1.  A Foreign Policy That Strengthens America's Economic Future
Secretary Christopher
2.  U.S.-Egypt Commitment to Middle East Peace -- President
Clinton, Egyptian President Mubarak
3.  Letter to Congress on Deployment Of U.S. Armed Forces to
Haiti -- President Clinton 
4.  The United States and Turkey:  Developing an Enhanced
Relationship -- President Clinton, Turkish Prime Minister Ciller

5.  U.S. Support for New Business Opportunities in South Africa
-- George E. Moose
6.  Fact Sheet:  Drug Cooperation--Strengthening the U.S.-Mexico
7.  Fact Sheet:  Labor Conditions in Mexico
8.  U.S. Suspends Aid to Burundi 


A Foreign Policy That Strengthens America's Economic Future
Secretary Christopher
Remarks at the National Foreign Policy Conference for Senior
Business Executives, Washington, DC, October 20, 1993

Good morning, and welcome to the State Department and to this
conference.  Joan, thank you very much for that very nice
introduction.  I'm delighted to be joined by and introduced by
Under Secretary Spero.  The wonderfully talented Joan Spero is
really the best thing that has happened to economic and business
issues in this Department for a long, long time.  She embodies
our commitment to a foreign policy that supports economic
security, both at home and abroad.

I will be boarding a plane in about an hour to go to Central and
Eastern Europe and Russia.  I will be visiting Ukraine,
Kazakhstan, and Belarus, as well as the Baltics, so it will be a
good trip, and I am looking forward to it.  When the President
first directed me to take this trip, my scheduling office
thought that I would miss this conference.  But it seemed to me
that there could hardly be a better time for me to meet with
American business leaders, so I delayed my departure for a few

My trip to the Soviet Union symbolizes the rewards that the
United States can gain from the end of the Cold War.  Today,
Russia is our strategic partner, not our adversary.  That, in
turn, has very tangible benefits for every American.  It means
that economic and commercial considerations can move to the
center of our foreign policy agenda, and it means that 
unprecedented opportunities for businesses like yours and for
American workers are out there on the horizon for us all to

It is in our economic interest to develop further export
investment opportunities in the vast new markets that will be
opening to us throughout the new independent states, and it is
in America's security interest to reinforce our productive, new
cooperation with Russia--a cooperation that we benefit from on
issues ranging from the Middle East peace process to curbing
proliferation of the weapons of mass destruction.

It is a different world from what I remember in the late 1970s,
when every negotiation with the Russians was a tense discussion
having ideological underpinnings.  Now, we work together in
common cause on so many important issues around the globe.  On
the other hand, if Russia reverts to dictatorship, I think that
America's security will be seriously threatened.  We will also
have a threat to our economic renewal here at home, for we would
clearly have to return to the era of large defense budgets and
an even greater impact on the deficit.

President Clinton and I believe that promoting democratic and
market reform in Russia is the wisest and least expensive
investment that we can make in America's security.  Of course,
we all know that we cannot afford to provide aid to Russia
indefinitely.  Expanded trade must take its place as soon as we
can possibly achieve that.  Russia and the other new independent
states must, themselves, take the tough steps necessary to
restore stability and provide a secure environment for foreign
investors and exporters.

The former Soviet Union is not the only place where the American
private sector can be a very positive force to help secure the
breathtaking political changes that are going on in the world
today.  For years, the issue of South Africa divided the
American business community from large parts of the American
public.  Now our entire private sector and all those who had a
very strong stand against apartheid in the past can find common
cause.  With South Africa on the road to nonracial democracy and
Nelson Mandela calling for a lifting of all the remaining
sanctions, a great, new opportunity exists.  By investing in
South Africa, American business can reinforce the historic
transformation to democracy in a country that is so eagerly
awaiting renewed American trade and investment.

The American private sector can also find business opportunities
while helping to cement the Middle East peace process.  We had a
strikingly successful donors' conference here--sponsored by the
United States and Russia--3 weeks ago in which we drew, in a
short 10-day period of time, approaching $2 billion in pledges. 
But what I want to emphasize is that bringing peace to the
region cannot be left to governments alone.  Taking advantage of
the growing demand for energy, transportation,
telecommunications, and tourism, our private 
sector and each of you can help ensure that peace takes a firm
hold in the Middle East.These new opportunities--in the former
Soviet Union, in the Middle East, and in South Africa--highlight
the convergence of economic and foreign policy in the post-Cold
War world.

Early in our Administration, some were concerned that President
Clinton's determination to focus on economic renewal signaled
some kind of an inward-looking trend.  That view simply could
not be more wrong.  The President understands that, now more
than ever, our prosperity depends upon our engagement in the
global economy.  That is why he has placed so much emphasis on
integrating foreign and domestic policy and so much emphasis on
building sound economic relationships with our trading partners.

This approach by President Clinton was very apparent at the July
summit meeting in Tokyo of the G-7 countries.  For more than a
decade, the G-7 countries had been complaining that we were not
serious about reducing our budget deficit, not even serious
about trying to stem its growth.  By pushing through the
historic deficit-reduction program, President Clinton sent a
clear message to the world:  America is back as a responsible
manager of its economy and a dependable leader for global
economic cooperation and growth.

Armed with that new credibility, the President was able to
change the atmosphere and to achieve things that would have
otherwise been impossible.  He was able to bring home an
agreement on market access in connection with the Uruguay Round,
new pledges from others for aid to Russia, and a new framework
to correct the trade imbalance with Japan.

To the Japanese Government and people, he sent a clear message
that our Administration attaches a very high priority to
improving trade and economic ties with Japan, just as high a
priority as we do to maintaining the other legs of our
relationship--the security and political legs.  We believe we
can do both through constructive negotiations, and we intend to
achieve that.

After World War II, great statesmen like George Marshall and
Dean Acheson recognized the importance of global economic
engagement.  From that understanding in the late 1940s came the
Bretton Woods agreement, the Marshall Plan, and the creation of
the GATT.  These historic leaders understood that global
economic growth was essential to our security as well as our
prosperity.  Today we must grasp once again how our future is
tied to deeper engagement in our economy.

In the next 2 months, the United States faces very crucial
economic challenges, decisions that will determine whether we
look outward to a world of opportunity or whether we shrink from
the challenge and turn inward and lay what I believe would be
the seeds of economic decline.  One of the challenges, of
course, is NAFTA.  The other is the Uruguay Round.  I hope we
can work together to ensure the success of both.

NAFTA will create high-skill, high-wage jobs here in the United
States.  It will open export and investment opportunities for
American companies.  The coming vote on NAFTA will be a key test
of our global economic leadership.  I know you will be hearing
more about this today from our Trade Representative, Mickey
Kantor.  I hope that most here in the room share my belief that
NAFTA deserves approval solely on economic grounds.  It will
lock in and increase the advantages that have boosted our
exports to Mexico more than 200% in the last 7 years, creating
more than 400,000 American jobs.

Beyond the economic benefits, I want to stress that the foreign
policy benefits of NAFTA make an already compelling case
overwhelming.  NAFTA will be a turning point in our relations
with our neighbors--Mexico and all of Latin America.  In the
first place, NAFTA will increase Mexico's capacity to cooperate
with us on a wide range of issues along our 2,000-mile
border--issues such as the environment, narcotics, and illegal
immigration--issues that affect millions of Americans.  NAFTA
will also send a signal throughout the hemisphere that economic
reform and liberalization can work for the benefit of all of us,
bolstering nations from Argentina to Venezuela that have opened
their economies to the United States.  As the President has
repeatedly made clear, this is a fight we must win, and I think
that with your help we will win it.

