US DEPARTMENT OF STATE DISPATCH
VOLUME 5, NUMBER 41, OCTOBER, 10, 1994
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
 
ARTICLES IN THIS ISSUE:
1.  The U.S. and Russia: Partners in the Quest For Peace and
Prosperity -- President Clinton, Secretary Christopher,
Russian
President Yeltsin, White House Statement
2.  The United States and Russia:  A Strategic Partnership --
President Clinton, Russian President Yeltsin
3.  U.S.-Russian Cooperation Agreements
4.  U.S.-Russian Strategic Stability and Nuclear Security
Initiatives
5.  Import Licenses for Russian Small Arms
6.  A New Era of Peace in the Middle East -- President
Clinton,
Jordanian Crown Prince Hassan, Israeli Foreign Minister
Peres,
Joint Communique
7.  A Review of Developments in the Middle East -- Robert H.
Pelletreau
8.  Northern Ireland:  Contacts with Sinn Fein Party Leaders
 
 
 
ARTICLE 1:
 
The U.S. and Russia:  Partners In the Quest for Peace and Prosperity 
President Clinton, Secretary Christopher, Russian President Yeltsin, 
White House Statement
 
 
President Clinton and Russan President Yeltsin Remarks at arrival
ceremony, Washington, DC, September 27, 1994.
 
President Clinton.  President and Mrs Yeltsin, members of the Russian
delegation, distinguished guests:  On behalf of the American people, it
is my great honor to welcome President Boris Nikolayevich Yeltsin and
Mrs Naina Yeltsin to Washington for this state visit.Mr. President, it
wasn't so long ago that Russian-American summits were moments of high
drama and sometimes disappointing results.  The people of our countries
and from around the world watched nervously as their leaders met in a
heavy atmosphere of mutual suspicion and fear.  The fate of the world
seemed to hang in the balance of those encounters.  Success was defined
as the avoidance of confrontation or crisis.
 
Our moment is quite different, but no less important.  For these are
exciting times--times of great opportunity.  And we are cooperating to
seize them for the good of all Russians, all Americans, and all the
people of the world.
 
Today, we meet not as adversaries, but as partners in the quest for a
more prosperous and a more peaceful planet.  In so many areas, our
interests no longer conflict--they coincide. Where we do disagree, we
can discuss our differences in a climate of warm peace, not cold war.
 
The Russian-American relationship is, at last, remarkably, a normal
one--full of real accomplishments and genuine promise.  Mr. President,
this evolution in our relations is due in no small part to the peaceful
revolution you are leading in Russia, one that the United States has
fully supported.  Your steadfastness and courage in the face of
difficult odds have inspired millions of Americans.
 
You have proved the pessimists wrong.  Far from falling backward,
Russia, under your leadership, is coming together and moving forward.
Your efforts, of course, could not be successful if you did not have
the support of a great and courageous people.  Here in America, we have
known the trials and tribulation of history; but the Russian people
have survived invasions and wars, deprivation and dictatorship.
Through it all, the Russians have endured, producing uplifting poetry
and songs, great novels and films, ingenious science and path-breaking
technology.  Now the free and open society you are building will allow
the Russian people finally to reach their full potential.  Russia's
greatest hours lie before it.
 
Mr. President, we are privileged to share a great moment--a historic
opportunity.  When we met in Vancouver more than 18 months ago, and
again in Moscow last January, we vowed to seize that opportunity by
creating and building upon a new partnership between our two nations--a
partnership that works. We have kept that commitment.
 
As a result, our missiles no longer target each other's people for
destruction; instead, they are being dismantled.  Our soldiers no
longer face each other as deadly adversaries; instead, they work
together as partners for peace.  Young Russians and Americans no longer
learn to be fearful and mistrustful of each other; instead, they study
together in record numbers.  Trade between our countries is no longer
stifled by export controls and prohibitions; instead, it is growing
every day to the benefit of all our people.
 
In short, our nations are growing closer together and replacing
suspicion and fear with trust and cooperation.  Mr. President, this
summit of ours, unlike its predecessors, is about the future--a future
in which we will strive to integrate Russia and the West to build a new
century of peace in Europe, and a future of shared responsibility that
comes from vast territories, large populations, great power, and
democratic values--to use our combined influence and authority for the
good of the world beyond our borders.
 
Together, we have agreed to safeguard nuclear materials and to shut
down plutonium-production reactors.  Together--with Ukraine,
Kazakhstan, and Belarus--we will rid your region of thousands of
nuclear warheads.  Together, we must ensure that all the New
Independent States achieve their rightful place as strong and
independent nations in Europe able to chart their own destinies.  For
that reason, all Americans rejoiced and deeply respected your decision
to withdraw your troops from the Baltic nations.
 
Together, we are working to bring peace to Bosnia, to the Middle East,
and to Nagorno-Karabakh.  Together, we will build an international
space station and explore the solar system. Together, we will carry the
fight against transnational problems, such as terrorism, environmental
degradation, and organized crime.  Together, we can--and we will--make
a difference not only for our own people but also for men, women, and
children all around the world.
 
Mr. President, it is an honor to have you with us.  Together, we have
done well in laying the foundation of trust and security between our
people.  Now let us build on it to secure a future of peace.  Welcome
to the United States.
 
President Yeltsin.  President Clinton--Bill Clinton, Mrs.
Clinton--Hillary Clinton, ladies and gentlemen:  I am very happy to be
in America once again.  I am grateful to you, Mr. President, for the
kind words spoken about Russia and the Russians and about myself.
People in my country also show great affection toward, and a never
ending interest in, the United States of America.  On behalf of the
Russian people, I extend my cordial greetings to you and, in your
person, to all Americans.  It is fair to say that the United States is
a strong partner and not an easy one to deal with, just like Russia.
But I think--and I believe my colleague, Bill Clinton, will agree with
me--that this makes it all the more exciting and meaningful for the two
countries to join hands.
 
The dialogue between the Russian and American presidents has begun in
earnest.  I am referring to my speech before the United Nations General
Assembly yesterday.  I have found your speech very exciting, too.
Evidently, our thoughts and ideas have a lot in common, which is only
natural, for we are two like-minded individuals, in that we are both
equally committed to values of democracy and ideals of liberty.  We
strive to provide the nations of the earth with a decent living and a
future of peace and security.  We seek to remove all barriers blocking
the equitable and mutually beneficial cooperation between Russia and
the United States in order to meet the interests of the two
countries--and those of the world community of nations.
 
Those are very lofty goals to attain.  I attach crucial importance to
Russia's and America's willingness to address and resolve problems that
still exist and to gently put in place a long-lasting mechanism of our
bilateral ties oriented toward the 21st century.  We can--and indeed
must--render our collaboration dynamic and make it more effective in
the economic sector and coordinate our efforts more closely on the
international scene.  I firmly believe that the nations of Russia and
America and the nations of the world will only benefit from that.
 
We in Russia hold in high esteem your efforts at and your contribution,
Mr. President, to sustaining the good relations between the two
countries.  I have warm memories of the visit you paid to Russia last
winter and of the meetings and talks that followed.  They were
invariably imbued with profound understanding and trust, and they
proved productive.  It is precisely for this reason that I look
optimistically to the future of Russian-American relations.
 
We have two days of talks, meetings, and discussions in store for us
here in Washington, DC.  Some people in the world and some people in
Russia say that our dialogue with Bill Clinton this time will prove
hard and will show no results.  I would like to state explicitly for
you and for the entire world community that this dialogue we are going
to have will make great progress.
 
Once again, I would like to thank you , Mr. President and Mrs.Clinton
and all those present here, for your warm hospitality. And I would like
to thank the military officers present here, too.  Thank you very much.
 
 
Secretary Christopher Opening statement at a White House press
briefing, Washington, DC, September 27, 1994.
 
I am going to give you brief comments on today's meetings.  They are
only halfway through, and so you will not be surprised if many of the
things are tentative, and, in many instances, I can only give you
subject matter without any agreements or particular indications as to
how things went.  In short, this is an intermediate report.
 
My own sense is that this was a good example of a day of a partnership
that is working very effectively.  The partnership between the two men
is very effective.  They began with a one- on-one discussion, which
they immediately determined would last through the morning, rather than
going into a delegations meeting, and the two presidents met until
12:45 pm.
 
My impression, from seeing them together this afternoon, bears out what
I heard about this morning.  These are two men who like each other.
They speak quickly in an animated way.  They have learned to
communicate very effectively, and they get right down to business.
 
This will, I think, eventuate in more than $1 billion of commercial
agreements being signed before this summit is finished--in the Ex-Im
area, in the OPIC area, and in the trade development area.  They began
this morning by reviewing the economic situations in both countries.
In different ways, there has been unusual progress since the last time
the two of them were together--progress toward stability and effective
operation in Russia and progress toward economic recovery here in the
United States.
 
