US DEPARTMENT OF STATE DISPATCH VOLUME 4, NUMBER 35, AUGUST 30, 1993 PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS ARTICLES IN THIS ISSUE: 1. Summary of Principal Provisions of NAFTA 2. Fact Sheet: Mongolia 3. Department Statements U.S.-Colombia Initiative On Environmental Technologies China and Pakistan: M-11 Missile Sanctions Announcement of Japan's Support for Indefinite Extension of the NPT ARTICLE 1 Fact Sheet: Summary of Principal Provisions of NAFTA Fact sheet released by the Office of the United States Trade Representative, Washington, DC, August 12, 1993. Introduction The North American Free Trade Agreement (NAFTA) will generate jobs, increase exports of U.S. goods and services, and improve the competitiveness of American workers and firms. It will create the largest, richest market in the world. Mexico is our fastest-growing major export market. Mexico's strong and growing demand for U.S. products created a $5.4-billion U.S. trade surplus in 1992. With a stronger Mexican economy and higher Mexican wages, demand for U.S. goods will continue to expand. Preferential access to the rapidly growing Mexican market will create extraordinary new opportunities for U.S. companies and workers. Taking advantage of the opportunities will lead to increased prosperity in the United States. It will demonstrate American leadership in opening markets and promoting democracy here in our hemisphere. Trade in Goods. NAFTA levels the playing field for U.S. workers and companies by eliminating Mexican tariff barriers, which are now two-and- a-half times higher than ours. On the day NAFTA goes into effect, half of all U.S. exports will enter Mexico duty-free. Within the first 5 years, two-thirds of U.S. industrial exports will enter Mexico without duties. Mexico's tariffs on all other industrial and most agricultural goods will be eliminated within 10 years. Canadian tariffs on U.S. products will be phased out by 1998, as scheduled under our current bilateral free trade agreement. To ensure a smooth adjustment for U.S. firms and workers in import- sensitive industries, NAFTA provides a phase-out period of up to 15 years for U.S. tariffs on key manufactured products. Further, NAFTA's rules of origin will ensure that NAFTA's tariff benefits accrue only to North American producers and will be easy to enforce. NAFTA will ensure uniformity, predictability, and transparency in customs enforcement under the agreement. Reduced duty drawback for non- North American goods trade between the three countries will ensure a margin of preference for North American component and raw materials producers compared to foreign producers. These changes in the drawback program will reduce incentives for maquiladoras to serve as "export platforms." NAFTA tariff cuts and elimination of non-tariff barriers will create substantial market access for key export sectors. For automotive products, NAFTA immediately reduces and will terminate over 10 years complex Mexican trade and investment restrictions that had forced automotive assemblers and parts firms to manufacture in Mexico in order to serve the local market, forced exports onto the U.S. market, and virtually banned U.S. exports of vehicles to Mexico. Mexican automotive tariffs (10-20%) will be reduced immediately and ultimately eliminated. Expanded opportunities for U.S. vehicle and parts exports will support U.S. jobs and lead to enhanced international competitiveness. Car and truck exports to Mexico could increase nearly $2 billion in the first year of NAFTA. Agriculture will benefit from the elimination of Mexican import licenses, a major boost for farm exports; fully half of U.S. farm exports to Mexico will enter Mexico duty-free immediately, while all remaining tariffs (generally between 10% and 20%) will be phased out over 10 years, except a few products that get 15 years. NAFTA provides access for U.S. energy and petrochemical suppliers to Mexico's electricity, petrochemical, gas, and energy services and equipment markets. NAFTA's elimination of tariff and non-tariff barriers will provide U.S. industries with new market opportunities in all sectors--for example, electronics, where most tariffs will be eliminated immediately or within 5 years, and pharmaceuticals, where import licenses will be eliminated immediately and tariffs removed over 10 years. Trade in Services. NAFTA will open new markets for the delivery of U.S. services to Canada and Mexico, where U.S. services companies are already large and growing. NAFTA will allow U.S. services firms to provide their services directly from the United States on a non-discriminatory basis with any exceptions clearly spelled out. NAFTA opens the Mexican market to U.S. bus and trucking firms, financial services providers, and insurance and enhanced telecommunications companies, among others. Protection of Investment. By removing Mexican trade barriers to the export of U.S. products, NAFTA will reduce the incentive for U.S. firms to move production to Mexico in order to serve that important market. Furthermore, NAFTA ensures that U.S. companies that do business in Mexico will no longer be forced to purchase Mexican-made goods instead of importing U.S.