I have been making a lot of calls on NAFTA the last few days,
and from the conversations I have had with Members of Congress,
I really believe that the tide is beginning to turn.  As the
economic and foreign policy cases are being made, as Members of
Congress are listening and focusing, NAFTA is clearly gaining
greater support.  I believe there's an increasing recognition
that NAFTA is in our overriding national interest.  It is a
once-a-generation opportunity that simply must not be lost.

America's economic future is also tied to a successful
conclusion of the Uruguay Round.  The potential benefits for us
and for the citizens of America are enormous.  Many barriers to
goods and services will be dismantled.  Global growth will be
spurred, and jobs will be created at home and abroad.

We cannot conclude this Uruguay Round on our own.  The European
Community, Japan, the ASEAN nations, and others must make
significant moves if we are to complete this by December 15,
which is the deadline that Congress has imposed with great
firmness.  None of the remaining trade-offs in goods, services,
and agriculture will be easy--especially not those in
agriculture--but they must be made. 

To our friends in Europe, let me restate that preserving common
security across the Atlantic requires us to focus not only on
NATO but on a successful conclusion of the Uruguay Round by
December 15.  Failure of the round would squander an enormous
opportunity to spur international economic growth, and I believe
it would set back our world economy in a very severe and
dangerous way.

Nowhere is growth more apparent or export opportunities greater
for America than in the Asia and Pacific region.  That is, as
all of us know, the most economically dynamic region in the
world.  Today some 2.5 million American jobs depend upon our
exports to the Asia-Pacific region.  More than half of our total
trade is with this part of the world, 50% greater than our trade
with Europe.  Economic growth has given rise in Asia to a large,
new consumer market, and it is fueling expectations of greater
political empowerment in the new Asian middle class.

As a Pacific power--as a country that will remain a Pacific
power--the United States has a major stake in democracy,
security, and prosperity throughout Asia.  Next month, I will go
to Seattle to host a meeting of the Asia- Pacific Economic
Cooperation forum. APEC will be a historic conference--historic
because President Clinton has invited the leaders of APEC to
join him at the end of the conference for a Saturday roundtable
discussion--a discussion that will signal our commitment to a
New Pacific Community.  It will enable us to establish a
framework for regional economic integration and trade
liberalization.  It will help us improve market access, widen
our financial flows, and expand America's presence in Asia.

Perhaps because I am a Californian, I attach particular
importance to the opportunities we have in Asia.  But there is
an even larger reason, and that is that America's future is
increasingly linked to Asia.  That is why I have traveled there
three times in the 9 months that I have been in office, and that
is why President Clinton traveled to Asia on his first trip
overseas as President. 

Three weeks ago, President Clinton announced a new strategy to
help expand our exports.  In launching this initiative, he said:

We want to ensure that our embassies play a much more aggressive
role in promoting our commercial interests in a uniform way all
around the world.  

I want to assure you that we intend to play that role, and I
want to tell you what we are doing here at the State Department
to help you compete and to succeed globally.

The State Department has a desk responsible for nearly every
country in the world.  For example, we have a China desk, a
Russia desk, and an Egypt desk.  I have pledged that at the
State Department we will also have an America desk, and I will
be sitting behind it on a regular basis.  I am determined that
every person in the Department will be conscious of our need to
have an America desk.

We will simply not relegate America's economic security to the
backwaters of our foreign policy.  We want to make sure that our
training practices, our personnel practices, our management
practices, and our policy initiatives represent the centrality 
of economic issues to our strength both at home and abroad.  To
help carry this out, I have designated one of our senior, most
respected ambassadors, Paul Cleveland, to be the Department's
first Coordinator of Business Affairs, working with Joan Spero
and Dan Tarullo, our Assistant Secretary for Economic and
Business Affairs.

We have more than 250 Foreign Service posts abroad, and they are
there to serve you.  We have named a commercial coordinator in
each of our six geographic bureaus at the State Department, and
we are working closely with the Commerce Department and other
federal agencies.  Ambassador Cleveland's office will ensure
that the Department is providing you with the best possible
service, and if they do not, I hope you will be in touch with
me, because it has a very high priority for me.

Our embassies around the world have already helped thousands of
American firms.  I hear from many of you, thanking the State
Department for the work that has been done.  Just let me give
you a few examples.

--  Our airframe manufacturers have praised our vigorous support
for billions of dollars of sales around the globe, an effort in
which I personally have been involved in several countries.  
--  We have persuaded the Government of Trinidad and Tobago to
open the door to nearly $600 million of U.S. investment.  
--  Our embassy in Athens has proved invaluable in helping a
U.S. oil company maintain its share of the only commercial oil
and gas deposit ever found in Greece.  
--  We are helping American companies and investors to establish
joint ventures in Italy and in Australia.
--  In Southeast Asia, one of our embassies made a major
contribution to an export sale that was the largest ever made by
a U.S. leader in the telecommunications industry.

Let me just mention another success story.  We recently helped a
U.S. telecommunications firm to win a hotly contested license in
a vital, emerging market.  In a letter to me last month, the
company wrote that the new license would be a critical
springboard for industrial development and free market expansion
in the region.  The company said that it could not have
succeeded without the continuous support of the U.S. ambassador
and his embassy colleagues.

I am glad to tell you that I get letters like that at least once
a week--it sometimes seems to me almost daily.  I appreciate
your writing them.  They mean a lot to the ambassadors whom
you're working with, and they inspire others to do likewise.

I want you to know that I have been trying to lead by example. 
In my trips abroad, I make it a point to meet with American
business people and hear their concerns, to make sure our
embassies are helping in every way we can.  Tomorrow morning, I 
will be meeting with some American business leaders in Budapest.
 I really learn from these meetings.  I find that there are
comments about our service--sometimes complaints--and they
illuminate.  They enable us to do a better job than we have done
in the past.

We are making a major change in the way we train our diplomats. 
A week ago today, I dedicated the new National Foreign Affairs
Training Center.  It will offer a curriculum with much greater
emphasis on business-related issues.  Men and women trained at
the center will emerge as advocates for American exports.  They
will learn to promote not just our values but our products, to
protect not only our physical security but our intellectual
property.  We are trying very hard to prepare a new generation
of entrepreneurial foreign affairs professionals who understand
that assisting American business is essential in this new era of
international relations.

As a nation, we also have many other interests that you're
concerned about--interests such as non-proliferation, democracy,
and human rights.  But we intend to ensure, as we weigh and
evaluate those other interests, that the interests of American
business and of our working men and women are given full
consideration every time we make a foreign policy decision.

When he unveiled his export strategy, President Clinton
emphasized that we must find a way to clear away the obstacles
to U.S. exports.  I think we would all agree that export
controls do safeguard a national interest and do have their
place.  But I think we would also agree that much of today's
export control architecture rests on an obsolete Cold War
foundation.  Clearly, it is time to re-examine this foundation.

That is why President Clinton has announced a substantial
liberalization of export controls that will free $35 billion of
computer exports from cumbersome requirements.  That is why we
are also committed to lifting our COCOM regulations that are no
longer necessary.  Under Secretary Lynn Davis is in Europe this
very week working on a new approach to the COCOM regulations to
see if we can bring them into the modern era.

That is why early next year we will be working with Congress to
rewrite the outdated legal framework for export controls.  We
want the letter and the implementation of the law to reflect the
realities of this post-Cold War global economy.  We want to
ensure that we are not tilting the playing field against our
businesses.  As we go about revising this legislation later this
year and early next year, we want your advice at every stage of
the process.