President Yeltsin expressed appreciation for the President's decision
to find Russia in compliance with Jackson-Vanik and make it no longer
necessary for them to have annual reviews.  President Yeltsin expressed
the hope that they would be able to go the next step; that is, to
graduate them completely from the Jackson-Vanik requirements.  That
will require congressional action, and President Yeltsin, in expressing
appreciation for what was done this year, indicated that he hoped
Congress could take that next step in the future.
 
There were, both in the one-on-one meeting as well as in the
delegations meeting which took place in parallel, discussions about the
situation in Bosnia.  I think there is appreciation that there is a new
circumstance there in that the Bosnian Government does not wish to have
the lifting of the arms embargo implemented at the present time and has
indicated that it feels that a six-month deferral of the lifting would
be in its interest.  Both sides indicated that this six-month period
ought to be used to try to bring the Bosnian Serbs into agreement.
There was common ground that we should continue with the unity of the
Contact Group, carrying out the incentives and disincentives and making
maximum use of the Serbian Government's willingness to cooperate in
putting pressure on the Bosnian Serbs.
 
A very interesting suggestion was made.  President Clinton suggested
that it would be very desirable if there were mutual recognition
between Serbia and Bosnia of their borders and of their right to exist.
President Yeltsin recognized the importance of that idea and indicated
that that was desirable and that they would try to pursue it.
 
I would say the discussion of Bosnia will probably continue into
tomorrow, but this was an example of the need to maintain unity with
the Contact Group and an indication that the United States and Russia
would be able to do so, aided by the deferral of the lifting of the
arms embargo.
 
There was a discussion of COCOM and Russia's participation in COCOM.
As you know, there has been an issue about Russian arms sales to Iran.
Without being able to be more explicit, I would say that I believe
there is a resolution in sight on this very difficult issue.  That will
be discussed again tomorrow and perhaps we can have more details on
that at the end of these meetings.
 
There was a discussion also of the CFE--the treaty on Conventional
Armed Forces in Europe.  It was interesting that the parties seemed to
be on common ground--that ways would be found to resolve that issue
within the current limits.  There was no sense of a determination to
break out by any means.
 
Perhaps I should step back and explain that while the presidents were
having their one-on-one, the remainder of the delegations discussed the
issues that they had before them, with Foreign Minister Kozyrev, Deputy
Prime Minister Soskovets and, I believe, Defense Minister Grachev; and,
on the U.S.  side, Secretary of Defense Perry and, on the delegation,
the Vice President and myself and others.
 
We began the discussion in the delegation meeting by discussing the
many ways in which we worked effectively together in the course of the
last year.  We discussed at some length the Baltics and how the removal
of the Russian troops in accordance with the timetable was a major step
forward.  I pointed out that one of the positive benefits from the
Russians' handling this in the way they did was that the Baltic
countries now seem to be very anxious to maintain a good relationship
with Russia, and they have come to us indicating a desire to make sure
that their new relationships with Russia are sound ones.
 
We talked about the trilateral agreement between Russia, the United
States, and Ukraine that was regarded by all hands as a positive
development.  We discussed the withdrawal of Russian troops from
Moldova.  We discussed the progress in the Middle East where we are
co-sponsors.  We received some compliments from the Russian delegation
about progress we had made there and the fact that we kept them fully
informed.
 
This afternoon, President Yeltsin and President Clinton joined us after
that very moving ceremony honoring the World War II veterans.  They
summarized what they had done in the one-on- one conversations, and
then we went through a number of additional topics.  There was a good
discussion of crime and corruption in both countries.  Both presidents
indicated that their people have a high degree of interest in the
resolution of these problems, and it was agreed that there will be
mutual efforts to cooperate on these matters.
 
There was the same kind of discussion on nuclear smuggling, and it is
hoped that perhaps even before this summit is concluded there will be
more details and more specificity on approaches to nuclear smuggling.
But the parties clearly want to be forthcoming on this issue--to
exchange vast amounts of information so that both parties are up to
date and understand what the nuclear conditions are in each other's
country.  On North Korea, there was a very preliminary discussion in
which views were exchanged, and there was an agreement to stay in close
touch on that.
 
Toward the end of the day, there was a discussion of security issues,
and I think that, since it was preliminary and not conclusive, I will
not try to brief on those issues.  But simply for completeness' sake, I
wanted you to know that there was--perhaps for the last half-hour--a
discussion of security issues, which I think will be briefed to you
tomorrow.
 
That is basically the outline of the day.  As you can see, a great many
subjects were discussed.  Discussions were very intense, despite the
fact that time was taken out for a luncheon at the State Department in
which President Yeltsin was the guest of Vice President Gore, and also
for the moving ceremony honoring the veterans.  Nevertheless, all these
subjects were covered, and I think we are anticipating a very full day
again tomorrow.
 
 
U.S. and Russian Governments Sign Commercial Agreements On Trade and
Investment Statement by White House Press Secretary Dee Dee Myers,
Washington, DC, September 27, 1994.
 
The United States and Russia this week will sign commercial agreements
worth more than $1 billion.
 
The two governments also agreed that, given the right conditions,
bilateral trade between the two countries could more than double its
current level of $4.7 billion per year by the turn of the century.
 
The commercial agreements signed today include:
 
--  $689 million in Export-Import Bank loan guarantees for oil, gas,
communications, computer, and airline projects.
 
--  $475 million in Overseas Private Investment Corporation support for
U.S.-Russian joint ventures.
 
--  $3 million in non-reimbursable feasibility grants by the Trade
Development Agency for special projects in Russia.
 
U.S. exports to Russia grew by 40% in 1993, and exports of manufactured
goods grew by 114%.  Russian exports to the United States doubled in
the same period.  Bilateral trade is now worth $4.7 billion annually.
 
The numerous commercial agreements signed during the Washington summit
underscore the strong interest of American firms wanting to do business
in Russia.  The dozen formal agreements and contracts that are being
signed today by the U.S. Department of Commerce, the Overseas Private
Investment Corporation, the Export-Import Bank, and the U.S. Trade and
Development Agency represent hundreds of millions of dollars in trade
and investment and herald a new business partnership.
 
There is potential for enormous growth in trade, thanks to Russia's
abundant human and natural resources.  Russia possesses several of the
world's largest undeveloped oil deposits, more than one-third of the
world's proven gas reserves, important deposits of diamonds, gold, and
other precious metals, as well as nonferrous and ferrous metals.
 
This change is good for both Russia and the United States.  Increased
trade spurs economic growth at home and abroad.  It creates jobs.  It
enhances long-term prosperity and political stability.  Bilateral trade
helps solidify a powerful and enduring partnership between the United
States and Russia and opens the way for direct contact between Russian
and American people. (###].
 
 
 
 
ARTICLE 2:
 
The United States and Russia:  A Strategic Partnership President
Clinton, Russian President Yeltsin Opening statements at a joint press
conference, Washington, DC, September 28, 1994
 
President Clinton.  Hillary and I and our entire delegation have very
much enjoyed having President and Mrs. Yeltsin with us, along with
their delegation.  When President Yeltsin arrived yesterday, I spoke of
the new partnership between our two nations.  After our talks, one
thing is clear--relations between our nations are moving forward at
full speed.
 
Both our countries, as President Yeltsin said yesterday, are sometimes
not so easy to deal with, but we are succeeding in tackling some hard
challenges.  Over the past two days we have made good progress on
security, economic, and diplomatic issues.
 
I am pleased to announce today that President Yeltsin and I have agreed
that as soon as the START I Treaty takes effect and the START II Treaty
is ratified by both our countries, we will immediately begin removing
the nuclear warheads that are due to be scrapped under START II,
instead of taking the nine years allowed.  There will be no adverse
impact on the United States or the Soviet Union--indeed, by shaving
several years off the timetable, we will make the world safer for all
of us.
 
We also plan to work together to encourage Ukraine to join the Nuclear
Non-Proliferation Treaty this year.  As the world's two largest nuclear
powers, we recognize our special responsibilities to ensure the
security of nuclear weapons and materials--even as we are dismantling
them.  This is one of the most urgent security challenges faced by all
the nations of the globe as we enter the next century.  President
Yeltsin and I spent a lot of time on this issue.  We understand that we
will not solve the problem overnight, but the steps we have taken in
areas such as inspecting each other's storage facilities and
information sharing are an important start.  We are personally
committed to seeing this issue through.
 
Today, President Yeltsin and I signed an agreement that will gradually
normalize our economic relations by removing major barriers to trade
and investment.  American support for Russian economic reform has been
constant, and over the last two days American and Russian businesses
have signed deals worth nearly $1 billion, ranging from agriculture to
telecommunications.  We met with several American and Russian business
leaders this morning, and we are determined to advance America's
investment in and trade with Russia.
 
We will transfer $100 million in aid funds to directly support trade
and investment through OPIC and the Commerce Department.  We will also
devote $30 million to help in the fight against crime in Russia through
cooperation between the FBI and the Justice Department and appropriate
Russian authorities.
 