-made equipment and components. Nor will they be required to export their production to the United States. For those firms choosing to stay or invest in Mexico, NAFTA assures nondiscriminatory treatment: Americans will generally be able to establish, acquire, and operate firms on the same basis as Mexicans and Canadians. NAFTA also protects U.S. investors against restrictions on their repatriation of capital, profits, and royalties and against expropriations without full compensation. Investors can seek monetary relief from an international arbitral panel for violation of their rights. Intellectual Property Rights. Information and technology are at the core of future U.S. competitiveness and economic growth. NAFTA will ensure a high level of protection under Mexican and Canadian law for U.S. owners of patents, copyrights, trademarks, trade secrets, and integrated circuits, including strong safeguards for computer programs, pharmaceutical inventions, and sound recordings. NAFTA obligates Mexico and Canada to enforce intellectual property rights effectively against infringement internally and at the border. By protecting intellectual property rights, NAFTA will increase trade and diminish losses from piracy and counterfeiting. Dispute Settlement. NAFTA provides timely and effective procedures to resolve trade disputes between the three governments. A trilateral Trade Commission will regularly review trilateral trade relations and discuss specific problems that may arise. Disputes between the NAFTA partners over the interpretation of the agreement will normally be resolved through consultations. Private sector expert panels may be called upon to make findings and recommendations to help resolve disputes where consultations do not yield results. Those findings and recommendations will not be legally binding. However, a country whose complaint is sustained by a panel can request trade compensation or withdraw trade benefits of equivalent effect if the losing country does not bring its law into conformity with the agreement. NAFTA contains special provisions for resolving disputes on environmental and health issues. Environment. The NAFTA parties have agreed that economic development should take place in an environmentally sound manner. NAFTA explicitly ensures our right to safeguard the environment, while also encouraging countries to strengthen environmental standards. NAFTA maintains existing U.S. health, safety, and environmental standards by allowing the United States to continue to prohibit entry of goods that do not meet U.S. standards. It allows the NAFTA parties, including states and cities, to enact even tougher standards and encourages NAFTA parties to harmonize their standards upward. NAFTA preserves our right to enforce our international treaty obligations, including limits on trade in products such as endangered species and ozone-depleting substances. NAFTA's investment provisions permit the imposition of stringent environmental standards on new investment and renounce the lowering of environmental standards as a means to induce investment. NAFTA's dispute settlement allows panels to call on scientific experts for advice in trade disputes raising environmental and health science issues. The complaining party must prove that an environmental or health measure is inconsistent with the agreement, which ensures that standards will not be challenged frivolously. Government Procurement. NAFTA gives U.S. suppliers immediate and growing access to the Mexican Government procurement market, including Mexico's large state-controlled oil and electric companies. NAFTA also expands access by U.S. companies to the Canadian Government procurement market. Under NAFTA, Mexico must adopt high standards of procurement practices and procedures such as transparent tendering and protest procedures. U.S. small and minority business set-aside programs are maintained intact. U.S. states are not covered but may at a future date decide on a voluntary basis whether they wish to include their procurements within NAFTA. Land Transportation. NAFTA opens the international market in Mexico for U.S. motor carriers. U.S. trucking companies will have the right, for the first time, to use their own drivers and equipment for shipments into Mexico in a market where total trucking revenues on U.S.-Mexico trade are estimated at more than $3 billion annually. NAFTA does not change U.S. safety and highway standards. Mexican and Canadian drivers will continue to be subject to all federal and state safety and operating requirements and standards, including size and weight limits. NAFTA does not require the United States to change its vehicle size and weight limits; these are determined by our domestic law. NAFTA contains a work plan for the three countries to work toward compatible technical and safety standards, which will result in improved Mexican standards. Safeguards. NAFTA provides protection for U.S. firms and workers against surges in imports from Mexico that may result from tariff reductions under the agreement. If, during the period that the United States reduces its tariffs, Mexican imports cause or threaten to cause serious injury to a U.S. industry, NAFTA permits the United States to reimpose the original tariff rates for up to 3 years--or 4 years for certain sensitive goods. NAFTA also creates special safeguard procedures for textiles and for certain import-sensitive agricultural products. The current bilateral U.S.