I have long been concerned about the adverse effects that
corrupt practices by others have on U.S. exports in foreign
markets.  I was concerned about this when I was in government in
the late 1970s.  Reports I have suggest that our companies 
are losing hundreds of millions of dollars in contracts every
year because their non-American competitors are able to bribe
foreign officials while American companies are bound by our
Foreign Corrupt Practices Act.

I do not think any of us wants to change the Foreign Corrupt
Practices Act, but we want to press the OECD to push an
initiative with its member nations to prevent their companies
from making illicit payments in the same way that we are
prevented from doing so under our Foreign Corrupt Practices Act.
 I think the time is long overdue for international action on
this front, and I will try to make sure that the United States
firmly and aggressively raises this issue at the OECD council
meeting next week.

We will try to pursue other initiatives to combat corruption in
conjunction with international institutions and development
agencies.  This will not be easy.  But I know from my
conversations with a number of you that this is a problem for
American business abroad, and we want to try to help solve it.

Let me give you a final example of our Department's commitment
to American business.  As many of you know, the Department has a
way of sharing security-related information with American firms.
 In 1985, we initiated a public-private venture called the
Overseas Security Advisory Council to promote security for
American business interests abroad.  I urge you to take
advantage of these important services if you have a security
concern abroad.

As I conclude, I want to leave you with a rather simple message:
 The State Department wants to be your advocate.  We are ready
to establish a new partnership with American business and to
ensure that our economic policy is at the center of our foreign
policy in this post-Cold War era.  (###)


U.S.-Egypt Commitment To Middle East Peace 
President Clinton, Egyptian President Mubarak
Opening statements at a news conference, Washington, DC, October
25, 1993

President Clinton.  Good afternoon.  It is a great pleasure and
honor to welcome President Mubarak to Washington once again.

Egypt has acted as one of our nation's partners over a long
period of time.  It was actively involved in the Camp David
peace process over a decade ago.  And today, Egypt remains one
of our most important global partners.  We continue our
partnership in working for peace and stability in the Middle
East.  We are also partners in a host of global efforts, from
Operation Desert Storm to peace-keeping in Somalia today.  

I want to express my personal appreciation to President Mubarak
for his commitment to enhance Egypt's effort in that difficult
humanitarian effort, as well as for his personal involvement in
the recent developments between Israel and the PLO, which I am
convinced would never have come about had it not been for your
continuing encouragement, Mr. President.

President Mubarak has proven repeatedly that he is a leader of
great courage and determination.  As he enters his third
presidential term, he has a bold vision for his nation--to
reform the economy and to build a future of full employment and
free markets.  This process is vital to the well-being of the
people of Egypt.  The President and the government have played a
crucial role in the Middle East peace process.  As I said,
President Mubarak was pivotal in helping Israel and the PLO
reach their agreement on September 13.  And like the United
States and others in the international community, Egypt has been
working to help turn this agreement into reality, an effort for
which I am also very grateful.

Egypt is hosting the substantive talks between Israel and the
Palestinians begun earlier this month, a tribute to the
confidence and trust all sides place in Egypt's leadership for
peace.  That leadership is essential as we work for peace and as
we work for a comprehensive peace. 

The President and I agreed in our talks this morning that we
have to keep going in this process until all the pieces are in
place, until there is a full and broad and comprehensive peace
in the Middle East.  We discussed the next steps in the process,
including our common commitment to making sure that the
Israel-PLO agreement is implemented properly.  We agreed that
this accord can serve as a catalyst for achieving a
comprehensive settlement.  I am going to work with President
Mubarak and other Arab leaders to help the Arab world follow
through in creating a new climate of dialogue and reconciliation
with Israel.

We also discussed the President's goal for his third term; we
discussed ways in which our two nations can continue cooperating
to address regional conflicts in Africa and elsewhere and  to
respond to other global challenges.

Egypt will always hold a special meaning for all of us.  It is
the birthplace of much of our civilization and many of our
modern arts and sciences.  Today Egypt has a leadership role,
both as it confronts the challenges of its own development and
the challenges of building a better future for all the people in
the Middle East.

The historic Egyptian experience demonstrates the importance of
moderation, of tolerance, and of dialogue in shaping the future
of the Egyptian people in the Middle East--a future marked by
prosperity, by co-existence, and by stability.  President
Mubarak has been an exemplar of that experience.  It is a joy 
to work with him and to welcome him once again to Washington.  

President Mubarak.  I was very pleased to meet with President
Clinton for the second time in 6 months.  And our meeting today
has reinforced my impression of the President as a man of
courage and mutual commitment. 

We discussed several issues of mutual concern, and discussions
revealed a great similarity of views between us.  President
Clinton was quite receptive and open-minded.  On South African
matters, we agreed on the need to remain alert until apartheid
is actually abolished and replaced by a democratic system of

On Somalia, we concluded that the political solution lies in the
full implementation of the resolution of the Addis Ababa
Conference on National Reconciliation.  We are watching the
situation there closely, and I am in touch with President Zenawi
of Ethiopia--who received a mandate--to follow up the situation

The United States and Egypt have worked together on peace in the
Middle East for almost two decades.  Our joint effort has been
fruitful and promising.  The peace process was boosted
dramatically when Chairman Arafat and Prime Minister Rabin
signed a historic document on the South Lawn of the White House
on September 13.  That was by no means a ceremonial function. 
It was a living testimony to deep commitment to peace and
justice.  It was also a personification of the generous
contribution of the U.S. to the whole process.  It would have
been impossible to realize this great achievement without the
active American role.  We thank the American people and their
energetic leadership. 

In the weeks ahead, we shall continue to work hard together in
order to maintain a momentum and to keep the process on track. 
The Palestinian-Israeli Declaration of Principles should be
implemented in good faith and without delay.

On the other hand, negotiations on the other tracks must be
resumed   with full determination to reach agreement soon. 
Particularly important is achievement of meaningful progress on
the Syrian track promptly.  I believe that the gap between the
positions of the two parties can be bridged within a short
period of time.  The resumption of the Washington talks would
present a golden opportunity for attaining this objective.

President Clinton, our discussions of bilateral relations
demonstrated our shared commitment and certified our cooperation
in all fields.  The U.S. support for our economic reform program
has enabled us to carry out this reform very successfully,
indeed.  Your continued support is most needed for the
continuation of the program.

Each and every Egyptian appreciates your support and values your
friendship, Mr. President.  You have been a reliable friend and
partner.  You can equally count on our friendship and

I see an opportunity to extend an invitation to President
Clinton to visit Egypt at his earliest convenience.  This would
afford the Egyptian people an opportunity to express their
appreciation and affinity to the President and to his great
nation.  (###)


Letter to Congress on Deployment of U.S. Armed Forces to Haiti  
President Clinton
Text of a letter to the Speaker of the House of Representatives
and the President Pro Tempore of the Senate, October 20, 1993.

Dear Mr.  Speaker:
(Dear Mr.  President:)

I have directed the deployment of U.S. Naval Forces to
participate in the implementation of the petroleum and arms
embargo of Haiti.  At 11:59 p.m. E.S.T., October 18, units under
the command of the Commander in Chief, U.S. Atlantic Command,
began enforcement operations in the waters around Haiti,
including the territorial sea of that country, pursuant to my
direction and consistent with United Nations Security Council
Resolutions 841, 873, and 875.  I am providing this report,
consistent with the War Powers Resolution, to ensure that the
Congress is kept fully informed about this important U.S. action
to support multilateral efforts to restore democracy in Haiti
and thereby promote democracy throughout the hemisphere.