On the diplomatic front, we have made progress on the difficult issue
of Russian arms sales to Iran.  We agreed to continue to work on this
problem in the near future.  We also agreed to work more closely
together to help resolve the tragic conflict over Nagorno- Karabakh.
 
On Bosnia, we repeated our commitment to work within the Contact Group
to compel the parties to accept the settlement that has been worked
out.  Once again, I congratulated President Yeltsin on his historic
decision to withdraw Russian troops from the Baltic nations.
 
No area better captures the potential for our emerging partnership than
Russian-American cooperation in space.  President Yeltsin and I first
discussed this idea in Vancouver last year and decided we needed to go
forward.  Today, I have signed into law a bill that will help to fund
the international space station.  This bill is the result, in no small
measure, of the extraordinary cooperation between Vice President Gore
and Prime Minister Chernomyrdin, as well as the strong bipartisan
support we received from the United States Congress.  As in so much
that we have accomplished in the past two days, this space station
symbolizes the potential for progress when we work together.
 
This is the fifth time President Yeltsin and I have met since I came
into office.  I think I have spent more time with him than with any
other world leader.  We have made real progress over the last few days,
in no small measure, because we have worked together, we have learned
to be open and candid with each other about our differences, and we
have built an atmosphere of mutual trust.  I am confident that our
partnership is working-- and will continue to work--not only between
our two governments but, increasingly, between the people of Russia and
the people of the United States.  Mr. President.
 
 
President Yeltsin.  Thank you.  Ladies and gentlemen:  First of all, I
would like to express the feeling of great thanks and appreciation to
President Bill Clinton; to his wife, Hillary; and also to the American
people and you, the journalists, for a very warm welcome, and for very
fine conditions which were created to make our very tough and difficult
visit very productive.
 
We always start these meetings by saying that we have really done a
tremendous amount of work.  We always say this at these press
conferences.  This meeting, as well, deserves this kind of
characterization.  In fact, we have accomplished a lot of work.  We
planned, at one time, that we were going to have one 30-minute
one-on-one session; it turns out it lasted for three hours.  So you can
judge for yourselves how many issues we touched upon and discussed and
what a wide scope we really worked on.
 
Although I have a trip to Seattle coming up where I want to familiarize
myself with the West, I have never been out West- - out on the West
Coast of the United States.  I want to familiarize myself and get to
know the Boeing Company, the City of Seattle, and just to see what kind
of Americans live out there on the West Coast--how they work and how
they are.
 
We, of course, with Bill now--we are interlocutors who know each other,
and partners in our discussions and negotiations.  We know each other
very well, and more than that we, this time, do not have to come and
start warming up.  We have had phone conversations--we talked ahead of
time.  So we started from the word go, right from the very beginning.
We say that our partnership has to be pragmatic and not declaratory.
Right away, from the very beginning, we agreed to that.
 
I am sure that neither Russia nor the United States needs all kinds of
sharp deviations from having good, normal communications and ties.  We
do not need a situation where the whole world is in trepidation.  We do
not need to waste a lot of words and chew a lot of fat, but we have to
get down to basics and start working in a very pragmatic style.
 
Of course, I say these words--now  I think Bill has confirmed that the
United States is a very complex partner, and Russia is also.  But,
look--what family does not have some kind of squabbles occasionally,
which, eventually, they kind of work out.  It is not always that
simple, right?  I mean--here are two great, humongous, almost half
billion-member families who, too, have sometimes their own little
approaches, if you will.  But the most important thing is the ability
to listen, to have patience, to have humanity with respect to each
other.  Then, absolutely, we will be able to find solutions.
 
I just want to tell you, to be short about it, these little
introductory words--I just want to give you literally that list of
issues that we discussed.  Here we go--and then later on, you will be
able to ask questions.  It will be a lot easier to ask questions.
 
The most important talks and subjects of these talks are the strategic
partnerships between Russia and the United States; international
issues; external political coordination of our efforts so that we two
great powers--two countries-- constantly coordinated everything that we
do so that nothing happens in the world that might ruin peace on our
planet.  We have to support peace:  the Big-8; peace-keeping; CIS; the
role of Russia in the CIS; NATO and Russia; coordination in the United
Nations Security Council; reforming the United Nations; cooperating in
the United Nations and the CIS; the situation all around the
world--Bosnia, Middle East, Caribbean Basin, North Korea, Rwanda,
Islamic extremism, Iran, Libya, Iraq, Trans-Dniestria,
Nagorno-Karabakh, Abkhazia, Tajikistan, the Baltics; military
issues--START I, START II, now START III-- we are talking about
three--nonproliferation; harmonizing our military
doctrines--harmonizing--since today, military doctrine in the United
States is one thing and Russia has a different one.  How are we going
to be able to have a partnership-- friendly partnership--and work
together if we have such a disparate military doctrine?
 
New initiatives of the great five powers on strategic stability--ABM
systems--strategic and technical ABM systems; biological weapons;
chemical weapons; destruction and elimination of nuclear weapons--the
safe elimination of nuclear weapons; exchange of information on nuclear
arms and fissile materials for the first time; banning nuclear testing;
participation of Russia in the regime of rocket technology-- and we
attach ourselves to this.  We are joining where the United States is
the initiator.  Banning the export of mines--anti- personnel mines--I
fully support the proposal of the United States of America in the UN
when he spoke about getting rid of these antipersonnel mines.
 
Incidents with submarines, economic issues, investments, getting rid of
discriminatory limitations on Russia, and opening up the American
market to Russian goods; the status for Russia of an economy in
transition; post-COCOM economic and trade projects; free trade
status--GATT.
 
Finally, we got together and agreed on the so-called Jackson- Vanik
amendment.  I have already said that every single kid in Russia knows
who these people are--Jackson and this guy Vanik.  The President, by
his decree--well, maybe it is temporary, but he has stopped it, all
right--the actions of this amendment.  I am grateful that this was a
huge window, a bright window that appeared here between us.  I am very
grateful.  We discussed questions of crime; cooperating in the field of
education, culture, ecology, environment, national minorities, and the
North; cooperation on tariffs, and duties.  The President has already
said that, of course--for all mankind--this is very important, so that
instead of the year 2003, after the ratification of START II by Russia
and the United States, we simultaneously remove all those weapons from
alert status that were mentioned in the status--immediately.  In other
words, we save at least seven, maybe more, years by doing it right
away, and we give mankind hope that our generation will be for sure
living in peace.
 
At the center of our negotiation was the strategy of partnership
between Russia and the United States.  I have already said that we have
agreed on the fact that it should be more pragmatic.  Discussions of
partnership for economic progress as well--we agreed here, also.
 
In the United States now we have a large group of Russian businessmen.
In New York, I met with the captains of industry- -big industry in the
United States and with Russia.  Today, as a matter of fact, with
President Bill Clinton, we met also with representatives of big
business here.  We came to terms and decided well, what, afterall, is
standing in the way of investments and attracting investments and
capital to Russia on the part of private capital.  I have to say that
we, in general, came to terms with this.
 
Looking into the future, we, at the same time, tried not to sort of
float above this sinful earth.  Specifically, we agreed on fighting
crime.  There are other specific things-- protecting the environment in
the north of Russia, protecting the environment; communications
systems--developing communication.  After all, I just have to say that
even though many people predicted that this was going to be not just
tough negotiations but that they were going to fall through, in the
ultimate analysis, I have to really be very sorry and express my
condolences to these people.  We agreed on practically every single one
of these issues.  Sometimes the United States stepped forward and
compromised a little; sometimes Russia compromised, but the most
important thing is for peace, for humanity, for mankind, for our whole
planet--we have agreed.  Thank you.  (###)
 
 
 
 
ARTICLE 3:
 
U.S.-Russia Cooperation Agreements White House Fact Sheet, Joint
Statements
 
U.S.-Russia Memorandum of Understanding on Business Information Flows
Fact sheet released by the White House, Office of the Press Secretary,
Washington, DC, September 27, 1994.
 
Department of Commerce Secretary Brown and Minister for Foreign
Economic Relations Davydov today signed a Memorandum of Understanding
(MOU) between the U.S. Department of Commerce and the Ministry for
Foreign Economic Relations of the Russian Federation.  The MOU provides
a framework for cooperation in the development of business information
flows that will facilitate commercial development in the Russian
market.
 
With the signing of the MOU, each side recognizes the importance of
readily available and current commercial information for the dynamic
development of trade and investment between the two countries.  Each
also recognizes the need for continued government-to-government
cooperation in eliminating barriers to expanded bilateral commercial
relations.
 
