US DEPARTMENT OF STATE DISPATCH SUPPLEMENT
VOLUME 4, NUMBER 3, AUGUST 1993
GROUP OF SEVEN (G-7) 1993 ECONOMIC SUMMIT, TOKYO, JAPAN, JULY 7-9, 1993
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
Group of Seven (G-7) 1993 Economic Summit
ITEMS IN THIS ISSUE:
G-7 Documents
1. Tokyo Summit Political Declaration: Striving for a More Secure and
Humane World
2. Tokyo Summit Economic Declaration: A Strengthened Commitment to
Jobs and Growth
Fact Sheets
3. Economic Summits, 1981-93
4. U.S. Assistance to Russia
5. GATT and the International Trading System
6. U.S. Exports--Strategic Technology Controls
7. U.S. Exports--Foreign Policy Controls
8. Developing Country Debt
9. Global Environmental Issues
10. Nuclear Non-Proliferation Treaty
ITEM 1:
Tokyo Summit Political Declaration: Striving for a More Secure and
Humane World
Following is the text of a statement issued by the Group of Seven (G-7),
Tokyo, Japan, July 8, 1993
1. We, the leaders of our seven countries and the representatives of
the European Community, reaffirm our commitment to the universal
principles of freedom, democracy, human rights and the rule of law.
Since we last met in Munich, the process of democratization and economic
reform has further advanced. Nevertheless, instabilities and conflicts,
many with their roots in the past, still arise. We are determined to
work together to create a more secure and humane world by enhancing
international cooperation with broader partnership and scope.
2. The international community is actively engaged in improving the
instruments for prevention and resolution of conflicts. The UN, which
is vital to maintaining international peace and security, must be
further strengthened, adapting itself to the changing international
circumstances. We, therefore, support the ongoing efforts in the UN to
improve its efficiency, and in particular to develop more effective
institutional capacity for preventive diplomacy, peace-making, peace-
keeping, and post-conflict peace-building in the context of the
Secretary-General's "Agenda for Peace".
3. We strongly support regional cooperation in promoting peace,
democracy and stability. We welcome the more active role played by the
countries of the Asia-Pacific region in the promotion of regional
security dialogues. Regional organizations in Europe, Africa, and the
Americas are making significant contributions.
4. The protection of human rights is the obligation of all nations, as
affirmed at the World Conference on Human Rights in Vienna. The
increased number of refugees and displaced persons as well as the
problems of uncontrolled migration and difficulties confronted by
national minorities require urgent attention by the international
community, and should be tackled taking account of their root causes.
Terrorism, particularly when sponsored by states, poses a grave danger
which we will oppose energetically.
5. In promoting our partnership of cooperation, reforms in the former
centralized economies should be further encouraged. We look forward to
democratic, stable and economically strong societies in those countries.
We firmly support the determined reform efforts by Russia under
President Yeltsin and his government. We also look to Russia to promote
its diplomacy based on the principle of law and justice and to continue
to play constructive and responsible roles in the international
community. We also support the reform process in Ukraine and hope that
the recent meeting between Presidents Yeltsin and Kravchuk will provide
a basis for further improvement of relations between the two countries.
6. Enhanced cooperation is necessary in combatting the danger of
proliferation of weapons of mass destruction and missiles. In
particular, we:
-- Urge North Korea to retract immediately its decision to withdraw
from the NPT, and to fully comply with its non-proliferation
obligations, including the implementation of the IAEA safeguards
agreement and the Joint Declaration on Denuclearization of the Korean
Peninsula;
-- Encourage the countries concerned of the former Soviet Union to
ensure rapid, safe and secure elimination of nuclear weapons in
accordance with current agreements, providing effective assistance to
this end;
-- Urge Ukraine to ratify the START Treaty, and Ukraine and Kazakhstan
to accede to the NPT as non-nuclear weapon states.
We also continue our efforts to strengthen the non-proliferation
regimes, including the Missile Technology Control Regime, and to
establish effective export controls. We reiterate the objectives of
universal adherence to the NPT as well as the Treaty's indefinite
extension in 1995 and nuclear arms reduction. We also call on those
countries that have not done so to sign the Chemical Weapons Convention
and to accede to the Biological Weapons Convention.
In the field of conventional arms, we will work to ensure the
effectiveness of the UN Register of Conventional Arms as an important
step toward improving transparency and restraint in their transfers.
7. Faced with the rapidly deteriorating situation in former Yugoslavia,
we reaffirm our commitment to the territorial integrity of Bosnia-
Herzegovina and to a negotiated settlement based on the principles of
the London Conference. We cannot agree to a solution dictated by the
Serbs and the Croats at the expense of the Bosnian Muslims. We will not
accept any territorial solution unless it has the agreement of the three
parties. If the Serbs and Croats persist in dismembering Bosnia through
changes of border by force or ethnic cleansing, they will place
themselves beyond the pale of the international community and cannot
expect any economic or commercial assistance, especially reconstruction
aid. The UN Security Council Resolutions on safe areas must be
implemented fully and immediately to protect the civilian population.
We commit ourselves to assist the Secretary-General of the United
Nations to implement UN Security Council Resolution 836 by sending
troops, by air protection of the UNPROFOR, by financial and logistical
contributions, or by appropriate diplomatic action. Sanctions should be
upheld until the conditions in the relevant Security Council Resolutions
are met. Stronger measures are not excluded. The flow of humanitarian
aid to Bosnia must be increased.
Deeply concerned about the situation in Kosovo, we call on the Serbian
Government to reverse its decision to expel the CSCE monitors from
Kosovo and elsewhere in Serbia and to agree to a significant increase in
their numbers.
8. We welcome the successfully held election and the announcement of a
Provisional National Government in Cambodia to be followed by the
establishment of a government on the basis of a new constitution to be
enacted in accordance with the Paris Agreements. We continue our
support for its reconstruction and lasting peace based on national
reconciliation.
9. We fully support the efforts to achieve a comprehensive, lasting
peace settlement in the Middle East, and call on Israel and the Arab
states to take further steps for confidence-building. We reiterate that
the Arab boycott should end. We call on Israel to respect its
obligations with regard to the occupied territories. We support the
efforts of reconstruction in Lebanon.
We support the restoration of the legitimate authorities in Haiti and
commend the UN and OAS for their efforts in this regard.
We are determined to keep up the pressure on Iraq and Libya to implement
all relevant UN Security Council Resolutions in full. Concerned about
aspects of Iran's behavior, we call upon its government to participate
constructively in international efforts for peace and stability and to
cease actions contrary to these objectives.
We welcome the recent progress toward non-racial democracy in South
Africa, paving the way for its full reintegration into the international
political and economic community.
10. In an interdependent world, partnership is the key to building
global peace and prosperity. We commit ourselves to a new effort to
help shape a more secure and humane world, and urge others to join us.
(###)
ITEM 2:
Tokyo Summit Economic Declaration: A Strengthened Commitment to Jobs
and Growth
Following is the text of a statement issued by the Group of Seven (G-7),
Tokyo, Japan, July 9, 1993
1. We, the Heads of State and Government of seven major industrial
democracies and the representatives of the European Community, met in
Tokyo for our nineteenth annual Summit. Progress around the world
towards democracy and open market economies surpasses our most
optimistic expectations of only some years ago. To reap the full
benefits of recent historic transformations our societies must respond
to a number of challenges: achieving economic recovery and job
creation, successfully concluding the Uruguay Round this year,
integrating countries in transition into the world economy, supporting
the developing countries, and reconciling global growth and
environmental objectives. We are determined to address these challenges
on the basis of our shared values. We renew our commitment to extend
international cooperation, in particular by strengthening multilateral
institutions.
World Economy
2. We are concerned about insufficient growth and inadequate job
creation in our economies. Recovery is continuing in North America, but
remains modest. Europe is still in a marked recession, although there
are some signs of recovery. Japan's economy is over the worst, and some
recovery is now in sight. Many Asian and Latin American economies are
growing, some rapidly, and playing more important roles in the world
economy.
3. We are particularly concerned with the level of unemployment. More
than 23 million people are unemployed in our countries: that is
unacceptable. Much of the recent increase is attributable to the
present economic slowdown, but a significant part of the current level
of unemployment is structural in nature. Reducing unemployment,
therefore, requires a double strategy: prudent macroeconomic policies
to promote non-inflationary sustainable growth, and structural reforms
to improve the efficiency of markets, especially labor markets.
4. We are taking and will take appropriate measures to implement this
agreed global growth strategy to promote a sustainable expansion
designed to create substantial increases in employment. We will consult
closely so that our national policies can be mutually reinforcing and
compatible with our shared goal of a strengthened and recovering world
economy. We welcome the improved cooperation of Finance Ministers
towards this end.
-- Europe is carrying out vigorously the Growth Initiative agreed in
Edinburgh and strengthened in Copenhagen. Europe is committed as a
matter of overriding importance to implementing the firm budgetary and
other measures needed in order to ensure that the conditions for rapid
reductions in interest rates are created.
-- In North America, strong actions, which have been long overdue in
the U.S. and which we welcome, are being taken to ensure substantial and
steady reductions in fiscal deficits over the medium-term, higher level
of domestic savings and investment, and lower long-term interest rates.
-- Japan has taken a series of stimulative policies including the most
recent comprehensive package. Japan will implement fiscal and monetary
measures as necessary, to ensure sustained non-inflationary growth led
by strong domestic demand, keeping in mind the need for long-term fiscal
prudence. This will contribute to the important goal of significantly
reducing external imbalances.
Successful and rapid conclusion of the Uruguay Round will also boost the
confidence of investors and consumers, and thus will be an important
contribution to recovery and growth.
5. To enhance opportunities for employment and growth, it is essential
to address structural issues which constitute obstacles to strong
economic recovery and to longer-term growth potential. In this context,
we endorse the report of our Finance Ministers focusing on a broad range
of structural reforms, inter alia:
-- greater labor market efficiency,
-- improvement in education and training,
-- enhancement of savings and investment,
-- maintaining and improving the multilateral trading system,
-- reduction of subsidies,
-- addressing the economic impact of aging populations,
-- controlling overall outlays on health care,
-- enhancing efficiency in financial markets while ensuring their
stability,
-- developing international cooperation on the environment.
We commit ourselves to addressing these issues, together with issues of
innovation and of improving the "quality" of budgets and of increasing
the efficiency of the public sector, and we will review progress at the
next Summit.
We welcome the OECD's interim report on employment and unemployment. We
request the OECD to intensify its work, including that on the impact of
structural changes, and to put forward its policy recommendations before
our next Summit. We emphasize opportunities for job creation offered by
environmental policies.
6. As a follow-up to our discussions, we agree to send our high-level
representatives to a meeting in the United States in the autumn to
explore the causes of excessive unemployment and to search for possible
answers to this critical problem which saps the strength of our
societies.
Trade
7. Maintaining and expanding the multilateral trading system is
essential for world growth. We are determined to curb protectionism in
all its manifestations and agree that no recourse should be made to
initiatives and arrangements that threaten to undermine the multilateral
open trading system. We also confirm that any regional integration
should be complementary to and supportive of the system.
Our highest priority is a successful conclusion to the Uruguay Round.
We welcome the recent significant progress made towards a large market
access package in goods and services as a major step to the immediate
resumption of multilateral negotiations in Geneva. This progress must
be matched by comparable market opening measures by other participants.
We urge all our trading partners to negotiate constructively on all
subjects, recognizing that nothing is agreed until everything is agreed.
There remain important issues to be resolved. We renew our
determination to resolve them and to achieve with all our partners a
global and balanced agreement before the end of the year.
Environment
8. Environmental issues remain a high priority on our policy agenda
despite difficult economic times. We welcome the successful first
meeting of the Commission on Sustainable Development and the progress
made towards implementation and ratification of the Framework Convention
on Climate Change and the Convention on Biological Diversity by the end
of 1993, and on negotiation of a convention on desertification. We
renew our determination to secure environmentally sustainable
development through an effective follow-up of the fruits of the UNCED,
including the commitment to publish national action plans by the end of
this year. We will work to ensure that the Global Environmental
Facility, with necessary improvements, functions as the financial
mechanism to provide funding for the incremental costs of implementing
the global environment conventions signed at Rio. We encourage the
multilateral development banks to focus more intensively on sustainable
development, to incorporate environmental appraisals into project
preparation and to make them publicly available.