During the past week, the world has witnessed lawless, brutal
actions by Haiti's military and police authorities to thwart the
Haitian people's manifest desire for democracy to be returned to
their country.  With our full support, the United Nations
Security Council has responded resolutely to these events.  On
October 16, the Security Council, acting under Chapters VII and
VIII of the United Nations Charter, adopted Resolution 875. 
This resolution calls upon Member States, "acting nationally or
through regional agencies or arrangements, cooperating with the
legitimate Government of Haiti, to use such measures
commensurate with the specific circumstances as may be
necessary" to ensure strict implementation of sanctions imposed
by Resolutions 841 and 873.  The maritime interception
operations I have directed are conducted under U.S. command and
control.  In concert with allied navies, U.S. Naval Forces will
ensure that merchant vessels proceeding to Haiti are in
compliance with the embargo provisions set forth in the Security
Council resolutions.

The initial deployment includes six U.S. Navy ships and
supporting elements under the command of the U.S. Atlantic
Command.  These U.S. forces and others as may be necessary,
combined with those forces that other Member States have
committed to this operation, will conduct intercept operations
to ensure that merchant ships proceeding to Haiti are in
compliance with United Nations Security Council sanctions.  On
the first day of the operation, one of our ships, with U.S. Navy
and Coast Guard personnel aboard, carried out an interception of
a Belize-flag vessel and allowed it to proceed to its
destination after determining that it was in compliance with the
embargo.  In addition, the forces of the U.S. Atlantic Command
will remain prepared to protect U.S. citizens in Haiti and,
acting in cooperation with U.S. Coast Guard, to support the
Haitian Alien Migrant Interdiction Operations (AMIO) of the
United States, as may be necessary
The United States strongly supports the Governors Island
Agreement and restoration of democracy in Haiti.  The measures I
have taken to deploy U.S. Armed Forces in "Operation Restore
Democracy" are consistent with United States goals and interests
and constitute crucial support for the world community's
strategy to overcome the persistent refusal of Haitian military
and police authorities to fulfill their commitments under the
Governors Island Agreement.  I have ordered the deployment of
U.S. Armed Forces for these purposes pursuant to my
constitutional authority to conduct foreign relations and as
Commander in Chief and Chief Executive.

Close cooperation between the President and the Congress is
imperative for effective U.S. foreign policy and especially when
the United States commits our Armed Forces abroad.  I remain
committed to consulting closely with Congress on our foreign
policy, and I will continue to keep Congress fully informed
about significant deployments of our Nation's Armed Forces.

                              William J. Clinton  (###)


The United States and Turkey:  Developing an Enhanced
President Clinton, Turkish Prime Minister Ciller
Opening statements at a news conference, Washington, DC, October
15, 1993

President Clinton.  Good afternoon, ladies and gentlemen.  It's
a great honor for me to welcome Prime Minister Ciller to
Washington today.  She knows our country well from her student
days and many subsequent visits, and we had a very good first
meeting.  We agreed to work together to strengthen our 
relationship and to develop an enhanced partnership between the
United States and Turkey.

For centuries, Turkey has stood at the crossroads of continents,
cultures, and historic eras.  As the winds of change have shaped
both East and West, they have often blown across the Anatolian
Plateau.  That is why Turkey has always offered the world such a
rich and fascinating mixture of peoples, religions, art, and
ideas.  Like our own nation, Turkey is a shining example to the
world of the virtues of cultural diversity.  Our relationship
with Turkey proves that diverse peoples--East and West, Muslim,
Christian, and Jew--can work closely together toward shared

Since the time 40 years ago when we stood side by side in Korea,
Turkey has served the cause of freedom as NATO's southern anchor
and has been a valued ally of the United States.  Turkey was a
steadfast member of the worldwide coalition that drove Saddam
Hussein from Kuwait and instituted international sanctions
against Iraq.  And for that, the United States remains very
grateful.  We've all had to pay a price for enforcing the will
of the international community, and Turkey in that regard has
certainly done more than its share.  And we are grateful for its

We discussed Turkey's role in helping to play a stabilizing role
in a host of regional trouble spots ranging from the former
Yugoslavia, through the Caucasus, into Central Asia, and, of
course, toward the southeast, where Iraq and Iran both continue
to pose problems for peace and stability in the world.  We also
discussed the need to work for an end to the tragic conflict in
Cyprus, which is dividing too many people in too many ways.

I am committed to preserving and strengthening our nation's long
tradition of close cooperation with Turkey.  Our security ties
must remain strong and our friendship and mutual commitment as
allies unswerving.  But the focus of our relationship can now
shift from a Cold War emphasis on military assistance to an
emphasis on shared values and greater political and economic
cooperation responsive to the needs of our own peoples and the
changing world.

Next month, the U.S.-Turkish Joint Economic Commission will
convene to work on revitalizing our economic relationship.  I
look forward to the results of that effort and to supporting it.
 The commission will guide a process in which private enterprise
will increasingly become the dynamic focus of our enhanced
partnership.  As an economist, the Prime Minister is ideally
suited to lead this endeavor. 
Today, Turkey is on the cutting edge of change once again.  Its
commitment to democracy fulfills the ideals of Ataturk as Turkey
enters the 21st century.  It's reaching out to the new states of
Central Asia, even as it strengthens its 
long-standing ties to the West.  The Prime Minister represents a
new generation of leadership in Turkish politics at a time when
the world needs new leadership for a new era.

At a point when our relationship with Turkey is evolving into a
new, enhanced partnership, it is reassuring to me to know that
someone is at the helm in Turkey who understands the needs of
the ordinary citizens of that country, their hopes, and their
aspirations and is pursuing policies that will give them a
chance to fulfill their dreams.  It is, therefore, a great
pleasure, once again, to welcome Prime Minister Ciller and to
present her to you today.

Prime Minister Ciller.  Thank you, Mr. President.  I appreciate
your kind words about my country and about myself.

President Clinton and I had good talks.  I believe there was
a meeting of minds, and I think it's natural, since we both
represent a generation--the generation of change.  Both of us
want to do things differently and better, I hope.  Turkey and
the United States have a lot in common.  However, without losing
my sense of dimension--since the United States is a continent
and Turkey is a country--I must say that both are dynamic
societies and, in some ways, both constitute a mosaic.

My visit takes place at a crucial juncture, when our globe is
witnessing sweeping and unprecedented changes.  The collapse of
communism is a victory for democracy and human rights.  As
representatives of a new generation of leadership, I know
President Clinton joins me in welcoming these changes.  Yet we
both understand that they bring new uncertainties, challenges,
responsibilities, and opportunities.  Keeping peace is also a
challenge.  It is in this spirit that we have sent a unit to

During our talks, President Clinton and I discussed at length
our bilateral relations.  I stressed to President Clinton that
my government is strongly determined to develop, diversify, and
further strengthen our relations to our mutual benefit and in
our mutual interest.  I am encouraged to see that the American
side wishes to reciprocate our political will.

We discussed issues of mutual interest, such as the Middle East,
the Gulf, the Russian situation, and the Caucasus.  I must say I
am elated about the breakthrough in Arab-Israeli reconciliation.
 The United States, over a number of years, has shown steadfast
leadership.  The scene at the White House lawn with President
Clinton, Mr. Arafat, and Mr. Rabin gave hope to everyone who has
longed for peace in the region.  There is still substantial and
difficult work ahead.

On the other hand, the tragic situation in Bosnia and the
aggression in Azerbaijan continue.  Unilateral moves to keep
peace, in particular in the Caucasus, are not acceptable.  
Turkey--whose geographic position literally centers it in the
ring of fires blazing from the Caucasus and the Balkans--serves
as a secular, democratic model for its neighboring countries
seeking to develop pluralistic political systems.  Likewise,
Turkey's secularism acts to deflect the rising tide of
fundamentalism.  We must consolidate the democratization process
within the framework of this new era.