Key elements of cooperation will include:
 
--  Support for technical assistance to the Russian Ministry of Foreign
Economic Relations to establish a commercial information center
counterpart to Business Information Service for the NIS (BISNIS).  This
includes providing information resources on U.S. companies; training in
business counseling techniques; information on U.S. programs supporting
trade and investment in Russia; and assistance for the translation and
dissemination of newly promulgated laws, decrees, and government
resolutions pertaining to Russia's commercial climate;
 
--  Mutual cooperation and support for the expansion of the Commerce
Department's Special American Business Internship Training Program for
Russian business managers and scientists;
 
--  Mutual cooperation and support for the operation of American
Business Centers throughout the Russian Federation to assist U.S.
companies in pursuing commercial partnerships with Russian trade and
investment partners and to provide business- related training and
technical assistance to Russian firms, organizations, and
entrepreneurs; and
 
--  Training seminars for Russian exporters, producers, and government
officials concerning the operation of U.S. trade remedy laws.
 
 
Strategic Stability And Nuclear Security Joint statement released by
the White House, Office of the Press Secretary, September 28, 1994.
 
Presidents Clinton and Yeltsin underscored that, with the end of the
Cold War, major progress has been achieved with regard to strengthening
global strategic stability and nuclear security. Both the United States
and Russia are significantly reducing their nuclear forces.  Important
steps have been taken to detarget strategic missiles. Multilateral
negotiations on a comprehensive nuclear test ban have begun. The
Presidents noted the key role of the Non-Proliferation Treaty in
ensuring global stability.
 
President Yeltsin outlined the initiative Russia presented to the UN
General Assembly for a treaty among the five permanent members of the
UN Security Council for a halt to the production of fissile materials
for weapons, a ban on the reuse of fissile materials in weapons,
further elimination of nuclear warheads, and reduction of strategic
delivery systems.
 
President Clinton outlined the ideas he described at the UN General
Assembly for cooperation in advancing nuclear non- proliferation,
particularly to enhance the security of nuclear materials and to
prevent nuclear smuggling.
 
The Presidents discussed these initiatives, of which they had informed
each other in advance and which reflected shared goals and certain
common proposals designed to contribute to nuclear non-proliferation.
In this regard, the Presidents agreed that the permanent members of the
UN Security Council, given their responsibilities as nuclear powers,
have a special role to play.
 
The United States and Russia will work with the other permanent
members, as well as other countries, to ensure a successful outcome at
the 1995 Non-Proliferation Treaty conference that produces an
indefinite and unconditional extension of the NPT, to conclude a
comprehensive nuclear test ban treaty at the earliest possible date,
and to achieve a global prohibition on the production of fissile
materials for nuclear weapons.  The Presidents also agreed on the
desirability of continuing their respective moratoria on nuclear weapon
tests.
 
The Presidents welcomed the ongoing deactivation and dismantlement of
strategic nuclear systems by the parties to the START I Treaty and the
implementation of the January 14, 1994 Trilateral Statement.  They
welcomed the real possibility to bring the START I Treaty and the
Lisbon Protocol into force in the very near future and pledged full
cooperation to this end.  The Presidents agreed that their defense
ministers would exchange information every three months on strategic
systems that have been deactivated and eliminated.
 
The Presidents confirmed their intention to seek early ratification of
the START II Treaty, once the START I Treaty enters into force, and
expressed their desire to exchange START II instruments of ratification
at the next U.S.-Russia summit meeting.
 
In an important new development, the Presidents concurred that, once
the START II Treaty is ratified, the United States and Russia would
proceed to deactivate all strategic delivery systems to be reduced
under START II by removing their nuclear warheads or taking other steps
to remove them from alert status.
 
The Presidents instructed their experts to intensify their dialogue to
compare conceptual approaches and to develop concrete steps to adapt
the nuclear forces and practices on both sides to the changed
international security situation and to the current spirit of
U.S.-Russian partnership, including the possibility, after ratification
of START II, of further reductions of, and limitations on, remaining
nuclear forces.  They also discussed the prospect for
confidence-building and transparency measures in this area. The
Presidents consider that, as the political partnership develops, there
will be new opportunities to strengthen stability through openness and
transparency.
 
President Clinton described to President Yeltsin the unilateral
adjustments the United States will make in its strategic and
non-strategic nuclear forces and safety, security, and use control
practices as a result of the recently completed nuclear posture review.
President Yeltsin noted these U.S. changes as a manifestation of the
new relationship between the United States and Russia and described the
comparable review of measures under-way in Russia to reduce Russian
nuclear forces and improve their safety.  The Presidents agreed that
each side would independently consider further unilateral steps, as
appropriate, with regard to their respective nuclear forces.
 
The Presidents discussed the benefits of reductions in and enhancements
to the security of non-strategic nuclear forces.  The Presidents agreed
on the fundamental importance of preserving the viability and integrity
of the ABM Treaty.  Noting the recent progress made on the issue of
ABM/TMD demarcation and multilateralization of the ABM Treaty, the
Presidents instructed their respective delegations, working with the
other participating states, to complete agreement on remaining issues
in the shortest possible time.
 
Both sides have an interest in developing and fielding effective
theater missile defense systems on a cooperative basis.  The Presidents
agreed that the two sides will conduct a joint exercise of theater
missile defenses and early warning of missile launches.  This exercise
would contribute to providing a basis for U.S. and Russian forces to
operate together, for example, in peace-keeping operations.
 
Proceeding from the principles of partnership and reciprocity, the
Presidents agreed to work together to develop broad bilateral and
multilateral cooperation on assuring nuclear security as follows:
 
--  Cooperate on a bilateral and multilateral basis, including through
the exchange of appropriate information, to prevent illegal trade in
nuclear materials and undertake measures to strengthen the regime of
control and physical protection of such materials.
 
--  Exchange detailed information at the next meeting of the
Gore-Chernomyrdin Commission on aggregate stockpiles of nuclear
warheads, on stocks of fissile materials, and on their safety and
security.  The sides will develop a process for exchanging this
information on a regular basis.
 
--  Direct their joint working group on nuclear safeguards,
transparency, and irreversibility to pursue by March 1995 further
measures to improve confidence in and increase the transparency and
irreversibility of the process of reducing nuclear weapons.
 
--  Facilitate broad cooperation among appropriate agencies in both
countries to ensure effective control, accounting, and physical
protection of nuclear materials.
 
--  Facilitate cooperative programs between U.S. and Russian national
laboratories in the areas of safety, physical protection, control, and
accounting of nuclear materials.
 
--  Deepen cooperation between the U.S. Department of Defense and the
Russian Ministry of Defense in the area of ensuring nuclear security.
 
--  Implement a joint plan to expedite construction of a new, long-term
storage facility for fissile materials from dismantled nuclear weapons
at Mayak.
 
Taking a broad view of strategic stability and bearing in mind the need
to control all types of weapons of mass destruction, the Presidents
agreed on:
 
--  The importance of continued, full, mutual, and reciprocal
implementation of the September 1992 U.S.-Russian-UK statement on
Biological Weapons as a means of gaining confidence that offensive
biological weapons programs have been terminated.
 
--  The need for adherence by all states to the Chemical Weapons
Convention and for universal application of its provisions, as well as
the need for adoption without delay of measures that make it possible
to bring the CWC into force; and the need to resolve without delay the
outstanding issues related to the Bilateral Destruction Agreement and
the Wyoming Memorandum of Understanding.
 
 
Principles and Objectives for The Development of Trade, Economic
Cooperation, and Investment Between the United States of America and
the Russian Federation Joint statement released by the White House,
Office of the Press Secretary, September 28, 1994.
 
The United States of America and the Russian Federation,
 
Believing that strong economic ties and cooperation can contribute
significantly to the building of strong, friendly relations and
acceleration of the development of free markets, economic growth and
job creation in both countries,
 
Based on continuing progress by the Russian Federation in steps to
create a market economy and more open commercial and investment
environment, including the necessary legal and financial conditions,
 
Desiring to build a strategic economic partnership between the two
countries and accelerate and give vibrancy to the efforts of their
private and commercial sectors to develop commercial projects on the
basis of trade, joint ventures, and foreign direct investment,
 
Noting the positive trends and developments in the legal, commercial,
and financial frameworks for bilateral trade, economic cooperation, and
investment,
 
Positively assessing steps by the Russian Federation in creating a
market economy, and by the United States of America in extending
technical assistance to support, on a bilateral and multilateral basis,
market reforms in the Russian Federation and the development of
bilateral commercial relations,
 
Noting the complementarity of the American and Russian economies for
the development of key economic sectors and the significant potential
for development of mutually beneficial commercial ventures between the
two countries,
 
Reaffirming their commitment to the purposes and principles of the
Charter for American-Russian Partnership and Friendship of June 1,
1992, and the principles of the Vancouver (April 1993) and Moscow
(January 1994) Declarations by the presidents of both countries,
 
Noting the important role of the Joint Commission for Economic and
Technological Cooperation in creating the conditions for strengthening
U.S.-Russian economic cooperation,
 
Have adopted the following Principles and Objectives for the
development of trade, economic cooperation and investment relations:
 
Trade
 
The United States of America and the Russian Federation seek to
establish a normal trade relationship as quickly as feasible, to
support a rapid increase in bilateral commerce.  Great value is placed
on the Agreement on Trade Relations in force between the United States
of America and the Russian Federation and both countries are committed
to carry out fully the provisions of this Agreement.
 
