US DEPARTMENT OF STATE DISPATCH VOLUME 4, NUMBER 48, NOVEMBER 29, 1993 PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS ARTICLES IN THIS ISSUE: 1. The APEC Role in Creating Jobs, Opportunities, and Security -- President Clinton 2. America's Pacific Future -- Secretary Christopher 3. APEC: Charting a Course For Prosperity -- Secretary Christopher 4. Developing APEC as a Platform for Prosperity -- Secretary Christopher 5. APEC: A Forum To Boost Trade and Investment -- Secretary Christopher 6. Briefing on the APEC Economic Leaders' Meeting -- Winston Lord 7. APEC Ministerial Meeting Joint Statement 8. Declaration on an APEC Trade And Investment Framework 9. APEC Economic Leaders' Vision Statement 10. Fact Sheet: Asia-Pacific Economic Cooperation (APEC) 11. Fact Sheet: APEC Working Groups 12. Fact Sheet: U.S. Economic Relations With East Asia And the Pacific ARTICLE 1: The APEC Role in Creating Jobs, Opportunities, and Security President Clinton Address to the Seattle APEC Host Committee, Seattle, Washington, November 19, 1993 Thank you so much for that warm welcome, and thank you--all of you--for everything you have done to make this Asia-Pacific Economic Cooperation conference a success. I want to thank your governor for his leadership in coming all the way to Washington, DC, to help me pass the NAFTA agreement and for speaking up for it as a leader of the State which leads America in per capita trade. I want to thank my good friend, Mayor Rice, who heads this wonderful city, which has been voted the best city in America in which to do business--in no small measure because of your mayor. I'm glad to see my friend and former colleague, Governor Roberts, out there. I must say, I sort of jumped when Governor Lowry introduced her as his neighbor to the south. I never thought of Oregon as being in the south before. That's a lesson for this whole conference--perspective is very important. I have one member of your delegation here, Congressman Norm Dicks, who came back with me yesterday, and Speaker Foley is on the way. But I'm glad to see him here. The Washington delegation has been enormously supportive of this Administration in the cause of economic expansion, and I am very grateful for that. Senator Murray wanted to come back with me also, but she's on the floor of the Senate, even as I speak here, debating the crime bill and trying to pass it--with 100,000 new police officers--and the Brady bill and a historic ban on assault weapons, which she's working hard to keep in the bill. I love Seattle. I always love to come here. I called home last night, and both my wife and daughter chewed me out because I was here and they weren't. We've had some wonderful days here. This morning I got up and went running in Green Lake Park. I didn't turn green, but I nearly did; it was a vigorous run. I am delighted that so many members of our Administration came with me-- Secretary of Commerce Ron Brown, Chief of Staff Mack McLarty, and National Economic Adviser Bob Rubin are over here to my right. We also have Trade Representative Ambassador Mickey Kantor here and Secretary of State Warren Christopher. They've all come here to make it clear how important we believe this wonderful meeting is to our future interests, as I know you do. I'm glad to see so many of my friends here from other States in the west and, indeed, from all across America. This organization, APEC, has historically had 15 members that together account for more than half the world's output--Australia, Brunei, Canada, China, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Chinese Taipei, Thailand, and the United States. At this meeting, we are adding Mexico and Papua New Guinea. This will be the first time that leaders of all of these economies have gathered together. APEC reflects the Asia-Pacific values of harmony and consensus-building. Our goal this week will be to do some of both. This city is the appropriate place to have this meeting. Not only is Washington State the most trade-oriented state in the Union, but as I learned from the governor on the way upstairs, 80% of your trade is tied to the Asia-Pacific region, and 90% of the imports to this port in Seattle come from Asia. Over half of Boeing's planes, Microsoft's computer programs, and Washington's wheat are sold abroad. Today I want to talk with you who have done so much to make this meeting a reality about why APEC and the Asia-Pacific region will play a vital role in our American quest to create jobs and opportunity and security. And I want to begin by talking about what I believe our broader purposes as a nation must be as we near the end of this tumultuous century. Our Nation's Broader Purposes Once in a great while, nations arrive at moments of choice that define their course and their character for years to come. These moments are always hard because change is always hard, because they are steeped in controversy, and because they are often full of risk. We know and regret the moments when our nation has chosen unwisely in the past, such as when we turned the world toward protectionism and isolationism after World War I or when we failed for so long to face up to the awful consequences of slavery. We celebrate the chapters of American history in which we chose boldly-- the Declaration of Independence, the Louisiana Purchase, the containment of communism, the embrace of the civil rights movement. Now we have arrived again at such a moment. Change is upon us; we can do nothing about that. The polestars that guided our affairs in the past years have disappeared. The Soviet Union is gone; communist expansionism has ended. At the same time, a new global economy, constant innovation, and instant communication are cutting through our world like a new river, providing both power and disruption to the people and nations who live along its course. Given the disappearance of the Soviet threat and the persistence of problems at home--from layoffs and stagnant incomes to crime rates--many Americans are tempted to pull back and to turn away from the world. This morning, I ran with some of my friends from Seattle, and we were talking about the irony that some of us felt so excited about this meeting and all of its promise and prosperity. One of my friends, who is a judge here, was going to court to deal with candidates for parole and talking to me about all the young children who are in trouble--even in this, one of our most vibrant cities. In times like this, it is easy to just turn away. Our people have a right to feel troubled. The challenge of the global economy and our inadequate response to it for years is shaking the moorings of middle- class security. So are the destructive social developments here at home and our inadequate response to them. But we simply cannot let our national worries blind us to our national interests. We cannot find security in a policy of withdrawal guided by fear. We must--we must-- pursue a strategy of involvement grounded in confidence in our ability to do well in the future. Our security in this new era clearly requires us to reorder our military forces and to refine our force structure for the coming years. But our national security also depends upon enlarging the world's community of market democracies, because democracies make more peaceful and constructive partners. That's why we're leading an ambitious effort to support democratic and market reforms in all the nations of the former Soviet Union. And more than ever, our security is tied to economics. Military threats remain, and they require our vigilance and resolve. But increasingly, our place in the world will be determined as much by the skills of our workers as by the strength of our weapons; as much by our ability to pull down foreign trade barriers as our ability to breach distant ramparts. As President, I've worked to put these economic concerns of our people at the heart of our domestic and foreign policy. We cannot remain strong abroad unless we are strong at home. Stagnant nations eventually lose the ability to finance military readiness, to afford an activist foreign policy, or to inspire allies by their examples. You have only to look at what happened to the former Soviet Union to see that lesson writ large. It collapsed from the inside out, not from the outside in. At the same time, creating jobs and opportunities for our people at home requires us to be engaged abroad, so that we can open foreign markets to our exports and our businesses. Today, exports are the lifeblood of our economic growth. Since the mid-1980s, half our increases in incomes and almost all the expansion in manufacturing jobs in the United States have been tied to exports. This trend will continue. All wealthy nations, and many more than ours, are having difficulty creating jobs and raising incomes even when there is economic growth. Why is that? Because workers in advanced countries must become ever more productive to deal with competition from low-wage countries on the one hand and high- skilled, high-tech countries on the other. Being more productive simply means that fewer and fewer people can produce more and more goods. In an environment like that, if you want to increase jobs and raise incomes, the only way to do it is to find more customers for each country's product; there is no alternative. No one has yet made any convincing case that any wealthy country can lower unemployment and raise incomes by closing up its borders. The only way to do it is to expand global growth and to expand each country's fair share of global trade. This country must do both. Strategies To Promote Global Growth To prosper, therefore, we have to try to get all nations to pursue a strategy of growth. I have worked hard on that. For 10 years, I watched America go to these G-7 meetings and be hammered by other nations to reduce its deficit, to stop taking money out of the global pool of investment capital, to contribute to global growth by showing some discipline here at home. Well, we've done that. We've done that. And now we must get our partners in Europe and Japan to also follow strategies that will promote global growth. Much of our trade deficit problems today are the result directly of slow economic growth abroad. And this nation now is growing more rapidly than all our wealthiest competitors. We must do that. But we must also compete, not retreat. We cannot confuse our objectives with our problems. We have no alternative, even in a time of slow global economic growth, to taking the steps to expand world trade. We are pursuing a new global trade agreement under GATT by the end of this year. In July, we negotiated a market-opening agreement at the G-7 to help advance the GATT process. That market-opening agreement offers the prospect of hundreds of thousands of new jobs in the American economy. We have placed our vital relationship with Japan on a new foundation that will allow our workers and our businesses greater access to Japanese markets when we complete the process. We have established a new dialogue for economic cooperation with Korea aimed at improving trade and the regulatory environment for the United States and other foreign businesses in that nation. Now, after a long and difficult national debate, we're about to secure something I have fought for tooth and nail, as the previous speakers discussed--the North American Free Trade Agreement. I fought for NAFTA because I believe it will create American jobs, and a lot of them; because I believe it will improve the quality of our life; because I know it will lead us to similar agreements with the rest of the market democracies in Latin America; and because I believe that it sends a message that our hemisphere wanted to hear and that the world needs to hear--the Cold War may be over, but the United States is not about to pull up stakes and go home. We will remain engaged in the world. This, after all, is the real significance of NAFTA. It does not create a trading bloc. It is a building block in our efforts to expand world economic opportunity and global growth and, in the process, to promote jobs and opportunity for Americans. Wednesday's vote for NAFTA enables me to begin this APEC meeting bolstered by a bold expression of America's intent to remain involved in the world. And the NAFTA vote, combined with this APEC conference, greatly strengthens our push for an even bigger potential breakthrough-- a new GATT agreement. I want to be clear about this: This nation will not accept a flawed agreement; but if we achieve one that meets our standards, the benefits to our people could be enormous. Over the first 10 years, a good GATT agreement could create 1.4 million American jobs and boost the average American family income by $1,700 a year. Over a decade, it could expand the world's economy by $5 trillion. This, my fellow Americans, is the answer to 20 years of stagnant wages for the hard-working middle class. Our willingness to fight for these initiatives--for NAFTA; for an invigorated APEC; for a good, new GATT agreement--should make it clear to the world that America will lead the charge against global recession and the pressures for retrenchment it has created, not just here in our country but in all the advanced nations of the world. Years from today, Americans will look back on these months as a moment when our nation looked squarely at a new economic era and did not flinch from its challenges. As we exert our leadership in the global economy, we have to pursue a three-part strategy. We must first continue to make our economy and our people more competitive. Second, we must focus our global initiatives on the fastest-growing regions. Third, we must create new arrangements for international relations so the forces of this era benefit our people as well as our partners. Making the United States More Competitive Our first challenge involves actions here at home. After years of neglect, we're putting our economic house in order so we can compete and win abroad. We've enacted a sweeping deficit-reduction measure that points the way back to solvency. The deficit this year was cut about $50 billion below where it was estimated to be on the day that I took office--largely because of plummeting interest rates that are directly resultant from the deficit-reduction efforts. We're investing in education and training and in the knowledge and skills of our people--in the technologies of the future. We're working to ensure that we have the means to adjust to a dynamic world economy. We created some special bridge programs for any workers displaced by NAFTA. And early next year, I will propose a plan to transform America's unemployment system into a re-employment system of lifetime education and training and job placement services for workers who have to change jobs many times. Particularly as we enact NAFTA, we must recognize that we have a solemn obligation to make our involvement in international trade serve the interest of our people. That means they have to be able to adjust to change. And if I might just add a parenthesis here to all of you who are very much future-oriented: This country, today, is really being limited in what it can do because so many of our systems, economic and social, are organized for conditions that no longer exist. We are not organized to make the changes we all want to make. The unemployment system is simply an example of that. The unemployment system was created at time when the average length of unemployment was shorter than it is today and when the average unemployed person--when called back to work--went back to his or her former employer, which is not the case today. So unemployment could literally be a more passive system. You could draw money out of it. Your wage would go down for a while, but you knew you'd be called back to your old employer. That's fine for a static economy. It doesn't work for a dynamic economy where the average 18- year-old must change jobs seven times in a lifetime, where the average unemployed person is unemployed longer, and where most people don't get called back to the same job they gave up. The unemployment system, in short, is now an unfair tax on employers because it doesn't function and is a ripoff for employees because it doesn't help them. Why? Because the system was organized for a reality that isn't there anymore. So what the Labor Secretary is trying to do is to set up a system where people who lose their jobs immediately--and even before they lose their jobs, if possible--begin training programs, job placement programs, and thinking about what the future really holds, instead of living with a system that was yester-day's reality and is today's sham. Time here does not permit this, but there are a lot of creative people in this room. I cannot resist this opportunity to say that if you look at the operative systems in the courts, in the juvenile system, in all the social systems in this country, in the education and training systems, and in the economic arrangements of this country, you will find example after example after example after example where good, bright, creative people--who know what the problems are--are struggling with organizations which thwart their ability to deal with the world as it is. This is one of our great challenges, my fellow Americans, and we must face it. With the end of the Cold War, we are trying to open billions of dollars worth of formerly restricted high-tech goods to export markets. We are working to speed the conversion of companies, of workers, of communities from defense to commercially successful economies. With the Vice President's leadership, we're rein-venting government and reducing bureaucracy. We're about to reform our health care system in ways that will relieve businesses burdened by unfairly rising costs and provide security for families terrorized by uncertain coverage. All these steps to make our people and our nation better prepared to thrive in this competitive economy are important. The beginning steps, while limited, are beginning to pay off. The deficit has declined. Interest rates have been at historic lows. Inflation rates remains low, while investment is increasing. Housing costs have climbed for three straight months. Employment is increasing. In the first 10 months, there have been more private-sector job increases than in the previous four years. To be sure, there is still much to do, but this is a good beginning. Expanding Our Engagement The second part of this strategy must be to expand the sweep of our engagement. For decades, our foreign policy focused on containment of communism, a cause led by the United States and our European allies. I want to emphasize this here today: Europe remains at the core of our alliances. It is a central partner for the United States in security, in foreign policy, and in commerce. But as our concern shifts to economic challenges that are genuinely global, we must look