-Canada safeguard provision will remain in effect. Under NAFTA, the United States generally will retain the right to impose quotas or tariffs on Mexican or Canadian imports as part of a safeguard action on products from all countries. Those imports must be excluded from a safeguard action only when they do not represent a substantial share of total imports and are not a significant cause of harm to domestic firms. NAFTA protects U.S. workers and firms against the possibility of unjustified safeguard actions by Canada or Mexico. The agreement requires the three governments to put in place transparent and fair procedures, like those already in use in the United States, to determine when import surges are causing serious harm to a domestic industry. In addition, a government that raises tariffs under the NAFTA safeguard provision must provide trade compensation to the country whose imports are affected. Standards. NAFTA ensures that standards and regulations imposed by Mexico and Canada cannot be used to discriminate against U.S. products or firms. At the same time, the agreement specifically safeguards the right of all three governments, including at the state and local level, to adopt standards based on the levels of protection for human, animal, and plant life and health and the environment that those governments see fit. Furthermore, nothing in NAFTA will preclude state or local governments from adopting stricter standards than the federal government. NAFTA establishes a mechanism for the three governments to explore ways to make standards equivalent among NAFTA partners while encouraging upward harmonization of health, environmental, and food safety protection. NAFTA does not require us to accept produce or merchandise from Mexico and Canada that does not meet U.S. standards. Trade Remedies. NAFTA requires Mexico to undertake far-reaching reforms that will provide due process guarantees and transparent and fair procedures for dumping, subsidies, and safeguards investigations regarding U.S. exports. NAFTA builds and improves upon the binational panel review system established under the U.S.-Canada Free Trade Agreement. These procedures will be extended to provide for the review of administrative dumping and counter-vailing duty determinations in the three countries. NAFTA will result in no changes to U.S. antidumping or countervailing duty laws. Business Travel. NAFTA will enhance the competitiveness of U.S. goods and services in Mexico and Canada because it guarantees unimpeded access to those markets by U.S. business persons, including certain professionals, managers, sales representatives, traders and investors, and intra-company transferees. For the first 10 years of NAFTA's operation, the number of Mexican professionals admitted to the United States will be limited. NAFTA does not affect the normal functioning of U.S. immigration measures. Laborers and others seeking general employment will not be admitted under NAFTA. Further, NAFTA does not obligate countries to admit professionals or other business visitors whose presence would affect the settlement of a labor-management dispute. NAFTA Supplemental Agreements The three NAFTA partners are currently negotiating agreements to address important concerns regarding labor conditions and the environment inJNorth America. These agreements will help raise labor and environmental standards where they are deficient, strengthen enforcement of national laws, and promote cooperation on environmental and labor issues. The three countries are also drafting an agreement on import surges. That agreement will help ensure that the NAFTA's safeguard provisions can be effectively and fairly used for all sectors and are not subject to abuse forJprotectionist purposes unlikely to assist in adjustment. (###) ARTICLE 2: Fact Sheet: Mongolia People Life in sparsely populated Mongolia has become more urbanized. Nearly half of the people live in the capital, Ulaanbaatar, and in other provincial centers. Nomadic life still predominates in the countryside, but settled agricultural communities are becoming more common. Mongolia's birth rate is estimated at 3.3%. About three-fourths of the population are under age 30, 45% of whom are under 16. Forty-nine percent of children are pre-school age. More than 50,000 families have five or more children. Mongolians account for about 90% of the population and consist of Mongols, Khalkha, and other groups, all distinguished primarily by dialects of the Mongol language.