The United States recognizes the significance of the removal of Russia
from application of the provisions of Title IV of the U.S. Trade Act of
1974 (the Jackson-Vanik Amendment).  The U.S.  Administration has made
a positive determination that Russia is in full compliance with Title
IV criteria and will consult with the U.S. Congress at an early date
concerning legislation to remove Russia from application of Title IV.
 
Both countries welcome the work of the U.S.-Russia Joint Commission for
Economic and Technological Cooperation and its various bilateral
committees, including the U.S.-Russia Intergovernmental Business
Development Committee to contribute to the expansion of bilateral trade
and investment and will utilize the Business Development Committee as a
means for frequent consultation on the means of improving the
environment for commercial growth.  Each side will use its best efforts
to implement measures supporting trade expansion and to remove
obstacles to trade development.
 
The United States and Russia note that as of September 30, 1993, the
United States has extended to qualifying Russian exports eligibility
for duty-free entrance into the United States under the U.S.
Generalized System of Preferences program covering 4,400 products, and
that during 1994 U.S. technical experts will provide information to
Russian officials and entrepreneurs on effective utilization of the GSP
program.
 
The United States expects to extend the benefits of the GSP program to
Russia for so long as its program authority and Russian eligibility
under authorizing legislation permit.  Russia will review the
possibility of removing certain tariff barriers impeding development of
trade.
 
Both countries will facilitate trade and investment expansion through
the dissemination of reliable and comprehensive economic data,
transparent and stable commercial laws and regulations, and active
promotion of business contacts and facilitating access to commercial
market information.  Noting the provisions of the U.S.-Russia Agreement
on Trade Relations concerning transparency of new laws and regulations,
the United States believes it would be useful if Russia adopted
procedures for public comment on proposed changes to commercial laws
and regulations, as well as advance notification and publication of
proposed changes. Until such procedures are in place, both countries
through the Business Development Committee will facilitate the timely
exchange of information on legislation and regulations as they are
adopted.
 
Market Access:  Each country desires to provide liberal access to its
market for the other's goods and services.  They are committed to avoid
trade frictions and facilitate access consistent with fair trade
practices and their respective trade laws.
 
The U.S.-Russia Business Development Committee is an important forum
for discussions of current and potential market access issues and for
the development of recommended policies and regulations which would
support expanded trade and investment.
 
Recognizing that Russia is an economy in transition to a free market,
the United States will give priority attention to the special market
access problems Russia faces as it continues its economic transition.
The U.S. Administration will consult with the U.S. Congress on this
subject.
 
Market access issues will be addressed from a broader bilateral
perspective through the Business Development Committee's Market Access
Working Group.  This group will consider initiatives designed to reduce
barriers to mutual market access, taking into account the unique
problems Russia faces as an economy in transition.
 
The United States and Russia will immediately work to address Russia's
concerns with U.S. antidumping laws, beginning with procedures to
disseminate information designed to prevent unfair trade and procedures
designed to facilitate participation in antidumping proceedings if
unfair trade occurs. They agree to discuss changing market trends
resulting from Russia's transition to a market economy and integration
into the global trading system.
 
Both countries recognize that tariff-reducing measures, consistent with
GATT/WTO principles, will provide an important stimulus to bilateral
trade and investment.  They also intend to review and seek prompt
removal of technical barriers to trade through both bilateral
cooperation and unilateral measures.  The reduction of such tariff and
technical barriers to trade will lead to increased investment and
promote the development and growth of economically healthy, globally
competitive domestic industries.
 
Both countries consider cooperation in international standardization
and openness of conformity assessment indispensable to eliminating or
avoiding the creation of technical barriers to trade and intend to
proceed vigorously with the program of work agreed upon in the Joint
Communique on Cooperation in Conformity Assessment issued in Moscow on
December 16, 1993, at the conclusion of the meetings of the Joint
Commission for Economic and Technological Cooperation led by Vice
President Albert Gore and Prime Minister Victor Chernomyrdin.  They
consider progress in product certification, testing and quality
assurance to be of priority for telecommunications equipment, drugs,
pharmaceuticals   and medical devices.
 
The United States looks forward to the implementation by Russia of a
trade regime that would speed its accession to the GATT/WTO and open
the way to application of GATT/WTO principles in their bilateral trade.
The United States supports Russia's accession to the GATT/WTO and
expresses its readiness to extend appropriate technical assistance and
to consult concerning the process of accession.
 
Intellectual Property Rights:  The United States and Russia look
forward to continued cooperation under the working group on
intellectual property matters, established by the Agreement on Trade
Relations between the United States of America and the Russian
Federation.
 
The United States recognizes Russia's considerable progress in enacting
intellectual property rights legislation.  Both sides consider
effective enforcement of those laws to be important.  In particular,
the United States considers protection for pharmaceuticals, computer
software, sound recordings, books, and integrated circuit layout
designs to be of primary importance.  The U.S. side looks forward to
Russia's rapid accession to the Berne Convention on the Protection of
Literary and Artistic Works.
 
Closer Economic Cooperation and Commercial Partnership:  The two
countries share the view that their two economies are complementary in
many ways and that the extent of economic cooperation currently
existing between the two is only a small fraction of its potential.
They agree that the two economies could benefit strongly from the
elimination of trade and commercial barriers between them.  The United
States and Russia concur that Russia must take additional
market-oriented steps for trade and commercial cooperation to reach its
potential.  Both agree that closer economic cooperation will have a
beneficial effect on bolstering the continued market transformation of
Russia's economy.
 
The elimination of barriers to trade and investment and increased
commercial cooperation will emphasize the totally changed nature of the
relationship between the two countries to one of strategic economic
partnership.
 
In this context, the United States and Russia at an appropriate time
could consider future arrangements to enhance their bilateral economic
relationship.  They also will work through the Business Development
Committee forum to identify measures for achieving closer commercial
integration.
 
Investment and Finance
 
The two sides note favorably the June 1992 Treaty on the Encouragement
and Reciprocal Protection of Investment that has been signed by the
heads of both States and that has been approved by the U.S. Senate.
They agree that ratification by the Russian Federation Federal Assembly
and its prompt entry into force is a critical goal to be achieved in
improving the Russian investment environment for American companies.
 
They also agree that the steps taken by Russia pursuant to President
Yeltsin's Decree 1466 of September 27, 1993 form the basis for moving
forward with administrative and legislative actions to further improve
the investment climate in Russia.  They share the opinion that
bilateral discussions that include the business communities of both
countries will be the most rapid way of identifying the precise actions
that are needed.
 
Support for Reform:  The United States reaffirms its support for
Russia's efforts to establish a market economy and offers continuing
active assistance to the process of reform. In particular, the United
States welcomes Russia's intention to establish new incentives,
consistent with international standards and agreements including the
GATT/WTO, to attract foreign direct investment, to continue its highly
successful privatization program, to take additional steps to
liberalize the economy and foreign trade by freeing prices and opening
up its markets to the world at large, and to enforce the right of
private land ownership.
 
Russia acknowledges and welcomes the support of the United States for
its reform efforts and will continue to cooperate closely to identify
ways in which the two nations can work together to expedite Russia's
transformation into a market system.
 
Russia is committed to a continuous process of market reform.  The
United States and Russia recognize that trade and investment activities
between the two countries, based on private sector commerce, will
provide the foundations for sustained growth now and in the future.
Such trade and investment activities will help both nations acquire new
technology and know-how and the resulting capital flows will be an
important source of financing for both nations that will support
reform, create new jobs and improve the quality of life in both
countries.
 
The United States and Russia agree that the development of a climate
hospitable toward foreign direct investment could result in tens of
billions of dollars of new direct investment in Russia, and could
generate a much closer commercial relationship between the business
communities of both countries.  The United States and Russia will work
through the Business Development Committee to identify and eliminate
barriers to investment, including sector-specific issues.
 
"Commercial Partnership Program."  The United States and Russia
undertake to establish a "Commercial Partnership Program" to enhance
existing bilateral and multilateral agreements by providing detailed
guidelines and milestones based on the principles outlined in this
document for achieving closer commercial cooperation.  The Commercial
Partnership Program will be developed in several stages, based on
continuing progress in political and economic reforms by Russia and in
the flow of commerce between the two nations.  Each stage will involve
implementation and expansion of specific programs to encourage
company-to-company cooperation and expanded trade and investment.  The
Business Development Committee will coordinate the identification and
implementation of specific steps toward this goal.
 
Industry Cooperation:   The two countries believe that private sector
efforts are vital to the success of Russia's creation of a market
economy. Industry cooperation in key sectors will provide the necessary
capital and business expertise to support economic development.
Economic competition generated through private sector cooperation will
benefit both countries by improving product quality and manufacturing
efficiency and by creating jobs.
 