across the Pacific as well as the Atlantic. We must engage the world's fastest- growing economies. Our support for NAFTA is a recognition not only that Mexico is our closest big neighbor and a very important part of our future but that Latin America is the second-fastest-growing part of the world and a part of the world increasingly embracing both democracy and free market economics--two things that have eluded that continent for too long. The fastest-growing region, of course, is the Asia-Pacific, a region that has to be as vital for our future as it has been for our past. A lot of people forget that we began our existence as a nation as a Pacific power. By the time of George Washington's inauguration, American ships were already visiting China. In this century, we fought three major wars in the Pacific. Thousands of our people still remain stationed in the region to provide stability and security in the armed services. And our cultural bonds are profoundly strong. There are now 7 million American citizens of Asian descent. The Asia-Pacific has taken on an even greater importance as its economy has exploded. It is a diverse region, spanning 16 time zones and having at least 20 different major languages and hundreds of dialects. This is a region where many rice farmers still harvest their crops by hand, and yet it is the home to the world's fastest-growing cities. Yet amid this great diversity, a distinct economy has emerged--built upon ancient cultures connected through decentralized business networks; linked by modern communications; and joined by common denominators of high investment, hard work, and creative entrepreneurship. What has happened to Asia in the past half-century is amazing and unprecedented. Just three decades ago, Asia had only 8% of the world's GDP. Today, it exceeds 25%. These economies are growing at three times the rate of the established industrial nations. In a short time, many of these economies have gone from being dominoes to dynamos, from minor powers racked by turmoil [applause]--yes, you can clap for them; it's true. The press will ask me at the end of this speech who gave me that phrase. It came from Winston Lord, our Assistant Secretary of State for East Asian and Pacific Affairs--he gives me good ideas, as well as good phrases. This is a hopeful time. For the first time in this century, no great military rivalry divides the Asia-Pacific region. Active hostilities have yielded to possibilities for cooperation and gain. Of course, the region still has problems and dangers. Tens of millions of Asians still live on less than $1 a day. There are territorial disputes, ethnic tensions, and weapons proliferation. This sudden growth has led to serious environmental strains from smoke-choked cities to toxic dumping. And there are human rights abuses and repression which continue to affect millions of people throughout the region. The economic explosion has been a source of anxiety for many Americans. Our workers are concerned that their jobs, their markets, are being lost to Asia. Of the nations that are represented here, I believe we have a trade deficit with all but one. The trade imbalances with Japan and China alone account for more than two-thirds of our total trade deficit. And we do have a trade deficit, as I said, with virtually every one of the nations. Yet, ultimately, the growth of Asia can and should benefit our nation. Over the past five years, our exports to every one of these nations has increased by at least 50%. Much of what Asia needs to continue in its growth pattern are goods and services in which we are strong: aircraft, financial services, telecommunications, infrastructure, and others. Already, Asia is our largest trading partner. Exports to Asia account for 2.5 million jobs here in America. Increasing our share of that market by 1% would add 300,000 jobs to the American economy. This is an effort worth making. Of course, we must continue to press these nations to be more open to our products, as we are to theirs. We've made a good start with the economic framework agreement with Japan, and I look forward to discussing the elements of that and the progress we can make with Prime Minister Hosokawa later today. We're also determined to work with China to eliminate its trade barriers and to raise the issue of our continuing concern over human rights and weapons sales. I look forward to doing all that when I meet with President Jiang today, in an effort to put our relationship with China on a more constructive path--but still one that deals with all of these issues that are important to the United States. We do not intend to bear the cost of our military presence in Asia and the burdens of regional leadership only to be shut out of the benefits of growth that that stability brings. It is not right. It's not in the long-term interest of our Asian friends. And, ultimately, it is a trade relationship that is simply not sustainable. So we must use every means available in the Pacific, as elsewhere, to promote a more open world economy through global agreements, regional efforts, and negotiations with individual countries. As we make these efforts, U.S. businesses must do more to reach out across the Pacific. I know Seattle's business community understands the potential that lies in the Asia-Pacific region, but millions of our businesses do not. We cannot have customers where we are not there to make the sale. I want American businesses to see the opportunities, to hear the success stories not only here but all across the nation. I want more American businesses to follow the examples of firms like H.F. Henderson Industries in West Callwell, New Jersey, which manufactures automatic weighing systems. This small firm's sales to China, South Korea, Australia, Singapore, and Hong Kong have added over two dozen jobs to its payroll of 150. You think about that. If every company in America with 150 employees could add two dozen jobs by exports to Asia, we would have a much smaller unemployment problem in a very short time. We have to do a better job of piercing those markets even as we press for them to be opened. In July, I made my first trip over-seas to Asia as President. During that trip, I proposed this leaders' meeting and described a vision of a New Pacific Community to underscore the importance we place on working for shared prosperity, security, and democracy. As I said earlier, the Secretary of State, the Secretary of Commerce, our Trade Representative- -they've all come to Seattle; all are going to give major speeches here; all are going to make our presence felt. We want to be a partner with all of the other nations that are here in making this New Pacific Community. Developing New Institutional Arrangements But as I said earlier about our problems here at home with the unemployment system, you could also say the same thing about the international system. We have to develop new institutional arrangements that support our national economic and security interests internationally. If you look at the end of World War II and the success that flowed from it, that didn't happen by accident. Visionaries like Harry Truman and George Marshall, George Kennan, Dean Acheson, and Averell Harriman worked with other nations to build institutions like NATO, the IMF, the World Bank, and the GATT process. We take it for granted now, but it took them a few years to put this together. And it wasn't self-evident at the time that it had to be done. A lot of people thought it was a waste of time or effort, and others thought that it would never work. Still others thought that it wasn't even a good idea. But these people had the vision to see that collective security, expanded trade, and growth around the world were in the interest of the ordinary American citizen. We now have to bring the same level of vision to this time of change. We've done that through our vote for NAFTA. We will do so again at the NATO summit this January, where I will recommend a new Partnership for Peace to draw Central and Eastern Europe toward our community of security. And we're working to build a prosperous and peaceful Asia- Pacific region through our work here with APEC. This is still a young organization. I want to salute those who had the vision to establish it, such as former Australian Prime Minister Robert Hawke and others, including President Bush and those in his Administration who wanted to host this regional leaders' meeting in Washington State. But I want to say also that we now must imagine what this organization should be in the 21st century. APEC's Future Over time, there is a lot we may be able to do through this organization that no one ever thought about before. It could become a forum for considering development priorities in Asia, for working with the Asian Development Bank to assure that all can share in the region's economic growth. It could help focus attention on barriers to trade and growth. It could evolve into a forum for dispute resolution on economic matters. The mission of this organization is not to create a bureaucracy that can frustrate economic growth but to help build connections among economies to promote economic growth. Although we are still only formulating APEC's agenda, we can speculate what some of those connections might be. This organization, for example, could help set up common telecommunications standards so firms won't need a different product design for each separate country. It could help us move toward an open skies agreement that could lower fares for airline passengers and cargo and provide greater consumer choices over routes. It could promote solutions to the environmental problems of this populous and energy- devouring region--problems that are truly staggering today--so that we could guarantee that a polluted quality of life does not undermine a rising standard of living. Protecting the Pacific environment also can be a particular source of American business opportunities. Asia's purchases of environmental equipment likely will rise by $40 billion by the end of this decade. And our nation, which has pioneered many of those technologies, should be there to claim a large share of that market. APEC can complement our nation's other efforts to open world trade. It can provide a counterbalance to our bilateral and global efforts. If we encounter obstacles in a bilateral negotiation, we should be able to appeal to other APEC members to help us resolve the disputes. If our efforts to secure global trade agreements falter, then APEC still offers us a way to expand markets within this, the fastest-growing region of the globe. I expect this first meeting of APEC leaders to focus on getting acquainted and on sharing perspectives. Whatever we do must be done in a spirit of genuine partnership and mutual respect in the interest of all the nations involved. This cannot be a U.S. show; this has got to be an Asia-Pacific combined partnership. Nonetheless, I believe it is our obligation to propose some tangible steps to move forward. We will propose that Secretary Bentsen organize a meeting of APEC's finance ministers to advance our dialogue on the broad issues affecting economic growth. We will propose the formation of an Asia-Pacific business roundtable to promote greater discussion within the region's private sectors. We will ask the leaders to endorse the establishment of an Asia-Pacific education foundation to promote understanding and a sense of community among our region's young people. These first steps are small, but we should not understate or underestimate the scope of the journey that they could begin. Today we take for granted the importance of many institutions that seemed unlikely when they were first created. For example, we can't imagine now how we could have weathered the Cold War without NATO. In the same way, future generations may look back and say they can't imagine how the Asia-Pacific region could have thrived in such a spirit of harmony without the existence of APEC. Even though this organization is in its infancy and its first leaders' meeting is not intended to make decisions, we should not hesitate to think boldly about where such efforts could lead. For this organization, these meetings and these relationships we are forging today can lead our members toward shared expectations about our common responsibilities and our common future. Even now, we can begin to imagine what a New Pacific Community might look like by the end of this decade--and that's not very far away. Imagine an Asia-Pacific region in which robust and open economic competition is a source of jobs and opportunity without becoming a source of hostility and instability, a source of resentment or unfairness. Imagine a region in which the diversity of our economies remains a source of dynamism and enrichment, just as the diversity of our own people in America makes our nation more vibrant and resilient. Imagine this region in which newly emerging economic freedoms are matched by greater individual freedoms, political freedoms, and human rights; a region in which all nations--all nations--enjoy those human rights and free elections. In such a future, we could see Japan fast becoming a model of political reform as well as an economic colossus, pursuing policies that enable our economic relations to be a source of greater mutual benefit and mutual satisfaction to our peoples. We could see China expressing the greatness and power of its people and its culture by playing a constructive regional and global leadership role while moving toward greater internal liberalization. We could see Vietnam more integrated into the region's economic and political life after providing the fullest possible accounting of those Americans who did not return from the war there. We could even see a Korean Peninsula that no longer braces for war but that lives in peace and security because its people--both North and South--have decided on the terms of reunification. We could see a region where weapons of mass destruction are not among the exports and where security and stability are assured by mutual strength, respect, and cooperation; a region in which diverse cultures and economies show their common wisdom and humanity by joining to preserve the glory of the Pacific environment for future generations. Conclusion Such goals extend beyond tomorrow's agenda. But they must not lie beyond our vision. This week, our nation has proved a willingness to reach out in the face of change to further the cause of progress. Now we must do so again. We must reach out to the economies of the Pacific. We must work with them to build a better future for our people and for theirs. At this moment in history, that is our solemn responsibility and our great opportunity. Thank you very much. (###) ARTICLE 2: America's Pacific Future Secretary Christopher Address at the University of Washington, Seattle, Washington, November 17, 1993 Thank you for that introduction, Professor Lardy. I want to thank the World Affairs Council and the Jackson School for having me here today. Scoop Jackson believed that America derived strength from its willingness to engage abroad, and he would be proud of the work being done here in his name. One hundred and thirty-two years ago, the University of Washington was carved out of Seattle's emerald wilderness by a band of hardy and intellectually hungry pioneers. The first faculty consisted of one professor; the first graduating class, one student. From those simple origins on that rugged frontier, the University of Washington has become one of America's great public universities. I want to acknowledge, in that regard, my longtime friend Bill Gerberding, President of this university. Today, another frontier beckons. And Seattle stands not at the end of the trail but at the beginning. As we approach the next century, America must once again look west--west to Asia, west to our Pacific future. In the 19th century, American visionaries connected the coasts with great iron railroads. Now, with the ethereal reach of satellites and the blinding speed of fiber optics, we are traversing the Pacific. With the same determination that brought trains to Washington State, we are building bonds of communication, commerce, and culture with Asia. Signs of our Pacific future are sprouting here like espresso stands. Trade with Asia accounts for 95% of the volume of Seattle's bustling ports. A quarter of the city's schoolchildren are Asian-Americans. Pike Place Market overflows with the scents, flavors, and dialects of the Pacific Rim. And in every sector--from aircraft to software to real estate--Seattle's economy is increasingly tied to Asia's. My message today is simple: As Seattle goes, so must the nation. As Asia advances, so must we. For, today, no region in the world is more important to the United States than Asia. America has fought three wars in Asia during the past half-century. We have abiding security interests there. As to our economic interests, 40% of our trade is with Asia, half again as much as with Europe. And every day, immigrants from Asia and their descendants are fulfilling the American dream, enriching our culture and maintaining tangible ties across an ocean of opportunity. Just over a generation ago, when many of these immigrants were first arriving on American shores, Asia seemed mired in a cycle of epic suffering. But a new determinism pervades Asia now. Despair about decay has given way to faith in progress. In southern China, towns that were once agrarian backwaters are leaping forward into the industrial age. In Singapore's gleaming harbor, where laborers once carried sacks of rice on their backs, enormous cranes now swivel and stretch to unload high-technology cargo. And in the towering skyscrapers of Jakarta, Indonesians born in bamboo huts are making fortunes in Asian commodity markets. Like Mount Rainier, Asia's astounding revival and the challenges it presents are best viewed from a panoramic perspective. Asia is likely to account for half the growth in world trade between now and the year 2000. It includes the world's fastest-growing economies and most promising terrain for American exports. But at the same time, we are running unacceptable trade deficits with some of our Asian trading partners. In security terms, Asia is more stable--and, if you will, more pacific-- than at any other time since the turn of the century. But at the same time, we need to meet new security challenges that cloud the horizon. Across the region, the rising tide of democracy is watering some of freedom's most parched terrain. But at the same time, some of the world's least open regimes can also be found in Asia. As we look ahead, then, we must remove the peril and realize the promise of wider engagement with the Pacific. That is why President Clinton has called for a New Pacific Community, built on three core elements: shared prosperity, shared