Turkey is totally committed to this process from Central Asia to
the very heart of the European continent.  And I am confident,
Mr. President, that you will agree that we have the complete
support of the United States to assist us in this endeavor.  In
the long run, strengthening democracy in my region of the world
not only promotes peace and stability there but also advances
the cause of global peace.

We in Turkey are, naturally, happy over the fact that the Cold
War has ended.  However, we didn't let ourselves get carried
away by the euphoria of the times, nor did we minimize the
attendant risks.  Events have proved us right.  The threat
perception in and around Europe has changed.  But it has changed
in different degrees and manners for each of us.  I believe the
world is passing through a truly transitory phase, as recent
events in the former Eastern Europe and in the Caucasus have
shown.  During such times, it is important for the allies to
stick together.

The Atlantic alliance continues to be valid.  We attach
importance to the transatlantic link and to continued American
engagement and leadership in global affairs.  After all, in the
words of President Wilson, America was best established not to
create wealth but to realize a vision--an ideal--and maintain
liberty among men.  Turkey's founding father, Kemal Ataturk,
shared that vision.  Way back in 1923, he explained it in the
following words to an American journalist:  The ideal of the
United States is our ideal; our national pact, promulgated in
January 1920, is precisely like your Declaration of

I believe that Turkey and the United States can work together in
many ways to the benefit of not only our two countries but to
the benefit of all.  I would like to conclude by thanking
President Clinton for the hospitality shown to us during this
visit and by expressing my satisfaction with our comprehensive
and very promising discussions for a more peaceful world.  (###)


U.S. Support for New Business Opportunities in South Africa
George E. Moose, Assistant Secretary for African Affairs
Remarks at the National Foreign Trade Council's Conference on
U.S.  Investment in a New South Africa, New York City, September
27, 1993 

Members of the National Foreign Trade Council and distinguished
guests:  Thank you for the opportunity to speak to you this
morning.  I have come here hoping that you have lowered your
expectations for a major address, because, frankly, it would be
difficult to out-do President Clinton and Nelson Mandela.  But
it is important to me and this Administration that you have
invited me here to speak on our policy toward South Africa.  The
timing of this conference could not be better. 
Last week, South Africa took two dramatic steps along its often
rocky path to democracy.  On September 23, the South African
Parliament passed legislation setting the legal basis for
establishment of a Transitional Executive Council, or TEC.  This
multiracial body will be a major landmark on the road to
multiracial democracy.  The following day at the United Nations,
ANC President Nelson Mandela made the long-awaited call for the
lifting of economic sanctions.  In response to these milestones,
the Administration announced a number of initiatives to support
South Africa's historic transition to democracy.  It was a
dramatic week for South Africa, for all those Americans who gave
so much to the anti-apartheid movement, and for businesses who
stand to contribute to the rebuilding of South Africa's economy.
 The weeks ahead promise to be as momentous.

Before looking down the road ahead, however, I would like to
pause to reflect for a moment on the tremendous progress South
Africa has already achieved.  In a little more than 3 years,
Nelson Mandela walked free from Robben Island, apartheid laws
were repealed, and the way has been paved for all to participate
in governing the nation.  Very few of us imagined then that
President de Klerk's bold initiatives would bring South Africa
so quickly to the edge of multiracial democracy.  It is obvious
South Africa's success speaks loudly and clearly to the
resilience and talent of her people.

Meanwhile, the political process advances.  Negotiators are now
crafting a transitional constitution.  Once that document is
approved, the leaders of the negotiating parties will meet to
endorse, formally, the constitution and the TEC.  At that point,
the TEC will be established, and exclusive white control of
South Africa's political structure will be ended.

It is here, however, where the real challenge for South Africans
and the international community truly begins.  South Africa's
economy suffers from a decade of slow growth, 4 years of
recession, soaring unemployment, and inflation.  Decades of
irrational economic policies, rooted in apartheid, have created
structural inefficiencies, distortions in labor and capital
markets, and impediments to free trade.  The situation is
aggravated by the depressed world economy and a dramatic decline
in investment resulting from diminished consumer and business
confidence.  Worldwide economic and financial sanctions
tightened the screws, and last year's devastating drought, which
forced South Africa to import large quantities 
of food, drove home the realities of South Africa's desperate

But this is only part of the picture.  South Africa still has
the highest GNP and per capita GNP in Africa.  Its
infrastructure rivals that of the developed world.  Its physical
location--near major international transportation routes and in
the highest growth area in Africa--makes it an important base
for international trade.  Its location makes it a natural
springboard for business opportunities in the region and the
continent.  Few countries rival South Africa's mineral wealth. 
And, most importantly, the people of South Africa have faced the
challenge of apartheid and won.  In a system that denied them
opportunities that we take for granted, many young South
Africans have persevered and succeeded.  It is a talent pool
that begs to be tapped.

A vibrant, free market economy is vital to generating the
resources needed to address socioeconomic inequalities, but the
post-apartheid government will also have a central role to play.
 South Africa will re-enter an increasingly competitive world
economy, and the mere establishment of genuine democracy in
South Africa will not be enough to attract new capital or trade
opportunities.  It is imperative that a new government adopt
policies that promote growth and demonstrate concretely its
commitment to creating a favorable investment climate.

The major parties in South Africa now appear to accept that a
healthy private sector is essential to sustained economic growth
and that only growth can generate the resources necessary to
attack the legacy of apartheid.  I am encouraged that the debate
on South Africa's economic future turns less and less on matters
of ideology and focuses increasingly on seeking pragmatic
solutions that work.

But South Africa cannot do it alone.  Outside investment and
expertise will be crucial to consolidating South Africa's
democratic transformation and economic recovery.  In conjunction
with public sector activities--domestic and foreign--these
resources can transform South Africa's economic system into one
that affords equal opportunities to all of South Africa's
The Clinton Administration stands prepared to do its part
throughout the transition and beyond.  Our assistance program in
South Africa will continue at $80 million a year.  This unique
program, which is funnelled entirely through non-governmental
and private voluntary organizations, focuses on helping to
empower politically, socially, and economically those who were
most disadvantaged by apartheid.  As President Clinton announced
last week, we will also be lifting the remaining economic
sanctions and will be encouraging cities and localities to
repeal their restrictive laws.

We believe that the time has also come for the international
financial institutions to re-engage South Africa.  The Senate
has already acted on such a measure, and we expect the House to
move early next week.  Clearly, the IMF and the World Bank have
a substantial role to play in South Africa's economic recovery. 
The World Bank's experience in poverty-reduction and development
programs makes it well-placed to assume the lead in coordinating
international donor support for South Africa.  

And while the public sector can make a contribution, it is the
private sector that will fire South Africa's economic engine and
revive the stagnant economy.  Our federal programs will actively
encourage and support the American private sector in seizing the
opportunities in the new South Africa.  The President has asked
Secretary of Commerce Ron Brown to lead a trade mission to South
Africa later this year and has offered to pursue an OPIC
investment agreement.  The Export-Import Bank is already open
for business, and the President has made a commitment to
negotiating a bilateral tax treaty.

We believe strongly that American businesses should maintain
their tradition of socially responsible activity in South
Africa, but we also believe that a new, multiracial South
African Government should have the sovereign authority to set
its own standards and to determine what mix of incentives and
responsibilities are most supportive of the goal of social
responsibility.  These decisions should apply to all investors
and businesses equally, whether domestic or foreign.

