose an executive leader and members of a legislative body. We hope the voting will proceed in a secure and peaceful atmosphere and help lead to a better life for all the people of northern Iraq--Turcomans, Assyrians, and Kurds. We welcome public and private assurances by the Iraqi Kurdish leadership that these elections will deal only with local administrative issues and do not represent a move toward separatism. We and our coalition partners have made it clear to Saddam Hussein and the Iraqi regime that Iraqi forces should not engage in repressive actions against the people of Iraq, as required by UN Security Council Resolution 688. We continue to monitor developments in Iraq, and the coalition retains the capability to respond, as necessary, to Iraqi actions which threaten regional peace and security. The US Government continues to support the sovereignty and territorial integrity of the state of Iraq and to favor replacement of the brutal Saddam Hussein regime with a new government in Baghdad which will fairly represent Iraq's pluralistic society, accept the UN Security Council resolutions, and live at peace with neighboring states. We would like to see all the people of Iraq taking part in a democratic system and enjoying the freedoms which have so long been denied to them by Saddam Hussein. As we have said many times, we do not support the emergence of an independent political entity in northern Iraq. The US Government has provided more than $600 million in humanitarian assistance for the Iraqi people over the past year. Due in large part to the proximity and cooperation of our NATO ally Turkey, that assistance has significantly benefited northern areas where the voting will take place. Through Operation Provide Comfort, we intervened, along with our coalition partners, to rescue hundreds of thousands of refugees and help them return to their homes. US forces take part in a residual coalition military presence in the area, and we greatly value our excellent, ongoing contacts with the Iraqi Kurdish leadership. We will not be sending official observers to the elections. US passports are not valid for travel in, to, or through Iraq without a special State Department validation. We are not approving passport validations for travel to northern Iraq during this particular period due to indications of substantial physical risk to American citizens in northern Iraq during the election period. (###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

US and Germany Sign Claims Agreement

Tutwiler Source: State Department Spokesman Margaret Tutwiler Description: Statement, Washington, DC Date: May, 13 19925/13/92 Category: Speeches, Testimony, Statements Region: Europe Country: Germany Subject: International Law, State Department [TEXT] Today in Bonn, Germany, the United States and the Federal Republic of Germany (FRG) signed an agreement under which the FRG will pay compensation to the United States for certain property claims of US citizens against the former German Democratic Republic (GDR). The agreement applies to claims of United States citizens for property nationalized or otherwise taken by the GDR before October 18, 1976. The agreement establishes a settlement amount of $190 million. However, under the agreement, US claimants may choose to pursue their claims in Germany and forego their share of the amount under the US-German agreement. The actual amount paid to the United States will be reduced accordingly. Claimants will not be able to recover from both programs. Claimants who wish to receive a portion of the settlement amount under the new agreement should not accept compensation or returned property under the claims program currently in effect in Germany. The agreement will not enter into force, and no money will be paid by the German Government, until it has been ratified by the German parliament. In addition, it will take time to determine which claimants want to receive a portion of the settlement and which want to pursue their claims under the program in Germany. It is, therefore, unlikely that any funds will be distributed this year. Claimants who choose to receive a portion of the settlement will receive the full principal amount of their awards. We also expect that claimants will receive interest at a simple annual rate of over 3% from the time their property was taken. The United States began negotiations with the GDR on these claims in 1982. After German unification in 1990, the FRG took over the talks. In reaching this agreement, the Federal Republic has shown its commitment to pay appropriate compensation to US claimants for property taken from them by the GDR. The claims covered by this agreement were adjudicated between 1978 and 1981 by the Foreign Claims Settlement Commission, an agency of the Department of Justice. Claimants will be notified about the details of the agreement in the near future.
Dispatch, Vol 3, No 20, May 18, 1992 Title:

US Ambassador Recalled From Yugoslavia

Tutwiler Source: State Department Spokesman Margaret Tutwiler Description: Statement, Washington, DC Date: May, 12 19925/12/92 Category: Speeches, Testimony, Statements Region: E/C Europe Country: Yugoslavia (former), Serbia-Montenegro, Bosnia-Herzegovina Subject: United Nations, Human Rights, EC, State Department [TEXT] Ambassador [Warren] Zimmermann is being recalled from Belgrade for consultations. During these consultations, the US Embassy will be headed by the Deputy Chief of Mission. The US is taking this action in coordination with the European Community [EC] and in light of the aggression carried out against Bosnia-Hercegovina by Serbian civilian and military leaders in clear and continuing violation of all CSCE [Conference on Security and Cooperation in Europe] principles. The United States will continue to work closely with the European Community to seek strong collective action against Belgrade's aggression against Bosnia-Hercegovina. The United States strongly endorses the EC Foreign Ministers' May 11 declaration on Bosnia-Hercegovina, including the demand for the full withdrawal of the Yugoslav National Army from Bosnia-Hercegovina and the reopening of Sarajevo airport under safe conditions.
Dispatch, Vol 3, No 20, May 18, 1992 Title:

Russian Sale of Rocket Engine to India

Boucher Source: State Department Deputy Spokesman Richard Boucher Description: Statement, Washington, DC Date: May, 12 19925/12/92 Category: Speeches, Testimony, Statements Region: South Asia, Eurasia Country: India, Russia Subject: Arms Control, Nuclear Nonproliferation, Security Assistance and Sales [TEXT] For some time, the United States and other member countries of the Missile Technology Control Regime (MTCR) have been involved in discussions--first with the former Soviet Government and now with the Russian Government-- about the serious concerns we have with the transfer of rocket engine technology from Glavkosmos to the Indian Space Research Organization (ISRO). We have also been discussing our concerns directly with the Indian Government. The MTCR guidelines provide the international standard for such matters. The MTCR partners all have concluded that the Glavkosmos-ISRO deal is inconsistent with the MTCR guidelines. That is why they have urged that this deal not go through. For its part, the United States in its own discussions with Russia and India has also made [it] clear that US law requires sanctions against entities engaged in activities inconsistent with MTCR guidelines. Since the facts are clear and since the parties to the transaction have declined to terminate these activities, the United States has imposed sanctions in accordance with our law. The sanctions are: -- A 2-year ban on all US-licensed exports to these entities (i.e., Glav- kosmos and ISRO); -- A 2-year ban on all imports into the United States from these entities; and -- A 2-year ban on US Government contracts with these entities. We are continuing to pursue discussion of this issue with both governments. We have explained to both governments that termination of the Glavkosmos- ISRO deal could permit us to consider a waiver of these sanctions. Our principal objective--and it is one that is shared by all of our partners in the MTCR--is to obtain the broadest possible international cooperation in curbing the dangerous proliferation of missile technology. We want to work with all countries in this effort. We want Russia and India to be important contributors to this effort, and we are going to continue to work along those lines with them and to urge that they respond to international concern by halting the Glavkosmos-ISRO deal. (###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

US-Chilean Relations: Making a Road to a Better Tomorrow

Bush Alywin Source: President Bush, Chilean President Alywin Description: Remarks upon Chilean President Aylwin's arrival, Washington, DC Date: May, 13 19925/13/92 Category: Speeches, Testimony, Statements Region: South America Country: Chile Subject: Democratization, Trade/Economics, History [TEXT]
President Bush:
Friends of Chile and the United States and ladies and gentlemen: President [Patricio Azocar] Aylwin, I'm honored to welcome you to the White House--an opportunity not only to exchange views but to return that wonderfully warm hospitality that I received in Chile. You once described Chile's success in this way: "The reflection of a mature country that knows what it wants and is able to achieve it by means of the democratic process." That maturity has been hard won. Americans shared your pain during some dark days in Chile--when democracy was a fading dream and peace a faded hope. But it has been won. Today, your government serves its people and serves as a model to others. The same may be said of your leadership. Since taking office, you have revived Chilean democracy. In 1913, Teddy Roosevelt visited Chile and spoke of a "democratic experiment on a far vaster scale than has ever been attempted anywhere else in the world." Next month, your people will salute that experiment through Chile's first local elections in 20 years. Democracy has also spurred your economy. Chile has married a free people with free markets--a union that has resulted in faster economic growth than any other economy in Latin America over the last decade. A successful conclusion to the Uruguay Round of GATT [General Agreement on Tariffs and Trade] will enhance that trend. Already, your trade barriers are falling, your exports rising. As a member of the Cairns Group 1, you've led the war against agricultural subsidies and protectionism. The United States and Chile are two of the world's foremost proponents of free trade, and we look forward to working with you to expand bilateral and global trade as rapidly as possible. l Members are Argentina, Australia, Brazil, Canada, Chile, Colombia, Hungary, Indonesia, Malaysia, New Zealand, Philippines, Thailand, and Uruguay. Group was named after a town in Australia where it met initially in July 1991. I applaud your achievements. So did the Inter-American Development Bank, turning first to Chile to implement its investment policy support program. Under our Enterprise for the Americas Initiative (EAI), Chile was first to have a portion of its official debt to the United States forgiven, because we want democracy to succeed. Not only do our people share what your government called the "community of ideas, of feelings and needs," we share this land. We share more than the new world; we share a responsibility to keep our world new. So, last February, under the Enterprise for the Americas Initiative, we signed an agreement helping Chile create an environmental project fund with money which otherwise would have serviced debt; and we will continue to address bilateral economic concerns under our 1990 trade and investment framework agreement. Our challenge now is to build on those beginnings and show why Bernardo O'Higgins, Chile's great champion of freedom, wrote: "The Americans are giving great hope to philosophers and patriots alike." Today, Chile gives hope to an entire hemisphere. With market-oriented reforms, you've led by example. In international relations, you're leading through integrity: Other nations count on Chilean leadership in the Organization of American States (OAS), in the United Nations, and then in the community of nations. Your people are working for peace and freedom in Kuwait, El Salvador, Guatemala, and Cambodia. You joined your neighbors to defend democracy, first at last year's OAS General Assembly then, most recently, in Haiti, Peru, and Venezuela. There's a poem called Machado's Caminante. There's one line that stands out; here it is: "Traveler, there is no road; you make a road in traveling." I believe Chile is that traveler, traveling the road of history--a history made one step at a time. Chile offers an eloquent rebuke to those enemies of democracy--on the extremes of left or right--who try to mislead and confuse the people. Chile shows how liberty can not only shape a nation of great promise but ensure its people a legacy of promises kept. So, traveling together, we will keep our promises, and we will make ours a road to a better tomorrow. We are honored to welcome you to Washington as our guest, one of this hemisphere's truly great leaders.
President Aylwin:
Mr. President, I arrive in this capital city bringing the cordial greetings of the people of Chile to the people of the United States of America and their President. In Chile, we admire this great nation, not only for its power and progress, but for its permanent adherence to the values of liberty and democracy. Chile, although a small, developing country, has nursed those same values throughout its history. When it has lost them, it has courageously struggled to restore them. We have recently done so, and we are engaged in consolidating our reborn democracy. We believe that we can achieve this purpose on three bases: the search for understanding among us founded on the respect for human rights and democratic institutions; the search for national growth founded on the effort of all Chileans; and the search for social peace founded on justice. Chile belongs to Latin America. It is linked to it by a common origin [and] common problems and also by a common destiny. Our countries are part of the American continent, this new world that celebrates, this year, 5 centuries since its encounter with the old one. Whichever may our differences be, Latin American nations are the friends of the United States of America. In this world, where we see today the formation of large continental units, we feel close to you--not only due to geographic imperatives but also by our common destiny. We are not asking for help but for understanding and cooperation. Your Enterprise for the Americas Initiative creates an opportunity that awakes well-founded hopes better than any of those of the past, because it is free of a paternalistic and protective flavor. It opens a fertile path for cooperation between nations different in size and power but equal in their dignity. It is a path of a promissory association that sets demands to us all but also should benefit us all. Chile has done its share to initiate this common work, and its aspiration is to promptly, fully engage in it. The great changes the world has seen in recent years would not have been possible without audacity and leadership. The world recognizes your own personal contribution in the development of these events. If we are capable to be faithful until the end to the noble ideas we profess, as were our founding fathers, we would build, as they did, a better world for our children. History is our witness. Our people set the[ir] hopes and trust in us. May God help us to fulfill our mission for the good of the whole of the Americas.
Dispatch, Vol 3, No 20, May 18, 1992 Title:

US-Chilean Relations: Joint Commitment to Free Trade Agreement

Fitzwater Source: White House Press Secretary Marlin Fitzwater Description: Statement, Washington, DC Date: May, 13 19925/13/92 Category: Speeches, Testimony, Statements Region: South America Country: Chile Subject: Democratization, Trade/Economics, History [TEXT] In their discussions today, President Bush and President Aylwin stressed their joint commitment to free trade throughout the hemisphere as envisioned in the President's Enterprise for the Americas Initiative. President Aylwin told the President that the long-term vision of the EAI is very important to Latin America and described it as the first chance for a genuine partnership between Latin America and the United States based on free trade. As a result of these discussions and in recognition of Chile's economic achievements, the President decided today that the United States intends to negotiate a comprehensive free trade agreement with Chile upon conclusion of the North American Free Trade Agreement; and he intends to send notification to the Congress, pursuant to fast track procedures, at that time. The United States exports to Chile increased to $1.582 billion in 1991, including products such as mining machinery, computers, and telecommunications equipment. Chile was the first country in Latin America to receive bilateral debt reduction and an investment sector loan under the Enterprise for the Americas Initiative. By moving forward on free trade, Chile will be the first nation in South America to participate in the trade benefits of EAI. The two Presidents also took note of the challenges to democratic processes in Haiti, Peru, and Venezuela and reaffirmed their strong commitments to support and defend democracy in the hemisphere through the OAS.
Dispatch, Vol 3, No 20, May 18, 1992 Title:

US-Chilean Relations: Hemispheric Free Trade And Democracy

Aronson Source: Assistant Secretary for Inter-American Affairs Bernard Aronson Description: Opening statement at a press briefing, Washington, DC Date: May, 13 19925/13/92 Category: Speeches, Testimony, Statements Region: South America Country: Chile Subject: Democratization, Trade/Economics, History [TEXT] President Bush and President Aylwin concluded a very warm and very positive set of meetings in the Oval Office and with their respective cabinets. The President reiterated what he said in his public remarks on the South Lawn, saluting what Chile is doing and how impressed he was with its growth. As you may know, the Chilean economy has averaged 6% annual growth since 1985. Continued strong growth is predicted again this year. Unemployment stands at a 17-year low of 4.8%. Since President Aylwin took office, inflation has fallen from 27% to 15%. Chile continues to attract substantial foreign investment. The President also talked briefly about the continuing efforts of both countries to see a successful conclusion to the Uruguay Round and the GATT [General Agreement on Tariffs and Trade]. As you know, Chile is a member of the Cairns Group, which is made up of agricultural producers and exporters. The Cairns Group and the United States hold the same position, which is [that] we need to and hope to see more movement by the European Community and by Japan on agricultural issues. President Aylwin spoke of the new relationship between the United States and Latin America. He noted that he was the first president to voice his support for the President's Enterprise for the Americas Initiative. He said that long-term vision is very important for Latin America. It's the first chance for a partnership based on trade. The two Presidents had a long discussion about the situation in Peru, Haiti, and Venezuela--the need to defend democracy. They talked a little bit about--they and their ministers talked about--the upcoming OAS meeting and the situations in those three countries. There was a general discussion about free trade between the United States and Chile. The President made it clear that he remains committed to seeking such an arrangement with Chile and that the two sides are going to continue to discuss that issue during this visit. (###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