strength, and a shared commitment to democratic values. I. Prosperity Let me turn first to the economic dimension. In Asia, we see most clearly that economic policy stands at the center of our foreign policy. Last year, our exports to the region totaled $128 billion and created 2.4 million American jobs. This Administration is working to widen trade and investment in Asia on three levels: globally, through the GATT; regionally, through the APEC forum; and bilaterally, with individual nations. No region has more at stake than Asia in the removal of barriers to global trade and investment. Asia has asked us to remain engaged in the region, and we will do so. But for the American people to appreciate the benefits of such engagement, Asia's markets must be open to our goods and services. Today I urge the leaders of the Asian economies to join us in pushing for a successful conclusion of the GATT Uruguay Round. If the round succeeds, it will open markets and create jobs around the world. If it fails, however, we will all suffer from the punishing effects of rising protectionism. While we work to open global trade, we must also strengthen our regional trading ties. Today's historic vote on NAFTA is a test of our willingness to do that. It is a test of our desire to compete rather than retreat. NAFTA, as the President and I have been saying, is in our overriding national interest. It takes down barriers to prosperity. It demonstrates that as we enter the next century, America is looking outward, not turning inward. That is why the President has put so much on the line for NAFTA's passage. And that is why I believe the House of Representatives will approve NAFTA today. APEC, the forum for Asia-Pacific Economic Cooperation, is another vital part of our strategy to strengthen regional trading ties. APEC was created only four years ago--not to micromanage trade but to get bureaucracy out of the way of business and to promote cooperation among diverse economies. This year's meeting here in Seattle, to be followed by President Clinton's historic gathering of APEC leaders, is dedicated to expanding Pacific trade and investment. We will begin to bring greater harmony to the trade policies of APEC members. We will work to facilitate the entry of American businesses into Asian markets. And we will work to strengthen APEC as an institution. In the software business today, "open architecture" is the coin of the realm. That, in essence, is what my colleagues and I are developing: an open environment in which we can increase by many times the $500 billion in trade among APEC members. But let me be clear: APEC is a building block, not a trading bloc. The United States views APEC as the cornerstone of regional economic cooperation. These regional efforts, in turn, are a catalyst for global trade cooperation. At the same time, the Clinton Administration is working to strengthen some of our most important bilateral economic relationships in Asia. China, one of America's largest trading partners, has a trade surplus with the United States that reached nearly $20 billion last year. To address this problem, we are working with the Chinese to achieve full implementation of our market access agreements. In South Korea, we have launched a new dialogue that will improve the trade and investment climate for U.S. businesses. And with Japan, we are negotiating a new economic framework. The security and political dimensions of our partnership with Japan are in sound condition. But the economic pillar is urgently in need of repair. This Administration attaches as high a priority to improving our economic ties with Japan as it does to maintaining our security and political links. That is why we are working to correct our persistent trade imbalance. We are determined to forge a more equitable and mutually beneficial partnership. II. Security Ultimately, all our efforts to advance American prosperity in Asia depend on the peace and security of the region. America's continued security engagement is, therefore, the second core component of our New Pacific Community. I was a 20-year-old Navy ensign--the same age as many of you here today- -when World War II and its aftermath first linked America to the security of the Pacific. Today, the reasons for us to stay anchored in Asia have changed. But they are still compelling. For it remains in our unambiguous national interest to deter regional aggression and to sustain Asia-Pacific economic growth. While the tensions of the Cold War have subsided, many Asian nations harbor apprehensions about their closest neighbors. An American withdrawal would magnify those concerns. And so America must stay engaged. Our security role in Asia begins with our treaty alliances with Japan, South Korea, Australia, Thailand, and the Philippines. We will honor these obligations and maintain our forward military presence throughout the Pacific. At the same time, we are working in Asia to prevent the proliferation of weapons of mass destruction. Nowhere is the threat of nuclear proliferation more serious today than in North Korea. North Korea is caught in a kind of time warp. It is the most isolated country in the world, unmoved by the winds of change that have swept across the region. It has buried the economic dreams of its people to raise a million-man army, most of which is deployed at South Korea's doorstep. The other nations of the region share President Clinton's firm view that North Korea must set aside its nuclear ambitions. It must not be allowed to pose a nuclear threat to South Korea or its other neighbors. North Korea has refused to grant international inspectors full access to its nuclear sites. The United States is committed to a diplomatic solution as the best means of resolving the nuclear issue. At the same time, we insist on North Korea's full compliance with all of its international commitments, including the Nuclear Non-Proliferation Treaty. North Korea must fulfill its fullscope safeguards obligations and permit the inspections required by the International Atomic Energy Agency. North Korea must also fulfill its denuclearization agreement with South Korea. These are not only the views of the United States; they are the views of the world community. We are not approaching this on a unilateral basis. We are working with others in the region. If North Korea refuses the necessary inspections--and refuses to resume a dialogue with South Korea on nuclear issues--then we are prepared to recommend that the UN Security Council consider options other than negotiation. This need not be the outcome of this impasse. We urge North Korea to join the community of responsible nations by responding positively to the comments I have made here today. As we work to resolve the impasse with North Korea, we must also develop new regional approaches to prevent conflicts. That is why at the ASEAN Post-Ministerial Conference last July, my fellow ministers and I established the ASEAN Regional Security Forum. This forum will supplement, but not replace, our treaty alliances. These security discussions will ease tensions and discourage arms races. It will include the ASEAN nations, the United States, Japan, Canada, South Korea, Australia, and others. It will also include--mark this--China, Russia, and Vietnam. Ten years ago, or even five, such an array of countries would have been unthinkable. Next year, it will be a reality. III. Democracy Just as security is the bedrock for the pursuit of prosperity, so democracy is the foundation for security. More open societies make for a more stable region. Democratic nations make better neighbors and better trading partners. That is why the support of democracy and human rights is the third core element of our New Pacific Community. President Clinton has said that "free markets not only enrich people; they empower them." As more Asians enter the middle class, they will seek a greater voice in their communities. As factories bloom across China, political power will come increasingly from the end of an assembly line. Greater openness will also help sustain modernization in Asia. After all, how can countries attract investment without the rule of law? How can they combat corruption without a free press? How can they generate prosperity without constant currents of information? There are those who say that democracy is somehow unsuited for Asia, that our emphasis on human rights is a cloak for cultural imperialism. But there is no cloak over the city of Phnom Penh, where Cambodians voted this spring in their first free election. There is no cloak over Seoul, where former dissident Kim Young Sam is now Korea's President. Nor, indeed, is there a cloak over Shanghai, where a talk show called "Radio Orient" receives thousands of calls and letters every day. To be sure, great areas of Asia lag behind the march of history. But the yearnings for freedom are not a Western export. They are a human instinct. All across Asia, the United States is working to respond to those yearnings. We are, in short, aligning ourselves with the future. Human rights is a key issue in our relations with several Asian countries, including Burma, Vietnam, Indonesia, and China. The Clinton Administration has developed a policy toward China that reflects both our values and our interests. China is a great nation and an influential member of the world community. A stable, prosperous China is in the long-term interest of the United States. Recent problems have created the risk of a downward spiral in our relationship. On human rights, unless there is overall, significant progress, the President will not be able to renew China's most-favored- nation status. We are encouraged by Beijing's recent offer to open its prisons to the International Red Cross. We hope that is a harbinger of sustained progress on human rights in China. On trade, we continue to have concerns about market access, textiles, and intellectual property protection. And on non-proliferation, we have imposed sanctions on China for its shipment of M-11 missile components to Pakistan. At the same time, we have made clear that we are willing to negotiate the necessary conditions for a waiver of those sanctions. And so we have launched a process of deeper engagement with China to make progress in these key areas. Our goal, I emphasize, is to build a comprehensive relationship that permits the resolution of our differences. Conclusion Many of the issues that can bring together the New Pacific Community are global issues--challenges that cut across political borders. Consider, for example, the environmental problems that Asia, with its huge appetite for energy sources, will face in the next century. Consider that 20 years from now, 1 billion more people will live in Asia alone. Problems like these demand transnational solutions. That is why this Administration has brought global issues into the mainstream of our foreign policy. Recently, I passed by Red Square--the one in Moscow, that is--to give a speech to Russian students. They, like many of you, are wary of sweeping proclamations about "our moment in history." But your generation--whether in Moscow or Seattle or Beijing--truly stands at a pivotal point, between the Cold War and a new millennium. For Russia's youth, the question is whether to believe in free markets and democratic reform. For you, the question is simpler: whether to believe in yourselves. Over the last several years, some Americans have worried that Asia's success spells trouble for the United States. They look at Japan's performance, or China's incredible growth, or the ferocious development of Asia's "four tigers," and they have feared that America's best days are behind us. I see it altogether differently. Asia's success is ours, too--because Asia's dynamism creates enormous new markets for our products; because for a half-century our engagement has supported regional stability; and because Asia's drive toward freedom echoes the enduring strength of our values. I look at the flower of Asian prosperity, and I see the seeds of American renewal. The virtues that have made America great--thrift, diligence, optimism, resilience--must guide us again as we rebuild America's economy and engage ever more vigorously with Asia. Can we summon the confidence to do that? Can we muster the courage to seize this opportunity? From Lewis and Clark's expedition to the first flight of a Boeing airplane, everything in our history suggests that we can. And everything in our future--our Pacific future--says that we must. Thank you very much. (###) ARTICLE 3: APEC: Charting a Course for Prosperity Secretary Christopher Opening statement at a news conference, Washington, DC, November 15, 1993 I will be leaving tomorrow for Seattle to chair the fifth ministerial of the forum on Asia-Pacific Economic Cooperation. Immediately following the ministerial, the President will host a historic meeting of the APEC economic leaders. These meetings highlight the importance of the Asia- Pacific region and underscore the fact that this Administration has placed economic policy at the heart of its foreign policy. Ten days ago, I set forth the Administration's six strategic foreign policy priorities in testimony before the Senate Foreign Relations Committee. I placed economic security first, and I did so deliberately. There is no bright line dividing foreign policy from domestic economic policy. Our strength at home and our engagement abroad are interlocking and mutually reinforcing. We are pursuing policies that spur growth and create American jobs, and that's part of our overall economic security strategy. As one of our six strategic priorities, I also emphasized the importance the Administration attaches to the Asia-Pacific region. APEC's membership includes the world's most dynamic economies, which produce half the world's economic output. Asia is our largest trading partner. Our exports to Asia and the Pacific in 1992 totaled nearly $130 billion. This accounted for 2.4 million American jobs. Our trade with this region is 50% greater than our total trade with Europe. No region is more important to the United States and its future than Asia and the Pacific. Asia's importance does not stem from trade flows alone, however impressive those are. America is a Pacific nation, and our stake in the region is enormous. We will be a full participant in the Asia-Pacific region as it plays an increasingly important global role. That is why President Clinton made his first trip overseas to Asia, and that is why I have been to Asia three times in the short nine months that I've been in office. A core element of our policy in Asia, of course, is our security role. We remain unyielding in our commitment to maintain our Asia-Pacific forward military basing and to meet our solemn treaty commitments to five of the leading nations in the Asia-Pacific area. Let me mention a couple of countries specifically. China and Japan are, clearly, major players in the region. The cornerstone of our Asia- Pacific policy remains our relationship with Japan. The President seeks to shape a partnership with Japan that will place our economic ties on as sound and cooperative a basis as we have established for security, political, and global issues. We are negotiating a new framework with Japan to correct our unacceptable trade imbalance. With regard to China, we are working to create a comprehensive relationship that permits resolution of differences in a broad, strategic context. We are actively working to make strides in areas of continuing concern, including human rights, non-proliferation, and trade abuse. This Administration is placing a special emphasis on developing a regional approach so as to construct with others the President's vision of a New Pacific Community built on shared strength, shared prosperity, and a shared commitment to democratic values. This is why the meetings in Seattle are so important. In a letter the President sent to the Asian economic leaders, he asked them to work with him to try to find ways to meet the economic challenges of the 21st century. The President has invited these leaders to Seattle so they can work together to have a positive impact on global economic growth so America can achieve future prosperity. The ministerial meeting also can help chart the course for a more dynamic future for the Asia-Pacific region. The Declaration on an APEC Trade and Investment Framework can provide a blueprint for economic relations within the region. We will be hearing the report of the Eminent Persons Group and will be looking to consider their recommendations for long-term initiatives to expand trade. There should be agreement on additional specific work plans in areas such as telecommunications and transportation--work plans that can help American business and lead to additional jobs. This week's meeting represents an important first step toward a more open, liberal trading regime linking the United States and the Asia- Pacific nations. We are in the early stages of this effort, and APEC is in its early years as an organization. Achieving the kind of open architecture that I've spoken about for trade and investment ties throughout the region clearly will take time. It will not be done overnight. It will be an evolutionary process that will reflect the consensual progress that has marked ASEAN and the early years of APEC. But what is important is that the United States lead this historic movement toward open markets and trade--and that certainly will be our objective this week. Over the next 30 days, two events--in addition to the APEC meetings in Seattle--will shape our economic future. The first is the vote in Congress on NAFTA. Approving NAFTA means choosing American leadership and competitiveness and rejecting isolationism and protectionism. Approving NAFTA will clearly strengthen our influence at a time when we are working to boost global growth through trade expansion. The second event is the December 15 final deadline for concluding the Uruguay Round. APEC has worked consistently to move these negotiations forward. I'm very confident that this week's meetings--both the ministerial meeting and the leaders' meeting on Saturday--will produce a strong and urgent call to complete this round--and to complete it on time and in a way that will provide for a more open trading system. Two of our highest foreign policy priorities--economic security and the Asia-Pacific region--converge this week in Seattle. Our role in shaping the future of this region helps secure our future prosperity. Through our leadership in hosting this APEC conference, we are advancing President Clinton's program for America's economic renewal. (###) ARTICLE 4: Developing APEC as a Platform for Prosperity Secretary Christopher Remarks at the welcoming dinner for APEC delegates, Seattle, Washington, November 17, 1993 Thank you for that kind introduction, Mr. George. Fellow