But establishing such a stable economic climate must begin by
ensuring that South Africans exercise the full benefits of a
free, fair, and safe election next April.  Here, violence
remains an issue of great concern.  Everyday it threatens to
transform hope and vision into fear and despair.  We hope that
the leadership of all groups will also speak clearly, loudly,
and frequently to their followers that violence is an
unacceptable means of political expression. 

We have spoken out openly and consistently that violence must be
abated, and we are committed to following up our words with
deeds. A substantial portion of our assistance already goes to
groups actively involved in curbing the violence, and we will
continue such funding.  We are also  expanding our support to
entities such as the Goldstone Commission and the National Peace

We also believe a substantial international presence will be
necessary during the elections, and, thus, we have allocated up
to $10 million to support the elections process--for the
training of election monitors, support for voter education
programs, and technical assistance to parties that have not
previously participated in a national election.  

In the end, however, it will be the South Africans, black and
white, liberal and conservative, that will have to live 
together, and live to make it work.  All sides must understand
that negotiations hinge on compromise and that compromise is
sometimes difficult. 

We see in our own country that defending narrow, parochial
interests is often an easy and appealing path.  But in South
Africa, as here, this is not a viable option.  All of South
Africa's leaders must again demonstrate the courage and
leadership to make the tough decisions needed to reach a final
and peaceful political settlement.  This opportunity for change
cannot be allowed to slip away.

As Americans, we played a part in bringing down the cruel,
oppressive walls of apartheid.  We made sacrifices in business
and individually, because it was the right thing to do.  Now, as
we finish our commitment to this effort, we must turn our
attention and efforts to a new phase of that struggle.  As
investors, we can both contribute and benefit from a new, stable
South Africa.  

I encourage you to take a good, hard look at the business
opportunities that arise as South Africa undergoes its historic
transition to democracy.  I am convinced that South Africa
cannot succeed without the determined support of the
international community --both public and private.  I am also
convinced that it is an opportunity that can and must be seized
today.  I can assure you that others see the same chance to make
good investments, and they will act.  (###)


Fact Sheet:  Drug Cooperation--Strengthening the U.S.-Mexico


The United States and Mexico are strongly committed to combating
drug trafficking.  Mexican and U.S. officials have developed
extensive contacts and coordinate their activities to counter
drug-smuggling operations.  This partnership has increased in
importance as U.S.-Caribbean interdiction programs have forced
traffickers to seek new cocaine routes into the United States. 
The late 1980s saw a significant shift in trafficking from the
Caribbean to Mexico.

The Mexican Government responded by increasing the scope and
intensity of its own counter-narcotics effort and deepening its
partnership with the United States.  In June 1993, the Mexican
Government inaugurated a new National Counter-narcotics
Institute to coordinate all drug enforcement activities.  It
also sponsored comprehensive anti-drug crime legislation in its
congress to strengthen the laws and enforcement mechanisms
against drug trafficking.

Passage of the North American Free Trade Agreement (NAFTA) is an
important next step in the evolution of the U.S.-Mexico
bilateral relationship, which has been marked by enhanced
bilateral law enforcement cooperation.  Moreover, economic
growth from increased trade will generate greater prosperity in
Mexico, expanding the resources available to the Mexican
Government for counter-narcotics efforts.  Alternative economic
opportunities for peasant farmers currently involved in illicit
drug crop cultivation also should grow under NAFTA.
Implementation of NAFTA will not result in a relaxation of
customs inspections at the U.S.-Mexico border.  U.S. law
enforcement officials have concluded that NAFTA will not result
in a significant increase in the flow of illicit drugs into the
United States.

Mexican Efforts
The Mexican Government is moving actively on all fronts in the
war against drugs.  Mexico has increased its counter-narcotics
budget and personnel three-fold since 1989.  As air interdiction
has forced the traffickers to rely on new overland routes and
maritime operations, Mexico has established overland
interdiction checkpoints along its northern border with the
United States and its southern border with Guatemala and Belize
to curb drug smuggling from Central America.  It also is
establishing a maritime interdiction program.

Mexico is a major source of heroin and marijuana and is used as
a transit for South American cocaine destined for the United
States.  Since the Salinas Administration took office in
December 1988, Mexican authorities have arrested over 86,000
people on drug charges and seized more than 2,000 metric tons of
marijuana, 150 tons of cocaine, and nearly 650 kilograms of
heroin.  They also have eradicated tens of thousands of hectares
of opium poppy and marijuana.

In 1992 alone, Mexican authorities seized more than 40 metric
tons of cocaine, seized 97 kilos of heroin/opiates, and
eradicated 6,860 hectares of opium poppy and 12,100 hectares of
marijuana.  From January to early October 1993, cocaine seizures
reached nearly 35 metric tons, up from the same time period in
1992.  Mexico's air interdiction program, the Northern Border
Response Force (Operation Halcon), has been largely responsible
for the increase in cocaine seizures in Mexico since 1990.  The
United States provides intelligence support for this successful

In response to the May 1993 murder by drug traffickers of
Guadalajara Archbishop Cardinal Posadas Ocampo, Mexican
President Salinas called for an all-out national effort to
dismantle drug organizations in Mexico.  He reorganized the
Mexican anti-drug institutions and set up the National
Counter-narcotics Institute under the Attorney General's office.
 Mexican Attorney General Jorge Carpizo McGregor has fired more
than 67 corrupt prosecutors and Federal Judicial Police
officials.  At least 51 are being prosecuted, including 
7 Federal Judicial Police commanders, a former Mexico City chief
of police, a Supreme Court justice, a district judge, and 3
court magistrates.

On September 3, 1993, the Mexican Congress approved a package of
constitutional and legal reforms designed to strengthen law
enforcement in the fight against organized crime, using
Organization of American States (OAS) model regulations covering
such areas as asset seizure and forfeiture and precursor
chemicals.  The reforms established harsher penalties for
corrupt officials and a requirement that persons entering or
leaving Mexico report money in their possession greater than
$10,000--similar to a provision of U.S. law.

During 1993, after two decades of U.S. support for the Mexican
anti-drug campaign of up to $20 million a year, Mexico assumed
all program costs.  The United States now provides only
technical assistance, specialized law enforcement training, and
intelligence support.  To strengthen law enforcement controls
along the borders and ports of entry, the Mexican Government is
reforming its customs service; replacing 3,000 inspectors with
new officers; providing better pay, training, and equipment;
expanding the use of sniffer dogs; and making better use of
information.  Customs inspectors are now rotated frequently to
reduce the potential for corruption.

U.S.-Mexico Cooperation
The United States and Mexico cooperate extensively to combat
drug trafficking.  The U.S.-Mexico Mutual Legal Assistance
Treaty, which entered into force in 1991, helps fight drug
trafficking by enabling the United States obtain evidence in
criminal investigations.  Officials of the U.S. Customs Service,
the Federal Bureau of Investigation, the Drug Enforcement
Administration, the Border Patrol, the Bureau of Alcohol,
Tobacco and Firearms, and other agencies collaborate with
Mexican counterparts in many areas.

--  The customs services of each country are combating
trafficking with more personnel, better training and technology,
and closer bilateral cooperation.  The U.S. Customs Service is
spending $350 million to update southwest border posts and,
together with the Border Patrol, will intensify operations in
that area.

--  The U.S. Customs Service is coordinating with both the U.S.
and Mexican border trade communities to establish training and
provide safeguards for the legitimate commerce that will expand
under NAFTA.  Cooperative arrangements with maquiladora plants
(where imported parts are assembled into products for export) in
the border zone enable Customs to improve shipping security at
major corporations, which account for the majority of trade.