US-Chilean Relations: Agreement on US-Chilean Scientific and Technological Cooperation

Tutwiler Source: State Department Spokesman Margaret Tutwiler Description: Washington, DC Date: May, 14 19925/14/92 Category: Fact Sheets Region: South America Country: Chile Subject: Science/Technology, Resource Management, Environment [TEXT] A basic agreement on science and technology cooperation between the United States and Chile was signed today in the Treaty Room of the State Department by Secretary Baker and Foreign Minister Silva Cimma of Chile. This agreement provides the framework for future cooperation in scientific research and technological development between the United States and Chile. The purpose of the cooperative activities will be to provide opportunities to exchange ideas, information, skills, and techniques and to collaborate on matters of mutual interest in science and technology. Cooperative research in the fields of basic science, environment, health, energy, agriculture, earth sciences, and standards technology are expected. Agreements covering specific projects will be negotiated through the relevant technical departments and agencies of our respective governments under the terms of this general agreement. (###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

US-Chilean Relations: Chilean President Visits Washington, DC

Tutwiler Source: State Department Spokesman Margaret Tutwiler Description: Washington, DC Date: May, 13 19925/13/92 Category: Fact Sheets Region: South America Country: Chile Subject: Democratization, Trade/Economics, History, Development/Relief Aid [TEXT] President Patricio Azocar Aylwin, who assumed office in March 1990 as Chile's first civilian president since 1973, made his first state visit to Washington, DC, on May 13, 1992.
US-Chile Relations
After a 14-year period of deteriorated relations stemming from the 1976 car-bomb assassination in Washington, DC, of a former Chilean Ambassador to the United States, Orlando Letelier, and Ronni Moffitt, a US citizen, the United States and Chile are strengthening diplomatic interactions. In January 1992, an international commission resolved the issue of monetary compensation to the surviving members of the Letelier and Moffitt families. A judicial inquiry continues in Chile. Chile's return to democratic government and President Aylwin's commitment to resolving differences led President Bush to issue a finding on December 1, 1990, in favor of lifting the Kennedy amendment sanctions enacted by Congress in 1976. After a 9-year absence, the Peace Corps has returned to Chile. The US Ambassador to Chile is Curtis W. Kamman.
Consolidation of Democracy
Under the terms of the 1980 constitution, which was approved by a two- thirds majority in a plebiscite in September 1980, Chile is governed by a popularly elected president and a bicameral national congress of 38 elected and 8 appointed senators and 120 elected deputies who took office on March 11, 1990. Although President Aylwin's term ends in 1994, subsequent presidential terms will be 8 years. Recently enacted municipal reform legislation will allow municipal elections to be held on June 28, 1992, for the first time in almost 20 years. Mayors will be chosen from among the council members elected in each municipality instead of being appointed by the central government as has been the practice since 1980. Everyone over 18 years of age has the right to vote. In 1973, a military coup overthrew the elected government of President Salvador Allende, a Marxist and member of Chile's Socialist Party who headed the "Popular Unity" coalition of socialists, communists, radicals, and dissident Christian Democrats. He was killed during the coup. The junta abolished the Congress and banned all political parties. It expelled or imprisoned thousands of Chileans and suspended freedom of assembly, speech, and association. In economic matters, it moved the country away from economic statism toward a largely free market economy supported by domestic and foreign private investment. A national plebiscite in 1980 gave General Augusto Pinochet Ugarte, leader of the junta, a mandate to preside for an 8-year term, but, in 1988, he did not receive approval for a second term. One year later, on December 14, 1989, Christian Democrat Patricio Aylwin, running as the candidate of a 17- party coalition, won the presidency. Political parties with the largest representation in the Congress are the center-left Christian Democratic Party and the center-right National Renewal Party.
Economic and Trade Issues
After experimenting with various economic philosophies, including consumption-oriented state socialism, Chile accepted in 1983 a 2-year International Monetary Fund (IMF) macroeconomic austerity program. By 1984, Chile had a fundamentally sound market economy and by 1990 had reduced medium- and long-term debt with private international banks from $14 billion to about $5 billion. Chile's two prime economic assets are the mineral wealth of its northern desert and the agricultural productivity of its farmland. It is the world's largest producer of copper, which makes up 50% of its exports. Other mining exports include gold, silver, iron ore, molybdenum, natural nitrate, and iodine. Chile's main agricultural export is fruit, production of which tripled during the 1980s. Chile's domestic agricultural production is becoming increasingly self- sufficient, and its crop yields tend to surpass those of most Latin American countries. As Chile's chief agricultural trading partner, the United States provided 34% of its imports, mostly wheat. The United States purchases nearly 47% of Chile's agricultural exports, mainly fruit.
Chile at a Glance
Chile's name derives from an Indian word meaning "land's end" and describes Chile's 2,600-mile-long stretch to the tip of South America. Chile has a range of climatic zones from hot and dry through Mediterranean to cool and damp; it has volcanoes, lakes, mountains, desert, and a fertile central valley. The southernmost areas contain a forest region with heavy rainfall during fall and winter and an almost uninhabited wild region of cold mountains, glaciers, and small islands where the rainfall is torrential and the climate stormy, wet, and cold. Chile's 13 million people are mestizo, European, and Indian and have a life expectancy of about 72 years. Nearly 82% of them live in urban centers (39% in the capital city, Santiago). Chile requires 8 years of education and achieves a literacy rate of 96%. The work force is employed in agriculture, forestry, and fishing (19%); industry and commerce (34%); mining (2%); construction (7%); and services, including government (30%).(###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