* The Khalkha make up 75% of the Mongol population. Non-Khalkhas total about 8%--Durbet Mongols and others in the north and Dariganga Mongols in the east. Turkic speakers (Kazakhs, Turvins, and Khotans) constitute 7% of the population, and the rest are Tungusic-speakers, Chinese, and Russians. Many Russians left the country following Mongolia's declaration of independence. Traditionally, Tibetan Buddhist Lamaism was the predominant religion. However, it was suppressed under the communist regime until 1990, with only one showcase monastery allowed to remain. Since 1990, as liberalization began, Buddhism has enjoyed a resurgence. About 4 million Mongols live outside Mongolia; about 3.4 million live in China, mainly in the Inner Mongolia Autonomous Region; and some 500,000 live in Russia, primarily in Buryatia and the Kalmyk Autonomous Republic. History In 1203 AD, a single Mongolian state was formed based on nomadic tribal groupings under the leadership of Genghis Khan. He and his immediate successors conquered nearly all of Asia and European Russia and sent armies as far as Central Europe and Southeast Asia. Genghis Khan's grandson Kublai Khan, who conquered China and established the Yuan dynasty (1279-1368 AD), gained fame in Europe through the writings of Marco Polo. The Mongol dynasty in China was overthrown in 1368. Mongolia was ruled by a series of tribal leaders between 1368 and 1691, when it became known as Outer Mongolia. Outer Mongolia was a Chinese province (1691-1911), an autonomous state under Russian protection (1912-19), and again a Chinese province (1919-21). As Manchu authority in China waned in the early 1900s and as Russia and Japan confronted each other, Russia gave arms and diplomatic support to nationalists among the Mongol religious leaders and nobles. The Mongols accepted Russian aid and proclaimed their independence of Chinese rule in 1911, shortly after a successful Chinese revolt against the Manchus. By agreements signed in 1913 and 1915, the Russian Government forced the new Chinese Republican Government to accept Mongolian autonomy under continued Chinese control, presumably to discourage other foreign powers from approaching a newly independent Mongolian state that might seek support from as many foreign sources as possible. The Russian revolution and civil war afforded Chinese warlords an opportunity to re-establish their rule in Outer Mongolia, and Chinese troops were dispatched there in 1919. Following Soviet military victories over White Russian forces in the early 1920s, Moscow again became the major outside influence on Mongolia. The Mongolian People's Republic (M.P.R.) was proclaimed on November 25, 1924. Over the next few years, the Mongolian People's Revolutionary Party (MPRP) undermined any opposition and consolidated its grip on the government and Mongolian politics. Several factors characterized the country during this period: The society was basically nomadic and illiterate; there was no industrial proletariat; the aristocracy and the religious establishment shared the country's wealth; there was widespread popular obedience to traditional authorities; the party lacked grass-roots support; and the government had little organization or experience. In an effort at swift socioeconomic reform, the leftist government applied extreme measures which attacked the two most dominant institutions in the country--the aristocracy and the religious establishment. Between 1932 and 1945, their excess zeal, intolerance, and inexperience led to anti-communist uprisings. During World War II, because of a growing Japanese threat over the Mongolian-Manchurian border, the Soviet Union reversed the course of Mongolian socialism in favor of a new policy of economic gradualism and a buildup of the national defense. The Soviet-Mongolian army defeated Japanese forces that had invaded eastern Mongolia in the summer of 1939, andJaJtruce was signed setting up a commission to define the Mongolian- Manchurian border in the autumn of that year. Following the war, the Soviet Union reasserted its influence in Mongolia. Secure in its relations with Moscow, the Mongolian Government shifted to post-war development, focusing on civilian enterprise. International ties were expanded, and Mongolia established relations with North Korea and the new communist governments in Eastern Europe. In October 1949, the newly established communist People's Republic of China agreed to establish diplomatic relations with Mongolia. Mongolia also increased its participation in communist- sponsored conferences and in international organizations. It became a member of the United Nations in 1961. In the early 1960s, Mongolia tried to maintain a neutral position amidst increasingly contentious Sino-Soviet polemics. This stance changed in the middle of the decade; the M.P.R. and the Soviet Union signed an agreement in 1966 which introduced large-scale Soviet ground forces as part of Moscow's general buildup along the Sino-Soviet frontier. As with Sino-Soviet relations, Mongolian-Chinese relations also deteriorated. In 1983, the M.P.R. systematically began expelling some of the 7,000 ethnic Chinese