ministers, APEC delegates, Governor Lowry, Senator Gorton, Mayor Rice, and guests: I am honored to address this distinguished group. I would like to offer sincere thanks to the Washington Council on International Trade and the corporate sponsors, who have not only given us tonight's delicious dinner but have done so much to make this ministerial meeting in Seattle possible. Their work is illustrative of the important and helpful role the business community has played in APEC. I want very much to encourage even greater business involvement in all aspects of APEC's work. These wonderful aircraft symbolize the ties between the Asia-Pacific region and the United States--across boundaries of time, geography, and culture. Since the age of the China Clippers, America has been a Pacific nation. Our connections to Asia grow ever more important as the rest of America catches on to what Seattle and the west coast have known for years: Our futures are linked across an ocean of opportunity. This museum also looks to the future. We in APEC need to ensure that the region's economies are able to take full advantage of the possibilities of our age. In the midst of the great economic explosion in Asia and the Pacific, APEC was created four years ago--not to micromanage economic relations but to get bureaucracy out of the way of business. People in the business sector, like our hosts, have been the engines powering Pacific Rim economies: making capital investments, introducing new technologies, and creating jobs. APEC is designed to help business- -by removing barriers to trade and investment and by encouraging stronger links in such areas as telecommunications and transportation. These APEC meetings come at a moment of extraordinary opportunity to open markets and spur global growth. Over the next 30 days, three defining events will shape our economic future. The first event is tonight's historic vote by the House of Representatives to approve the North American Free Trade Agreement. The vote tonight was not just a dramatic moment but a defining one. The action taken by the House is a vote of confidence in America's future. It demonstrates that the United States chooses leadership and rejects isolation; that we choose competitiveness and reject protectionism. This vote sends a message to Americans from Seattle to Miami that we will create jobs at home by expanding exports to our North American neighbors. This vote sends a message to Mexico City and to other Latin American and Caribbean capitals that the U.S. will stay engaged and support the great process of political and economic reform in this hemisphere. And this vote sends a message to Geneva, where negotiations on the Uruguay Round of the GATT must conclude within a month. The United States remains fully committed to opening markets and creating the global economic growth that will lift the living standards of all nations. The NAFTA vote lends further strength to APEC's support for more open trade and investment. We should harness the momentum of NAFTA as we consider the second event--the GATT Uruguay Round. A successful Uruguay Round will open markets, spur growth, and create new jobs. Failure of the round will mean economies stifled by declining growth and rising protectionism. The United States remains firmly committed to winning a broad, liberalizing agreement on the time schedule established by Congress--December 15. There will be no December 16 for the Uruguay Round. The trade-offs to complete the Uruguay Round will not be easy, but they must be made. This opportunity to revive global economic growth is in the national interest of each of the members of APEC, and it is in our mutual interest. The opportunity must not be lost. APEC has consistently worked to move the Uruguay Round forward. I am confident that, at this ministerial meeting, we will come together to issue a strong and urgent call to conclude the Uruguay Round--and to do so successfully. The third event in this vital 30-day period begins today, with the commencement of the APEC ministerial. The United States attaches tremendous importance to its relationship with the Asia-Pacific region. Not only is Asia our largest trading partner, with trade about 50% greater than our trade with Europe, but we are bound to Asia by our strong commitment to regional security and by profound personal ties. This morning, in a speech at the University of Washington, I described the President's vision of a New Pacific Community based on shared strength, shared prosperity, and a shared commitment to democratic values. This Administration is placing special emphasis on developing regional approaches to build--along with others--that new community. APEC is a regional approach to economic issues. Trade and investment within the region are weaving a new web of human and commercial relationships. APEC can help develop these networks and create the infrastructure that will build a community out of this far-flung and diverse region. That is why this week's meetings are so important. APEC ministers can approve the proposed Declaration on a Trade and Investment Framework. The report of the Eminent Persons Group can give us a blueprint for expanding trade and economic relations over the long term. We can agree on specific plans for the working groups that will provide practical help for all businesses. These will all be important steps toward a more open trading regime among the members of APEC. We are only in the early stages of this effort, just as APEC is in its early years as an organization. Achieving an "open architecture" for trade and investment across the region will be an evolutionary process. So even as we work on this week's agenda, we should be looking ahead. The United States believes APEC should focus on three areas for the future. First, it should promote open trade and investment in the region. This is APEC's original task--and must be its most enduring one. Second, it should enhance cooperation on regional issues that require regional solutions, such as energy and the environment. This will help the region adapt to the demands--and the consequences--of its stunning economic growth. And third, it should improve the networks and the regional infrastructure that bind us together. It is this third dimension that I want to emphasize this evening--the concept of networking. APEC is the first regional organization founded in the information age. As you know, personal computers used to stand alone. Now they and their users are tied into larger networks, all the while retaining their individuality. In the same way, we envision a Pacific community increasingly linked through telecommunications, transportation, capital flows, and human contacts. APEC can help to make that happen. We already communicate instantaneously across more than a dozen time zones. Fiber optic cables are being laid across the Pacific, linking Asia's financial markets and bringing Asian countries closer to one another--and to us. Star TV, broadcast from Hong Kong, has a satellite footprint covering most of Asia. CNN is accessible--and regularly accessed--throughout the region. The next step could be the development of an Asia-Pacific "superhighway" using fiber optics and satellite technology to convey information. We should make sure that we communicate quickly and easily--whether by phone, FAX, or computer. In this room, with the original Boeing aircraft on display, it is astounding to think that it has been routine for years to fly non-stop from Seattle to Tokyo. The phenomenal growth of passenger and freight traffic is straining the system. We need to expand air routes, modernize facilities, and relieve transportation bottlenecks. APEC is already at work on these problems. Two of America's most important foreign policy priorities--economic policy and the Asia-Pacific region--are converging at these meetings. When he invited the region's economic leaders to Seattle, President Clinton asked that they define a vision that will shape the 21st century. He and I are convinced that APEC's members will contribute ideas, technology, and managerial expertise that will lead the world economy into the next century. The President and I are, of course, committed to advancing America's interests. APEC's work benefits American businesses and the American people. But the work we undertake together, through APEC, also benefits each and every member--their businesses and their people. It is a true harmony of interests. APEC can become the vehicle for sustained regional cooperation. We want an organization every bit as dynamic as the region itself. As we begin our work, therefore, let us ensure that APEC retains its commitment to open regionalism--that it is a building block, not a trading bloc. Let us ensure that APEC remains diverse and inclusive--an open network, not a closed club. Let me leave you with a challenge. To those of you in business, I say: Seize the opportunities before you in Asia and the Pacific--and tell us how APEC can help you. And to my fellow APEC ministers, I say: Let us continue to develop APEC as a platform for our common prosperity. (###) ARTICLE 5: APEC: A Forum To Boost Trade and Investment Secretary Christopher Remarks at the opening session of the fifth APEC ministerial meeting, Seattle, Washington, November 18, 1993 I would like to warmly welcome our two new members--Mexico and Papua New Guinea. I welcome you to the forum of the Asia-Pacific Economic Cooperation entity. We have also decided, based upon yesterday's events, that Chile will become a member in 1994, and we look forward to welcoming Chile at that time. As another result of yesterday's discussions, we have agreed that there will be a three-year period of deferral of the consideration of any new members to allow us to consolidate our efforts and to consider the issue of new members. So those three matters of consensus were reached yesterday. I thought I would announce that before we begin our proceedings today. Now if I can open the meeting today by a few welcoming remarks. I welcome you formally but also in a very warm and informal spirit to Seattle and to this fifth forum of the Asia-Pacific Economic Cooperation entity and our ministerial meeting. In 1776, the year of America's birth, the famous American essayist, Thomas Paine, wrote: Not a place upon earth might be so happy as America. Her situation is remote from all the wrangling world, and she has nothing to do but to trade with them. Paine's assumption that happiness would be increased by trade was certainly prophetic. But the isolation that he treasured is not consistent with successful trade relationships. Trade relationships, as we all know, require constant and vigorous attention and engagement, and that is one of the main purposes of this organization. For the United States and for all the economies represented here, this APEC conference is a prime opportunity for that kind of engagement. APEC can serve not only as a vehicle for our common prosperity but as a forum for cooperation across a broad range of regional and global issues. President Clinton and I have put economic security at the very heart of American foreign policy, and no part of the world is more important to economic well-being than the Asia-Pacific region. As a Pacific nation ourselves, we are committed to expanding our ties with Asia, and that is why we attach such great importance to APEC and to this meeting. We are very fortunate to have an opportunity to host it in the first year of President Clinton's Administration. APEC's work to liberalize regional trade certainly advances American interests. But the work we undertake here advances the interests of each and every one of the members. It is this harmony of interests that makes APEC such a useful and constructive organization. Let me say just a few words about the specific purposes of this meeting. This year's ministerial is dedicated to expanding the flow of Pacific trade and investment. We will discuss the many ways that our diverse economies can work together. The Declaration on an APEC Trade and Investment Framework, which we will consider for adoption, is the result of a year-long consultation by APEC senior officials. It incorporates ideas from all of you around the room, and it represents a significant and welcome step forward, I believe, by APEC as an institution. Yesterday's historic vote approving NAFTA gives our work here today an added sense of urgency. The vote last night was not just a dramatic moment--which perhaps some of you saw on television--but, as the President said, it was also a defining moment. It sent a message throughout the region that the United States remains committed to open trade and to global growth. Let me emphasize and state my view as firmly as I can that neither NAFTA nor APEC is a trading bloc. They are building blocks. All of us here are committed to an open global trading system that will spur economic growth, create jobs, and increase the prosperity and welfare of all our citizens. So I urge everyone here today to act on that commitment by pushing for a successful conclusion of the Uruguay Round by the December 15 deadline. I hope this ministerial will issue a strong and urgent call to win broad and liberalizing agreement in the GATT negotiations. At our meeting today, we will also hear a report from the Eminent Persons Group that will give us a blueprint for opening trade and widening our economic contacts. We also will assess the work of the APEC working groups and discuss the vision statements that have been prepared by those groups. Let me say just a further word about the working groups. They have worked to analyze a number of important problems: regional transportation bottlenecks, telecommunications links, ways to standardize trade data, ways to promote commercial exchanges, and ways to share information on environmentally sound technologies--all tasks that are important for our region and vital for long-term economic progress. One of the highest priorities we have in this week's discussions is to find ways to involve the private sector more actively in APEC's work. It is ultimately the business community that will drive the region's growth and prosperity, and it behooves us to find ways to involve private businesses, many of whom, I am glad to say, are here in the room and many of whom we saw last night. They are dedicated to helping us make APEC work. As I said last night, it is our view that APEC should focus on three areas. I will not repeat them at length, but let me just tick them off briefly. First, we should promote open trade and investment in the region. That was APEC's original purpose and no doubt is our most enduring task. Second, we should enhance cooperation on regional issues that require regional solutions, issues such as energy and the environment. And, third, we should improve regional networks and infrastructures that bind us together. In that cooperative spirit and forward-looking view, President Clinton has invited the APEC economic leaders to an informal session on Saturday. He told me yesterday, when we were talking about the NAFTA vote, how much he looked forward to that meeting and to participating in this APEC endeavor. This, of course, will mark the first time that these leaders have met to discuss long-term economic opportunities and challenges we face. The President and I are convinced that APEC's members will contribute ideas, technology, and managerial expertise that will lead the world economy into the next century. Benjamin Franklin, one of the great founding members of the United States and a contemporary of Thomas Paine, once observed that no nation was ever ruined by trade. If I could take the liberty of updating that remark, I would say that no great nation can succeed without trade. Every economy here is proof of the importance of trade. So, together, let us expand our trade and advance our common prosperity, starting here and now. Thank you very much. (###) ARTICLE 6: Briefing on the APEC Economic Leaders' Meeting Winston Lord, Assistant Secretary for East Asian and Pacific Affairs Opening statement at a news briefing, Seattle, Washington, November 20, 1993 There were two historic events today, and I missed one of them. The one I missed is, I gather, that Boston College beat Notre Dame in the last six seconds. But the other one I was attending. There is a tendency, I know, toward hyperbole at events like this; I wouldn't want to exaggerate this. But I think that we will look back in 10 or 20 years and consider this leaders' conference today a turning point in Asia-Pacific history in terms of symbolism and in terms of the beginning of moving toward a genuine community--a community as defined by the President, together with the other leaders, not in the sense of an integrated European Community but in a sense of family and a sense of shared purpose. As I believe the President outlined earlier today, there were three central themes that emerged in the course of the discussions. One, this group was united, not divided. Secondly, it saw its purpose as being open and not closed. Thirdly, you start with the Uruguay Round, underlining the fact that the global approach to growth and world trade is the central theme. Indeed, that was borne out in the course of this week by the impressive Uruguay Round package that Mickey Kantor and others put together, representing some $250 billion of trade in the sectors covered--going beyond what the Quad had agreed to earlier. The Vision Statement And Further Ideas You have to remember that this leaders' conference didn't even exist four months ago. It was proposed by the President but worked out carefully--as is consistent with the consensus principle of APEC--over the last few months. I think it's fair to say that the chemistry among the leaders began to warm up at dinner last night and then in the boat ride today. You could see, as the day went on, in the informal discussions with only the leaders in the room, that it got more and more open and relaxed. There was not a series of prepared statements; there were genuine interventions. There were ideas in the Vision Statement. But--as I will rehearse in just a minute--as the discussions went on, new ideas began to come out on the table about how the member economies and countries could move toward the vision they sketched in the Vision Statement. As one leader put it, "Beginning is half the job done." Now this is a beginning, and it's made concrete by the fact that, toward the end of the discussion, the participants unanimously asked President Suharto of Indonesia--or recommended to him--that he offer to host another leaders' meeting next year in Indonesia. He readily accepted, and everyone thanked him for that. So I think that's the best proof that the leaders found this exercise worthwhile. This was pre-cooked--I mean, I think that it's fair to say that there was some