We look forward to a successful outcome of the UN Conference on
straddling and highly migratory fish stocks. We shall continue to seek
appropriate internationally agreed arrangements on the management,
conservation and sustainable development of forests. We welcome the
analysis being done by OECD/IEA on the contribution of environment and
energy technologies in meeting global environmental concerns.
Russia and the Other Countries in Transition
9. We reaffirm our support for the reform efforts in the countries in
transition including the Central and Eastern European Countries, the
Baltic States, the New Independent States and Mongolia, based on the
principles of help for self-help and partnership. The success of their
reform and their full integration into the world economy are essential
to world peace and stability. We look for continuing constructive and
responsible cooperations with these countries in international affairs.
Encouraging first signs of economic recovery are visible in those
countries in Central and Eastern Europe where reform is most advanced.
We welcome the development of economic cooperation and trade with us and
urge stronger cooperation among the countries in transition themselves.
10. We welcome the further progress made by Russia since Munich in its
courageous reform efforts under the leadership of President Yeltsin and
supported by the Russian people in the recent referendum. We urge
Russia to intensify its efforts to reduce inflation and the budget
deficit, and to take all the necessary legal and administrative measures
to build on the strong start in privatization and to promote further
structural adjustment. The G7 Joint Ministerial Meeting held in Tokyo
in April set out a framework of support for the Russian people's self-
help efforts. We welcome the progress made in each area. Official
creditors have provided tangible support for the reform process through
generous debt rescheduling. We expect the Russian Government, banks and
uninsured suppliers to negotiate comparable solutions. We welcome the
creation of the IMF Systemic Transformation Facility and its $1.5
billion first tranche disbursement to Russia. We urge Russia and the
IMF to begin immediately negotiations toward a stand-by arrangement. We
also welcome the recent approval of the World Bank's $610 million oil
sector rehabilitation loan associated with the EBRD's $250 million
cofinance. We have made commitments to provide funds to establish a
$300 million Small- and Medium-sized Enterprise Fund in close
cooperation with the EBRD. We recognize the importance of improved
market access for economic progress in Russia. We will work with Russia
as it proceeds towards accession to the GATT. In this connection, we
will intensify efforts to adapt export controls to the post-Cold War
era.
Recognizing that privatization and enterprise reform are at the heart of
Russia's transformation into a market economy, we agree to create a
Special Privatization and Restructuring Program, in cooperation with
international financial institutions, consisting of enterprise
restructuring support, technical assistance and oblast support, focusing
on an initial period to the end of 1994. In total, this program is
expected to mobilize $3 billion. In addition, we are ready to encourage
our private sectors to assist in this process, sharing with their
Russian counterparts methods and techniques to increase productivity.
We agree to establish a Support Implementation Group in Moscow to
facilitate implementation of our support to Russia. In turn, we urge
the strengthening of Russian implementation efforts.
11. We welcome the progress made in the nuclear safety programme agreed
at the Munich Summit, including the establishment of the multi- lateral
fund, in which we encourage broader participation. Urgent safety
measures, coordinated through the G24, need to be implemented rapidly to
secure real improvements at the plants still causing great concern. The
states concerned bear the primary responsibility for respecting the
fundamental principles of nuclear safety. Independent regulatory
authorities should be strengthened and nuclear safety must be given
higher priority in all the countries concerned, including the early
closure of high risk reactors such as Chernobyl. We invite the World
Bank, together with the IEA, to continue the dialogue with each of the
countries concerned, and working with other lending institutions
including the EBRD and the EIB, to support them in developing longer
term energy strategies. Our aim is to agree as quickly as possible on a
framework for coordinated action by all those involved following a
country-by-country approach. We will review the progress made in 1994.
In the light of existing international obligations, we emphasize our
concern over the ocean dumping of radioactive wastes by Russia.
Developing Countries
12. While encouraging changes in policy reforms and performance are
taking place in many developing countries, many are still confronted
with major economic and social difficulties, particularly in Africa. We
recognize that their sustainable development and their integration into
the world economy as well as their cooperation in addressing the global
challenges to mankind are essential for peace and prosperity of the
world. We will continue to strengthen our support for their self-help
efforts based on the principles of good governance. We will also
encourage them to follow sound and open economic policies to create a
solid base for sustainable economic growth.
13. To this end, we will pursue a comprehensive approach, covering not
only aid but also trade, investment and debt strategy, and a
differentiated approach, tailored to the needs and performances of each
country at its particular stage of development and taking environmental
aspects into account. Under such an approach, we will make all efforts
to enhance development assistance in order to respond to ongoing needs
as well as new requirements. The poorest countries deserve special
attention. Accordingly, we support the succession to or the renewal of
the IMF's Enhanced Structural Adjustment Facility. We also look forward
to a successful outcome of the International Conference on African
Development in October this year. We confirm the validity of the
international debt strategy and invite the Paris Club to continue
reviewing the question of debt relief for the poorest highly-indebted
countries, especially with regard to earlier reductions in the stock of
debt on a case by case basis. We welcome the U.S. administration's
decision to join us in debt reduction for these countries.
14. We welcome the initiatives taken by developing countries to
establish a more constructive partnership and dialogue on issues of our
mutual interest. We will work for the success of the International
Conference on Population and Development in Cairo next year which is
important in addressing the linkages between rapid population growth and
the goals of sustainable development.
International Cooperation And Future Summits
15. In order to meet the challenges we face, we are determined to
strengthen international cooperation in the existing fora and seek
better coordination and efficiency. We recognize and applaud the
efforts of the Secretary- General to reform and improve the operations
of the UN. We will support him in the pursuit of these objectives.
16. We have reflected on how Summits could best focus our attention on
the most significant issues of the time. We value Summits for the
opportunity they provide to exchange views, build consensus and deepen
understanding among us. But we believe Summits should be less
ceremonial, with fewer people, documents and declarations, and with more
time devoted to informal discussion among us, so that together we may
better respond to major issues of common concern. We intend to conduct
future Summits in this spirit.
We have accepted the invitation of the President of the Council of
Ministers of Italy to meet in Naples, Italy, in July, 1994. (###)
ITEM 3:
Fact Sheet: Economic Summits, 1981-93
Leaders of Group of Seven (G-7) industrial countries--the United States,
Japan, France, Germany, the United Kingdom, Italy, and Canada--plus the
President of the European Commission, have discussed and made decisions
on a wide range of international economic and political issues at
economic summit meetings that have been held annually since 1975. The
following information provides background on each of the 12 summits
since 1981.
Tokyo
July 7-9, 1993
Summary
The Tokyo summit noted that, despite remarkable progress toward
democratization and market economies since the previous summit,
considerable challenges remained for the industrialized nations in
achieving economic recovery and job creation, integrating countries in
transition into the world economy, assisting developing countries, and
reconciling global growth and attention to the environment. Leaders
underscored their determination to enhance international cooperation, in
particular by strengthening multilateral institutions in an effort to
create a more secure and humane world. Leaders also agreed to work to
streamline the summit process to make it more responsive to major issues
of common concern. Russian President Boris Yeltsin again participated
in meeting with G-7 leaders on the third day of the summit.
Economic Accomplishments
-- Commitment by all countries to implement a mutually reinforcing
strategy to encourage global growth and job creation, including prudent
macroeconomic policies to promote non-inflationary sustainable growth
and structural reforms to improve the efficiency of markets.
-- Endorsement of recent significant progress toward a large market
access package as a major step toward completion of the Uruguay Round of
the GATT multilateral trade negotiations by the end of 1993.
-- Reaffirmation of support for economic reform efforts in Central and
Eastern Europe, the Baltic states, the new independent states of the
former Soviet Union, and Mongolia. Creation of a $3 billion special
Privatization and Restructuring Program for Russia and establishment of
a Support Implementation Group in Moscow to improve delivery of
assistance.
-- Determination to publish national action plans by the end of 1993 to
implement objectives outlined at the 1992 UN Conference on Environment
and Development to secure environmentally sustainable development.
-- Emphasis on the urgent need to coordinate safety measures as agreed
in 1992 in Munich, with a view toward establishing a framework for
coordinated action by those countries concerned.
-- Commitment to pursue a comprehensive approach to development
assistance, based on the requirements and performance of individual
countries, and integrating aspects of trade, investment, and debt
strategy, as well as assistance.
Political Accomplishments
-- Support for efforts to strengthen the UN's capacity for preventive
diplomacy, as well as its peace-keeping and peace-making roles.
-- Pledge to oppose terrorism and to devote increased attention to the
problems posed by increasing numbers of displaced persons and refugees.
Recognition of the protection of human rights as the responsibility of
all countries as affirmed by the World Conference on Human Rights.
-- Call for enhanced cooperation to combat the proliferation of weapons
of mass destruction, including universal adherence to the nuclear Non-
Proliferation Treaty (NPT), the Chemical Weapons Convention, and the
Biological Weapons Convention. Call for North Korea to change its
decision to withdraw from the nuclear Non-Proliferation Treaty and to
comply with International Atomic Energy Agency safeguards on agreement
to de-nuclearize the Korean Peninsula.
-- Reaffirmation of commitment to the territorial integrity of Bosnia-
Herzegovina and to a negotiated settlement based on the principles of
the London Conference. Commitment to assist in the implementation of UN
Security Council Resolution 836 establishing safe havens.
-- Support for universal adherence to the NPT and its indefinite
extension in 1995.
-- Pledge to ensure effectiveness of the UN Register of Conventional
Arms.
-- Pledge to continue strengthening the Missile Technology Control
Regime and to bolster exports.
-- Expression of concern about aspects of Iran's behavior.
-- Reiteration of the call to end the Arab boycott.
-- Support for Russian reform efforts under President Yeltsin and for
the reform process in Ukraine.
-- Support for recent progress toward non-racial democracy in South
Africa.
-- Support for restoration of legitimate authorities in Haiti and for
UN and OAS efforts in this regard.
Munich
July 5-7, 1992
Summary
Leaders at the Munich summit emphasized the necessity of achieving
stronger world economic growth as a prerequisite for solving the
problems of the post-Cold War era. Concern over lack of progress in the
global trade negotiations, the future of high-risk nuclear reactors
still operating in the former Soviet republics, and the civil war in the
former Yugoslavia dominated the discussions. Russian President Boris
Yeltsin joined G-7 leaders at the close of the summit to review the pace
of reform efforts in his country.Economic Accomplishments
-- Pledge to work collectively and individually to promote sustainable
world economic growth, encourage investment, and create new employment
opportunities.
-- Support for conclusion of the Uruguay Round of multilateral trade
negotiations by the end of 1992.
-- Call for the new independent states of the former Soviet Union to
continue economic reform policies aimed at building market economies.
Support for financial credits and a debt rescheduling program for Russia
and the creation of consultative groups for Russia and other new
independent states.
-- Pledge to continue efforts to increase the quality and quantity of
official development assistance in accordance with existing commitments,
with emphasis on the poorest countries.
Political Accomplishments
-- Pledge to continue shipments of humanitarian aid to Bosnia-
Herzegovina, combined with support for more vigorous enforcement of UN
Security Council sanctions against Serbia-Montenegro, including the use
of military force if necessary.
-- Agreement on the need to safeguard nuclear materials and to prevent
the transfer or illicit production of nuclear weapons.
-- Establishment of a multilateral program to improve the safety and
management of Soviet-design nuclear power plants.
-- Recognition of the progress of the new states of Central and Eastern
Europe in achieving economic and political reform, and a call for
increased investment by the industrialized countries to supplement these
efforts.
-- Support for the UN role in maintaining international peace and
security and recognition of the need to strengthen the conflict
prevention and crisis management capabilities of the Conference on
Security and Cooperation in Europe.