in Mongolia to China. Many of them had lived in the M.P.R. since the 1950s, when they were sent there to assist in construction projects. Many factors may have motivated this shift: a historical Mongolian antipathy for the Chinese; statements attributed to Beijing suggesting a continued interest among some Chinese for re-annexing Mongolia; continued tensions on the Sino-Mongolian border (despite a 1964 demarcation); Russia's historical counterbalancing of Chinese influence; and heavy Mongolian dependence on Soviet economic aid. Government Until 1990, the Mongolian Government was modeled on the Soviet system. Until May 1990, only the communist party--the Mongolian People's Revolutionary Party (MPRP)--officially was permitted to function. After some instability during the first two decades of communist rule in Mongolia, there was no significant popular unrest until December 1989. Collectivization of animal husbandry, introduction of agriculture, and the spread of fixed residences were all carried out without perceptible popular opposition. The birth of perestroika in the former Soviet Union and the democracy movement in Eastern Europe were mirrored in Mongolia. The first demonstrations were held in Ulaanbaatar in December 1989; the development of this democracy movement brought swift and peaceful changes in Mongolia. The government adopted a positive approach toward reform. The dramatic shift toward reform started in 1990, when the first organized opposition group, the Mongolian Democratic Union, appeared. In the face of popular demands for faster reform, the leadership of the MPRP resigned in March 1990. In May, the constitution was amended, deleting reference to the MPRP's role asJthe guiding force in the country, legalizing opposition parties, creating aJstanding legislative body (Baga Hural--Small Hural), and establishing the office of president. Mongolia's first multi-party elections were held on JulyJ29, 1990. A People's Great Hural was elected on July 29, 1990. The MPRP won 85% of the seats. It first met on September 3 and elected a president (MPRP), vice president (SDP--Social Democrats--also chairman of the Baga Hural), prime minister (MPRP), and 50 members to the Baga Hural. In November 1991, the Great Hural began discussion of a new constitution, which entered into force February 12. In addition to establishing Mongolia as an independent, sovereign republic and guaranteeing a number of rights and freedoms, the new constitution restructured the legislative branch of government, creating a unicameral legislature, the State Great Hural (SGH). The constitution also provides that the president will be elected by popular vote rather than by the legislature as before. In June 1993, incumbent Punsalmaagiyn Ochirbat won the first popular presidential election running as an opposition candidate. As the supreme government organ, the SGH is empowered to enact and amend laws, determine domestic and foreign policy, ratify international agreements, and declare a state of emergency. The SGH meets semi- annually. SGH members elect a chairman and vice chairman who serve 4- year terms. SGH members are popularly elected by district for 4-year terms. The first SGH was elected on June 28, 1992. The MPRP won about 57% of the popular vote. The president is the head of state, commander in chief of the armed forces, and head of the national security council. He is popularly elected by a national majority for a 4-year term and limited to two terms. The constitution empowers the president to propose a prime minister, call for the government's dissolution, initiate legislation, veto all or parts of legislation (the SGH can override the veto with a two-thirds majority), and issue decrees, which become effective with the prime minister's signature. In the absence, incapacity, or resignation of the president, the SGH chairman exercises presidential power until inauguration of a newly elected president. The government, headed by the prime minister, has a 4-year term. The prime minister is nominated by the president and confirmed by the SGH. The prime minister chooses a cabinet, subject to SGH approval. Dissolution of the government occurs upon the prime minister's resignation, simultaneous resignation of half the cabinet, or after an SGH vote for dissolution. Local hurals are elected by the 18 aimags (provinces) plus the capital city of Ulaanbaatar and the cities of Darhan and Erdenet. On the next lower administrative level, they are elected by provincial subdivisions and urban subdistricts in Ulaanbaatar, Darhan, and Erdenet. Principal Government Officials President--Punsalmaagiyn Ochirbat (MPRP) Prime Minister--Puntsagiyn Jasray (MPRP) Minister of External Relations--T. Gombosuren (MPRP) Legal System The new constitution empowered a General Council of Courts (GCC) to select all judges and protect their rights. The Supreme Court is the highest judicial body. Justices are nominated by the GCC and confirmed by the SGH and president. The court is constitutionally empowered to examine all lower court decisions, excluding specialized