thought given to that, but people were reserving judgment until they saw how it went. I'm assuming you all have copies of the Vision Statement. We want to leave some time for questions. So I won't go over that, except to say that, beyond the general vision sketched in the front of it of moving toward freer trade in the region--and keep in mind you've got an extremely diverse set of countries and economies here, and yet they can agree on the principle of freer trade; they can agree on the principle of global trade through the GATT; they can agree on the strength in diversity; and they can agree on a sense of community, as I said earlier--there were some specific initiatives, because the discussions in the course of the day were divided into three parts. -- The first part was sketching the challenges and opportunities in the region. -- Then they moved into each leader describing his sense of national priorities within that framework. -- The third part of the discussions, starting at lunch and moving through the afternoon, was mechanisms and institutions to move toward that vision. Specific Initiatives I think you're familiar with the primary ones in the statement: the fact that the finance ministers will meet in 1994 and the fact that a business forum will be formed to advise how the private sector can more effectively work with APEC. But in the course of the afternoon, this was further refined when the extraordinarily important role of small- and medium-sized businesses was underlined. It was determined that in this forum, you'd have one representative--from each country--of a large business, but the other one would have to be from a small or medium business. The important thing to note here is that in most of the APEC economies, over 90% of their exports are by small and medium businesses, not by large businesses. There's also an APEC education program to be fleshed out, but this would include, perhaps, scholarships and study centers. There were more specific initiatives on small and medium businesses and the potential gathering of ministers concerned with these enterprises to discuss how they can link up better. The leaders also asked their bureaucracies to develop an action plan on the relationship between growth, energy, and environment. Again, the energy demand in this region is awesome. By the year 2000, that demand will double if it's not gotten under control. Present growth rates cannot be sustained unless something is done about this, not to mention the impact on the environment. And there was a proposal of cultural exchange. Again, all of these, except the first four, came up beyond the Vision Statement in the course of their discussions. There was also a proposal that APEC develop non-binding, non-discriminating investment rules. Now that's only a beginning; it is non-binding, but it could lead to something really quite significant for this diverse region. Finally, there was a proposal that a technology transfer exchange center be established to help developing countries in particular. So there are some concrete initiatives beginning to flesh out the vision that the leaders of these diverse countries agreed upon. Indeed, at the end, the President and the others each said, let's put our best people to work on these projects and let's make as much progress as we can make by the time we meet again--approximately a year from now. Some General Themes Of the Discussions Let me just give a few themes and then go to your questions. In the course of the discussions, I think, one of the themes that emerged was, of course, the great sense of potential and dynamism in this region-- you're familiar with that from the course of this week. So I won't give you a long rundown of statistics, except to re-emphasize that once the word community was understood--some were rather frightened by it, thinking of the EEC--but in the sense that the President spelled out last evening, I think there was a ready agreement of moving toward that kind of family and shared purposes. The integration of the Asia-Pacific region was underlined by one participant. Already, this region is more integrated in terms of trade than Europe or any other region in the world, which, frankly, came as a surprise to me and many of the rest of us. Sixty-six percent of the trade of the APEC members is among themselves--versus only 60% or 61% in the EEC. The diversity of this group, I think, was reflected in the fact that you can roughly divide it into three groups. -- You have the developing countries still in the rather early stages of development, and they are still plagued by population and poverty problems. -- Then you have the "tigers," or newly industrialized economies. Their main problem and challenge is the need for infrastructure; indeed, over the next 10 years, you will see $1 trillion spent on this by these countries--tremendous opportunities for American business, by the way. -- Then there are the developed countries, the third group, and here I think it's fair to say the most challenging problem was job creation. Indeed, one of the themes throughout the discussion, particularly among some of the more developed countries, was the fear of their citizens with respect to change--the insecurity of a more interdependent world economy. And that's why many of the leaders underlined their approval of the President's victory on NAFTA, which was a triumph, they felt, of hope over fear--looking to the future rather than retreating toward the past. Finally, I'd like to end up by saying that the importance of the Uruguay Round was a constant theme throughout these discussions, reflected in the Vision Statement and, of course, in the market access package that I outlined earlier. The final note--it would be the importance of the private sector. I think there were some 2,000 business people here this week. Some of the initiatives that we have developed reflect the role of the private sector. I think it's fair to say that if anyone is out there creating a community, it is private business. And it's one of the roles of APEC and the APEC governments to get out of the way of business, to remove obstacles, and to facilitate trade and investment. (###) ARTICLE 7: APEC Ministerial Meeting Joint Statement Following is the text of a joint statement released by the APEC ministers, Seattle, Washington, November 20, 1993. (For the text of Annex 1, see p. 832 [ARTICLE 8]; Annexes 2-8 omitted.) 1. Ministers from Australia, Brunei Darussalam, Canada, the People's Republic of China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Republic of the Philippines, Singapore, Chinese Taipei, Thailand, and the United States of America participated in the Fifth Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting convened in Seattle, Washington November 17- 19, 1993. The ASEAN Secretariat, the Pacific Economic Cooperation Council (PECC) and the South Pacific Forum (SPF) attended as observers. Members of the APEC Secretariat also were present. 2. The meeting was chaired by the Honorable Warren Christopher, Secretary of State of the United States. 3. In his opening remarks, Secretary Christopher stated trade and investment within Asia and the Pacific are weaving a new web of human and commercial relationships. He indicated APEC can play a crucial role in developing these Asia-Pacific networks. The Secretary also stressed APEC's development depends on its ability to promote more open trade and investment in the region, increase cooperation on issues that require regional solutions, and improve regional infrastructure. 4. The Ministers noted with great anticipation the meeting of APEC leaders to be held in Seattle, November 20, 1993. The Ministers agreed this meeting offers a unique opportunity for leaders to articulate a shared vision for the region into the next century and further develop economic ties in the region. 5. Ministers held discussions on a range of topics, including: -- The Report of the Eminent Persons Group -- Economic Trends and Issues -- Trade and Investment Issues -- The APEC Work Program -- Participation Issues -- Organizational Issues 6. As the former Chairman of APEC and the current Chairman of the ASEAN Standing Committee, H.E. Foreign Minister Prasong Soonsiri of Thailand expressed satisfaction with the progress made since the Bangkok Ministerial meeting. He stated APEC's priority tasks are to push for the successful conclusion of the Uruguay Round by the target date and to further enhance technical cooperation and trade facilitation in APEC. The Foreign Minister stressed the achievement of regional trade liberalization must be made through consultation in a manner consistent with the principles of GATT and open regionalism, with full recognition of members' differences in levels of economic development. APEC must retain its consensual and flexible character, which continues to be its fundamental strength. REPORT OF THE EMINENT PERSONS GROUP 7. Ministers expressed their great appreciation for the initial Report of the Eminent Persons Group, which assessed the current position and outlook of the APEC region, developed a long-term vision for open trade in the APEC region and proposed a program of initiatives to implement the vision. The EPG chair, Dr. C. Fred Bergsten, presented the Group's unanimous Report which emphasized that APEC must accelerate and expand cooperation in order to respond to three threats to the continued vitality of the region: erosion of the multilateral global trading system; evolution of inward looking regionalism; and risk of fragmentation within the Asia-Pacific region. The EPG recommended APEC undertake initiatives in four areas: regional and global trade liberalization; trade facilitation programs; technical cooperation; and institutionalizing APEC. 8. Ministers warmly welcomed the Report's broad thrust and direction, pointing out the Report's bold vision of open trade, investment and economic development in the region provides an important foundation and catalyst for future regional cooperation. In a wide-ranging discussion Ministers noted the contribution of the EPG in promoting vigorous debate on the economic challenges facing the Asia-Pacific region, reaffirmed the central value of a strengthened open multilateral trading system to continued growth in APEC economies, urged acceleration and extension of APEC's trade and investment facilitation and technical cooperation, and expressed their desire to enhance APEC's role as a vehicle for regional and global trade and investment liberalization. They also noted the EPG vision reflected the strengthening of economic relationships and a growing sense of cohesion and community in the Asia-Pacific region, reflecting APEC's commitment to consultation and consensus building. Ministers directed the APEC Secretariat to give broad distribution to the Report. They also suggested EPG members might wish to discuss the Report with the business community, academia, and the general public, and APEC members might wish to encourage this process. 9. Ministers discussed several approaches to addressing the EPG recommendations, noting in particular that those recommendations closely linked to ongoing work should be implemented promptly; those recommendations related to the outcome of the Uruguay Round would require additional study and consideration; and those recommendations related to longer term trade liberalization would require further elaboration by the EPG, on the advice of Senior Officials. 10. In light of the above, Ministers instructed Senior Officials to develop pragmatic programs to implement the EPG recommendations on trade liberalization and facilitation, technical cooperation, and the development of the APEC structure and decision-making process. Ministers further requested Senior Officials prepare a strategy and program to advance regional and global open trade, identify mechanisms to achieve that goal, and report to Ministers at the next ministerial meeting. 11. Ministers asked the Eminent Persons Group, on the advice of Senior Officials, to present further more specific proposals on how the recommended long-term vision might be realized. Ministers wish to consider these proposals at their meeting in Indonesia in 1994. ECONOMIC TRENDS AND ISSUES 12. Ministers emphasized the central role which sound economic analysis plays in developing both national policies and regional cooperative initiatives. The growing interdependence within the region is producing shared goals and aspirations and fostering a spirit of common purpose and of community among APEC members. The work of the Ad Hoc Group on Economic Trends and Issues is, therefore, crucial to promoting open trade and investment throughout the region and increasing the economic well-being of all our peoples. Ministers directed the Group to strengthen further its capability to prepare assessments of long-term economic trends and studies of specific sectoral issues. Ministers directed Senior Officials to explore the possibility of transforming the Group into the APEC Economic Committee before the next ministerial meeting. 13. Ministers thanked Thailand for the excellent economic outlook paper prepared for Ministers' review. Ministers discussed the key issues analyzed in the report, including the prospects for continued economic growth in the region and the near-term outlook for inflation. Ministers also considered several emerging economic issues the paper identified, including the growth of infrastructure bottlenecks in some member economies and changes in the labor markets of several member economies. 14. Ministers welcomed the valuable analysis contained in Japan's paper on a vision of the region in the year 2000. They noted the importance of continued analysis of the major topics in the report, including trade and investment liberalization, developing human resources and meeting environmental and energy resource challenges. 15. Ministers endorsed the proposal to initiate regular exchange among APEC members of key economic statistics. Such exchange will facilitate policy formulation and enhance future Ministerial discussion of economic developments in the region. 16. Ministers endorsed the Group's mission statement and instructed Senior Officials to advance work on one or more of the proposals to: assess the study on investment flows throughout the region; examine the interrelation of trade liberalization and privatization; study the means of sustaining economic growth in the context of sound energy and environmental policies; and over the longer term, explore the feasibility of producing in-depth analysis of international industrial linkages. Ministers also directed Senior Officials to prepare short- to medium-term economic outlooks for economies of the region for use at the 1994 ministerial meeting. TRADE AND INVESTMENT ISSUES 17. Ministers confirmed trade and investment liberalization as the cornerstone of APEC's identity and activity. Strengthening the multilateral trading system, expanding regional and global trade and improving investment rules and procedures in a GATT-consistent manner are, therefore, central APEC objectives. The Uruguay Round must conclude by December 15. Ministers accordingly resolved to exercise the political will required to achieve this goal. To that end, Ministers agreed to a resolute statement urging an early and successful conclusion to the Uruguay Round and demonstrated their commitment to this goal by expressing their preparedness to take additional specific trade liberalizing measures [Annex 1]. APEC challenges other Uruguay Round participants to enhance their own contributions to the Round's successful conclusion. 18. Ministers expressed strong support to non-GATT members of APEC in their efforts to become GATT contracting parties, thus making additional contributions to the strengthening of the multilateral trading system. 19. Ministers welcomed the Report of the Informal Group on Regional Trade Liberalization (RTL), as agreed by Senior Officials, and endorsed its recommendations on the continuation of a dialogue within APEC on important multilateral and regional trade policy issues and the further development of APEC's action agenda on trade and investment. On the trade policy dialogue, Ministers noted in particular the effective role played by APEC in maintaining the momentum for a satisfactory outcome to the Uruguay Round and in fostering better understanding of subregional trade arrangements and the contribution of such arrangements to APEC's overall goals. 20. Ministers emphasized the imperative that APEC members give effective support to the market-driven dynamism of the region. In this respect, they endorsed the RTL Group's recommendations aimed at improving access to tariff data, reducing administrative barriers to trade, streamlining customs procedures, harmonizing the diverse approaches to standards and conformance issues and encouraging the flow of investment. Ministers welcomed the extensive progress on customs facilitation, publication of an APEC Investment Guidebook and a private sector survey of attitudes toward investment in the region, publication of the APEC Customs Manual and hosting of the APEC Customs Symposium. APEC's important work in this area will be further developed by the new Committee on Trade and Investment which will replace the RTL Group. 21. Ministers wholeheartedly adopted the "Declaration on an APEC Trade and Investment Framework" and the accompanying initial work program for the newly established Committee on Trade and Investment [Annex 2]. The Declaration significantly advances APEC's role in trade and investment by engaging APEC members in both policy and facilitation matters. The Declaration serves as an important instrument within which to further define APEC's identity, expand economic activity and facilitate the flow of goods, services, capital, investment and technology throughout the region. 22. Ministers called for a meeting of ministers concerned with trade policy to review the results of the Uruguay Round and its implications for the region. Ministers urged this post-Uruguay Round meeting to consider next steps for regional and global trade liberalization. WORK PROGRAM ISSUES 23. APEC's role in sustaining regional growth and development derives from growing intraregional economic interdependence. The activities of the ten Working Groups are an essential part of APEC's efforts to contribute to the region's development and prosperity. Recognizing the critical importance of modern telecommunications and information technologies to regional integration and cooperation; the unique role of tourism as the largest industry in the region; and the urgent need to work with other organizations on marine resources conservation to strengthen regional cooperation in response to UNCED, Ministers issued separate declarations on those issues [Annexes 3-5]. 