--  In response to the increase in air smuggling of cocaine in
1990, the Government of Mexico augmented its counter-narcotics
air fleet by purchasing tracker aircraft and leasing additional 
helicopters from the United States.  The U.S. Customs Service
provided advanced air-tracking training to Mexican law
enforcement pilots.

International Efforts
Mexico has become an international and hemispheric leader on
drug issues, promoting collective action in the United Nations,
the OAS, and other multilateral bodies active against drug
trafficking.  Mexico has signed counter-narcotics cooperation
agreements with 18 countries and is negotiating with others.

In 1990, Mexico became a party to the 1988 UN Convention Against
Trafficking in Illicit Narcotics and Dangerous Drugs.  Since
then, it has taken steps to meet the goals and objectives of the

Impact of NAFTA
U.S. law enforcement officials conclude that the flow of illicit
drugs into the United States will not significantly increase
under NAFTA.  NAFTA reduces tariffs on goods entering the United
States from Mexico, but it does not relax border inspections.

Passage of NAFTA is an important next step in the evolution of
the U.S.-Mexico bilateral relationship and is consistent with
U.S. efforts to enhance bilateral cooperation in all areas,
including law enforcement.  Expanded economic growth under NAFTA
will generate greater resources for the Mexican Government,
which can be employed in counter-narcotics efforts.  Alternative
economic opportunities for peasant farmers currently involved in
illicit drug crop cultivation in Mexico also should increase
under NAFTA.  (###)


Fact Sheet:  Labor Conditions in Mexico


American trade unions, some members of Congress, and the U.S.
public have expressed concern about Mexican labor law and its
enforcement.  Particular issues of concern are the right and
ability to organize and bargain for wages, to strike, and to
work in a healthy and safe environment. 

The right of Mexican workers to organize trade unions and to
strike for better wages and conditions is provided for in
Mexico's Constitution and laws.  Mexico has a high rate of
unionization (30%-36%) compared to most industrial democracies
(for example, the U.S. rate is about 14%); its public sector is
almost totally unionized.  Strikes are limited essentially to
disputes over union recognition, collective bargaining
agreements and their renewal--especially wages and 
benefits--and the manner in which an employer carries out
legally mandated profit-sharing.  As defined by law, a "legal"
strike means all employees, including management, must depart
the workplace; only mutually designated security and maintenance
personnel may remain, and no hiring or use of substitute workers
is allowed.  If a strike is declared illegal, strikers have 24
hours to return to work or face dismissal for cause.  Unions
complain that the labor courts define legal strikes too
narrowly, but, in most cases, a strike notice brings about
prompt resolution of an industrial dispute. 

The major union federations and autonomous national unions form
the Labor Congress.  Most--but not all--Labor Congress
affiliates have links to the ruling political party, the
Institutional Revolutionary Party (PRI).  With the growth of
free market reforms, Labor Congress ties to the PRI are rapidly
weakening because market conditions rather than politics
increasingly determine the outcome of labor issues.  The Labor
Congress is so dominant, however, that leaders of would-be new
unions complain that government labor officials, sensitive to
the views of pro-PRI big labor, improperly delay new union
registrations.  The government denies this, and there is no hard
evidence of purposely delayed registrations.  But delays of
several years encourage skepticism.

Mexican workers enjoy workplace health and safety standards
comparable to those in the U.S.--after which most Mexican
standards were modeled--and those in Japan and Western Europe. 
Social security is designed to provide a total family health
care system for workers, including day care for children of
working mothers, financed by a 5% payroll tax.  Enforcement of
safety and health rules is reasonably effective for large
companies and maquiladora plants where imported parts are
assembled into products for export.  It is far less effective,
however, for Mexico's many small (6-15 workers) and
microbusinesses (1-5 workers).  Since the spring of 1991, the
U.S. Department of Labor has been working closely with its
Mexican counterparts to help ensure that maquiladoras and other
companies properly apply Mexican standards.

Mexico's economy recovered from its near collapse of 1981-82,
when the country was virtually bankrupt and individual
purchasing power dropped about 50%.  After a period of decreased
or flat earnings, average real earnings--adjusted for
inflation--rose about 129% from 1987 to 1992, slightly ahead of
an average national productivity growth of about 125% over the
same period.  Only the national minimum wage has failed to keep
pace but, as of 1992, more than 85% of Mexican workers earned
above the minimum wage.  On August 13, 1993, President Salinas
announced that increases in the minimum wage will be tied to
increases in worker productivity as well as inflation.   

Mexico's Work Force
Mexico's diversified work force reflects its broad and growing
economic base.  About 24% are employed in industry 
(construction, manufacturing, and mining), 26% in agriculture,
and 50% in services.  The official Mexican open unemployment
rate for 1992 was 2.9%--a misleading figure because it includes
people who worked as little as 1 hour during a survey period. 
It is widely believed that unemployment exceeds 10%.  Mexico is
considering more comprehensive methods for developing labor

Worker rights and protections are guaranteed under Mexico's
Constitution and implemented through the Mexican Federal Labor
Law and the Social Security Law.  Regulatory practices and
protection are provided through the Mexican Secretariat of Labor
and Social Welfare (STPS) and the Mexican Institute of Social
Security (IMSS), its social security agency for workers in the
private sector. 

Unions and Unionization
Since the 1910-17 revolution, Mexican labor unions have played a
prominent role in its politics.  During the revolution and for
some time after, organized labor fully supported the PRI as a
part of the party's corporatist structure.  Recently, there has
been a movement toward independence from the PRI, especially
within the Labor Congress.  Among the more than 20 independent
unions, the teachers' union--with its reported 1.3 million
members making it one of the largest and most important
unions--declared itself politically unaffiliated in May 1992. 

In 1990, the formal sector labor force--those working in legally
registered firms--was 26 million of Mexico's population of 82
million.  About 30%-36% of the labor force was organized; the
comparable U.S. figure is 14%. 

Article 123 of the 1917 Mexican Constitution states the right to
association, establishing laws such as the following.

--  As long as employees seek representation by a union, the law
requires employers either to arrange for a representation
election or to proceed immediately to negotiate initial
collective bargaining.  A union seeking to represent employees
can declare a strike until the outcome is determined. 

--  Workers have the right to file complaints directly with the
Office of the Solicitor of Labor (Procuradoria de la Defensa del
Trabajo), which functions as an ombudsman and legal advocate for
individual workers, especially those of modest means. 

--  The Federal Board of Conciliation and Arbitration (JFCA)
hears both individual and collective civil suits regarding
interpretation and compliance with labor standards, which are
usually conducted orally in public hearings at no cost to the
plaintiff.  In 1991, 693 collective bargaining conflicts were
registered in Mexico.  For that year, 614 appeal demands were
granted to workers.  In 1992, there were 755 registered
collective conflicts, and workers won 597 cases on appeal.

Given the extraordinary power of a legal strike, the law
entitles employers to appeal the legality of union strike
notices before either the JFCA or comparable state body.  The
law basically limits strikes to respond to alleged failures to
honor collective bargaining provisions, to insist that a new 
contract is signed once an existing contract expires, or to
contest the application of the profit-sharing law by the

Possibly the greatest criticism of the government has been its
role in registering trade unions and labor federations.  The law
requires a would-be union organization to submit specified
information about itself--a process that should take little time
to complete, yet, in some cases, has taken years.  Would-be
trade union leaders who are outspokenly anti-PRI complain they
are victims of stonewalling, which the government denies.  Labor
lawyers point out that none of the key players in industrial
relations--government, the large union federations, and 
employers--has reason to favor the creation of such
organizations, and the temptation to stonewall must be great. 
On the other hand, there is no readily conclusive evidence of
improper intent, only the occurrence of extraordinary delay.  