court rulings, upon appeal and provide official interpretations on all laws except the constitution. Specialized civil, criminal, and administrative courts exist at all levels and are not subject to Supreme Court supervision. Local authorities--district and city governors--ensure that these courts abide by presidential decrees and SGH decisions. The Constitutional Court consists of nine members--including a chairman--appointed for 6-year terms; its jurisdiction extends solely over the interpretation of the constitution. Economy The rapid political changes of 1990-91 marked the beginning of Mongolia's efforts to develop a market economy, but these efforts have been complicated and disrupted by the dissolution of the former Soviet Union and the economic problems besetting governments in the region. In the 1980s, Mongolia's industrial sector became increasingly important. By 1989, it accounted for an estimated 34% of material products compared to 18% from agriculture. However, minerals, animals, and animal-derived products still constitute a large proportion of the country's exports. Principal imports include machinery, petroleum, cloth, and building materials. In the late 1980s, the government began to improve links with non-communist Asia and the West, and a tourism sector developed. Prior to 1991, 80% of Mongolia's trade was with the former Soviet Union, and 15% was with other Council for Mutual Economic Assistance countries. Mongolia was heavily dependent upon the former Soviet Union for fuel, medicine, and spare parts for its factories and power plants. The former U.S.S.R. also served as the primary market for Mongolian industry. As of January 1, 1991, Mongolia and the former Soviet Union agreed to conduct bilateral trade in hard currency at world prices. Despite external trade difficulties, Mongolia has continued to press ahead with reform. Privatization of small shops and enterprises is largely complete, and most prices have been freed. Privatization of large state enterprises has begun. Tax reforms also have begun, and exchange rates were unified in early 1992. Prospects for development away from reliance on nomadic, livestock-based agriculture are constrained by Mongolia's land-locked location and lack of basic infrastructure. Mongolia's best hope for accelerated growth is to attract more foreign investment by further liberalizing the economy and expanding trade with non-traditional partners. A foreign investment law was passed in the spring 1993 session of the SGH; however, enactment is still pending. Foreign aid has been necessary, and in the past, the former Soviet Union was the principal source of aid and credit. Mongolia's estimated debt to the former Soviet Union in 1992 was more than $10 billion in transferable rubles. Considerable technical assistance also came from the former Soviet Union and East European countries. Mongolia is seeking foreign assistance and investment from the West and international financial institutions to replace former Soviet bloc aid and to promote development of a market economy. Environment As a result of rapid urbanization and industrial growth policies under the communist regime, Mongolia's deteriorating environment has become a major concern. Widespread burning of soft coal in Ulaanbaatar has resulted in severely polluted air. Deforestation, overgrazed pastures, and efforts to increase grain and hay production by plowing up more virgin land has increased soil erosion from wind and rain. The government established the Ministry of Environmental Protection in 1987 and has begun public education programs on environmental issues. Foreign Relations In the wake of the collapse of the international socialist economic system and the disintegration of the former Soviet Union, Mongolians began to pursue an independent and non-aligned foreign policy. The prime minister called for co-existence with all nations; due to Mongolia's landlocked position between the newly independent republics and China, it is essential to continue to improve relations with these countries. China. Mongolian relations with China began to improve in the mid- 1980s when consular agreements were reached and cross-border trade contacts expanded. In 1989, China and Mongolia exchanged visits of foreign ministers. In May 1990, a Mongolian head of state visited China for the first time in 28 years. In 1991, Chinese President and Executive Vice Chairman of the Central Military Commission Yang Shangkun visited Mongolia, marking the first visit by a Chinese head of state. Several agreements were signed during the visit. Yang praised the establishment of direct ties between a number of Mongolian ministries, organizations, local areas, and private firms and their Chinese counterparts. The Mongolian Premier visited Yang in Beijing in May 1992. That month, the Chinese and Mongolians signed an agreement establishing new border-crossing points. Russia. After the disintegration of the former Soviet Union, Mongolia developed relations with the new independent states (NIS). Links with Russia and other republics were