24. Ministers commended and approved the vision and policy issues statements and asked the Working Groups to direct their efforts to realizing the objectives in those statements. Ministers approved the Consolidated Report on the APEC Work Program. 25. Ministers welcomed Korea's proposals on the establishment of an "APEC Vocational Training Program" and the creation of an "APEC Technomart" and directed the Senior Officials to explore the possibility of implementing them within the framework of the Human Resource Development and Investment and Industrial Science and Technology Working Groups. Trade and Investment Data 26. Ministers welcomed the progress made on developing a near comparable merchandise trade data base for APEC economies and directed that priority attention be devoted to efforts to adjust published merchandise trade data according to agreed principles and standards. The Group should also strengthen efforts to improve the collection and sharing of services trade and investment data. Trade Promotion: Programs and Mechanisms for Cooperation 27. Ministers noted the Working Group can play an important role in strengthening interaction with the business/private sector. Ministers anticipate the first Asia-Pacific International Trade Fair to be held in Osaka, Japan in October 1994 will be a significant step to accelerate trade promotion and increase commercial transactions in the region. Investment and Industrial Science and Technology 28. Ministers noted the broadening of the mandate for the Investment and Industrial Science and Technology Working Group and endorsed its efforts to develop a work program that increases cooperation in these important fields. Human Resource Development 29. The people of the Asia-Pacific region are its single most important asset. The dynamism of the region is reflected in changing human resources needs. Ministers expressed satisfaction with the progress achieved in APEC's human resource development activities, but urged that continued priority attention be devoted to this work--with particular emphasis on the training and adjustment needs necessitated by changing trade patterns, industrial restructuring and other economic changes associated with rapid growth and technological progress. Energy Cooperation 30. Ministers noted the vital importance of secure and balanced energy supplies and rational energy use for sustained economic development and protection of the environment. They welcomed technology and policy exchanges on energy efficiency, clean coal technology and renewable energy, and in particular were encouraged by active business/private sector participation in APEC technical energy workshops and seminars. Marine Resource Conservation 31. Ministers confirmed the unique contribution APEC can make to marine resources conservation and the importance of APEC cooperation with other marine resources conservation organizations in response to UNCED. Telecommunications 32. Modern and compatible telecommunications networks are vital components linking and drawing closer the APEC economies. Ministers praised the completion of the second edition of The State of Telecommunications Infrastructure and Regulatory Environments of APEC Economies, the Working Group's stress on human resources development, and its important contribution to the consideration of coordinating APEC's electronic data interchange activities. Fisheries 33. Ministers noted the important role of fisheries to the region's economies and endorsed the Working Group's project on fisheries management, survey of training needs, health and quality rules for fisheries products, improved marketing information on seafood trade in the region, and the possible role of APEC in respect to aquaculture. Transportation 34. Ministers emphasized the importance of efficient transportation systems in promoting regional growth and integration. They expressed appreciation for the Working Group's efforts in developing information on regional transportation and encouraged the Group to accelerate its work on identifying infrastructural needs and facilitating movement of passengers and goods in the region. Tourism 35. Ministers welcomed the progress made by the Working Group in addressing the issues of sustainable development of the tourism sector and addressing the relationship between tourism and the environment. PARTICIPATION ISSUES 36. Ministers noted the continuing interest expressed by a number of economies and organizations in participating in some capacity in the APEC process. Ministers reaffirmed APEC is an open and evolving process and recalled the view expressed in Bangkok that consolidation and effectiveness should be the primary considerations at this stage of APEC's development. Ministers also recognized, however, that APEC should develop more systematic means of addressing the issue of new members in a manner which is responsive to APEC's needs while promoting constructive interaction with other economies and organizations in the region. 37. Ministers welcomed the admission of Mexico and Papua New Guinea to APEC. They also decided to admit Chile to APEC and looked forward to its membership at the ministerial meeting in 1994. In the interim, Ministers encourage Chile to participate in the Working Group activities. Noting the importance of increasing APEC's effectiveness, Ministers agreed to defer consideration of additional members for three years, during which time Senior Officials would study APEC's membership policies and provide recommendations to Ministers on an ongoing basis. 38. Ministers reaffirmed that participation by non-members from the Asia-Pacific region in APEC work projects can be beneficial to members as well as non-members. In order to facilitate cooperation with non- members and address issues arising from increased economic interdependence, Ministers approved the proposed guidelines for non- member participation in APEC Working Group activities which appear as Annex 6, and asked Senior Officials to identify other potential means to promote mutually beneficial interaction. With respect to organizations, Senior Officials should identify considerations to guide APEC in fostering appropriate ties and report their findings to the Sixth Ministerial. Private Sector Participation 39. The business/private sector has played a major role in facilitating the dynamic growth of the region. Engagement with the business/private sector, particularly through Working Group activities, ensures APEC's efforts are relevant to real world challenges and opportunities. Ministers commended the progress made this year in increasing business/private sector engagement with APEC and directed each Working Group to enhance its outreach to the business/private sector. Ministers pledged to solicit the advice of the business/private sector on issues relevant to APEC's work, especially through the PECC, and instructed Senior Officials to explore other ways of broadening and deepening cooperation with the business/private sector including the work of the new Committee on Trade and Investment. ORGANIZATION ISSUES APEC Secretariat 40. Ministers noted with satisfaction the successful establishment of the APEC Secretariat, and expressed deep appreciation to Singapore for its extraordinary generosity in assisting the Secretariat and to Executive Director Ambassador Bodde and the Secretariat staff for their outstanding efforts during the first year of operation. Ministers highlighted the Secretariat's crucial role in facilitating cooperative links with members and the work program. Ministers stressed the Secretariat should serve as a central coordinating point for disseminating information including informing Working Groups of Senior Officials' decisions, coordinating requests by non-members to participate in APEC activities, and publishing and distributing APEC documents. The Secretariat should continue to place high priority on careful management of the APEC budget, disbursement of central funds, and maintenance of effective financial controls to ensure accountability of APEC funds. Budget 41. Ministers endorsed efforts by Senior Officials, assisted by Working Group Shepherds and the APEC Secretariat, to develop and implement a series of measures related to financial operations and administration. Ministers approved an APEC 1994 Central Fund of $2 million and stipulated that unspent 1993 funds may be carried over to 1994 for expenditures approved by Senior Officials. Ministers asked the Budget and Administrative Committee to address the issue of contributions from new members. APEC Structure 42. Ministers praised work by Korea and Canada in developing a comprehensive Vision Statement containing proposals designed to ensure efficient management of APEC's scarce resources. Similarly, Ministers directed that a Budget and Administrative Committee be established to advise Senior Officials on operational and administrative budget issues, financial management, and project management of the APEC work program. For the first year, committee membership will be open to all APEC members. The Working Groups will continue to report directly to Senior Officials. Ministers directed Senior Officials to use the Vision Statement as a basis for developing proposals related to APEC's structure and to provide recommendations at the 1994 ministerial meeting on restructuring APEC to improve its effectiveness and decision-making process. VENUES FOR FUTURE APEC MINISTERIAL MEETINGS 43. As decided at the Fourth Ministerial Meeting in Bangkok, the Sixth Ministerial Meeting will be held in Indonesia in 1994, the Seventh Ministerial Meeting will be held in Japan in 1995, Philippines and Canada will host the Eighth and Ninth Ministerial Meetings in 1996 and 1997 respectively. OTHER MATTERS 44. Ministers also welcomed Canada's offer to host a meeting of APEC ministers concerned with the environment in Vancouver on March 25-26, 1994 in connection with the Globe '94 conference and environmental exhibition. 45. Ministers and their delegations expressed their deep appreciation to the United States for the warm and generous hospitality extended to them and the excellent facilities and arrangements made available for the Meeting. (###) ARTICLE 8: Declaration on an APEC Trade And Investment Framework Following is the text of Annex 1 of the APEC ministerial meeting joint statement released by the APEC ministers, Seattle, Washington, November 20, 1993. Ministers of Australia, Brunei Darussalam, Canada, the People's Republic of China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, Chinese Taipei, Thailand and the United States of America, meeting in Seattle from November 17-19, 1993, (collectively the "Members"): 1. Determined to work through APEC toward the further development of open regionalism and market-driven economic interdependence in the Asia Pacific region; 2. Challenged by their desire to capitalize upon the strong and dynamic growth in regional trade and investment through increased cooperation and facilitation; 3. Recognizing that GATT principles are the cornerstone of the multilateral, international trading system and the basis for economic cooperation in APEC, and remaining committed to those principles; 4. Mutually determined to develop APEC's global role as a forum operating through consultation and by consensus, distinguished by open regionalism and committed to the strengthening of the multilateral trading system embodied by GATT; 5. Demonstrating to the global trade and investment community APEC's vision of dynamic interdependence and APEC's ability to represent the mutual interests of the Asia Pacific region with an active, common voice on trade and investment issues of global importance; 6. Recognizing the differences in the stages of development and in the socio-political systems, and giving due consideration to the needs of developing economies; 7. Recognizing the linkage between trade and investment and the flow of technology; 8. Committed to open dialogue and consensus-building with respect to the views of all participants; 9. Determined to pursue the objectives of the Seoul APEC Declaration November 14, 1991, confirmed at Bangkok on September 11, 1992 to: -- sustain the growth and development of the region for the common good of its peoples and in this way, to contribute to the growth and development of the world economy; -- enhance the positive gains, both for the region and the world economy, resulting from increasing economic interdependence, including by encouraging the flow of goods, services, capital and technology; -- develop and strengthen the open multilateral trading system; and -- reduce barriers to trade in goods and services and investment among participants in a manner consistent with GATT principles and without detriment to other economies; 10. Acknowledging the essential role played by the APEC business sector in furthering growth, creating jobs, expanding trade and investment, improving technology and enhancing economic development and cognizant that protectionism, certain investment measures as well as other discriminatory and restrictive practices that distort trade would deprive APEC economies of such benefits; 11. Desiring to consult on and seek solutions to trade and investment problems in the region as amicably and expeditiously as possible without prejudice to the rights and interests of members under the GATT and consistent with GATT principles; 12. Convinced that it would be in the interest of APEC economies to establish an APEC mechanism to stimulate the liberalization of trade and investment and advance a trade agenda in support of these objectives within the region. To this end, Ministers jointly resolve as follows: PARAGRAPH ONE Establishment of the APEC Committee on Trade and Investment Under the authority of APEC Ministers, the APEC Committee on Trade and Investment (the "Committee") is established. The Committee will report to Ministers through Senior Officials (the SOM). PARAGRAPH TWO Objectives The objectives of the Committee are to: 1. Create a coherent APEC perspective and voice on global trade and investment issues and increase cooperation among Members on key issues. 2. Pursue opportunities to liberalize and expand trade, facilitate a more open environment for investment and develop initiatives to improve the flow of goods, services, capital and technology within the region; consult on issues of importance in that context and develop consensus to expand and strengthen these flows within the region and globally, and to reduce and remove distortions which impede these flows in a manner consistent with applicable GATT principles. PARAGRAPH THREE Scope of Activity 1. Ministers will review progress on trade and investment issues and determine the Committee's work program at their annual meeting. 2. The Work Program will address a range of such issues encompassing: a) policy issues related to the evolving interrelationship of the APEC economies within the global economic environment; b) impediments and distortions which affect the movement of goods, services, investment, and technology in the APEC region; c) reduction of transaction costs which affect the flow of trade and investment in the region; d) trade and investment policy issues evolving from the work of individual APEC Working Groups and activities; e) ways to enhance the contribution of the APEC business sector in evolution of trade policies, identification of barriers to trade within the region and possible solutions of mutual benefit to the region. 3. At this Ministerial meeting in Seattle, Ministers enjoined the Committee to undertake the initial work program for 1994. PARAGRAPH FOUR Structure of the Committee 1. The Committee shall be composed of Members' policy-level officials responsible for trade and economic affairs. 2. The Committee shall select a Chair and Vice Chair to serve a term to be decided by the Committee. 3. The Committee will meet at such times as agreed jointly by representatives. 4. The Committee may establish either temporary or permanent sub- committees, with clearly defined terms of reference and duration, that may meet concurrently or separately in order to facilitate its work. (###) ARTICLE 9: APEC Economic Leaders' Vision Statement Following is the text of a statement released by the APEC economic leaders, Seattle, Washington, November 20, 1993. We have held an unprecedented meeting of the economic leaders of the Asia-Pacific Economic Cooperation forum. In this post Cold War era, we have an opportunity to build a new economic foundation for the Asia Pacific that harnesses the energy of our diverse economies, strengthens cooperation and promotes prosperity. Our meeting reflects the emergence of a new voice for the Asia Pacific in world affairs. As we prepare to enter the twenty-first century, we believe our dynamic region, representing forty percent of the world's population and fifty percent of its GNP, will play an important role in the global economy, leading the way on economic growth and trade expansion. The foundation of our economic growth has been the open multilateral trading system. Therefore, we pledge our utmost efforts to bring the Uruguay Round to a successful conclusion by December 15. We are determined the Asia Pacific region will lead the way in taking concrete steps to produce the strongest possible outcome in Geneva. Increased participation by APEC economies in a strengthened GATT system also will facilitate greater regional cooperation. Our success has been the result of the ability of our societies to adapt to changing circumstances. Our economies are moving toward interdependence and there is a growing sense of community among us. We are united in our commitment to create a stable and prosperous future for our people. Recognizing our economic interdependence as well as our economic diversity, we envision a community of Asia Pacific economies in which: -- The spirit of openness and partnership deepens, enabling us to find cooperative solutions to the challenges of our rapidly changing regional and global economy; -- We are a vast Asia Pacific market of two billion people where dynamic economic growth continues, contributing to an expanding world economy and supporting an open international trading system; -- We continue to reduce trade and investment barriers so that our trade expands within the region and with the world and goods, services, capital and investment flow freely among our economies; -- Our people share the benefits of economic growth through higher incomes, high skilled and high paying jobs and increased mobility; -- Improved education and training produce rising literacy rates, provide the skills for maintaining economic growth and encourage the sharing of ideas that contribute to the arts and science; -- Advances in telecommunications and transportation shrink time and distance barriers in our region and link our economies so that goods and people move quickly and efficiently; -- Our