Country Profile: Chile

PA Source: Office of Public Communication, Bureau of Public Affairs Date: May, 13 19925/13/92 Category: Country Data Region: South America Country: Chile Subject: Democratization, Trade/Economics, History [TEXT]
Official Name: Republic of Chile
Geography
Area: 756,945 sq. km. (302,778 sq. mi.); nearly twice the size of California. Cities: Capital--Santiago (metropolitan area pop. est.--5 million). Other cities--Vina del Mar-Valparaiso (591,081), Concepcion-Talcahuano (547,223), Temuco (220,000), Antofagasta (214,526). Terrain: Desert in north; fertile central valley; volcanoes and lakes toward the south giving way to fjords, inlets, twisting peninsulas, and islands; Andes Mountains on the eastern border. Climate: Desert in north, Mediterranean in center, cool and damp in south.
People
Nationality: Noun and adjective--Chilean(s). Population (1991): 13 million. Annual growth rate: 1.9%. Ethnic groups: Mestizo, European, Indian. Religions: Roman Catholic (89%), Protestant (11%), small Jewish population. Language: Spanish. Education: Years compulsory--8. Attendance--3 million. Literacy--96%. Health: Infant mortality rate--18/1,000. Life expectancy--72 yrs. Work force (4.8 million, 1991): Industry and commerce--34%. Services (including government)--30%. Agriculture, forestry, and fishing--19%. Construction--7%. Mining--2%.
Government
Type: Republic. Independence: September 18, 1810. Constitution: Became effective in 1981, finalized and approved in a National Referendum in 1980; known as the Constitution of 1980. Branches: Executive--president. Legislative--bicameral legislature. Judicial--Supreme Court, courts of appeal, military courts. Administrative subdivisions: 12 numbered regions, plus Santiago metropolitan region. Political parties: Major parties include the Christian Democratic Party, the National Renewal Party, the Socialist Party, Party for Democracy, Radical Party, Independent Democratic Union. Suffrage: Everyone 18 and over, including foreigners who have been legally residing for more than 5 years. Flag: Upper half blue square with white star, white band; lower half solid red band.
Economy
GDP (1991 est.): $29.2 billion. Annual real growth rate (1991 est.): 5%. Per capita GDP (1991 est.): $2,200. Avg. inflation rate (1991 est.): 19%. Natural resources: Copper, timber, fish, iron ore, nitrates, precious metals, and molybdenum. Agriculture and fisheries (9% of GDP): Products--wheat, potatoes, corn, sugar beets, onions, beans, fruits, livestock. Arable land--7%. Cultivated land--3%. Industry (21% of GDP): Types--mineral refining, metal manufacturing, food processing, fish processing, paper and wood products, finished textiles. Trade (1990): Exports--$8.3 billion: copper, molybdenum, iron ore, paper products, fishmeal, fruits, wood products. Major markets--Japan 18%, US 18%, Germany 8%, Brazil 5%, UK 4.5%. Imports--$7 billion: petroleum, sugar, capital goods, vehicles, electronic equipment, consumer durables, machinery. Major suppliers--US 20%, Brazil 9%, Japan 8%, Argentina 7%, Germany 6.5%.
Principal Government Officials
President--Patricio Aylwin Azocar Foreign Minister--Enrique Silva Cimma Ambassador to the US--Patricio Silva Echenique Ambassador to the UN--Juan Somavia Altamirano Ambassador to the OAS--Heraldo Munoz Valenzuela (###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