-- Call for all countries to carry forward the momentum of the UN
Conference on Environment and Development by publishing national action
plans by the end of 1993; providing additional technical and financial
assistance to developing countries; and implementing commitments on
climate change, protection of forests and oceans, and preservation of
marine resources.
London
July 15-17, 1991
Summary
The London summit emphasized the need to strengthen the international
order following the revolutions in Central and Eastern Europe and the
intervention against Iraq in the Gulf. Looking ahead to the upcoming UN
Conference on Environment and Development in 1992, participants pledged
support for a variety of initiatives designed to integrate environmental
considerations into government policies. A unique feature of the London
meeting was the special invitation to Mikhail Gorbachev to meet at the
conclusion of the summit with the heads of the G-7 industrialized
countries. Talks focused on the economic situation in the Soviet Union.
Economic Accomplishments
-- Recognition of the successful efforts of the Paris Club to negotiate
debt- reduction packages for lower middle-income countries to improve
their potential for economic growth.
-- Commitment to secure stable worldwide energy supplies, remove
barriers to energy trade and investment, encourage high environmental
and safety standards, and promote international cooperation on research
and development in these areas.
-- Agreement on the necessity of enhancing both the quality and
quantity of support for priority development issues, such as alleviating
poverty, improving health education and training, and providing
additional debt relief for the least developed countries.
Political Accomplishments
-- Commitment to continued support for reform efforts in Central and
Eastern Europe and to the integration of these countries into the
international economic system.
-- Commitment to achieve a framework convention on climate change and
a preliminary agreement on the management, conservation, and sustainable
development of forests prior to the UN Conference on Environment and
Development in June 1992.
-- Pledge to promote mobilization of financial resources to assist
developing countries with environmental problems, support stronger
international efforts to deal with environmental disasters, and increase
cooperation in environmental science and technology.
Houston
July 9-11, 1990
Summary
The Houston summit was held against the backdrop of movement toward
democracy and freer markets in many parts of the world, including
elections in Central and Eastern Europe and Nicaragua, momentum toward
German unification, and political reforms in the Soviet Union. The
summit leaders agreed on most international economic and political
issues, but intense discussions were needed on agricultural subsidies in
the Uruguay Round of multilateral trade negotiations, economic
assistance to the Soviet Union, and global warming before consensus
could be reached.
Economic Accomplishments
-- Agreement on progressive reductions in internal and external support
and protection of agriculture and on a framework for conducting
agricultural negotiations in order to successfully conclude by December
1990 the Uruguay Round of multilateral trade talks under the auspices of
the General Agreement on Tariffs and Trade (GATT).
-- Request to the International Monetary Fund (IMF), the World Bank,
the Organization for Economic Cooperation and Development, and the
European Bank for Reconstruction and Development to undertake, in close
coordination with the European Community (EC), a study of the Soviet
economy, to make recommendations, to establish the criteria under which
Western economic assistance could effectively support Soviet reforms,
and to submit a report by the end of 1990.
-- Support for aid to Central and East European nations that are firmly
committed to political and economic reform, including freer markets,
encouragement of foreign private investment in those countries and
improved markets for their exports by means of trade and investment
agreements.
-- Pledge to begin talks, to be completed by 1992, on a global forest
convention to protect the world's forests.
Political Accomplishments
-- Promotion of democracy throughout the world by assisting in the
drafting of laws, advising in fostering independent media, establishing
training programs, and expanding exchange programs.
-- Endorsement of the maintenance of an effective international nuclear
non-proliferation system, including adoption of safeguards and nuclear
export control measures, and support for a complete ban on chemical
weapons.
Paris
July 14-16, 1989
Summary
The Paris summit marked the celebration of the 200th anniversary of the
French Revolution and the Declaration of the Rights of Man. It also was
the first economic summit meeting for President Bush, who had just
returned from trips to Poland and Hungary. These developments
reinforced for the summit leaders the importance of supporting political
and economic reform in Eastern Europe. The leaders also expressed
strong concern about environmental and narcotics issues; at least one-
third of the economic declaration dealt with the environment.
Economic Accomplishments
-- Agreement on several multilateral trade issues, including a pledge
to make effective use of the GATT dispute settlement mechanism, to avoid
new restrictive trade measures inconsistent with the GATT, and to make
further substantial progress in the Uruguay Round in order to complete
it by the end of 1990.
-- Commitment to a strengthened debt strategy that will rely, on a
case-by-case basis, on such actions as economic reforms by developing
countries, more resources by a financially stronger World Bank and the
IMF, continued debt rescheduling by creditor governments, and more
voluntary, market-based debt reductions by commercial banks.
-- Continued cooperation in foreign exchange markets.
-- Support for ending as soon as possible and not later than the end of
the century the production and consumption of chlorofluorocarbons
covered by the Montreal Protocol on Substances that Deplete the Ozone
Layer.
-- Commitment to limit the emissions of carbon dioxide and other
greenhouse gases as well as conclusion of an international framework
convention on global climate change.
-- Support for the preservation of tropical forests and condemnation of
the practice of dumping waste in the oceans.
Political Accomplishments
-- Call for a meeting of all interested parties to discuss concerted
assistance to Poland and Hungary and a request that the EC coordinate
these efforts.
-- Support for effective programs to stop illegal drug production and
trafficking, including assistance to the anti-drug efforts of producing
countries and the United Nations, increased international cooperation to
seize drug proceeds and prevent money laundering, and support for a 1990
international conference on cocaine and drug demand reduction.
-- Continued strong condemnation of international terrorism by states,
including hostage taking and attacks against international civil
aviation.
-- Condemnation of political repression in China and agreement to
suspend the shipment of arms and the extension of loans to China.
Toronto
June 19-21, 1988
Summary
The summit, one of the most harmonious of the 1980s, marked the end of
the second 7-year cycle of economic meetings. The leaders expressed
satisfaction at their accomplishments in bringing down inflation in the
1980s and laying the basis for sustained strong growth and improved
productivity. Among still unresolved problems they noted the emergence
of large payments imbalances among major countries, greater exchange
rate volatility, and continuing debt service difficulty in developing
countries. In response to these developments, the leaders made further
refinements in the multilateral surveillance system to improve the
coordination of their economic policies. They also committed themselves
to further trade liberalization at the Uruguay Round and offered new
initiatives to relieve the debt burden of the poorest developing
countries.
Economic Accomplishments
-- Improvement of the multilateral surveillance system by adding a
commodity price indicator to the existing indicators monitored by the
seven nations, and by integrating national structural policies into the
economic coordination process.
-- Support for efforts at the Uruguay Round to achieve trade
liberalization in all areas including trade in services, intellectual
property rights (such as copyrights and trademarks), and trade-related
investment measures, to strengthen the GATT's surveillance and
enforcement mechanism, and to reduce all direct and indirect subsidies
affecting agricultural trade.
-- Support for a $75-billion general capital increase for the World
Bank to strengthen its capacity to promote adjustment in middle-income
developing countries.
-- Agreement to relieve the debt burdens of the poorest developing
countries, particularly in Sub-Saharan Africa, by urging creditors to
grant partial debt forgiveness, reduced interest rates, and/or
lengthened debt maturities.
-- Support for the ratification of the Montreal agreement on the ozone
layer and the completion of other ongoing negotiations on emissions and
the transport of hazardous wastes.
Political Accomplishments
-- Confirmation of the policy of constructive dialogue and cooperation
between East and West, particularly in the light of greater freedom and
openness in the Soviet Union.
-- Reaffirmation of previous summit agreements to combat terrorism and
support for the policy of no takeoffs for hijacked aircraft once they
have landed.
-- Support for U.S. Government initiatives to improve cooperation
against narcotics trafficking.
Venice
June 8-10, 1987
Summary
The Venice summit took place against a backdrop of escalating tension in
the Persian Gulf. On the economic front, the summit leaders addressed
the continuing issue of how to reconcile domestic economic policies with
the need for a more stable international monetary, financial, and
trading system.
Economic Accomplishments
-- Reaffirmation that further shifts in exchange rates could be
counterproductive.
-- Agreement on the need for effective structural adjustment policies,
especially for creating jobs.
-- Agreement to improve the multilateral trading system under the GATT
and to bring about wider coverage of world trade under agreed,
effective, and enforceable multilateral discipline.
-- Agreement that the long-term objective in agriculture is to allow
market signals to influence the orientation of production and to work in
concert to adjust agricultural policies, both domestically and in the
Uruguay Round.
-- Call for newly industrialized countries with rapid growth and large
external surpluses to reduce trade barriers and allow their currencies
more fully to reflect underlying economic conditions.
Political Accomplishments
-- Agreement affirming the principle of freedom of navigation in the
Persian Gulf and the importance of the free flow of oil and other
traffic through the waterway and supporting the adoption of just and
effective measures by the UN Security Council to resolve the conflict.
-- Agreement on the need for more effective national efforts and
international coordination to prevent the acquired immuno-deficiency
syndrome (AIDS) from spreading further.
Tokyo
May 4-6, 1986
Summary
The Tokyo meeting, by achieving significant economic and political
declarations, was hailed as one of the most successful economic summits
to date. There was greater specificity about attempts to increase
policy coordination and a decision to begin a new round of trade talks.
On the political side, the joint statement on terrorism was a landmark
achievement. One reason for the success was that leaders at the Tokyo
meeting had considerable experience dealing with each other at previous
summits.
Economic Accomplishments
-- Establishment of new arrangements to assess the consistency and
compatibility of their economic policies, based on economic indicators,
and including enhanced surveillance over exchange rates.
-- Formation of a new Group of Seven (finance ministers of summit
nations) to achieve greater economic policy coordination.
-- Agreement to use the September 1986 GATT ministerial meeting in
Uruguay as a platform for launching the new round of multilateral trade
negotiations and to support an extension of GATT discipline to new areas
such as services, intellectual property, and investment.
-- Recognition of the need to cooperate to redirect agricultural
policies and adjust the structure of agricultural production in light of
world demand.
-- Endorsement of measures to assist Third World development, including
the U.S. initiative to alleviate debtor country problems, in order to
encourage implementation of effective structural adjustment policies,
and increased financial support to the International Development
Association and the IMF.
Political Accomplishments
-- Agreement on a tough statement denouncing international terrorism,
vowing to fight it relentlessly and singling out Libya as a key target
in the fight against terrorism.
-- Call for a new international convention requiring information
exchanges on nuclear accidents and emergencies, in the wake of the
accident at the Chernobyl nuclear power station.
-- Commitment to continued East-West dialogue and negotiation, and
support for a balanced, substantial, and verifiable arms reduction
agreement.
Bonn
May 2-4, 1985
Summary
The summit participants undertook to pursue, individually and
cooperatively, policies conducive to sustained growth and higher
employment. Building on common, agreed principles for achieving these
goals, the leaders indicated specific priorities for their own national
policies. The United States asked the Federal Republic of Germany and
Japan to stimulate their economies. The leaders undertook to seek to
make the functioning of the world monetary system more stable and more
effective and discussed ways to reach more realistic exchange rate
relationships.
Economic Accomplishments
-- Agreement to work to strengthen their economies, halt protectionism,
improve international monetary stability, increase employment, and
reduce social inequities.
-- Promise to follow prudent economic policies, including the exercise
of firm control over public spending to reduce budget deficits.
-- Agreement to give increased impetus to preparations for the
launching of new multilateral trade negotiations under the auspices of
the GATT.
Political Accomplishments
-- Support for the U.S. negotiating position in the arms control talks
with the Soviet Union, which was urged to act positively and
constructively to reach agreement.
-- Commitment to fighting the common threat posed by growing
international drug trafficking and abuse, including the coordination of
legislation to thwart international drug smuggling.
London
June 7-9, 1984
Summary
The meeting marked the passage from a period of constructing firm
domestic bases for non-inflationary growth to one of enhancing the
openness of international trade and finance. As the previous
Williamsburg summit signaled the beginning of recovery and offered an
outline of future strategies in the international economy, the London
summit gave a clearer focus to future tasks and actions. There was a
strong endorsement of the basic anti-inflationary stance first advocated
by President Reagan at the Ottawa summit in 1981. The political
declarations were the cornerstone of the London summit.