The United States and Russia agree that investment and trade in the oil
and gas sector provide Russia with an opportunity to attract U.S.
capital and technology on a vast scale, far beyond resources available
from foreign  assistance. They understand the desirability of taking
earliest possible steps in Russia to attract foreign capital and to
provide an attractive investment climate, including realization of
production sharing agreements, stable and reasonable tax and export
regimes, and equal and predictable access to pipelines, in line with
the European Energy Charter Treaty.
 
The United States and Russia declare that investment and trade in other
industry sectors, as well, are essential to overall economic
development.  Agribusiness and food processing, aerospace, mining,
medical devices and pharmaceuticals, telecommunications,
transportation, environ- mental equipment, housing, and defense
conversion are priority sectors for cooperation.  Both countries will
consider appropriate measure for supporting joint ventures in
designated sectors.
 
 
Promoting the Rule of Law and Combating Crime Joint statement released
by the White House, Office of the Press Secretary, Washington, DC,
September 28, 1994.
 
President Boris Yeltsin and President William Clinton, during their
meeting in Washington on September 27 and 28, 1994, noted the threat
which crime poses to the Russian and American societies and to the
entire international community.  Of particular concern to the
Presidents was the rise in financial crime, nuclear materials
smuggling, organized crime, and drug trafficking.  They agreed that
bilateral and international cooperative efforts would be necessary to
combat this growing threat.
 
The Presidents noted that cooperation in law enforcement between their
two countries could in a substantial way help to resolve the problem of
crime and should be institutionalized through bilateral agreements.  To
this end, delegations from the United States and the Russian Federation
held a first round of negotiations for an Agreement on Cooperation in
Criminal Matters which commits each country to assist the other in
criminal investigations and crime prevention.  The Presidents expressed
their intention to sign and bring into force as quickly as possible
this Agreement.  The Presidents also announced their intention to enter
into negotiations for a broader Mutual Legal Assistance Treaty.
 
President Clinton announced the intention of the United States to offer
an expanded program of assistance to the Russian Federation, including
technical assistance and training of personnel to support cooperation
between the Russian Federation and the United States in promoting the
rule of law and combating crime.
 
 
Support of the Timan Pechora Project Joint statement released by the
White House, Office of the Press Secretary, Washington, DC, September
28, 1994.
 
The Presidents of the United States and Russia express support for the
early completion of the negotiations between the Russian Federation and
the Timan Pechora Company L.L.C. (TPC) toward the Timan Pechora
production sharing agreement.  The two sides will exert all possible
efforts to support successful conclusion of the negotiations by the
coming meeting of the Joint Commission for Economic and Technological
Cooperation, which will be held before the end of year 1994.
 
The Timan Pechora project is designed to explore, appraise, and develop
viable oil fields in the Timan Pechora Basin.  According to available
estimates, potential oil resources of the basin total more than two
billion barrels.  TPC will act as the operating company for the
project, located 1,771 kilometers (1,100 miles) northeast of Moscow
above the Arctic Circle on the Barents Sea.  TPC is owned jointly by
U.S. companies Texaco, Exxon, Amoco, and the Norwegian company Norsk
Hydro.
 
President Clinton and President Yeltsin agreed at their meeting in
Naples to give the Timan Pechora project top priority in the oil and
gas sector.  Vice President Gore and Prime Minister Chernomyrdin,
through the Joint Commission for Economic and Technological
Cooperation, will continue their efforts to ensure successful
completion of negotiations and implementation of the project, including
early adoption of production sharing agreement legislation in Russia.
 
It is anticipated that the Overseas Private Investment Corporation
(OPIC), among others, may provide substantial assistance for the
project through their financing and insurance support.
 
 
Environmental Protection In the Arctic Joint announcement released by
the White House, Office of the Press Secretary, Washington, DC,
September 28, 1994.
 
President William Clinton and President Boris Yeltsin announced at
their summit meeting on September 27 and 28, 1994, that cooperation in
the resolution of the problems of processing and storage of Russian
liquid radioactive wastes in the North of Russia is considered by both
sides as an important component of more effective protection for the
environmental quality and natural resources of the Arctic.
 
The Russian Federation and the United States of America confirm their
readiness to cooperate in consistently preventing dumping of liquid
radioactive wastes, in accordance with the London Convention, and to
proceed to a solution of the problem of Arctic pollution from all
sources.  To this end, the Russian Federation and the United States of
America agree to undertake immediately, in cooperation with other
interested countries, a step-by-step expansion and upgrading of a
treatment facility for liquid low-level radioactive waste in Murmansk.
 
Both sides hope that a speedy implementation of this project, which  is
in the interest of all states of the region, will become the focal
point of efforts to create the infrastructure for ecologically safe
processing and storage of liquid low- level radioactive wastes in the
North of Russia.  At the same time, Russia intends to continue its
present policy of voluntary commitment to the prohibition on dumping
liquid radioactive wastes under the London Convention with a view to
eventual formal adherence to the prohibition.
 
 
U.S.-Russian Mutual Customs Assistance Agreement Joint statement
released by the White House, Office of the Press Secretary, Washington,
DC, September 28, 1994.
 
Secretary of the Treasury Lloyd Bentsen and Antoly S.  Kruglov,
Chairman of the State Customs Committee of the Russian Federation,
today will sign a Customs Mutual Assistance Agreement (CMAA) that will
assist the two countries in prevention, investigation, and repression
of Customs offenses.
 
Occurring during the Presidential signing ceremony taking place in the
East Room of the White House at 3:30 pm, and witnessed by Presidents
Clinton and Yeltsin, the agreement provides a basis for cooperation and
investigation in the areas of commercial fraud, narcotics smuggling,
and export control, and will be mutually beneficial to the Customs
Administrations of the United States and the Russian Federation by
enhancing their abilities to enforce Customs laws.
 
Commenting on the agreement, U.S. Commissioner of Customs George J.
Weiss said "the signing of this Customs Mutual Assistance Agreement
begins a new era of cooperation between the Governments of the United
States of America and the Russian Federation and for our respective
Customs Administrations.  International trade and criminal activity are
increasing so rapidly, it is essential for us to establish a network of
agreements between Customs agencies to share information for
facilitating trade and law enforcement purposes.  Everyone wins when we
establish mechanisms for mutual cooperation to promote international
trade and to thwart criminal activity."
 
U.S. domestic laws, and most foreign national law, do not permit
disclosure of much information in the absence of a formal agreement or
treaty.  The CMAA will allow U.S. Customs to exchange information,
intelligence, and other assistance with the Russian Federation.
 
U.S. Customs has signed Customs Mutual Assistance agreements with a
number of other countries.  As of this date, 25 have entered into
force. (###)
 
 
 
 
ARTICLE 4:
 
U.S.-Russian Strategic Stability and Nuclear Security Initiatives
Statement released by the Office of the Spokesman, Washington, DC,
September 28, 1994.
 
The joint statement by President Clinton and Russian President Yeltsin
notes that, with the end of the Cold War, major progress has been
achieved with regard to strengthening global strategic stability and
nuclear security.  The Presidents continued the process of expanding
cooperation across a broad range of security issues and built on the
Gore-Chernomyrdin agreements of June 1994 with further concrete steps
toward these and other related security objectives.
 
1.  Strengthening Global Strategic Stability
 
--  Nuclear Dialogue To Proceed Beyond START I and II.  Bringing the
START I and START II Treaties into force is our highest strategic arms
control priority, and Russia and the United States will cooperate to
achieve this goal as soon as possible.  The two Presidents further
concluded that the two sides should intensify their dialogue to compare
conceptual approaches and to develop concrete steps to adapt the
nuclear forces and practices of the two sides to the changed
international security situation and to the spirit of the evolving
U.S.-Russian partnership, including the possibility, after ratification
of START II, of further reductions of, and limitations on, remaining
nuclear forces.  Further measures to improve strategic stability could
include unilateral adjustments in the forces of each side and
confidence- building measures that could enhance openness and
transparency.  President Clinton described the steps the U.S. is taking
under the just completed Nuclear Posture Review to adjust its nuclear
forces.  President Yeltsin described the comparable review ongoing in
Russia.
 
--  Reductions Under START I and START II.  The Presidents agreed to
two important new measures in carrying out the reductions required
under the START I and II Treaties.  First, defense ministers will
exchange information every three months on strategic systems that have
been eliminated or deactivated.  Second, once the START II Treaty is
ratified, the U.S. and Russia will deactivate all strategic nuclear
delivery systems to be eliminated under the agreement by removing their
warheads or taking other steps to remove them from alert status.
 
--  Implementation of the January 14 Trilateral Statement.  The
Presidents welcomed the implementation of the January 14, 1994
Trilateral Statement.  All three parties are fulfilling their
obligations under the Trilateral Statement.  Ukraine has transferred
360 warheads to Russia for dismantlement, Russia has delivered the 100
tons of low-enriched uranium in the form of fuel assemblies to Ukraine
in compensation, and the U.S.  has provided a $60 million advance
payment to Russia under the highly enriched uranium (HEU) sales
contract to help finance the fabrication of the fuel assemblies.
Ukraine is also continuing its deactivation of SS-24 and SS-19
missiles.
 