essential for stabilizing the Mongolian economy. The primary difficulties in developing fruitful coordination occurred because the NIS were experiencing the same political and economic restructuring as Mongolia. Despite these difficulties, Mongolia and Russia successfully negotiated a 1991 joint declaration of cooperation and a bilateral trade agreement. The Prime Minister's visit of March 1992 resulted in an inter- governmental commission on trade and cooperation, allowing faster transport of goods and exempting Mongolian exports from Russian customs duties. Soviet troop withdrawals from Mongolia began in 1987 and were completed in September 1992. In April 1992, the Russian ambassador presented his credentials to the Mongolian Prime Minister. Asia. Mongolia aims to establish a more balanced, non-aligned foreign policy. It is expanding relations with Japan and South Korea. Mongolia's Prime Minister visited Japan in March 1990. Mongolia's President attended Emperor Akihito's coronation, and Japan's Prime Minister visited Mongolia in August 1991. The Mongolians expressed great appreciation for the $67 million in grants and loans that Japan provided as well as Japan's coordination of international assistance to Mongolia. Diplomatic relations were established with South Korea in 1991, and, during the Mongolian President's visit,Jseven agreements and treaties were signed, providing the legal basis for further expanding bilateral relations. In April 1992, a Mongolian delegation attended its first forum of parliamentary leaders of Asian and Pacific countries in Hawaii. Europe. During 1991, Mongolia signed investment promotion and protection agreements with Germany and France and an economic cooperation agreement with the United Kingdom. Germany continued former East German cooperative programs and also provided loans and aid. Mongolia seeks closer relations with other countries in Europe and hopes to receive most-favored-nation status from the European Community (EC). The Prime Minister traveled to Germany, France, and Belgium, as well as EC's headquarters, in Brussels, seeking economic cooperation. Mongolians, in pursuing a general policy of expanding relations with as many countries as possible, have made official visits (high-level officials and/or parliamentarians) to other countries--including Australia, Nepal, the Philippines, and Pakistan--and have established diplomatic relations with a number of nations, among them Oman and Brunei. Israel will accredit an ambassador to Mongolia from Tokyo. U.S.-Mongolian Relations The U.S. Government recognized Mongolia in January 1987 and established its first embassy in Ulaanbaatar in June 1988. It formally opened in September 1988. The first U.S. ambassador to Mongolia, Richard L. Williams, was not resident there; Joseph E. Lake, the first resident ambassador, arrived in July 1990 and will be succeeded by Donald Johnson. Secretary of State James A. Baker, III visited Mongolia in August 1990 and again in July 1991. Mongolia accredited its first ambassador to the United States in March 1989. Prime Minister Jasray visited the United States and met with Secretary Christopher in June 1993. The United States has sought to assist Mongolia's movement toward democracy and market-oriented reform and to expand relations with Mongolia, primarily in cultural and economic fields. The United States granted Mongolia most-favored-nation status and supported Mongolia's transition to political democracy and a market economy. In 1989 and 1990, a cultural accord, Peace Corps accord, consular convention, and Overseas Private Investment Corporation agreement were signed. A trade agreement also has been signed. In 1991, the U.S. Agency for International Development initiated a program of technical assistance and training in Mongolia. The United States also provided about 25,000 metric tons of wheat and flour in 1992 to help alleviate a severe food shortage. For fiscal year 1993, the United States has provided Mongolia with $10.3 million in infrastructure and development assistance and $17 million in food and commodity assistance, including 25,000 metric tons of wheat. With strong support from the United States, Mongolia joined the International Monetary Fund, the World Bank, and the Asian Development Bank in early 1991. All three institutions are providing technical, financial, and project aid. The United States worked closely with Japan and international organizations to organize three donor group meetings in late 1991 and early 1992, which succeeded in raising and coordinating substantial financial and development assistance for Mongolia. * Mongol is an Altaic language (from the Altaic Mountains of Central Asia--a language family comprising the Turkic, Tungusic, and Mongolic subfamilies) related to Turkic (Uzbek, Turkish, and Kazakh), Korean, and possibly Japanese. Political Parties -- Buddhist Democratic Party--formed coalition with MPP -- Green Party (Greens) -- Mongolian National Democratic Party (MDP)--coalesced with PNP and UP -- Mongolian Independence Party (Independence) -- Mongolian People's Party (MPP)-- coalesced with Buddhist Party -- Mongolian People's Revolutionary Party (MPRP) -- Mongolian Renaissance Party (MRP) -- Mongolian Worker's Party (MWP)--unregistered for 1992 elections -- Party of National Progress (PNP)--coalesced with MDP and UP -- Social Democratic Party (SDP) -- United Party (UP)--formed coalition with PNP and MDP -- United Party of Farmers and Herdsmen -- United Party of Private Property Owners (PPOP) (###) ARTICLE 3 Department Statements U.S.