Economic Accomplishments
-- Agreement to continue and strengthen policies to reduce inflation,
interest rates, and budget deficits and to control monetary growth.
-- Commitment to work toward making their economies more competitive
and flexible to reduce unemployment and develop new technologies.
-- Agreement to take steps to ease the repayment terms of Third World
debtor countries working to improve their economic performance.
Political Accomplishments
-- In a 500-word Declaration on Democratic Values, affirmation of their
commitment to a rule of law which respects and protects the rights and
liberties of every citizen and provides a setting in which the human
spirit could develop in freedom and diversity.
-- Determination to pursue the search for extended political dialogue
and long-term cooperation with the Soviet Union and its allies and
endorsement of U.S. willingness to resume nuclear arms control talks
with the Soviet Union.
-- Commitment to consult and cooperate in expelling or excluding known
terrorists from their countries.
-- Hope for a peaceful and honorable settlement to the Iran-Iraq
conflict.
Williamsburg
May 28-30, 1983
Summary
The United States hosted a very successful summit, as virtually all
President Reagan's economic and political objectives were fulfilled. As
Western economies were beginning to recover, the allied leaders accepted
several U.S. economic policies (e.g., lower taxes, more emphasis on
private sector initiative). The allies acknowledged the need for united
action to bring about domestic and global economic growth. The joint
statement on intermediate-range nuclear forces (INF) also was an
important victory for the United States because it specifically endorsed
the diplomatic and military strategy that the United States and its NATO
allies were pursuing in relation to the Soviet Union. The introduction
of more flexibility and informality into the proceedings (e.g., fewer
previously prepared texts) contributed to the successful meeting.
Economic Accomplishments
-- Agreement on broad strategies to consolidate domestic and
international economic recovery, including steps to reverse the trend
toward protectionism, promote greater convergence of economic
performance, and encourage the development of new technologies.
-- Commitment to reduce structural budget deficits by limiting the
growth of expenditures and to pursue appropriate budgetary and monetary
policies to lower interest rates, inflation, and unemployment.
-- Decision to convene a meeting of finance ministers to review and
improve the operation of the international monetary system.
-- Commitment to energy conservation and the development of alternative
energy sources.
-- Reaffirmation that East-West economic relations should be compatible
with the security interests of the allies.
Political Accomplishments
-- Agreement to achieve lower levels of arms through serious arms
control negotiations with the Soviet Union, and a commitment to proceed
with INF deployment if the negotiations failed to result in an accord.
Versailles
June 4-6, 1982
Summary
The summit was surrounded by controversy over the issue (settled 6
months later) of oil pipeline equipment sanctions against the Soviet
Union, including the question of the applicability of U.S. law to
European companies. The leaders agreed to pursue greater coordination
of their economic policies and to seek convergence of economic
performance at a time of recession in the Western industrial countries.
Economic Accomplishments
-- Establishment of a multilateral surveillance system to enable
countries to consult on economic policies and seek convergence of
economic performance as the primary vehicle for achieving stable
exchange rates.
-- Agreement to pursue prudent monetary policies and achieve greater
control of budgetary deficits in order to bring down high interest
rates.
-- Prudent use of government export credits to the Soviet Union and its
allies.
-- Efforts to improve the multilateral system controlling the export of
strategic goods to the Soviet Union and its allies.
-- Approval of a preparatory process of negotiations on assistance to
developing countries and development of other forms of practical
cooperation with them.
Political Accomplishments
-- Call for an immediate halt to violence by all parties in Lebanon, in
the wake of the Israeli invasion there.
Ottawa
July 19-21, 1981
Summary
This summit was a "get-acquainted" session between President Reagan and
the other allied leaders. The President emphasized his domestic
economic policies to promote sustainable, market-oriented, and non-
inflationary growth. He also called attention to the potential for
erosion of Western security resulting from excessive dependence on
Soviet energy resources (notably natural gas) and the export of
strategic goods to the Soviet Union.
Economic Accomplishments
-- Agreement that the goals of reducing inflation and unemployment were
highest priority and that low and stable monetary growth was essential
to bring down inflation.
-- Commitment to liberal international trade policies and continued
opposition to protectionist pressures.
-- Commitment to accelerated development and use of all energy sources
and encouragement of greater public acceptance of nuclear energy.
-- Agreement to consult and coordinate economic policies relating to
East-West trade and to ensure that these policies were compatible with
political and security objectives. Agreement on the need to upgrade
existing controls on exports of strategic goods to the Soviet Union and
its allies.
Political Accomplishments
-- Condemnation of the continuing Soviet occupation of Afghanistan.
-- Condemnation of international terrorism.
-- Disapproval of the escalation of tension and the continuing acts of
violence in the Middle East.(###)
ITEM 4:
Fact Sheet: U.S. Assistance to Russia
Overview
The U.S. assistance effort to Russia originated at the International
Coordinating Conference in Washington, DC, in January 1992. At that
time, the U.S. announced a program to deliver emergency humanitarian
assistance and that it would participate in several working groups in an
international assistance effort to combine humanitarian aid with
technical assistance.
Since then, the assistance effort to Russia has been composed of three
general categories--humanitarian assistance, technical assistance, and
credit guarantees and economic agreements--each with different types of
programs, and often having interrelationships that link humanitarian
assistance to technical assistance. This interrelationship is
exemplified in the health sector, where provision of equipment and
supplies is considered to be humanitarian assistance and building
reliable health sector practices is technical assistance. Agriculture
and food system efforts have similar aspects: Provision of commodities
and transportation are considered humanitarian assistance; support for
private farming and other elements of a free market agricultural system
is technical assistance.
This summary explains both types of assistance as well as government
credits and other financial guarantees.
Humanitarian Assistance
Humanitarian assistance supports Russia's "social safety net" by
providing basic, emergency commodities or support to stave off sickness,
hunger, and threats to human life.
Government Assistance. Much of the U.S. Government's humanitarian
assistance effort has been under Operation Provide Hope, which was
officially launched in January 1992. Provide Hope was divided into
three phases involving the delivery of Department of Defense (DOD)
excess food, medicines, and medical supplies to Russia and other
destinations using DOD transportation assets (including contracts with
private shipping entities). Under the three phases of Operation Provide
Hope, the U.S. has delivered an estimated $48.8 million worth of food
and $32.9 million worth of medicines and medical supplies to Russia.
-- The Emergency Medicines Initiative of the U.S. Agency for
International Development (USAID) draws upon a $10 million appropriation
to purchase emergency medicines for the new independent states. For
Russia, this fund has been used to purchase more than $16,000 worth of
pharmaceuticals, primarily leukemia drugs, that were delivered to
Khabarovsk in November 1992.
-- Public Health Surveillance--The Atlanta-based Centers for Disease
Control (CDC) has been working with the Russian Ministry of Health
departments and other organizations since October 1992 to study the
availability of health care resources and to identify early warning
indicators of disease. CDC sponsored a trip to Atlanta by Russian
health officials in February 1993 to learn the principles of
publications dealing with epidemiology.
-- Food Assistance--Separate from the food deliveries made under
Operation Provide Hope, the U.S. Department of Agriculture (USDA) has
three supply initiatives (see Commodity Credit Corporation credit
program on page 16) to provide food assistance to Russia. USDA will
provide $250 million in grant food aid to Russia in fiscal year (FY)
1993 for a variety of commodities including: rice, corn, baby food,
wheat and wheat flour, whole dry milk, and peanuts and peanut products.
The U.S. also has provided donations of corn ($29 million) and feed
wheat ($18.1 million) to Russia this fiscal year.
In 1992, USDA provided Russia with 63,485 metric tons of commodities
worth $52.5 million under the Food for Progress program, and 39,365
metric tons of food worth about $75 million under the Section 416 (b)
program. (Transportation costs were included.)
-- Special Commodities--Under separate programs, the U.S. Government
purchased $13 million worth of dry whole milk and non-fat dry milk
distributed by CARE USA in Moscow, St. Petersburg, Perm, and
Yekaterinburg. A second program, authorized by an earmark in the
Freedom for Russia and Emerging Eurasian Democracies (FREEDOM) Support
Act, allows the U.S. to allocate about $10 million of the $30 million
earmark to the Russian Far East for the purchase of nutritionally
enriched food products for women and children. Deliveries should begin
in the summer of 1993.
Private Sector Assistance. A second component of the U.S. humanitarian
assistance effort has been donations by the private sector. Under the
Medical Assistance Initiative (MAI)--originally called the Presidential
Medical Initiative--the non-profit organization Project HOPE was
authorized to solicit, collect, and distribute medicines and medical
supplies within the new independent states. Since the announcement of
this initiative in February 1991, Project HOPE has shipped about $54
million worth of medical items to 29 locations in Russia.
Working through non-profit contractors (Volunteers in Technical
Assistance and the Fund for Democracy and Development), private
voluntary organizations throughout the U.S. are able to have their
donated humanitarian assistance items transported by DOD. In 1992,
about 8,700 tons of food, medicines and medical supplies, and clothing
were delivered to more than 48 locations in Russia. In January 1993,
two airlifts to St. Peters-burg of 113,000 pounds of medicines and
medical supplies were valued at $6 million.
One example of private sector assistance includes individual packs of
medical supplies, personal hygiene products, and toys collected by the
Girl Scouts of America and shipped to children in hospitals and long-
term care institutions in St. Petersburg in January 1993.
Technical Assistance
Technical assistance helps recipients understand and develop the
capability to build a free market economy and a functioning democratic
system. Technical assistance may consist of advisers, consultants, or
professionals in residence; learning materials, seminars, and workshops;
equipment and supplies necessary to begin operations; information
resource centers and libraries; exchanges of professional groups;
technology transfer; and the publication or broadcast of mass media to
educate the population in general.
One of the largest areas of technical assistance has been agriculture
and related agribusiness projects. USDA supports a demonstration farm
outside St. Petersburg with two volunteer American farm couples working
alongside farmers and ex-military personnel. Russia will receive 50
grain- storage facilities, each consisting of four grain storage bins
and grain- moving equipment. About 800 U.S. volunteers in the Farmer-
to-Farmer Program are being placed in Russia over a 3-year period from
1992 to 1994. (To date, 115 volunteers have completed their service.)
A USDA policy adviser is working with the Russian Ministry of
Agriculture, and under the Loaned Executive Program, two American
agribusiness executives will be working with newly privatized food
industries. Study programs of agricultural marketing under the USDA
Cochran Fellowship Program have included 40 Russian participants. A $66
million Food Systems Restructuring project funded by USAID is expected
to have a significant Russian focus.
Under a $645,000 grant, the University of Idaho is training Russian and
Ukrainian farmers to harvest, store, process, and market perishable
foods. The U.S. Government also has supported two private agribusiness
centers (managed by the Center for Agricultural and Rural Development)
in Russia and Ukraine and provided assistance in transporting seed,
inoculant, special planting equipment, and harvesting and storage
equipment.
Another major area of emphasis is the health sector. The U.S.
Government has helped establish six hospital partnerships (between U.S.
consortia and specific institutions) in Moscow, Dubna, Murmansk, St.
Petersburg, and Vladivostok with two others being negotiated for
Stavropol and Moscow. Under a $300,000 grant, the Children's Health
System and Children's Hospital of the King's Daughters of Norfolk,
Virginia, are setting up a mother and child health program for the
Rostropovich Foundation in Moscow. A similar program is being
established in St. Petersburg.
The Trade and Development Agency has approved one feasibility study for
investment in the health sector, with emphasis on the need for
modernizing pharmaceutical distribution. The Commerce Department sent a
health care mission to Russia in October 1992 and has conducted U.S.-
based seminars for private industry. The Commerce Department also
conducted two major conferences for American health industry firms in
1993, and the Overseas Private Investment Corporation has approved three
health sector pre-investment studies.