--  ABM Treaty/Theater Missile  Defenses.  Both countries agree on the
importance of preserving the integrity and viability of the ABM Treaty.
They share an interest in developing and fielding effective theater
missile defense systems on a cooperative basis.  The United States and
Russia have been negotiating, along with other    participating states,
the demarcation between anti-ballistic missile defenses, which are
limited under the ABM Treaty, and theater missile defenses, which are
not.  Recent progress in narrowing differences on the demarcation issue
has enabled the Presidents to instruct their respective delegations to
resolve remaining issues in the shortest possible time.
 
The President's decision to conduct a joint theater missile defense and
early warning exercise will, for the first time, expand our cooperation
with Russia on non-proliferation into the military sphere and marks
another significant milestone in the forging of a more positive
security relationship with Russia.  This exercise will contribute to
the ability of U.S.  and Russian forces to work together.  We expect to
reach agreement soon on the scope of the exercise so that more detailed
exercise planning can begin.
 
--  CTBT/NPT.  The Presidents reaffirmed their shared goals of
concluding a CTB Treaty at the earliest possible date, an unconditional
and indefinite extension of the Non- Proliferation Treaty, and of
concluding a global prohibition on the production of fissile materials
for nuclear weapons.  They also agreed on the desirability of
continuing their respective moratoria on nuclear weapons tests.
 
2.  Assuring Nuclear Security
 
With the dramatic reductions taking place in nuclear forces, one of the
most serious challenges being faced is the safety and security of
warheads being removed from dismantled delivery vehicles and fissile
materials being removed from dismantled warheads.  The Presidents
agreed to work together to develop broad bilateral and multilateral
cooperation to assure nuclear security.  The Summit produced
significant and concrete steps toward this objective.
 
--  Cooperation to Prevent Nuclear Smuggling.  The call of the Summit
statement for bilateral and multilateral cooperation, including through
the exchange of appropriate information, to prevent illegal trade in
nuclear materials, follows up on the agreement at the July 1994 Naples
meeting of the eight heads of state to cooperate to prevent nuclear
smuggling.
 
--  Material Control and Accounting and Physical Protection.  The sides
agreed to a set of measures to increase the scope of their cooperation
in this area including the following:
 
-- Facilitation of broad cooperation among appropriate agencies in both
countries to ensure effective control, accounting, and physical
protection of nuclear materials.
 
-- Both countries have agreed to  facilitate existing programs of
cooperation between U.S. and Russian national laboratories on material
control and  accounting and physical protection.  The Department of
Energy intends to substantially increase funding for these programs in
FY 1995 and FY 1996.
 
-- The Department of Defense and the Russian Ministry of Defense also
agreed to cooperate in the area of ensuring nuclear security.
 
--  Data Exchange.  In an important addition to their cooperative
efforts, the sides agreed to exchange detailed information on aggregate
stockpiles of nuclear warheads, on stocks of fissile materials, and on
their safety and security at the next meeting of the Gore- Chernomyrdin
Commission.  The sides agreed to develop a process to exchange this
information on a regular basis.
 
--  Fissile Material Storage Facility.  The sides agreed to expedite
the construction of a long-term storage    facility at Mayak for the
safe, secure storage of fissile materials from dismantled nuclear
weapons.
 
--  Transparency and Irreversibility and Halting the Further
Accumulation of Excess Stocks of Fissile Material.  Making warhead
reductions irreversible is as important to future arms control as the
START Treaties were in the past.  The Presidents are determined to
improve confidence in and increase the transparency and irreversibility
of the process of reducing nuclear weapons.  In order to achieve this
goal, the joint working group on nuclear safeguards, transparency and
irreversibility will begin discussions by March 1995.
 
3.  Broader Strategic and Security  Issues
 
Presidents Clinton and Yeltsin conducted an extensive review of other
priority security issues of mutual concern to the two countries:
 
--  Biological Weapons.  They agreed on the importance of continued,
full mutual and reciprocal implementation of the September 1992
U.S.-Russian-UK statement on biological weapons as a means of gaining
confidence that offensive biological weapons programs have been
terminated.
 
--  Chemical Weapons.  They also agreed on the need for universal
application of the provisions of the Chemical Weapons Convention and
the need to take steps without delay to bring the CWC into force, and
the need without delay to resolve all outstanding issues with respect
to implementation of the Bilateral Destruction Agreement and the
Wyoming Memorandum of Understanding (MOU). (###)
 
 
 
 
ARTICLE 5:
 
Import Licenses for Russian Small Arms Statement by Department
Spokesman Michael McCurry, Washington, DC, October 3, 1994.
 
The Treasury Department's Bureau of Alcohol, Tobacco and Firearms (ATF)
has the statutory responsibility to grant or deny licenses for imports
of munitions.  In carrying out this function, ATF is guided by the
views of the Secretary of State on matters affecting world peace and
the external security and foreign policy of the United States.
 
ATF regulations, issued with the concurrence of the State Department,
include the former Soviet Union (FSU) on a list of proscribed countries
for purposes of arms importations.  At present, there are more than 250
pending license requests from American firms wishing to import
munitions from the states of the FSU.  These requests are valued at
over $1 billion in potential sales, including more than 7 billion
rounds of ammunition and 7.6 million rifles and pistols.  ATF routinely
seeks advice from the Department of State as to whether the current
prohibition against imports from the FSU should be waived in connection
with applications.
 
Because of the dramatic increase in the volume of potential imports
from the FSU, the Secretary of State has ordered the Department to
undertake a thorough study of the foreign policy and national security
considerations involved in these munitions trade issues prior to
approving any waiver or adopting any change in policy.  The study also
will examine existing statutory and regulatory authorities for managing
the importation of guns into the United States with a view to
determining whether any changes are needed to manage such imports in a
more orderly manner, consistent with our foreign policy and national
security interests.
 
The Secretary has asked that this study be completed expeditiously.
Until these issues can be addressed, we will not recommend approval of
any munitions import licenses for the FSU.  Accordingly, I also would
like to announce that the Department is sending to the Treasury
Department's Bureau of Alcohol, Tobacco and Firearms our recommendation
that the ATF adhere to its current regulations and deny approval to
pending license requests from American firms wishing to import firearms
and ammunition from Russia and other states of the FSU.
 
We anticipate that many of the license applicants will resubmit
applications in the near future.  Clearing away all pending FSU license
applications will enable the Department to gain an accurate
understanding of the current magnitude of the potential imports as we
conduct our review.
 
Lastly, I want to make clear that the speculation by the press
concerning this issue was completely off base.  At no point did we
consider the idea of "compensating" Russia for halting arms sales to
Iran by approving these licenses.  That sort of linkage was never even
discussed. (###)
 
 
 
 
ARTICLE 6:
 
A New Era of Peace in The Middle East President Clinton, Jordanian
Crown Prince Hassan, Israeli Foreign Minister Peres, Joint Communique
 
Remarks by President Clinton, Jordanian Crown Prince Hassan, and
Israeli Foreign Minister Peres following a meeting at the White House,
Washington, DC, October 3, 1994.
 
President Clinton.  Good morning.  I am happy to welcome back to the
White House Crown Prince Hassan and Foreign Minister Peres.  We have
had a productive session today.  Jordan and Israel have taken further
and very specific steps on the road to building a warm peace between
their nations.
 
Almost exactly a year ago, Crown Prince Hassan, Foreign Minister Peres,
and I met to launch this trilateral process.  What a difference a year
makes.  Since then, intensive bilateral and trilateral negotiations
culminated, just two months ago, in the historic meeting I hosted here
between King Hussein and Prime Minister Rabin when they signed the
Washington Declaration and put an end to war between their two nations.
 
Since then, peace treaty negotiations have made considerable progress,
and steps to implement the warm peace all three of our nations want
have already been taken.  Jordan and Israel have already opened a
border crossing for citizens of other nations at Aqaba and Eilat.
Trilateral discussions on tourism, communications, and economic
development are proceeding.
 
These discussions take place at a time when the economic and trade
barriers of the past are dissolving before our eyes.  It is heartening
that the Gulf Cooperation Council states, led by Saudi Arabia, have now
declared that they will no longer enforce the secondary and tertiary
aspects of the economic boycott, and will support a move in the Arab
League to end the primary boycott of Israel.
 
Promoting trade, development, and cooperation, rather than restraining
and hindering normal economic relations, should be the hallmark of the
new Middle East--Jordan and Israel are leading the way.
 