Gist: International Terrorism

PA Source: Office of Public Communication, Bureau of Public Affairs Date: May, 13 19925/13/92 Category: Policy Briefs (Gist) Region: MidEast/North Africa, East Asia, Caribbean Country: Cuba, Libya, Iraq, Iran, North Korea, Syria, Lebanon Subject: Terrorism [TEXT] The number of incidents of international terrorism rose in 1991. The United States is a prime target because its policies, values, and culture are directly opposed by many terrorist groups and because the United States has an extensive official and commercial presence overseas. Other states also are seriously threatened, and Israel, the Western democracies, moderate Arab governments, and the Latin American democracies are major targets. State sponsorship of terrorist activity has greatly increased both the number of attacks and the resulting casualties. Since 1980, more than 6,500 international terrorist incidents have occurred worldwide, leaving more than 5,100 people dead and 12,500 wounded. About 2,500 attacks were against American targets. American casualties since 1980 have totaled 587 dead and 627 wounded. Cooperation among states is growing as the international community acts increasingly in concert to deal with the threat. The end of the Cold War and the rise of democracy in Central and Eastern Europe and elsewhere has denied terrorist groups the support and sanctuary they had come to rely upon and placed additional international pressure on the states the United States identifies as sponsors of terrorism: Cuba, Iran, Iraq, Libya, North Korea, and Syria.
Terrorist Activity in 1991
In 1991, there were 557 international terrorists incidents, up from 456 last year. Half of the 1991 incidents took place during Operation Desert Storm. After the war, the number of incidents fell below 1990 levels. The number of terrorist casualties decreased considerably in 1991; 87 people died, including 7 murdered Americans, as compared with 200 the previous year. The United States was the target of 55% of the international terrorist incidents in 1991. Most of these attacks were low-level bombings that caused few casualties and little damage. The importance of state sponsors of terrorism was evident throughout 1991. The year began with threats of Iraqi-sponsored terrorist attacks against Desert Storm coalition targets worldwide. Although there were many terrorist incidents during the war, only a few had direct Iraqi involvement. The threatened massive wave of terror failed to materialize, due in large part to effective international cooperation.
Libya and Pan Am Flight 103
Late in the year, US and UK authorities issued indictments based on their extensive investigation of the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland. Both governments charged two Libyan agents with carrying out the attack at the direction of the Libyan Government. Earlier, French authorities had issued arrest warrants for four other Libyan agents in connection with the 1989 bombing of UTA Flight 772 over Niger. These two attacks killed 441 people from more than 30 countries. Following the indictments in the Pan Am Flight 103 bombing, the United States and United Kingdom have demanded that Libya: -- Surrender for trial all those charged with the crime and accept responsibility for the actions of Libyan officials; -- Disclose all it knows of this crime, including the names of all those responsible, and allow full access to all witnesses, documents, and other material evidence; -- Pay appropriate compensation; and -- Cease all support for terrorism. On January 21, 1992, the UN Security Council adopted unanimously a resolution that called on Libya to comply with these demands. On March 31, the Security Council imposed mandatory sanctions against Libya, including an air and arms embargo and the reduction in numbers of Libyan diplomats worldwide.
Hostages Freed
During 1991, nine Western hostages, including six Americans, were released after years of captivity in Lebanon. The remains of William Buckley and Col. William Higgins, who both died in captivity, were returned to the United States. The hostages had been held by elements of the Iranian-sponsored terrorist group, Hizballah. Their release was facilitated by the efforts of UN Secretary General Javier Perez de Cuellar and his special envoy, Giandomenico Picco. The United States made no concessions to obtain the hostages' release.
US Policy
US counter-terrorism policy was developed initially in the 1970s, and the three basic principles remain as valid today as they were then. First, the United States makes no concessions to terrorists holding official or private American citizens hostage. Specifically, we will not pay ransom, release prisoners, or change our policies in response to terrorist demands. At the same time, the US Government will make every effort, including contact with the captors or their representatives, to obtain the release of hostages without making concessions. Making deals with terrorists only encourages more terrorism. Second, the United States works with other countries to put pressure on terrorist-supporting states to persuade them that such support is not cost free. These states help terrorists by providing training, money, weapons, travel and identification documents, diplomatic pouch privileges, safe houses, and refuge. The United States, working with friendly countries, seeks to isolate terrorist countries by imposing economic, political, diplomatic, and--if all else fails--military pressures. Third, the United States cooperates with friendly countries in developing practical measures to counter terrorism. These measures include: -- Identifying terrorists by name and learning their goals, ideologies, sponsors, and areas of operation; -- Tracking terrorists, particularly when they cross borders, and searching them for forged documents, weapons, and dangerous materials; and -- Apprehending, prosecuting, and punishing them. More terrorists are being caught before they can carry out their attacks, and more are being convicted and sentenced to stiff prison terms. Importantly, more terrorists are serving their full prison terms. As a result, the traditional terrorist tactic of taking hostages in order to secure the release of convicted terrorists from prison is increasingly ineffective. Laws covering prosecution, exchange of evidence, and extradition are being improved and used more frequently to punish terrorists. The United States offers anti-terrorism training assistance to representatives of friendly governments trying to fight terrorism. More than 12,500 police and security personnel from nearly 75 countries have received such training since the program started in 1984. The United States also works to provide more protection for American officials abroad and to make US embassies and facilities overseas more secure.
International Cooperation
Because most terrorism originates and is carried out abroad, continued international cooperation is essential to future success in countering the terrorist threat, and a high priority is being given to improving this cooperation. Recent developments have been encouraging. The action by the UN Security Council to bring Libya to account for its bombing of civil aircraft and continuing sponsorship of terrorist groups was a landmark in the development of an international consensus that the criminal behavior of state sponsors of terrorism will not be tolerated. GRAPHIC: International Terrorist Incidents, 1968-91. [Text of Graphic] 1968: 124 1969: 189 1970: 300 1971: 241 1972: 528 1973: 323 1974: 429 1975: 349 1976: 468 1979: 441 1980: 500 1981: 497 1982: 480 1983: 487 1984: 568 1985: 641 1986: 631 1987: 672 1988: 648 1989: 406 1990: 456 1991: 557 (###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