environment is improved as we protect the quality of our air, water and green spaces and manage our energy sources and renewable resources to ensure sustainable growth and provide a more secure future for our people. We recognize this vision will become a reality only if we work together actively to secure it. We are convinced we can succeed. We intend to use our shared vision as a guide for developing the future of our region. We reaffirm our support for the continued development of APEC as a forum dedicated to producing tangible economic benefits to the region. We urge APEC to expand its economic dialogue and advance its specific work projects. The entrepreneurial spirit and market-oriented policies that have driven our economic dynamism will continue to be fostered within APEC. We welcome the challenge presented to us in the report of the APEC Eminent Persons Group to achieve free trade in the Asia Pacific, advance global trade liberalization and launch concrete programs to move us toward those long-term goals. We ask APEC to undertake work aimed at deepening and broadening the outcome of the Uruguay Round, strengthening trade and investment liberalization in the region, and facilitating regional cooperation, including in such areas as standards. We agree to convene a meeting of APEC Finance Ministers to consult on broad economic issues including macroeconomic developments and capital flows. We believe such discussions will help us address some of the challenges facing the region, including ensuring non-inflationary regional growth, financing investment and infrastructure development, and promoting capital market development. We ask business leaders to establish a Pacific Business Forum to identify issues APEC should address to facilitate regional trade and investment and encourage the further development of business networks throughout the region. We also ask APEC to strengthen its policy dialogue on small and medium size business enterprises. We agree to make an investment in our future generations by establishing an APEC Education Program to develop regional cooperation in higher education, study key regional economic issues, improve worker skills, facilitate cultural and intellectual exchanges, enhance labor mobility and foster understanding of the diversity of our region. We agree to establish an APEC Business Volunteer Program to promote cooperation among us in the areas of human resource development and the exchange of management skills and techniques. As members of APEC, we are committed to deepening our spirit of community based on our shared vision of achieving stability, security and prosperity for our peoples. (###) ARTICLE 10: Fact Sheet: Asia-Pacific Economic Cooperation (APEC) Background The Asia-Pacific region, comprising some of the more dynamic economies in the world, has experienced unprecedented growth in the last two decades. Economic relations among economies of the region also have increased dramatically, fueled by growing trade and financial flows. Asia-Pacific Economic Cooperation (APEC) was established to better manage the effects of growing interdependence in the Pacific region and sustain economic growth. A new vehicle for multilateral cooperation among the market-oriented economies of the region was needed. APEC began in 1989 as an informal grouping of 12 Asia-Pacific economies formed to meet that need. In November 1991, APEC admitted China, Hong Kong, and Chinese Taipei. In November 1993, Mexico and Papua New Guinea joined APEC, bringing membership to 17. APEC provides a forum for discussion on a broad range of economic issues of importance to the region. The APEC chair rotates annually among members and is responsible for hosting an annual ministerial meeting. Foreign and economic ministers from the members first met in Canberra, Australia, in November 1989. Since then, annual ministerial meetings have been held in Singapore; Seoul, South Korea; Bangkok, Thailand; and Seattle, Washington. Upcoming ministerial meetings are planned for Indonesia in 1994, Japan in 1995, the Philippines in 1996, and Canada in 1997. Indonesia now holds the APEC chair and will host the next APEC ministerial meeting in Bali, Indonesia, in November 1994. Indonesia also will host periodic lower-level meetings throughout 1994 to lay the groundwork for the ministerial meeting. U.S.-APEC Relations The United States works closely with members of APEC, which is an important part of U.S. engagement in the Asia-Pacific region. President Clinton has underscored that the United States is "committed to making [APEC] a vehicle for liberalization in the region." In 1992, U.S. trade across the Pacific ($344 billion) was 51% greater than trade with Western Europe ($228 billion). U.S. foreign direct investment in economies belonging to the APEC group was more than $145 billion in 1992, about 30% of total U.S. foreign direct investment. APEC Progress APEC has grown from an informal dialogue group to a more formalized institution that involves all major economies of the region: China, Hong Kong, and Chinese Taipei joined APEC in 1991; APEC established a permanent secretariat in Singapore in September 1992; and, at the November 17-19, 1993, ministerial meeting in Seattle, Mexico and Papua New Guinea joined APEC and ministers invited Chile to join in late 1994. In Seattle, ministers also agreed to the Declaration on an APEC Trade and Investment Framework and action plan, set up the Committee on Trade and Investment, and extended the non-governmental Eminent Persons Group's mandate to develop proposals to effect its long-term recommendations and vision for Asia-Pacific regional economic cooperation. APEC economic leaders, meeting on Blake Island near Seattle on November 20, 1993, set forth a vision which recognizes that in the post-Cold War era: We have an opportunity to build a new economic foundation for the Asia Pacific that harnesses the energy of our diverse economies, strengthens cooperation and promotes prosperity. The leaders also: -- Called for a successful conclusion to the Uruguay Round of the General Agreement on Tariffs and Trade; -- Called on APEC to expand its economic dialogue and advance its work program; -- Agreed to convene a meeting of APEC finance ministers; -- Asked business leaders to establish a Pacific Business Forum; -- Asked APEC to strengthen its policy dialogue on small and medium- sized business enterprises; and -- Agreed to establish an APEC Education Program and a Business Volunteer Program. APEC's priority is to encourage market-oriented solutions to the adjustment problems associated with quickly growing economies. APEC has made significant contributions to negotiations during the Uruguay Round and is considering moves toward regional trade liberalization. APEC Groups APEC senior officials oversee 10 working groups, covering broad areas of economic, educational, and environmental cooperation. In addition, APEC has a Committee on Trade and Investment and an Ad Hoc Group on Economic Trends and Issues. The working groups are: Trade and Investment Data. Develops consistent and reliable data in merchandise trade, trade in services, and investment. Trade Promotion. Develops proposals to exchange trade and industrial information and to promote economic and trade missions among economies of the region. Organizes international seminars and meetings to pro- mote trade, an Asia-Pacific trade fair, and a training course on trade promotion. Investment and Industrial Science and Technology. Promotes investment in the APEC region through such activities as an investment and technology information network for the Asia-Pacific region. Human Resource Development. Seeks ways to exchange information among Asia-Pacific economies in such areas as business administration, industrial training and innovation, project management, and development planning. In this working group, the United States hosted an APEC education ministerial in Washington, DC, in August 1992 and sponsors the APEC Partnership for Education, which promotes university partnerships among U.S. and Asian/South Pacific universities, outreach and cooperative education activities, and private sector training. Energy Cooperation. Develops cooperative projects, such as a regional database on energy supply and demand, and exchanges views on, among other things, coal utilization, technology transfer, and resource exploration and development. Marine Resource Conservation. Exchanges information on policy and technical aspects of marine pollution and advancement of integrated coastal zone planning. Exchanges information on and develops recommendations for dealing with red tide/toxic algae pollution problems. Telecommunications. Compiles annual survey on APEC telecommunications development activities, including a description of each member country's telecommunications environment. Explores ways to establish and develop regional networks, initially by encouraging electronic data interchange. Exchanges information on policy and regulatory developments in each member's telecommunications sector. Disseminates a manual on how to approach training in a telecommunications organization, followed by a pilot project reviewing needs and recommending solutions in a selected organization. Transportation. Studies and recommends ways to improve infrastructure, facilitate movement of passengers and freight, collect and exchange data, and enhance transportation safety and security. This U.S.-led working group is one of three added in March 1991. The United States proposed it because of the importance of improved transportation links to continued economic growth in the region. Tourism. Studies one of the region's most important industries, focusing on tourism data exchange, barriers to expansion, training programs, and current projects in APEC member economies. Fisheries. Surveys the pattern of APEC fisheries cooperation to develop fisheries resources. Reports on role of APEC in coordinating and complementing the work of existing organizations and promoting cooperative relations among APEC participants. Participating Economies Australia, Brunei, Canada, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Philippines, Singapore, Chinese Taipei, Thailand, United States (###) ARTICLE 11: Fact Sheet: APEC Working Groups Since APEC's formation in 1989, 10 APEC working groups have been established to develop activities which will contribute to its overall goal of expanding economic cooperation among the member economies. Following are descriptions of each group. Human Resource Development Working Group Background The APEC Human Resource Development (HRD) working group, chaired by Canada, promotes the development of human resources in the Asia-Pacific region, with the recognition that economic prosperity requires a well- trained, flexible work force. The working group aims to exchange information within APEC on business administration, industrial training and innovation, project management, and development planning. Three main networks/priority areas are: Business Management Network; Network for Economic Development and Management; and Human Resources Development in Industrial Technology Network. Recent Accomplishments -- Within the HRD working group, the U.S. sponsors the APEC Partnership for Education, promoting university partnerships among U.S. and other APEC member economy universities, outreach and cooperative education activities, and private sector training. -- The working group is undertaking more than 50 projects, including, for example, human resource development efforts in small and medium- sized enterprises, the impact of foreign aid on human resource development and capacity-building, developing a quality work force through on-the-job training, and the compilation of comparable education statistics in the APEC region. Goals The working group will continue to discuss human resource development policy issues among APEC members. It will complement activities of other APEC working groups and multilateral agencies engaged in human resource development. Specifically, it will complete the rotation of network coordinators in the Business Management Network, Network for Economic Development and Management, and the Human Resources Development in Industrial Technology Network. The working group plans to finish its medium-term work plan and continue to promote the U.S.-APEC Partnership for Education, the Japan-APEC Partnership for Education and Training, and the Mobility in the Asia-Pacific Project of Australia University. Contact Randolph Yamada, U.S. Agency for International Development, Bureau for Asia and Near East, (202) 647-2658/3805, FAX (202) 647-1805. Tourism Working Group Background Tourism, one of the largest and most rapidly growing industries in the world, is very important to APEC member economies. By the year 2000, tourism in the region will grow markedly, and global tourism is projected to exceed $3.4 trillion. The APEC Tourism Working Group (TWG), co-chaired by the United States and Indonesia, coordinates travel and tourism issues for APEC-member economies. Private sector participation in the TWG has included the Pacific Asia Travel Association (PATA), the Pacific Economic Cooperation Council (PECC), and the University of Hawaii. The group also works with the World Tourism Organization and the Organization for Economic Cooperation and Development. Goals and Accomplishments The working group is developing tourism projects related to: 1. The environment; 2. Human resource development; and 3. Statistics. Tourism and the Environment: One goal of the working group is to promote sustainable economic development in the region. In 1993, the working group received $50,000 in APEC funds to identify major ecosystems that significantly affect tourism--and vice versa--and to determine management techniques, strategies, and funding sources to conserve and enhance these areas as well as to increase or maintain tourism flows. A second, self-funded project reviews tourism development and its interdependence with natural, cultural, and social/historical environments among working group members. Human Resource Development: The group received $25,000 in 1993 APEC funds to develop a course to enhance local government officials' awareness of the impact of their decisions on tourism. Future courses will be funded through industry support as well as through registration fees from individuals benefiting from the educational services provided. Statistical Data Collection: The working group plans to initiate the development of an APEC regional tourism database to include the comparability of current tourism statistics and information within the region. The group also is considering a proposal for a Pacific-Asia travel monitor as a future APEC-funded project which would develop and implement, over a six-year period, a continuous survey of outbound travel from most APEC member economies. Other Issues: These include cooperative efforts among APEC economies to promote the concept of tourism growth based on solid infrastructures that account for preservation of the environment, community needs, traveler safety and welfare, training and education requirements, and collection and distribution of tourism statistics. Contact Ginger Smith, Public Affairs and Senior International Policy Analyst, U.S. Travel and Tourism Administration, Washington, DC 20230, (202) 482- 0137, FAX (202) 482-4279. Trade and Investment Data Working Group Background The Trade and Investment Data Working Group (TIDWG) is co-chaired by Singapore, Japan, Indonesia, and the U.S. It seeks to increase the utility of statistical data among member economies and to improve regional consultations in data collection methods and practices. Its objective is to set up comparable statistical databases on trade in goods and services and investment for APEC member economies. Discrepancies in APEC trade and investment data have been a source of concern to policy-makers. Consistent and comparable databases across APEC economies are fundamental to developing and supporting trade and investment policies for its members and for analyzing economic issues facing the region. The data on the value of what one member exports or invests should be comparable with partner member data on imports or receipts in the form of investments. Discrepancies in trade and investment statistics--when unexplained--could lead to incorrect analyses of current economic conditions, inappropriate policies, misallocation of resources, and misunderstandings among members. Recent Accomplishments -- The TIDWG has completed an inventory of practices among members in compiling statistics on merchandise trade, services trade, and foreign investment, in order to identify differences in members' practices and gaps in data and to establish international standards of compilation to eliminate discrepancies in statistics. -- It established a technical advisory panel to provide guidance in the development of the merchandise trade database, to select the "creator" of the database, and to ensure that APEC standards and guidelines are met. -- The technical advisory panel developed a budget proposal to set up the merchandise trade database. This proposal was the best means for establishing the trade databases and the guidelines for ongoing collection and maintenance of reliable and consistent international statistics among members. Goals The TIDWG plans to create a near comparable merchandise trade database in the coming year and has begun work to develop near comparable databases on services trade and foreign investment. Contact Sumiye O. McGuire, Office of Macroeconomic Analysis, Office of the Chief Economist, Economics and Statistics Administration, U.S. Department of Commerce, (202) 482-1675. Fisheries Working Group Background The APEC Fisheries Working Group (FWG) is co-chaired by New Zealand, Japan, Thailand, and Indonesia. It reviews current activity in the field of fisheries and aquaculture in the Asia-Pacific region and promotes cooperation to maximize the benefits that members can obtain from their fisheries resources, including sustained optimum utilization, enhanced training and education, and trade facilitation. Recent Accomplishments -- The FWG sponsored a workshop, study tour, and roundtable discussion on promoting development and cooperation of small and medium-sized businesses in the processing sector of fisheries. -- The working group completed a survey of fishery species requiring international cooperation in resource management and of existing management and/or scientific support arrangements in the Pacific region. -- The FWG completed an inventory of existing facilities and opportunities for the transfer of fish harvesting and post-harvesting technologies. Goals The working group has endorsed a three-year working program on health and quality requirements for fish and seafood products. It will