In addition, three agreements have been signed to aid pharmaceutical
production and to restore the Russian childhood vaccine industry. In
January 1993, the Food and Drug Administration (FDA) dispatched a team
that planned training activities at the Tarasavich Institute. In May
1993, the FDA sponsored a workshop in Moscow on the regulatory process
related to control of vaccines, pharmaceuticals, medical devices, and
foods. The U.S. Government will provide equipment and training to three
Russian vaccine producers. Merck and Lederle (two major U.S.
pharmaceutical firms) are working on this project as well as seeking
joint venture partners.
Privatization. The U.S. Government has funded three programs through
the International Finance Corporation of the World Bank: an auction of
the trucking sector in Nizhny Novgorod in October 1992; auctions to sell
retail enterprises in Volgograd oblast (province) and Tomsk; and
printing and distribution of "how to" manuals for small privatization
auctions. The U.S. Government also provides funding to the Russian
State Committee on the Management of State Property (GKI) for the
implementation of mass privatization and voucher programs. In addition,
the U.S. Government has funded the purchase and installation of
computers for the GKI.
International Executive Service Corps advisers are in place in
Novosibirsk, St. Petersburg, and Saratov. On April 22, 1993, the U.S.
awarded a $1.6 million contract to a U.S. company to provide technical
assistance for the Russian privatization program. On April 26, 1993,
the U.S. awarded a $2.7 million contract to a U.S. company to develop
voucher clearing and depository functions for the Russian privatization
program.
Defense Conversion. The U.S. has pledged at least $400 million in Nunn-
Lugar assistance for Russia. To date, an umbrella agreement and seven
implementing agreements have been signed providing up to $155 million in
aid. Prior to the Vancouver summit in April 1993, texts of three
additional SSD (safe, secure dismantlement) agreements were concluded
which provide up to $130 million to assist in the elimination of
strategic nuclear delivery vehicles, $75 million to procure construction
and operating equipment for a missile material storage facility, and $10
million in assistance to help establish national and facility level
systems for material control and accountability and for the physical
protection of civil nuclear material.
Energy. U.S. energy technical assistance programs aim to increase
safety of nuclear reactors and energy efficiency, to reduce wasteful
consumption of energy resources, and to develop more efficient energy
reserves. Under the nuclear reactor safety program, the Department of
Energy and the Nuclear Regulatory Commission are setting up a training
center to improve operational safety. An energy efficiency team (sent
to Kostroma and Yekaterinburg) and coal mine safety teams (Kuzbas and
Vorkuta regions) have been sent to various locations to provide advice
and install energy-saving equipment. A program is underway to
strengthen the ability of the Moscow commodity market to trade petroleum
products. A number of seminars on oil and gas operations and electric
power have been held under U.S. Government auspices in Russia and in the
U.S. A Center for Energy Efficiency has been established in Moscow by
the Department of Energy and the Environmental Protection Agency.
Democratic Institution-Building. These programs provide knowledge on
the principles of government in a democratic society. The main areas
for this aspect of technical assistance are programs in rule of law,
public administration, strengthening political parties and elections,
and encouraging independent media.
Under U.S. rule of law programs, eight Russian parliamentarians visited
the United States in 1992 under the U.S. Information Agency's (USIA)
Parliamentary Exchange Program.
A leadership delegation of Russian Supreme Soviet Deputies spent 1 week
in Washington, DC, in early 1993 under the "Lawmaking for Democracy"
project organized under a USIA grant by the Lawyers Alliance for World
Security. An American Bar Association (ABA) legal adviser is in Moscow
to coordinate ABA activities in constitution and legislative drafting,
judicial restructuring, and criminal law reform. The ABA held several
workshops in Washington, DC, on constitutional reform and the draft
Russian constitution in January 1993. Among other programs, a judicial
education program is underway at the Legal Academy of the Russian
Ministry of Justice.
Under the public administration programs, USIA sponsors training
programs for senior local and municipal officials from Russia and has
provided a grant to Sister Cities International to establish municipal
training programs among partner cities. USIA is also publishing
materials on public policy and administration. The mayor of Nizhny
Novgorod attended a 3-week study program in the U.S. on city management,
business involvement in city government, federalism, and U.S. economics.
An adviser from the National Forum Foundation worked with the St.
Petersburg City Council on zoning laws and regulations. Two U.S.
experts on local government have conducted regional training programs in
Novosibirsk and are developing programs for Nizhny Novgorod,
Yekaterinburg, and Saratov.
Under programs to strengthen political parties and elections, the
National Democratic Institute (NDI) and the International Republican
Institute (IRI) have opened offices in Moscow to conduct political
training and civic education activities. NDI brought 15 Russian
political party organizers to the U.S. to observe the U.S. electoral
process. The International Foundation for Electoral Systems is working
with three Russian oblasts to study the referendum and prepare programs
of assistance for subsequent elections.
Under programs to build independent media, a variety of activities and
organizations are involved. Internews, an American non-profit
organization, conducts journalism training and helps recommend ways to
establish an independent TV news distribution system. USIA and the
Soros Foundation sponsored a 2-week seminar organized by Internews in
December 1992 in the U.S. on American television operations, especially
independent stations in major American markets. Internews organized the
first video teleconference for an audience of about 100 million people
to view discussions by the parliaments of Russia and the Ukraine.
Business Principles and Small Business Training. A variety of programs
are underway to provide advice on business principles. The Peace Corps
has sent volunteers to teach the principles of small business in
Vladivostok and the Volga River region.
The Commerce Department is setting up an American Business Center to
disseminate business training information, and 88 Russians have been
selected to participate in Commerce's Special American Business
Internship Training (SABIT). Commerce has formed a U.S.-Russia Business
Development Committee.
USIA is establishing an America House in Vladivostok as a central
information resource on various aspects of free market business
principles.
USIA has a wide variety of publications in translation and distribution
to provide examples of free market economics. USIA also is providing
several television programs and broadcast productions that show aspects
of a free market economy.
Credit Guarantees And Economic Agreements
Since 1991, the U.S. has made available more than $5 billion in
agricultural credit guarantees to the former Soviet Union. In September
1992, USDA announced $900 million in new credit guarantees, under the
Commodity Credit Corporation's (CCC) GSM-102 program, to purchase U.S.
agricultural products. Of this amount, $100 million was made available
for FY 1992 and $800 million for FY 1993. In FY 1992, a total of $745
million was provided to the Russian Federation. The FY 1993 program was
suspended in November 1992 when the Russian Federation defaulted on
payments owed for CCC debt contracted by the Soviet Union. Some arrears
on debts contracted by the Soviet Union were included in the debt
rescheduling approved by official creditors on April 2, 1993. Payment
on those arrears will be part of the bilateral debt rescheduling
agreements which will be subject to negotiation. In addition, some
arrears not covered by the rescheduling remain due. However, the
Russians are current on payments on the portion of the CCC debt
contracted by Russia after the dissolution of the Soviet Union.
-- The Export-Import Bank has approved $125.7 million in loan
guarantees and insurance for six transactions in Russia.
-- Under an agreement ratified in June 1992, the Overseas Private
Investment Corporation can provide insurance and other guarantee
programs for American businesses in Russia.
-- In June 1992, a bilateral trade agreement granting most-favored-
nation status was ratified. Bilateral investment and tax treaties were
signed and are awaiting ratification.
-- The Trade and Development Agency has funded feasibility studies and
other related programs for 24 commercial projects, totaling more than $8
million.
Other Programs
Other programs also are underway.
-- The U.S. Government has agreed to help fund an International
Science and Technology Center in Russia.
-- A team of U.S. Government and contract housing specialists visited
Russia during May and June 1993 to design a construction program for 450
units of housing in connection with the Russian Officer Resettlement
Initiative announced during the Vancouver summit. Resident housing
advisers are stationed in Moscow, St. Petersburg, Novosibirsk, and
Yekaterinburg to work on legal reform in the housing sector, develop a
housing privatization law, and advise on municipal management. The
University of Maryland has been sponsored to set up an exchange program
for housing development managers. USIA funded an advanced housing
seminar on the U.S. housing sector in February 1993.
-- Under the FREEDOM Support Act, secondary school students from
Russia have begun exchange programs in U.S. high schools. The Soros
Foundation announced its intention to provide $10 million to higher
education reform in Russia, to include the "Trans- formation of the
Humanities and Social Sciences" project.
-- The Treasury Department is sending three resident advisers to the
Ministry of Finance and the Central Bank. Four short-term tax policy
missions have been sent to Russia since May 1992. KPMG Peat Marwick, a
U.S. accounting firm, received funds to expand its East European
training program to Russia.
-- Citizen's Democracy Corps, a non-profit organization, has opened an
office in Moscow and is focusing on business development, information
exchange between the Russian public and private sector, and advising the
Moscow Human Rights Center.
-- A World Bank team, with USAID and Environmental Protection Agency
members, is preparing an agreement on a $3-$4 million environment and
energy loan package to establish a mechanism to attract more assistance.
-- Five private voluntary organizations in the U.S. have received
grants to upgrade the capabilities of indigenous non-governmental
organizations and foster volunteerism. Funding of the Russian program
is about $4 million. (###)
U.S.-Russia Expanded Cooperation ($ millions)
Vancouver Tokyo
Initiative Package
Private Sector
Development 148 375(a)
Trade and Investment 243 490(b)
Democracy Corps Initiative 48 220
Support for Troop Withdrawal 6 165
Energy and Environment 38 125(b)
Humanitarian 925 135
Security Assistance(c) 215 0
Total Russia Support 1,623 1,510
Other NIS 0 300
Total Vancouver and
Tokyo Package 1,623 1,810
FY 1994 Regular NIS Request 704
FY 1994 Nunn-Lugar Request 400
Total FY 1994 Request
For NIS Support 2,914
(a)Total includes $125 million for G-7 Special Privatization and
Restructuring Program.
(b)Trade and Investment total includes financing for energy and
environment commodities and equipment.
(c)Assistance for nuclear weapons safety, security, and dismantlement.
(###)
G-7 Multilateral Assistance Package Announced at Tokyo Ministerial,April
1993 ($ billions)
Initial Stabilization Support 4.1
IMF Systematic Transformation Facility 3.0
World Bank Import Rehabilitation Loan 1.1
Support for Full Stabilization 10.1
IMF Standby Loan 4.1
IMF Currency Stabilization Fund 6.0
Support for Reform & Imports 14.2
World Bank Sectoral Loan Commitments 3.4
Co-finance of World Bank Loans 0.5
European Bank for Reconstruction
and Development (EBRD) Small
and Medium Enterprise Fund 0.3
Export Credit Agency Credits 10.0
Total 28.4
(Debt rescheduling 15.0)(###)
G-7 Special Privatization and Restructuring Program Announced at the
Tokyo Summit, July 1993 ($ billions)
Loans and equity capital (World Bank, IFC*, EBRD) 1.0
G-7 bilateral contributions 0.5
G-7 bilateral export credits 1.0
Oblast support (World Bank) 0.5
Total 3.0
* International Finance Corporation (###)
ITEM 5:
Fact Sheet: GATT and the International Trading System
Background
The General Agreement on Tariffs and Trade (GATT), which entered into
force in 1948, sets rules for international trade and provides a forum
for multilateral trade negotiations. The U.S. is among the founding
members and a chief author of the GATT. The GATT's 110 members, known
as contracting parties, account for almost 90% of world trade. An
additional 23 countries apply GATT rules.
International trade has grown dramatically--in volume, importance, and
complexity--since the inception of the GATT. This growth has occurred
partly as a result of a consensus among GATT members that the world's
economic welfare depends on freer trade, without the risk of escalating
trade restrictions and distortions. Seven rounds of multilateral
negotiations under the GATT have succeeded in reducing average tariffs
in the industrial countries from more than 40% in the early 1950s to
less than 5% today.
The 1974-79 Tokyo Round established additional international agreements
(codes) on rules of conduct in non-tariff areas: use of subsidies and
countervailing duties; technical barriers to trade (standards); import
licensing procedures; anti-dumping actions; government procurement;
customs valuation; and trade in beef, dairy products, and civil
aircraft.
Uruguay Round
The eighth and current series of negotiations--the Uruguay Round--was
launched in 1986 in Punta del Este, Uruguay. It is the most
comprehensive round of multilateral trade negotiations ever attempted.