1991 Progress in the International War Agains Narcotics

PA Source: Office of Public Communication, Bureau of Public Affairs Date: May, 13 19925/13/92 Category: Fact Sheets Region: South America, North America, Central America, Caribbean Country: Mexico, Colombia, Peru, Bolivia Subject: Narcotics [TEXT] During 1991, the anti-drug effort led by the United States registered important gains, especially in the Western Hemisphere, where governments stepped up their coordinated campaign against the cocaine cartels. By the end of the year, coca cultivation was down, seizures of US-bound cocaine reached an all-time high, and traffickers came under greater pressure. Two countries, Colombia and Mexico, seized more than 130 metric tons (mt) of cocaine--a quantity worth about $13 billion on US streets. There also were important advances in international cooperation to attack money-laundering and control drug-processing chemicals. More important than the numbers, however, is the expression of political will which they represent. The key to a successful counter-narcotics effort is commitment. No campaign against drugs can succeed unless the governments of the affected countries view the effort as essential to their own security. In 1991, despite serious internal political and economic problems, the governments of the principal cocaine producing and transit countries showed much greater determination to challenge the criminal drug trade's threat to their authority. Many national legislatures enacted stronger laws against drug crimes. Governments took more effective action to make it difficult for traffickers to launder money or import the chemicals necessary for drug processing. By the end of 1991, 55 countries had ratified the 1988 UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances. Despite this progress, victory is a long way off. Drug-related corruption, fueled by enormous profits of the trade, continued to sap the strength of governments already weakened by economic problems, political instability, and social unrest. In spite of serious losses in seized drugs, the traffickers remained well entrenched, well armed, and well financed. A critical element in eliminating the trafficking organizations is persistence. Operations must be sustained over time, because it is the cumulative effects of the integrated approach rather than any single action that will achieve ultimate success. No industry as large and adaptive as the cocaine trafficking enterprise is vulnerable to short-term or simplistic solutions. No organization as ruthlessly committed to its own survival will give up easily.
Defining Progress
Progress is defined according to what a government can reasonably accomplish in given circumstances. For example, if an illegal crop has been expanding at an annual rate of 20%, reducing that expansion rate to 10% represents important progress. The same is true of drug interdiction efforts. As a measure of effort, relative increases in seizure rates in countries where the US Government knows significant drug trafficking occurs are important as a significant measure of progress in two ways: they remove valuable cocaine from the market and indicate a government's increased level of commitment.
Cocaine
Colombia. The Gaviria Government broke its own record by seizing 87 mt of cocaine, a 63% jump over 1990's total of 53 mt. The jailing of Medellin cartel chief Pablo Escobar also was an important step toward reining in traffickers. Bolivia. The government's eradication efforts brought down coca hectarage to its lowest level in 4 years. Eradication efforts have resulted in a 10% decline in the crop which had increased by 30% between 1987 and 1989. Peru. This is the country where counter-narcotics efforts met the greatest obstacles. Continuing terrorism, economic upheavals, and widespread corruption hampered the Fujimori Government's effectiveness in attacking the cocaine trade. In April 1992, President Fujimori suspended the constitution, dissolved congress, and disbanded the judiciary. Those actions have created further problems which have yet to be resolved. Mexico, Central America, and the Caribbean. These countries stepped up their law enforcement and interdiction efforts to cope with an increase in cocaine traffic across the region. In 1991, Mexican authorities seized more than 50 mt of the drug. The Northern Border Response Force (NBRF), working closely with US authorities, was responsible for 75% of the cocaine seized. El Salvador, Guatemala, and Panama improved their seizure records, and in the Caribbean, intensified cooperation with the United States brought about a significant drop in drug-related air traffic.
Opium and Heroin
While cocaine and crack pose the greatest immediate danger to American society, heroin continued to be a great concern, and some traffickers appear to view heroin as the drug of the future. International efforts to reduce the flow of opium and heroin have been less successful than the campaign against cocaine. Most of the world's opium grows in countries such as Burma, Afghanistan, and Iran, where the United States and other governments attacking the drug trade have little or no influence. In areas where the United States is able to work with the local government, such as Thailand, Laos, and Mexico, we have seen declines in cultivation.
Next Steps
By limiting coca expansion and increasing cocaine seizures for the second consecutive year, the collective anti-drug effort has begun to develop momentum. After enjoying a decade of expanding crops and virtually unlimited supplies of finished cocaine, the drug trade--for the first time-- faces setbacks at four critical junctures: at the source, in processing, in the pipeline, and in the financial area. Although the major trafficking organizations have the resources to absorb important losses over short periods of time, they cannot do so indefinitely. They can thrive only as long as there is a steady supply of drugs to give them the money they require. Every metric ton of cocaine which government action keeps out of the market means a potential loss of tens of millions of dollars in essential revenue to the drug syndicates. In the short term, the next step is to accelerate the momentum of the past 2 years' activity. While the US Government will continue to play a leading role in this process, other governments must also intensify their efforts individually and collectively to put the drug trade on the defensive. This means working to reduce and ultimately to eliminate illicit drug crops. It means better internal organization and improved cooperation with other countries to deny the illegal drug industry the chemicals it needs to produce cocaine and heroin. It entails more active law enforcement efforts and judicial reforms to break up trafficking organizations and to keep drugs out of the pipeline, together with closer international cooperative action targeting traffickers' profits. In the longer term, however, lasting progress depends on the commitment of the governments at greatest risk from the drug trade. Over the past 10 years, global attitudes have begun to change. In the mid-1980s when the United States began mobilizing international action, foreign cooperation was reluctant and erratic. The majority of drug producing and transit countries viewed the issue of drugs as a uniquely American phenomenon-- they felt neither responsible nor threatened. That view has evolved dramatically since the February 1990 Cartagena summit, but there is still a need for a greater commitment of national will. The United States will continue to provide the lead--and the bulk of the resources--in the international fight against drugs, but our partners also must redouble their efforts. For the first time, trafficking organizations are seeing their assumptions challenged. Better cooperation means that the traffickers no longer can count on international disunity to provide them with a secure operating environment. Joint action is making it more difficult for the cartels to find alternate routes through more "friendly" countries, while exposure and removal from office of corrupt individuals are eliminating their most valuable security guarantee. GRAPHIC: Worldwide Illicit Crop Cultivation Totals--1991
1991 International Narcotics Control Strategy Report
The Department of State's Bureau of International Narcotics Matters has released its 1991 "International Narcotics Control Strategy Report." The publication is available from the Superintendent of Documents, Government Printing Office, Washington, DC 20541-9235 (No. 044-000-02338-5), tel: 202-783-3238, for $24. (###)
Dispatch, Vol 3, No 20, May 18, 1992 Title:

US-Kyrgyzstan Trade and Investment Agreements

PA Source: Office of Public Communication, Bureau of Public Affairs Date: May, 8 19925/8/92 Category: Focus on Emerging Democracies: A Periodic Update Region: Eurasia Country: Kyrgyzstan Subject: Trade/Economics [TEXT] On May 8, 1992, the United States and the Republic of Kyrgyzstan signed a bilateral trade agreement designed to grant the country reciprocal most- favored-nation tariff status. The agreement also provides non- discriminatory treatment for US goods and services, allows companies to engage agents and to conduct market studies, and protects intellectual property rights. The US Embassy is located at Derzhinskiy Prospekt #66, Bishkek, telephone (7) (3312) 22-22-70. The Charge d'Affaires ad interim is Edward Hurwitz. The Economic Officer is Robert Weisberg.
Dispatch, Vol 3, No 20, May 18, 1992 Title:

Investment Agreements Signed With Armenia, Russia

PA Source: Office of Public Communication, Bureau of Public Affairs Date: May, 8 19925/8/92 Category: Focus on Emerging Democracies: A Periodic Update Region: Eurasia Country: Russia Subject: Trade/Economics [TEXT] In April 1992, the United States completed investment incentive agreements with the Republic of Armenia and the Russian Federation. Designed to stimulate the development of the economic resources of Armenia and Russia and to improve the climate for US business investment, the agreements authorize the Overseas Private Investment Corporation (OPIC) to operate its investment insurance and loan guarantee programs in these countries. Both agreements stipulate that OPIC will not be subject to local regulations affecting commercial insurance or financial organizations. They also provide for reciprocity in the event that Armenia and Russia institute similar investment guarantee programs in the United States. The agreement with Armenia became effective on April 2, 1992. The Russian agreement is conditional on the completion of all necessary legal requirements in that country. The US Embassy in Armenia is located in the Hotel Hrazdan, Yerevan, telephone (7) (8852) 53-53-32. The Charge d'Affaires ad interim is Thomas Price, and the Economic Officer is Rosemary Forsyth. The US Embassy in Russia is located at Ulitsa Chaykovskogo 19/21/23, Moscow, telephone (7) (095) 252-2450. The Ambassador is Robert S. Strauss. The Economic Officer is John W. Blaney. (###)