Group of Seven (G-7) 1993 Economic Summit

     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


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 

--  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 

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.  


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 

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 

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 
--  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 


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.


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 

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.

July 7-9, 1993


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 

--  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 

--  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 

--  Support for restoration of legitimate authorities in Haiti and for 
UN and OAS efforts in this regard.  

July 5-7, 1992


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 

--  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 

--  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.

July 15-17, 1991


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.

July 9-11, 1990


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 

--  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 

July 14-16, 1989


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 

--  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 

--  Condemnation of political repression in China and agreement to 
suspend the shipment of arms and the extension of loans to China.

June 19-21, 1988


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 

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.

June 8-10, 1987


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 

--  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.

May 4-6, 1986


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 

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 

May 2-4, 1985


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 

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.

June 7-9, 1984


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 

May 28-30, 1983


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.

June 4-6, 1982


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 

--  Prudent use of government export credits to the Soviet Union and its 

--  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.

July 19-21, 1981


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.(###)


Fact Sheet:  U.S. Assistance to Russia


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 

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 

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 

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 

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 (###)


Fact Sheet:  GATT and the International Trading System


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 

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 

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 

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 

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 

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.  (###)


Fact Sheet:  U.S. Exports--Strategic Technology Controls


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.


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 

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. (###)


Fact Sheet:  U.S. Exports--Foreign Policy Controls


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 

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 

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.  (###)


Fact Sheet:  Developing Country Debt


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 

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.  (###)


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 

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 

--  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 

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 

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 

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.


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). (###)


To the top of this page

Index of Dispatch Magazine Archives 1993 Issues|| Index of Dispatch Magazine Archives|| Index of "Briefings and Statements"
Index of Electronic Research Collections ERC Reference Desk || Alphabetic Index || Sitemap || ERC Homepage
Last modified: Jun. 3, 1999