Areas included for the first time in the context of the GATT include
trade in services, foreign investment, agriculture, and protection of
intellectual property--patents, trademarks, and copyrights. Fifteen
negotiating groups were established to deal with various issues.
The Uruguay Round was originally scheduled to conclude in Brussels in
December 1990. Although progress was made in many important areas by
that date, critical issues, especially reform in agriculture, remained
unresolved. Thus, the round was extended to provide more time to reach
a successful conclusion. GATT Secretary General Dunkel coordinated the
preparation of texts in December 1991, which are the basis of the
present stage of the negotiations. In addition, work is continuing to
achieve increased market access in agriculture, goods, and services.
U.S. Policy
The U.S. is committed to a prompt and successful completion of the
Uruguay Round, which would lower tariff and non-tariff barriers around
the world and establish new multilateral rules for world trade. It
would be the single most important step taken to open foreign markets
around the world to U.S. manufactured goods, agricultural products, and
services. Other countries would benefit as well from further trade
liberalization and the stimulus it would provide to global economic
expansion. Failure of the round could increase unilateral protectionist
measures by many countries, which would slow the world's economic growth
and retard the development of emerging democracies in Central America,
Central and Eastern Europe, and the newly independent states of the
former Soviet Union.
The Administration has, therefore, requested that Congress extend "fast
track" procedures for the Uruguay Round, provided the President notifies
Congress no later than December 15, 1993, of his intent to enter into
such agreement before April 15, 1994. Under fast track, Congress could
accept or reject the trade agreement but not amend it.
The U.S. has made it clear that, at a minimum, it seeks comprehensive
reform of agricultural trade, expanded market access for goods and
services, meaningful disciplines in other "new areas"--intellectual
property, services, and investment--and more complete integration of
developing countries into the global trading system.
A top priority for the U.S. is agreement on new market-oriented rules to
reduce the numerous government measures which distort world trade in
agriculture. The U.S. believes that fundamental agricultural reform can
only be achieved through the negotiation of specific commitments to
eliminate non-tariff barriers and expand market access, to reduce export
subsidies and trade-distorting internal supports, and to avoid using
sanitary and phytosanitary (plant health) measures to restrict trade.
The final Uruguay Round package also will include agreements in serv-
ices, trade-related investment measures, and protection of intellectual
property. The U.S. objective in services is to allow services
providers, such as architects, to operate in foreign markets and compete
like local firms. The U.S. seeks to eliminate or restrict foreign
investment rules, which have trade-distorting effects. U.S. goals on
intellectual property include higher standards of protection, effective
enforcement of those standards, and an effective dispute settlement
mechanism.
The July 1993 G-7 economic summit reached agreement on expanded market
access--tariffs and non-tariff measures restricting trade. The market
access package includes complete elimination of tariffs and non-tariff
measures in pharmaceuticals, construction equipment, steel, beer, and--
subject to certain restrictions--furniture, farm equipment, and spirits.
The package also provides for harmonization of tariffs at low rates for
chemical products. The U.S. hopes that further negotiations will lead
to more harmonization in other areas. Additionally, agreement was
reached for tariff cuts of up to 50% on "high tariff" products, which
carry tariffs of 15% and above. These particular tariff reductions are
conditional on other countries providing effective market access to U.S.
products through tariff reductions and appropriate non-tariff
disciplines. The market access package also calls for tariff cuts
averaging at least one-third for other products, including wood, paper,
pulp, and scientific equipment.
The U.S. hopes to gain agreement on improved GATT rules for tighter
discipline on subsidies and trade restrictions for balance-of-payments
reasons, stronger dispute settlement procedures, and greater commitment
by developing countries to GATT rules. The U.S. strongly presses its
goal of achieving one set of rules for all GATT members, including
developing countries, which now account for more than $500 billion in
trade.
U.S. Policy on MFN Status
The U.S. grants unconditional MFN treatment to most of its trading
partners by authority of domestic law, in addition to its international
obligations. Most countries are entitled to receive MFN treatment from
the U.S. by virtue of their membership in the GATT. MFN status also may
be required by a bilateral treaty. In a few cases relating to non-
market economy countries, the U.S. grants MFN treatment under a
bilateral commercial agreement, which may be terminated on short notice
under certain circumstances.
Exports from countries granted MFN treatment are subject to duty at the
lowest available non-preferential rates, i.e., those listed under
"Column I" of the U.S. tariff schedule. Imports from countries not
granted MFN treatment are assessed substantially higher duties under
"Column II" of the schedule. As of late May 1993, Afghanistan,
Azerbaijan, Cambodia, Cuba, Georgia, Laos, North Korea, Romania, Serbia-
Montenegro, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam did not
receive MFN treatment.
MFN treatment was withdrawn from most communist countries under the
Trade Expansion Act of 1951, which denied MFN treatment to any country
under the control of the "world communist movement." The Trade Act of
1974 authorized the extension of MFN treatment to countries not
receiving it on January 3, 1975, but only under certain conditions
relating to freedom of emigration. These conditions applied to most
communist countries classified as non-market economy countries under the
act.
First, a non-market economy subject to Title IV of the 1974 Trade Act
must satisfy, or receive a presidential waiver of, the freedom of
emigration criteria contained in the Jackson-Vanik amendment to Title
IV. The President may grant a waiver of the application of the freedom
of emigration provisions if he determines that extension of the waiver
would substantially promote freedom of emigration. The President also
may find a country in compliance with the amendment--thus making a
waiver unnecessary--by virtue of its emigration law and practices. The
President can withdraw MFN status at any time if he determines that a
country no longer satisfies the Title IV provisions.
Second, once these conditions have been met or waived, Title IV also
requires conclusion of a bilateral commercial agreement before MFN
status is granted. Among the specific issues that must be addressed in
such agreements are reciprocal granting of MFN treatment, safeguards,
trade promotion, and adequate protection of intellectual property
rights. These agreements have a renewable term of 3 years.
Albania, Armenia, Belarus, Bulgaria, China, Kazakhstan, Kyrgyzstan,
Moldova, Mongolia, Russia, and Ukraine have MFN status under the
conditions of Title IV of the 1974 Trade Act. In April 1992, the
President used his congressional authority to discontinue application of
the Title IV conditions to Hungary and the former Czechoslovakia and
extended unconditional MFN status to these nations. Poland and the
former Yugoslavia were never subject to the requirements of Title IV. A
trade agreement which would extend MFN status to Romania has been
concluded but has not yet been ratified by Congress. Trade agreements
also have been signed with Azerbaijan, Georgia, and Turkmenistan, but
extension of MFN status to these nations awaits ratification of the
agreements by their parliaments. (###)
Fundamentals of GATT
Most-Favored-Nation Status. A GATT member must extend to all other
contracting parties to which it applies the GATT the most favorable
treatment with respect to tariffs and related matters granted to any
trading partner. This non-discriminatory treatment ensures that any
tariff reduction or other trade concession is automatically extended to
all GATT parties, multiplying its liberalizing effects. The GATT allows
some exceptions, primarily for customs unions such as the European
Community, free-trade areas such as that established by the U.S.-Canada
Free Trade Agreement, and Tokyo Round code commitments such as those on
anti-dumping, subsidies, and government procurement.
National Treatment. GATT members must give imported goods treatment
equal to that accorded domestic goods in domestic markets. No
restrictions or charges, such as taxes, may be applied to imported
products unless they are applied equally to comparable domestic
products.
Protection Through Tariffs. The GATT generally prohibits quantitative
restrictions or quotas. Instead, contracting parties are expected to
provide protection by means of tariffs, which are transparent and
subject to negotiation in the GATT.
Dispute Settlement. Parties may challenge trade actions of other
parties that may be inconsistent with the GATT. GATT members decide
whether to accept by consensus the resulting findings of a panel of
trade experts. The new procedures resulting from the Uruguay Round
negotiations will provide more automatic and effective resolution of
disputes. (###)
ITEM 6:
Fact Sheet: U.S. Exports--Strategic Technology Controls
Background
The export of strategically significant technology to former Warsaw Pact
and certain other countries, including the People's Republic of China,
Vietnam, and North Korea, is controlled in order to deny these countries
access to exports that would increase their military effectiveness.
Because modern weapons depend on many advanced supporting technologies
that have both civilian and military ("dual-use") applications, some
commercial technology transfers could undermine U.S. national security.
Consequently, under the provisions of the Export Administration Act, the
Commerce Department must issue a license before any such dual-use
technology or equipment can be exported from the U.S. to a potential
adversary. U.S. officials must ensure that transfers of dual-use
technology do not occur under the guise of civilian projects.
The U.S., acting alone, cannot effectively control strategic technology,
because it is not the sole source of many of these products;
international cooperation is required.
COCOM
The Coordinating Committee for Multilateral Export Controls (COCOM),
established in 1949, is important in facilitating multilateral
cooperation to control strategic goods and technology. Its 17 members
are Australia, Belgium, Canada, Denmark, France, Germany, Greece, Italy,
Japan, Luxembourg, Netherlands, Norway, Portugal, Spain, Turkey, United
Kingdom, and the United States. COCOM is not based on a treaty or
executive agreement; it operates instead by informal agreement and
according to the rule of unanimity. COCOM agreements are implemented by
each member country on a national basis. COCOM has no formal
relationship to NATO.
A permanent COCOM secretariat is located in Paris. All 17 member
countries are represented by permanent delegates. These representatives
are joined routinely by teams of technical experts and policy-level
personnel from their countries during substantive meeting and
negotiations on new or revised export controls.
Major Functions of COCOM
Member countries cooperate in three major areas:
-- Publishing national control lists of embargoed equipment (the lists
are grouped into three categories: dual-use, atomic energy use, and
direct military use) and enacting effective export control systems;
-- Considering proposed exports of specific embargoed items from member
countries to proscribed countries; and
-- Harmonizing national licensing practices for strategic exports and
coordinating export control enforcement activities.
Policy Level Developments
Since 1981, a series of high-level COCOM meetings has set policy
guidelines to ensure COCOM's effectiveness. The dramatic political and
economic developments in the former Soviet Union, for example, have
prompted the U.S. Government to revise its policies on strategic
relationships.
At a meeting on June 1, 1992, COCOM members decided to establish a COCOM
Cooperation Forum on Export Controls (CCF) and to invite the republics
of the former Soviet Union to participate in it. The goals of the new
forum mirror new strategic relationships. These goals include:
-- Significantly wider access by those countries to advanced Western
goods and technology;
-- Procedures for ensuring against diversion of these sensitive items
to military or other unauthorized users; and
-- Further cooperation on matters of common concern on export controls.
The first meeting of the CCF was held in Paris on the 23rd and 24th of
November 1992; representatives from all East European democracies, the
Baltic states, and all but three of the republics of the former Soviet
Union attended. It was concluded that trade in sensitive goods and
technologies between the countries participating in the forum can be
significantly liberalized, as each of these reforming countries
introduce and further develop adequate export controls. The forum
provided an opportunity for reforming countries to explain their plans
and progress in establishing effective export control systems. In
support of their efforts, COCOM members undertook to provide technical
assistance to help in establishing control systems through both
bilateral contacts and multilateral meetings.
At the April 1993 Vancouver summit, President Yeltsin complained about
COCOM restraints which he said are harming reform. President Clinton
noted in his April 23 announcement that the U.S. and its allies should
reassess the future of COCOM. The U.S. has begun a thorough review of
how to reorient export controls to the post-Cold War world, in which
Russia is no longer viewed as a potential adversary but as a potential
ally in combatting the proliferation of sensitive technology.
Having made great progress in establishing their own national export
control systems, the Baltic states, Poland, the Czech Republic, and the
Slovak Republic are currently candidates for removal from the list of
proscribed destinations. Hungary was removed from COCOM proscription in
May 1992. Discussions with Bulgaria and Romania on the establishment of
Western-style export control systems are underway.