include training workshops, field visits, and seminars, with the aim of improving transparency of, and encouraging compliance with, fish inspection systems. The program is scheduled to begin in 1994. The working group also has approved a study on ways to improve seafood marketing and trade information in the region and will soon consider proposals on aquaculture issues. Contacts William E. Dilday, Senior Pacific Affairs Officer, Office of Marine Conservation, U.S. Department of State, (202) 647-3940 or Mark Wildman, Foreign Fisheries Analyst (Asia), Office of International Affairs, National Marine Fisheries Service, Department of Interior, (301) 713- 2286. Trade Promotion Working Group Background The Trade Promotion Working Group (TPWG) is co-chaired by Indonesia, Malaysia, Thailand, and South Korea. The TPWG focuses its attention on areas for practical cooperation to promote regional trade, market access and economic cooperation. There are five work programs: 1. Trade and industrial information exchange; 2. Trade promotion seminars; 3. Trade promotion courses; 4. Intra- and inter-regional trade and economic missions support; and 5. An Asia-Pacific international trade fair. Recent Accomplishments -- The U.S. Department of Commerce has surveyed trade associations for their ideas on how to involve the private sector. Other member economies also are gathering private sector input. -- The third seminar on trade promotion was held in Seoul in October 1993 with the theme, "Globalization and Changing Business Practices in the 1990s: Asia-Pacific Response to the New World Economic Order." The next seminar will be held in China in June 1994. -- A special seminar on "Promoting the Expansion of the Export of Medium and Small Enterprises" was held in Shenzhen, China, in June 1993. -- The second training course for small and medium-sized enterprises was completed in the Philippines and Chinese Taipei. The third course is scheduled for June 1994 in Beijing. -- Plans are underway for the first APEC international trade fair, to be held in Osaka, Japan, in October 1994. Goals The TPWG is committed to bringing the private sector into its activities and planning process. This is illustrated by the invigorated effort of the TPWG members to involve the business community. The TPWG expects to enhance its 1993-94 action plan through a more active partnership between businesses and governments. Contacts Sarah Kemp or JeNelle Matheson, U.S. and Foreign Commercial Service, Department of Commerce at (202) 482-2422. To participate in or attend the APEC international trade fair in Osaka, contact Ira Kasoff, Commercial Officer, U.S. Consulate General, Osaka, 011-81-6-315-5964, or FAX 011-81-6-361-5976. Marine Resource Conservation Working Group Background The APEC Marine Resource Conservation (MRC) working group, promotes initiatives among APEC economies to protect the marine environment and resources and to ensure continuing socioeconomic benefits by maintaining the quality of the marine environment. The working group has developed programs related to red tide/toxic algae and integrated coastal zone management. Its major focus during 1992 was on ocean pollution and environmental concerns. In December 1992, APEC senior officials agreed that the MRC should focus more on policy and the broader international agenda of marine environment issues, including the relevant elements of the UN Conference on Environment and Development (UNCED), not just on specific projects. They also noted the importance of coordinating environmental matters emerging through a range of APEC projects. Recent Accomplishments -- The MRC working group completed an inventory of international organizations dealing with marine resource conservation in the APEC region. -- The working group prepared the November 1993 APEC ministerial statement which responded positively to UNCED's Agenda 21, Chapter 17. In Chapter 17--on oceans--UNCED calls for "numerous national and international including regional institutions, both within and outside of the United Nations system, with competence in marine issues" to coordinate and develop networking for the implementation of the oceans chapter. -- The group proposed a new project to coordinate UNCED follow-up with other organizations active in marine affairs in the APEC region. -- The group proposed a plan to effect an increased dialogue with the private sector. Goals The MRC working group will complete data gathering for the Red Tide/Toxic Algae Project. It will finalize the first phase of the Integrated Coastal Zone Management Project--including member economy reports on land-based sources of pollution, responsible agencies, and contacts--as well as promotion of implementation of "UNCED Agenda 21 Oceans." Private sector participation in the working group will be encouraged. Contact Bill Sullivan, U.S. Department of State, (202) 647-0240. Energy Cooperation Working Group Background The Energy Cooperation Working Group (EWG), chaired by Australia, was established to maximize the energy sector's contribution to the region's economic development, while safeguarding the environment. The EWG contributes to decision-making through frank and open discussion of national energy policies and planning priorities, sharing of basic resource demand and supply outlook data, and considering regional energy implications and responses to energy-related issues such as the greenhouse effect. The TWG is divided into four expert groups: 1. Energy supply and demand; 2. Energy and the environment; 3. Energy conservation and efficiency; and 4. Technology cooperation. Recent Accomplishments -- The first seminar on APEC regional utilization of clean coal technologies was held in Thailand in September 1993; seminar proceedings are now available. -- APEC Energy Statistics--1991, a historical compilation of energy supply and demand balances, was published and is available from the APEC Secretariat. -- The first seminar on demand-side management was held in Hawaii in May 1993, and an energy efficiency and conservation compendium was published. -- A study tour of photovoltaic installations was held in Australia, July-August 1993. Goals In 1994, the EWG plans to hold seminars and workshops in the areas of energy efficiency and alternative fuels issues in urban transport systems; clean coal technology; and energy technology for the next decade. Furthermore, the EWG expects to publish studies on the APEC database, energy efficiency practices and measures, energy efficiency and conservation information systems, natural gas vehicles, demand-side management, and renewable energy programs. Contact Robert S. Price Jr., Director, International Energy Organizations and Policy Development, U.S. Department of Energy, (202) 586-6383, FAX (202) 586-6148. Investment and Industrial Science And Technology Working Group Background The goal of the APEC working group on Investment and Industrial Science and Technology (IIST), co-chaired by Japan, the Philippines, Indonesia, and China, is to promote economic growth by expanding investment and technology transfer. Recent Accomplishments -- During its most recent meeting in Seoul in May 1993, the IIST working group explored the viability of establishing an electronic network for information on investment and technology transfer. APEC members plan to incorporate this proposed network into an overall APEC information network. -- In addition, IIST working group members meeting in Seoul decided to reinforce the group's focus on science and technology initiatives. On September 12-13, the working group met in Shimizu, Japan, and adopted principles and proposed a work program for future APEC science and technology cooperation. The work program was endorsed by APEC ministers in Seattle in mid-November. Goals The working group's next major activity will be a seminar hosted by China in May 1994 on the development of industrial and technology parks. The working group also plans to publish a handbook on industrial park development and to hold additional science and technology seminars. Following adoption by APEC ministers of the Declaration on a Trade and Investment Framework, the Investment and Industrial Science and Technology working group now can coordinate its investment-related activities with those of the APEC Trade and Investment Committee. Contact Raphael Cung, U.S. Department of Commerce, (202) 482-3877. Transportation Working Group Background The Transportation Working Group, chaired by the United States, works closely with the private sector and is concerned with policy and management issues. The group is surveying regional transportation in order to provide information on various activities and to avoid duplication of effort with other organizations. Members are preparing overviews of transportation systems and services and synopses of transportation data. The group also is examining transportation problem areas that may impede trade and economic growth. It is undertaking an investigation of transportation bottlenecks in the APEC region and is studying ways to use electronic data interchange (EDI). The group has instituted a series of seminars on transportation. Recent Accomplishments -- A seminar was conducted with the business/private sector on the facilitation of the movement of passengers and cargo and on the applications of EDI. -- A document on the regulatory environment for transportation in each APEC economy has been completed and will be published in 1994. -- A survey of transportation data has been completed. To be published in 1994, it will be used to identify gaps in data collection and to assist the rationalization and development of transportation systems in the region. Goals The group has agreed upon two new projects for 1994: a study of the current usage and expansion of EDI in the transportation sector and a seminar on the harmonization of technical and operating standards in the transportation sector. The group will continue its projects to identify transportation impediments to increased transportation trade and services as well as to develop guidelines for transportation policy in the region. Contact Kevin Sample, U.S. Department of Transportation, (202) 366-9526. Telecommunications Working Group Background APEC recognizes that modern telecommunications and information technologies are vital prerequisites for fostering regional, collaborative initiatives and increased economic cooperation. The group is co-chaired by the United States and Canada. It exchanges information, consults on policy and regulatory developments and standards, and develops projects. Recent Accomplishments -- An electronic data interchange project with a major Australian steel company and its trading partners in New Zealand has been implemented. -- The second edition of the survey on The State of Telecommunications Infrastructure and Regulatory Environments of APEC Economies has been published. The first edition was published in 1991. -- A human resource development manual, "How To Approach Training Within a Telecommunications Organization," has been published. -- Recommendations were made for a telecommunications infrastructure project. -- The group prepared the November 1993 APEC ministerial statement promoting telecommunications. Goals Efficient telecommunications services are to be made accessible to all citizens and businesses of APEC member economies. Regionally balanced development and expansion of telecommunications infrastructures are to be a high priority in economic planning. Flows of information, technology, and expertise are encouraged as a means of facilitating balanced growth of telecommunications networks and services in the APEC region. Modern telecommunications services will be introduced to ease information flows and to facilitate economic development. Human resource development will be encouraged to sustain the growth of the telecommunications sector and to ensure efficiency, innovation, and high-quality telecommunications services. The flow of telecommunications goods, services, capital, and technology will also be encouraged. Contact Richard Beaird, Director of International Communications and Information Policy, U.S. Department of State, (202) 647-5832. (###) ARTICLE 12: Fact Sheet: U.S. Economic Relations With East Asia and the Pacific Background The East Asian and Pacific region is the world's most economically dynamic area. Japan has become the second- largest market economy and, with the United States, one of the world's leading aid donors. The region's newly industrialized economies (NIEs)--Hong Kong, South Korea, Singapore, and Taiwan--have maintained high economic growth rates over the last two decades. In the process, they have achieved "middle- income" levels of per capita GNP and have become major participants in international trade. Thailand and Malaysia are fast approaching development levels close to those of the NIEs. Over the last decade, the East Asian and Pacific region has surpassed Western Europe to become the largest regional trading partner of the United States, both as a supplier of U.S. imports and as a customer for its exports. In 1992, U.S. two-way trade with the region was more than $344 billion, 51% more than trans-Atlantic trade. American direct investment in the region reached $66 billion in 1991, 15% of total U.S. overseas investment. The Association of Southeast Asian Nations (ASEAN)--Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand--is America's fourth- largest source of imports and its sixth-largest export market. In 1992, U.S. trade with ASEAN was $60 billion. In the preceding decade, total U.S. trade with the ASEAN countries grew at an average annual rate of 17%. The United States in 1991 exported more to Singapore than to Italy, more to Malaysia than to the countries of the former Soviet Union, and more to Indonesia than to Central and Eastern Europe combined. The United States also is the leading export market for Singapore, Thailand, and the Philippines and is the second-largest export market for Malaysia. U.S. direct investment in ASEAN totaled $16 billion in 1992. Transportation also links the United States more closely to East Asia and the Pacific. In 1993, air traffic on Pacific routes is expected to overtake Atlantic traffic on a passenger-mile basis. By the year 2000, the Pacific market is projected to account for almost half of total international traffic. U.S. Support for Economic Reforms The achievements of the successful Asian economies can be attributed largely to market-oriented, outward-looking strategies of growth, together with the high value these societies have traditionally placed on education, discipline, and hard work. The United States contributes to this success and supports economic reforms by providing: -- The principal market for the region's exports; -- Leadership in promoting an open international trade and financial system; -- Economic assistance to the region's developing nations; and -- A military security umbrella. The Philippines and Indonesia have economic reforms underway that, if sustained, will enable them to capitalize on their impressive potential. Australia and New Zealand also are engaged in difficult economic restructuring and trade liberalization efforts. Some Pacific island mini-countries are not yet fully participating in the region's economic success. Implementation of market-oriented reforms has boosted the economies of Laos and, to a lesser extent, Vietnam, but both countries remain poor. China experienced rapid economic growth during most of the 1980s as it moved toward a more market-oriented system. Trade Success and Imbalances More than 40% of U.S. total trade is now conducted with the East Asian and Pacific region. However, this dramatic expansion has been accompanied by the development of large, recurring trade deficits with some U.S. trade partners. In 1992, the United States had trade deficits with Japan ($49.5 billion), China ($18 billion), Taiwan ($9.5 billion), and South Korea ($2 billion). On the other hand, the United States had a $5-billion trade surplus with Australia in 1992. There is particular concern about the size of Japan's trade surplus. The U.S. and Japan have concluded agreement on a "Framework for a New Economic Partnership" that is expected to contribute to a significant reduction in both countries' external imbalances. In addition, the NIEs, particularly South Korea and Taiwan, also have reduced import barriers to a limited extent. This has helped reduce the overall U.S. trade deficit with the East Asian and Pacific region from $107 billion in 1987 to about $87 billion in 1992. East Asian and Pacific countries have come to recognize that their growth and export successes require them to bear a much larger burden for the health of the world economy. Consequently, they are undertaking appropriate adjustments to help correct international imbalances by: -- Ensuring realistic exchange rates; -- Lowering barriers to imported goods, services, and investment; and -- Adopting macroeconomic and structural policies that encourage growth through increased domestic demand as well as exports. The United States, in turn, must maintain its efforts to reduce domestic fiscal imbalances and to keep its import markets open. Increasing Regional Cooperation The United States has been working with East Asian and Pacific economies for several years to strengthen regional economic cooperation. U.S. officials have had extensive consultation with ASEAN, the Asian Development Bank, the UN Economic and Social Commission for Asia and the Pacific, the South Pacific Council, the South Pacific Forum, and the Pacific Economic Cooperation Council. Many of the region's leaders recently have called for more intensive consultation among the market- oriented economies of the East Asian and Pacific region on macro- economic issues, structural reform, and the health of the world trading system, particularly the current Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The U.S. played a key role in the formation of Asia-Pacific Economic Cooperation (APEC), a regional forum based on those principles. The United States works actively with its East Asian and Pacific partners to promote APEC as a vehicle for regional economic cooperation. At the invitation of then-Australian Prime Minister Hawke, the first APEC ministerial conference convened in Canberra in November 1989. A second ministerial meeting took place in Singapore in July 1990, leading to the creation of work projects in various areas of interest to the original APEC members. Since then, annual ministerial meetings have been held in Seoul, South Korea; Bangkok, Thailand; and, most recently, Seattle, Washington. The next ministerial is planned for Bali, Indonesia, in November 1994. Subsequent ministerials will be in Japan (1995), the Philippines (1996), and Canada (1997). (###) END OF DISPATCH VOL 4, NO 48.
To the top of this page