-Colombia Initiative on Environmental Technologies Statement released by the Office of the Spokesman, Washington, DC, August 24, 1993. The United States and Colombia, chair of the G-77 group of developing countries, have agreed to host an international conference on ways to disseminate environmentally sound technologies worldwide. The conference, which will support the work of the United Nations Commission on Sustainable Development, will be held from November 2-5, 1993, in Cartagena, Colombia. The initiative, designed by the United States and Colombia, will develop practical programs that foster dissemination of environmentally sound technologies. The November meeting will highlight opportunities for cooperation in the areas of efficient energy production and use, pollution prevention, and waste disposal. The results of this initiative will form the basis for a special United Nations meeting on technology transfer, cooperation, and capacity-building to be held early next year in New York. The U.S.-Colombian initiative highlights the central role new technologies will play in global efforts to deal with a range of environmental concerns from global warming to desertification. The initiative also represents a new partnership between developed and developing countries in addressing environmental issues. In a break from past "North-South" debates over the terms of technology transfer, this bilateral program will focus on practical ways in which developed and developing countries can both benefit from enhanced cooperation on environmentally sound technologies. China and Pakistan: M-11 Missile Sanctions Statement by Department Spokesman Michael McCurry, Washington, DC, August 25, 1993. This morning, Under Secretary of State for International Security Affairs Lynn E. Davis presented to the Governments of China and Pakistan the determination of the U.S. Government that certain Chinese and Pakistani entities had engaged in missile-related transfers that required the imposition of sanctions under U.S. law. This decision follows a close examination of a growing body of evidence over several months. The United States made repeated contacts with both governments in an attempt to clarify numerous reports from many sources about an M- 11 missile-related transfer from China to Pakistan. U.S. law calls for the imposition of sanctions on foreign persons who knowingly transfer, to a non-Missile Technology Control Regime (MTCR) country, MTCR Annex items that contribute to development of missiles capable of carrying a payload of 500 kilograms a distance of 300 kilometers, or roughly 1,100 pounds over 190 miles. In this case, the U.S. Government has decided to impose what are called "Category II" sanctions. Category II sanctions are imposed if the transfer involves certain items in the MTCR Annex which contribute to missile development. Category II sanctions require denial of new export licenses for MTCR Annex items, both munitions and dual use items, and denial of U.S. Government contracts relating to MTCR Annex items with the sanctioned entities for 2 years. Announcement of Japan's Support For Indefinite Extension of the NPT Statement by Department Spokesman Michael McCurry, Washington, DC, August 25, 1993. On August 23, 1993, Japanese Prime Minister Hosokawa, noting that the non-proliferation of weapons of mass destruction (WMD) is an urgent security imperative for Japan, announced in Tokyo that he intends to support the indefinite extension of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). This announcement to support the indefinite extension of the NPT came as part of Prime Minister Hosokawa's first major policy statement to the Japanese Diet (parliament). The United States warmly welcomes this action by Prime Minister Hosokawa, which stands as a reaffirmation of Japan's dedication and commitment to the international nuclear non-proliferation regime. The United States attaches tremendous importance to the NPT, which is the cornerstone of the international nuclear non-proliferation regime and crucial to U.S. national security. The NPT's success reflects the overwhelmingly international consensus against nuclear weapons proliferation as well as broad support for the role of International Atomic Energy Agency safeguards in verifying the treaty's non- proliferation undertakings. We believe that continued strong international support for the NPT will contribute to the achievement of its indefinite extension in 1995--a goal to which the United States attaches great importance.(###) END OF DISPATCH VOL. 4, NO. 35.
To the top of this page