Relations With Non-COCOM Countries
COCOM aims to inhibit the export or re-export of embargoed commodities
from non-COCOM countries to the countries of concern. COCOM members
discuss cooperation on export controls formally and informally with a
number of non-COCOM countries. Some non-COCOM countries have adopted
export control systems similar to those of COCOM; in return, they
receive certain licensing benefits. This applies to countries such as
Austria, Finland, Ireland, New Zealand, Sweden, and Switzerland, and the
British Crown Colony of Hong Kong. Additionally, the United States has
extended certain limited licensing benefits to South Korea and Singapore
in recognition of their efforts to control strategic exports. (###)
ITEM 7:
Fact Sheet: U.S. Exports--Foreign Policy Controls
Background
Exports are vital to the U.S. economy. They provide jobs and enable the
country to import goods to meet domestic demand. The U.S. imposes
certain controls, however, to ensure that exports are consistent with
U.S. foreign policy requirements. Most controls apply to sensitive
dual-use equipment and technology that could support activities contrary
to U.S. national security and foreign policy interests. They affect
less than 5% of the value of current exports. The controls relate to
specific foreign policy concerns worldwide and/or to specific countries
of concern under the authority of the 1979 Export Administration Act
(EAA).
Foreign Policy Export Controls
Counter-Terrorism Controls. Using EAA Section 6(j) authority, the
Secretary of State has designated Cuba, Iran, Iraq, North Korea, Libya,
and Syria as countries that repeatedly have provided support for
international terrorism. Broad, country-specific export controls are in
place for these countries.
Crime Control Equipment. These controls regulate the export of crime
control and detection instruments, equipment, and related technology to
all countries, except to NATO member countries or to Australia, Japan,
and New Zealand. Generally, licenses are issued unless the U.S. has
human rights concerns about the government of the importing country or
about the ultimate consignee.
Regional Stability. Exports of equipment used to manufacture military
arms and equipment and some military transportation equipment are
reviewed to ensure that such exports would not contribute to the
destabilization of the region or country of destination.
Anti-Apartheid. The U.S. prohibits the export to South Africa of all
military and police equipment and all items covered by the UN mandatory
arms embargo.
Missile Technology. The U.S. assists other countries in the peaceful
uses and exploration of space but seeks to halt the development of
weapons-delivery systems. Worldwide, the U.S. controls the export of
commercial, dual-use equipment and materials that also could be used in
the development of missile systems.
Chemical/Biological Weapons. Licenses are required worldwide (except for
NATO members and Australia, Austria, Ireland, Japan, New Zealand, and
Switzerland) for the export of 54 chemical precursors, and to all
destinations for the export of a broad range of bacteria, fungi,
protozoa, toxins, viruses, and viroids. All are prohibited to Iran,
Iraq, Libya, and Syria. Licenses also are required to specified regions
and states for certain dual-use equipment that might be relevant to
chemical or biological weapons programs.
Nuclear Controls. The U.S. assists other countries in using atomic
energy for peaceful purposes but also seeks to halt the spread of
nuclear weapons. Thus, the U.S. controls exports of goods or technology
that, if misused by the recipient country, could contribute to the
production of nuclear explosive devices. The Atomic Energy Act of 1954,
as amended by the 1978 Nuclear Non-Proliferation Act, established the
controls. Before permitting an export, the U.S. Government reviews the
proposed use of the item, whether the government of the purchasing
country has signed the nuclear Non-Proliferation Treaty, and whether the
U.S. has acceptable assurances that the item or nuclear material
produced from it will not be diverted to develop nuclear weapons.
Short Supply. Controls occasionally are necessary to protect the
domestic economy from an excessive drain on scarce materials. Congress
has legislated restrictions on the export of crude oil, unprocessed
Western red cedar logs, and horses for export by sea (to prevent
unauthorized slaughter abroad).
Supercomputers. For foreign policy reasons, the U.S. requires the
licensing of supercomputer exports worldwide, except to Canada and
Japan.
U.S. Treasury Department Transaction Controls
The U.S. Treasury Department controls U.S. trade and financial
transactions with Cuba, Iraq, North Korea, Libya, Vietnam, and
Serbia/Montenegro. It also controls transactions with Haiti and
regulates imports from Iran. Certain exceptions to these controls are
granted under general or specific licenses issued by the Treasury
Department's Office of Foreign Assets Control. Contact the licensing
office at (202) 622-2480.
Guidance for Exporters
For regulatory advice on foreign policy export controls, consult the
U.S. Export Administration Regulations (15 CFR 730-799, revised
annually). Copies are available from the U.S. Government Printing
Office (tel. 202-783-3238, stock no. 903-014-00000-8) and the U.S.
Department of Commerce's Office of Export Licensing, Exporter Counseling
Division (tel. 202-482-4811). For additional information, consult the
annual foreign policy report to the Congress, which also is available
from the Bureau of Export Administration, Department of Commerce.
For information on the Treasury Department's trade and financial
controls on Cuba, Haiti, Iran, Iraq, Libya, North Korea,
Serbia/Montenegro, and Vietnam, call the Treasury Department's Office of
Foreign Assets Control at (202) 622-2520. (###)
ITEM 8:
Fact Sheet: Developing Country Debt
Background
The ability of many developing countries to pay their foreign debt
deteriorated in the 1980s. The United States and other creditors
responded by developing a flexible case-by-case approach toward
developing country debtors. The United States has encouraged debtors to
undertake economic reforms and persuaded banks, governments, and
international financial institutions to support such efforts. In 1985,
the United States introduced an international debt strategy designed to
improve and sustain growth in debtor countries. In 1989, the United
States strengthened this international debt strategy. Since 1990, the
United States has complemented this strengthened international debt
strategy with efforts to reduce bilateral official debt, both alone and
in concert with other governments.
Origins of the Crisis
Several factors contributed to the debt crisis of the early 1980s.
Inappropriate domestic policies in many debtor countries resulted in
large budget deficits and overvalued exchange rates. Many countries used
substantial borrowing to maintain these policies, financing consumption
and inefficient investment rather than investing in needed
infrastructure or productive enterprises. Many of the same countries
relied on short-term, variable-rate loans that made them vulnerable to
rising interest rates. External shocks, such as the 1979 oil price
jump, a sharp increase in international interest rates, a large drop in
commodity prices, and recession in the developed countries compounded
the repayment strain on heavily burdened countries. Finally, commercial
banks overestimated the ability of these economies to generate the
necessary foreign exchange to repay their large commercial debts.
The Initial Response
Beginning with the Mexican crisis of August 1982, the United States was
a leader in developing responses to the developing country debt problem
of the 1980s. In 1985, to restart growth in the debtor countries, the
U.S. proposed an international debt strategy which encouraged
International Monetary Fund (IMF), World Bank, and commercial bank
lending in support of economic reform. In 1989, the plan was
strengthened by incorporating voluntary commercial bank debt and debt
service reduction to support economic reform.
Dramatic progress has been made under the strengthened international
debt strategy. Twelve countries (Argentina, Bolivia, Brazil, Chile,
Colombia, Costa Rica, Mexico, Morocco, Nigeria, the Philippines,
Uruguay, and Venezuela) have reached agreements which feature debt
reduction options. These countries account for more than 92% of the
total commercial bank debt of the major debtor nations. Similar
negotiations are at various stages with Bulgaria, the Congo, Cote
d'Ivoire, Ecuador, Gabon, Guyana, Honduras, Jordan, Nicaragua, Panama,
and Poland. Some countries, such as Mexico and Chile, have made
significant progress toward attracting private foreign capital, as
evidenced by their ability to regain access to international capital
markets.
Official Debt
With the success of the strengthened international debt strategy in
gaining voluntary, market-based reduction of commercial debt, focus has
shifted somewhat from commercial to official bilateral (government-to-
government) debt within the Paris Club, an informal group of official
creditors. Creditor governments have supported country reform efforts
by rescheduling payments, both interest and principal, due on official
bilateral debt. Such re-schedulings are provided to countries receiving
IMF support of their comprehensive economic reform programs.
In the fall of 1988, the Paris Club implemented the Toronto economic
summit mandate to provide debt relief to heavily indebted, low-income,
Sub-Saharan African countries. "Toronto terms" offered three options
for providing debt relief: debt reduction; concessional interest rates;
or extended maturities. In 1990, these terms were extended to the
poorest and most heavily indebted countries in other regions on a case-
by-case basis.
In December 1991, the Paris Club implemented the London economic summit
mandate to provide even more generous terms to the poorest of the poor
countries. Stimulated by a proposal by U.K. Prime Minister John Major
in Trinidad, these "enhanced Toronto terms" introduced options under
which creditors reduce debt service by up to 50% on a net present value
basis. Since December 1991, Benin, Bolivia, Burkina Faso, Ethiopia,
Guinea, Guyana, Honduras, Mali, Mauritania, Mozambique, Nicaragua,
Sierra Leone, Tanzania, Togo, Uganda, and Zambia have received re-
schedulings under enhanced Toronto terms. The U.S. Administration is
now seeking congressional authorization and appropriations to enable the
United States to join the debt and debt service reduction options of
enhanced Toronto terms.
In addition, in response to the 1990 Houston economic summit's mandate,
the Paris Club devised more generous terms for lower middle income
countries (LMICs)--those not poor enough to qualify for enhanced Toronto
terms but still severely indebted. Congo, Cote d'Ivoire, the Dominican
Republic, El Salvador, Honduras, Jamaica, Jordan, Morocco, Nigeria,
Peru, and the Philippines have received reschedulings on these LMIC or
"Houston terms," which extend the repayment periods but do not provide
debt reduction.
In April 1991, the Paris Club agreed to special debt relief for Poland,
providing 50% phased-in debt reduction on a net present value basis in
support of multi-year economic restructuring agreements with the IMF.
The United States, citing the need to provide extraordinary assistance
to Poland in its transition from a centrally planned to a free market
economy, approved a 70% reduction in May 1991. At the end of 1990, the
United States, in recognition of Egypt's supportive role during the Gulf
crisis, canceled Egypt's $6.7 billion military debt. In May 1991,
Egypt's Paris Club creditors followed this action with a phased-in 50%
debt reduction, available within the context of IMF-supported economic
reform programs.
In 1989 and 1990, the U.S. Congress provided authority to forgive first
economic assistance from the U.S. Agency for International Development
(USAID) and later PL 480 loans to Sub-Saharan African and other least
developed countries that are undertaking economic reform. More than
$2.7 billion owed by 27 African, Latin American, and South Asian
countries have been forgiven under these authorities since FY 1990.
Enterprise for the Americas Initiative
In 1990, the U.S. proposed the Enterprise for the Americas Initiative
(EAI) to support the process of democratic change and economic reform
throughout the Western Hemisphere. The EAI is an integrated program to
increase trade, promote capital flows, ease debt burdens, and protect
the environment. To reinforce incentives for economic reform, the
United States proposed to reduce the existing non-military debt of Latin
American and Caribbean countries that:
-- Undertake macroeconomic and structural reforms;
-- Liberalize their investment regimes; and
-- Conclude agreements with commercial bank creditors.
Furthermore, for the reduction of USAID debt, there are four political
criteria which must be met relating to democracy, human rights, anti-
terrorism, and counter-narcotics.
In June 1990, the U.S. Congress granted authority to reduce PL 480 debt
under the EAI. In October 1992, the U.S. Congress granted authority to
reduce USAID debt. In FY 1991-93, the United States forgave $875 million
in PL 480 and USAID debt to Argentina, Bolivia, Chile, Colombia, El
Salvador, Jamaica, and Uruguay. Interest payments on the new reduced PL
480 and USAID debt are made in local currency into local funds that
support local environmental and, in the case of USAID debt,
environmental and child survival projects in the host country. In 1992,
the U.S. Congress also provided authority under the EAI to sell a
portion of the non-concessional debt held by the U.S. Export-Import Bank
and the Commodity Credit Corporation to facilitate investment,
environmental, or development projects.