As in the United States, organized workers in Mexico earn higher
wages than nonorganized ones.  In the city of Matamoros, where
the maquiladora workers are heavily unionized, average
compensation is now around $3.70 per hour, compared to the 1992
average minimum wage of about $4.60 per day.  This is an average
of three regional levels based on living costs. 

Mexican law, including International Labor Organization
conventions adopted by Mexico, prohibits the government from
interfering in the internal affairs of trade unions and union
federations.  Although the law requires the filing of a union's
constitution and by-laws, the government considers it the
responsibility of union members, rather than the government, to
ensure that union leaders respect their own charters.  Union
dissidents seeking to oust incumbent leaders sometimes urge
government intervention, usually to no avail.

Wages and Benefits
Wages.  Mexico has a system of legal minimum wages adjusted
annually by tripartite--government, labor, and
employers--national commissions on minimum wages.  Minimum wage 
employees pay no income or social security taxes and can
purchase subsidized food and other essentials. 

--  More than 85% of formal sector Mexican workers earn more
than the minimum wage.  Unionized workers rarely are paid only
the minimum wage, except for entry-level, probationary workers. 
Workers are entitled to annual bonuses, and profit-sharing is

--  Average contract wages rose 6.8% in real terms--adjusted for
inflation--in 1992 over 1991 wages, and average wages have risen
in real terms since 1990.  

--  During the past few years, annual union contract wage
increases have run  about 5% or more ahead of the annual
inflation rate.
Mexican wage levels have been affected by the voluntary Pact for
Stability, Competitiveness, and Employment ("Pacto" or "PECE"). 
The pact was first signed in December 1987, and has been renewed
periodically.  The agreement commits the Mexican Government,
organized labor, and the private sector to reduce inflation by
controlling wages, prices, public sector spending, and the
exchange rate.  The pact has been instrumental in lowering
inflation from 159% in 1987 to 9.8% for the 12-month period
ending June 1993--its lowest annualized rate in two decades. 

The government, employers, and organized labor took an
additional step in May 1992 by adopting a voluntary accord for
raising productivity and sharing the benefits in an equitable
manner.  The National Agreement for Raising Productivity and
Quality links wage increases beyond inflation adjustments to
improved productivity.  The formulas for doing this are being
negotiated directly between employers and labor organizations
sector by sector.

Benefits.  Mexican workers by law are entitled to benefits of
considerable value in addition to their base pay.  Most of these
benefits are not taxed.

--  Mexican formal sector workers are covered by either the
government's  social security agencies IMSS, for workers in the
private sector, or ISSSTE, for government workers.  Social
security provides:

--Rapid enrollment in either the IMSS or ISSSTE agencies.  For
example, private sector employees are automatically enrolled in
IMSS within 29 days after starting work.

--Comprehensive free medical care for workers, spouses,
children, and live-in parents.  The value of this benefit alone
is estimated to be four to five times the value of a yearly
minimum wage.  

--Day care centers for children (2 months to 4 years old) of
working women.  Employers who do not provide the day care pay an
extra 1% payroll tax to IMSS. 

--A modest pension and 100% disability pay.

--  Employers must pay a December holiday bonus equal to a
minimum of 2 weeks' pay.  Union workers typically receive a
bonus equal to 4 weeks' pay.

--  Employers must reserve 10% of gross profits for annual
profit-sharing with all employees.

--  Minimum-wage employees pay no income or social security tax.

--  Minimum-wage employees are eligible to buy subsidized food
and other essentials in special IMSS or ISSSTE stores.

--  By law, Mexican workers cannot be dismissed except for just
cause, and Mexican federal law provides for severance pay to
dismissed workers according to a formula keyed to length of

--  In February 1992, the Mexican Government designed a
supplemental pension savings system and revamped the housing
fund system.

--In addition to the social security pension system, employers
are required to deposit an amount equal to 2% of each employee's
salary into an individual retirement savings account at a
commercial bank. 

--Employers pay a 5% payroll tax to fund low-cost worker housing
or housing loans.  The tax revenues mostly go directly into an
individual account in a commercial bank for each employee.

Health and Safety Conditions
In safeguarding worker safety and health, the most important
legal provisions are: 

--  Annual adjustment of social security health care payroll
taxes--based on  the actual health and safety records of each
company--that includes punitive rates for poor performers; and

--  Monthly inspections at each workplace subject to federal
jurisdiction.  Legally mandated, joint labor and management
safety and health committees make the inspections and provide
the results to federal and state labor inspectors. 

U.S.-Mexico Labor Agreements and Cooperation
On August 13, 1993, the U.S., Mexican, and Canadian Governments
concluded a historic agreement on labor cooperation that will
promote improved labor conditions and strong enforcement of
national labor laws in North America.  Specific provisions of
the agreement will help ensure that:

--  Enforcement of workplace standards and requirements is

--  Interested individuals within each country have the
opportunity to submit communications regarding any labor matter
in the other two countries to their respective National
Administrative Office and trinational ad hoc panels;

--  Each country satisfies basic due process and fairness
requirements and provides enforcement mechanism fines and other
penalties to deter violations in its domestic administrative and
judicial procedures for enforcing standards; and 

--  Ad hoc trinational dispute panels will be able to authorize
fines for persistent patterns of violations of child labor,
health and safety, and minimum wage standards. 

This agreement reinforces previous and ongoing cooperation and
joint activities between the United States and Mexico, including
the following.

--  From October 25 to 27, 1992, the U.S. and Mexico held the
first annual bilateral labor law conference involving
representatives from the academic, government, labor, employer,
and private legal practice sectors.

--  In September 1992, the Occupational Safety and Health
Administration and its Mexican counterpart announced agreement
on new joint activities for improving worker health and safety
standards and enforcement in the U.S. and Mexico over the next
few years.  This program inspired a campaign by STPS and IMSS
aimed at ensuring that maquiladoras comply with Mexico's labor
standards, a comparative study of the U.S. and Mexican health
and safety systems, and a series of bilateral worker health and
safety seminars involving trade unions and employers and
targeted at particular industries identified as of mutual

--  In May 1991, a bilateral Memorandum of Understanding on
labor cooperation was signed by the U.S. and Mexican labor
secretaries.  Subsequently, the U.S. Department of Labor and the
Mexican Secretariat of Labor and Social Welfare undertook joint
studies of child labor in both countries and did additional
studies of Mexico's large "informal economy" and the U.S.
underground economy.  (###)


U.S. Suspends Aid to Burundi
Statement by Acting Department Spokesman Christine Shelly,
Washington, DC, October 23, 1993.

The U.S. Government reiterates its strong condemnation of the
military action against the democratically elected Government of
Burundi.  We continue to urge those behind this action to return
to their barracks and restore the democratically elected
government.  In light of the situation, we have suspended all
development and military assistance to Burundi.

We are deeply distressed by the repeated reports that President
Ndadaye was murdered while being held prisoner.  Such action 
would violate the most fundamental principles of law and
morality and would merit the strongest possible condemnation.

The U.S. Government calls on those behind this military action
to reveal the whereabouts and fate of all government officials
and others who may have been taken prisoner or disappeared
during this action.  We hold the leaders behind this action and
the newly formed National Council of Public Safety fully
accountable for the safety of all prisoners and demand that they
ensure the safety of all U.S. citizens in Burundi.  (###)


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