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.

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