Soviet Debt Rescheduling
In April 1993, the United States and 18 other official bilateral
creditors of the former Soviet Union agreed in negotiations with Russia
to reschedule $15 billion in debt service payments due in 1993. (###)
ITEM 9:
Fact Sheet: Global Environmental Issues
The environmental challenges confronting the world today are greater
than at any time in recent history. Threats to the global environment--
such as climate change, stratospheric ozone depletion, and the loss of
biological diversity and forests--affect all nations, regardless of
their level of development. As a result, the environment is becoming an
increasingly important part of the foreign policy agenda. The United
States accords high priority to addressing global environmental problems
and is pursuing a wide-ranging agenda of action to protect the
environment and promote the goal of sustainable development.
Global Climate Change
The possibility that human activities may result in climatic change is
one of the most serious global environmental concerns. The United
States has been active in the international effort to respond to climate
change. Negotiations on a framework convention on climate change began
in Washington, DC, in February 1991 and culminated in an agreement that
was opened for signature at the UN Conference on Environment and
Development (UNCED) in June 1992.
The convention establishes an effective process for dealing with this
global issue in a concrete way. Industrialized countries will develop
specific action plans to limit their emissions of greenhouse gases and
enhance forests and other greenhouse gas "sinks." President Clinton
announced in April 1993 that the U.S. intends to limit its greenhouse
gas emissions in the year 2000 to their 1990 levels. A U.S. action plan
for achieving this goal currently is being developed.
To assist developing countries, the U.S. has offered $25 million for
country studies to provide the analytical foundation for actions to
address climate change. They may include inventories of greenhouse gas
emissions, vulnerability studies, and analyses of options to address
these vulnerabilities and reduce greenhouse gas emissions.
Protection of the Ozone Layer
There is scientific consensus that the depletion of stratospheric ozone
is a serious and growing problem. The U.S. has led efforts to address
this threat to the atmosphere, beginning with a decision in 1978 to ban
the use of chlorofluorocarbons (CFCs) in non-essential aerosals.
Because protection of the ozone layer is possible only with
participation by all countries, the U.S. urged the conclusion of an
agreement to restrict the use of CFCs and other ozone-depleting
substances.
This effort has led to a succession of landmark international agreements
since 1985 designed to protect the ozone layer, including the 1985
Vienna Convention and the 1987 Montreal Protocol. Based on an amendment
to the Montreal Protocol in 1992, there is now an agreement under which
countries will completely phase out end of 1996. In April 1993,
President Clinton announced that the United States will reach the phase-
out target for most substances by the end of 1994.
UN Conference on Environment And Development
The UN Conference on Environment and Development--held in Rio de Janeiro
in June 1992--was a landmark event in addressing the global environment.
Unlike other environmental conferences, UNCED focused on "sustainable
development," i.e., economic growth that takes into account
environmental concerns. UNCED resulted in adoption of three key
documents:
-- Agenda 21, an action program to guide national and international
environmental and development efforts into the 21st century;
-- The Rio Declaration, a statement of principles regarding
environment and development; and
-- A statement of principles for the conservation and sustainable use
of forests worldwide.
Based on UNCED recommendations, the United Nations has established a new
Commission on Sustainable Development (CSD) to monitor implementation of
Agenda 21 recommendations. The U.S. strongly supports the CSD as a
primary international body for promoting sustainable development
worldwide. The CSD, which held its first meeting in June 1993, will
meet annually to pursue follow-up to the Rio Conference.
The United States is working domestically to implement the
recommendations made at the Rio Conference. On June 14, 1993, President
Clinton announced the formation of the President's Council on
Sustainable Development (PSCD), which will develop specific policy
recommendations for a national strategy for sustainable development that
can be implemented by the public and private sectors. The PCSD
represents a ground-breaking commitment to explore and develop policies
that encourage economic growth, job creation, and effective use of U.S.
natural and cultural resources.
Conservation of Biological Diversity
The United States is party to a large number of bilateral and
multilateral agreements designed to protect endangered species and
ensure wildlife conservation. One of the most important is the 1974
Convention on International Trade in Endangered Species of Wild Fauna
and Flora (CITES), which enables the 116 CITES signatories to monitor
and control international trade in wild species. CITES was crucial in
efforts by the U.S. and other countries to protect the African elephant
by banning trade in elephant ivory, and it is now involved in efforts to
protect the rhinoceros.
While CITES has been effective in protecting species that are threatened
as a direct result of international trade, the main cause of species
loss is habitat destruction. The U.S. seeks to address this issue
through a variety of means, such as increased funding for forest
conservation programs, the establishment of protected areas under the
World Heritage Convention and other agreements, and the Ramsar Treaty on
International Wetlands. The U.S. Agency for International Development
currently provides more than $160 million a year in assistance for
tropical forestry and biological diversity conservation programs.
On June 4, 1993, the United States signed the UN Convention on
Biological Diversity, which establishes a framework for countries to
work together to protect the earth's species. The United States
believes that the convention presents a unique opportunity for nations
not only to conserve the world's biodiversity but also to realize
economic benefits from the conservation and sustainable use of its
genetic resources.
Hazardous Wastes And Toxic Chemicals
The U.S. has been a leader in promoting the environmentally sound use
and disposal of chemicals. In March 1990, the U.S. signed the Basel
Convention on the Transboundary Movement of Hazardous Wastes and Their
Disposal, an international treaty regulating trade in hazardous wastes.
The convention provides safeguards to ensure that transboundary
movements of hazardous wastes are conducted in an environmentally sound
manner.
With regard to toxic chemicals, the United States has promoted
international cooperation on chemical risk assessment and supports
development of an intergovernmental mechanism for this purpose. The
United States also is promoting the widespread use of community-right-
to-know programs and the development of national databases on toxic
release inventories as part of a future international database. In the
U.S. experience, these programs have been effective in preventing
pollution and reducing the risks of chemical accidents and other
hazards.
Marine Conservation and Pollution
The world's oceans face a number of threats as a result of human
activities such as unsustainable resource use and pollution. The United
States long has played an active role in ocean conservation programs,
from the efforts in the early 1980s to protect whales to a UN-sponsored
moratorium in 1992 on the destructive practice of driftnet fishing.
Work also is underway to ensure that fishing practices by tuna and
shrimp fleets minimize impacts on populations of dolphins and sea
turtles.
The United States has been a leading proponent of two major
international agreements to address marine pollution: the Convention
for the Prevention of Pollution from Ships, which regulates discharges
of harmful substances during the normal operation of ships at sea; and
the London Convention, which bans the ocean disposal of a number of
wastes and lists others that may be disposed of only with special care.
Because pollution from land-based sources now represents the most
serious threat to the marine environment, the United States is promoting
efforts to address this concern. Delegates to UNCED adopted a U.S.
proposal calling for an intergovernmental conference to consider
effective ways for dealing with these land-based sources. This
important conference will be hosted by the United States in Washington,
DC, in 1995.
Antarctica
Protection of the fragile environment of Antarctica is a U.S. priority.
Under the 1959 Antarctic Treaty, the continent has been a zone of peace
and a place for conducting scientific research into issues such as
global climate change and stratospheric ozone depletion. In October
1991, the parties to the Antarctic Treaty agreed to a comprehensive
environmental protection protocol designed to ensure the protection of
this vast wilderness for generations. The new protocol includes
measures related to the conservation of Antarctic fauna and flora, waste
disposal, marine pollution, environmental impact assessment, and area
protection and management. Mineral resource activities, except for
scientific research, are prohibited for at least 50 years. (###)
ITEM 10:
Fact Sheet: Nuclear Non-Proliferation Treaty
Since its entry into force in March 1970, the Treaty on the Non-
Proliferation of Nuclear Weapons (NPT) has been a cornerstone of
international efforts to prevent the further spread of nuclear weapons.
Successive U.S. Administrations have worked to achieve universal
adherence to the treaty. With more than 155 members, it has the largest
number of adherents of any arms control agreement. All five of the
nuclear weapons states are parties to the treaty: the United States,
the United Kingdom, France, the People's Republic of China, and the
Russian Federation (designated successor to the Soviet Union). The
United States, the United Kingdom, and the Russian Federation--
depository governments under the treaty--continue to encourage the few
remaining non-parties to adhere to the NPT. Since 1990, more than 20
states have joined the NPT, including France, China, and South Africa.
The Democratic People's Republic of Korea (North Korea), which adhered
to the treaty in 1985, announced in March 1993 its intention to
withdraw, the first nation to take such action. The United States and
other NPT members urged North Korea to reconsider its decision. In
bilateral discussions, North Korea agreed to suspend its withdrawal
pending further talks on the issue and to re-open discussions with the
International Atomic Energy Agency (IAEA) and South Korea.
Treaty Goals and Undertakings
The treaty's substantive articles serve three major goals (see box).
Under terms of the treaty, nuclear weapon states are obligated not to
assist any non-nuclear weapon state to acquire nuclear explosive devices
(article I). Correspondingly, non-nuclear weapon states party to the
treaty are obligated not to manufacture or otherwise acquire such
devices (article II).
The treaty provides for the IAEA to apply international safeguards,
including on-site inspection, to all nuclear material in the peaceful
programs of non-nuclear weapon state parties (article III). This
article also obligates the parties to require IAEA safeguards on nuclear
materials and certain equipment exported to non-nuclear weapon states.
The safeguards system helps to verify compliance and is designed to
detect and deter the diversion of nuclear material from peaceful uses to
nuclear explosive devices.
Article IV recognizes the right of parties to develop nuclear energy for
peaceful purposes and calls for the fullest possible exchange of
equipment, materials, and information for the peaceful uses of nuclear
energy. Parties also are to have access to any benefits from peaceful
applications of nuclear explosions (article V). Article VI enjoins all
parties to pursue negotiations in good faith on effective measures
relating to ending the nuclear arms race, with a view to general and
complete disarmament.
The NPT embodies a broadly supported international norm of non-
proliferation: Increasingly, world opinion has come to view acquisition
of nuclear explosives as no longer legitimate and a world of many
nuclear powers as undesirable.
Review Conference
Under the treaty, a review conference can be held every 5 years. Four
such conferences have been held--in 1975, 1980, 1985, and August-
September 1990. Each of these conferences successfully undertook an
article-by-article review of the treaty's implementation, with the
debate focusing on cooperation on peaceful uses of nuclear energy
(article IV) and, to an even greater degree, on efforts to negotiate
arms control agreements (article VI).
At the 1990 conference, participants generally recognized the treaty's
important contribution to international peace and security, and a great
majority of the parties attending reaffirmed their commitment to it.
Agreement was reached on most of the issues discussed, including, for
example, the vital role of international safeguards in preventing
nuclear proliferation, the necessity of tighter export controls on
nuclear technology, the need for scrupulous adherence to the obligations
of the treaty, and the potential importance of the IAEA conducting
"special inspections." However, no final consensus declaration emerged
because a small number of non-aligned countries, led by Mexico, insisted
on language linking extension of the treaty to negotiation of a
comprehensive test ban treaty.
1995 Extension Conference
The NPT calls for a conference in 1995 to decide whether to extend the
treaty indefinitely beyond its initial 25-year duration or for a fixed
period or periods. An open-ended committee of the parties held the
first of four meetings in mid-1993 to begin preparations for the 1995
extension conference. The United States, the United Kingdom, and the
Russian Federation favor an unconditional, indefinite extension of the
treaty. Many other NPT parties share this view. The United States
strongly opposes linking the future of the treaty to progress on any
specific arms control or other measure. Such linkage could undermine
the NPT and the broad security measures that derive from it.
Looking Ahead
The Non-Proliferation Treaty is vital to a safer and more secure world.
The success of the 1995 conference will depend on many factors,
particularly on recognition by the parties that the NPT contributes
greatly to international security and stability. A world without NPT
would lead to diminished political constraints on the spread of nuclear
explosives, increase regional suspicion and tension, and jeopardize
international peace and stability. (###)
Three Major Goals of the NPT
To prevent the further spread of nuclear weapons (the driving
force behind the initial push for the NPT);
To foster peaceful nuclear cooperation under safeguards; and
To encourage negotiations to end the nuclear arms race with a view
to general and complete disarmament (a goal added during the
multilateral negotiations on the treaty). (###)
END OF DISPATCH SUPPLEMENT VOL 4, NO. 3
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