Today, the Crown Prince and the Foreign Minister have reached agreement
on a variety of issues that will help develop the Jordan Rift Valley,
increase tourism, and assure future economic and social progress in the
region.  They have agreed to adopt basic principles to guide the future
development of the Jordan Rift Valley, including projects dealing with
the environment, water, energy, and tourism; to open a new northern
border crossing for third-country nationals by October 15; to establish
a Red Sea marine peace park with assistance from the U.S. Government;
to convene a conference on exploring and constructing a canal between
the Red Sea and the Dead Sea; to explore the establishment of a
free-trade zone in the Aqaba- Eilat area with a view to making it an
economic hub for the northern peninsula of the Red Sea; to conduct,
together with the United States, feasibility studies to expand the
availability of water; and to undertake joint financing of dams on the
Yarmuk and Jordan Rivers to alleviate water shortages.
 
That is quite a lot of work for them in this session.  They are solid
evidence that Jordan and Israel have not only ended their state of war,
but are following through on their commitment to cooperate with each
other and to negotiate, as rapidly as possible, a final peace treaty.
Our goal remains a comprehensive peace between Israel and all its Arab
neighbors.  We are hopeful that a breakthrough can be achieved and the
negotiations will be underway between Israel and Syria and Israel and
Lebanon.
 
In their ongoing talks, Israel and Jordan have looked to the trilateral
discussions to help establish a comprehensive, lasting, and warm peace.
The steps we announce today are the building blocks of a modern peace
between these ancient lands.  The United States is proud to be a
partner and facilitator in this extraordinary endeavor.
 
Crown Prince Hassan and Foreign Minister Peres, on behalf of the
American people and personally, let  me say that I salute your vision,
your courage, and your persistence.  This has been a relationship that
has meant a great deal not only to me, but to all   of us in this
country because of the incredible openness that you have displayed and
the creativity you have brought to these negotiations.
 
I am grateful that the United States has been able to play a role in
this process; grateful for the opportunity that we have had to try to
facilitate an extraordinary coming together between two extraordinary
nations and very extraordinary leaders.  Your Highness.
 
 
Crown Prince Hassan.  Mr. President, Foreign Minister Peres:  you will
forgive me by starting my statement by quoting from the Mishnah, the
Ethics of the Fathers:  "The world is sustained by three things--by
truth, by justice, and by peace."  I feel that in the spirit of our
discussions, we have had truthful, frank, and candid discussions both
here today and on the occasion that we met last year to launch the
trilateral committee.  I come, of course, from the meetings in Aqaba,
where those meetings were characterized by a truthful search for peace
built on justice.  I would like to say that I come here in a mood of
optimism that the work we have commenced is a work that is going to
live up to the hopes and aspirations of our people for a breakthrough
for the future of both our people and for the people of the region.
 
Our negotiators have made progress that would have amazed us a year
ago.  We have moved the talks to our region.  We have agreed on
principles and modalities to resolve the outstanding issues, and today,
we are undertaking joint projects.  We have implemented this vision in
the confidence-building context of the most concrete kind.  At last, at
long last, the leaders of our countries have met face to face and
signed the Washington Declaration.
 
As we move ever further in our voyage toward peace, we witness the
rebirth of the Middle East as a region, as a community, and as a part
of the international states.
 
Foreign Minister Peres, you have spoken eloquently of your vision for
the future of our region--to the vision that we share.  Now we must
eliminate the barriers that create obstacles to its realization.  We
must work to resolve all outstanding bilateral issues, giving relations
between our countries a solid, equitable, and sustainable basis.  Over
the past two days, we have discussed a range of ideas to that end, and
I am confident that we will rise together to these challenges and that
we will go on to make good the promise of peace.
 
Millions in the Middle East are watching us today; they know where true
peace resides.  It is ultimately not in the hands of government, but in
the hearts of individuals who will participate in true peace.  The time
has come for the people of the Middle East to gain a stake in peace; to
partake of its fruits without discrimination, without exclusion.  In
Casablanca, at the end of this month, let us advance together toward
that goal.
 
Mr. President, the involvement of the United States gives us great
hope.  Your support and that of American presidents throughout the
years is cherished in my country.  It was President Woodrow Wilson who
proclaimed the need for--and I quote--"open covenants of peace openly
arrived at."  It has been a long journey.  We have yet to arrive at our
destination, but with God's help, the farthest shore is now in sight.
Thank you, gentlemen.
 
 
Foreign Minister Peres.  Mr. President, Your Highness:  I would like to
thank, first of all, the American people; its institution; and its
leader, President Bill Clinton, for taking one of the most complicated
issues--a region of problems and walls--and making out of it a region
of hope and promise.  If we shall succeed in our endeavors, as I do
believe we shall, it may serve as a model to many other places.
 
The Middle East was a complex place for three basic reasons:
 
First, the conflict was unprecedented, deep, full of emotion, and full
of military strengths and confrontation;
 
Secondly, the number of participants in this conflict was large and
varied and different; and
 
Thirdly, it was basically military and political conflict rather than
economic cooperation and social outlook.
 
May I say, Mr. President, that over the last year, everything has
changed completely.  A year ago, we were standing here when the
President, our Prime Minister Rabin, and King Hussein and Chairman
Arafat agreed to start to solve the very complicated issue with the
Palestinians.  Today, Mr. President, it is a reality.
 
Later on there was the meeting, again here, between the Jordanian
leaders, the Israeli leaders, and the President.  What then was the
Washington Declaration today again is a vivid progress of cooperation
for the benefit of all of our people.  Then again, the Arab boycott
that accompanied the Arab political boycott is disappearing, very much
because of the work of Secretary Christopher, for whom I would like to
express my thanks.
 
In the meantime, some other events took place.  We have agreed to open
relations with Morocco, and to open relations with Tunisia.  It is not
the end of the story or the end of debate, and as His Royal Highness
has promised, we are going to meet in Casablanca for a most unusual
attempt to combine private enterprise and governmental responsibility
to promote the standard of living of all the people in the Middle East.
Between our two countries, we are going to take parts of the desert and
convert them into valleys of peace, of agriculture, and of tourism.
 
A year ago, when we started, many people thought that we were looking
for photo opportunities.  Today we can say we have obtained not a photo
opportunity, but a deep and moving change in human experience in the
best part of the 20th century.
 
I want to express my hope that the President and his team-- the
American Congress, and the American people--will continue a job that
really calls for  a salute and appreciation.
 
Thank you very much.
 
 
Joint Communique Text of joint communique by U.S. President William J.
Clinton, Jordanian Crown Prince El Hassan Bin Talal, and Israeli
Foreign Minister Shimon Peres, released by the White House, Office of
the Press Secretary, October 3, 1994.
 
1.  President William J. Clinton met at the White House today with His
Royal Highness Crown Prince El Hassan Bin Talal of the Hashemite
Kingdom of Jordan and Foreign Minister Shimon Peres of Israel to pursue
their common purpose of creating a new era of peace in the Middle East.
 
2.  Jordan and Israel reaffirmed the five underlying principles of
their understanding on an Agreed Common Agenda and commemorated the
first trilateral meeting, convened by President Clinton one year ago in
Washington, D.C.  establishing the U.S.-Jordan-Israel Trilateral
Economic Committee.  The Trilateral Economic Committee created new
momentum which led to the first ministerial-level trilateral meetings
in the region, at the Dead Sea in Jordan and at the Eilat-Aqaba border
crossing, and to the July 25, 1994 Washington Declaration ending the
state of war between Jordan and Israel.
 
3.  HRH Crown Prince El Hassan and Foreign Minister Peres outlined to
President Clinton the significant progress that was recently made in
Aqaba in the bilateral negotiations between Jordan and Israel, and
reaffirmed their commitment enshrined in the Washington Declaration
signed by President Clinton, King Hussein, and Prime Minister Rabin to
achieve a full peace treaty between the two countries, hopefully in the
near future.
 
The progress made in the bilateral and trilateral negotiations are also
based on a shared view of the need for comprehensive peace in the
region.  In this context the three leaders believe in the importance of
gradual implementation of regional cooperation that would address in a
balanced manner the basic economic and social needs of the people of
the region, the struggle against unemployment and poverty, development
of human resources and lead to the development of a regional and
comprehensive security concept.  This will also require regional
institution building based on the Multilateral Working Groups, leading
to the possible development of a Conference on Security and Cooperation
in the Middle East (CSCME) concept.  The three leaders called upon
other regional and non-regional partners to participate in the
exploration of these concepts and targets to create a new Middle East.
 
4.  To implement further the pro-visions contained in the Washington
Declaration of 25th July, 1994, the U.S.-Jordan- Israel Trilateral
Economic Committee today announced agreement on:
 
a.  The finalized terms of reference for the Jordan Rift Valley Joint
Master Plan, that portrays an integrated  concept for the development
of the Jordan Rift Valley and entails a wide variety of economic
projects that are of mutual benefit to the two countries, as well as
for the region.
 
b.  The importance of the Middle East/North Africa Economic Summit in
Casablanca (October 30 - November 1).  In this context it is important
that the work of the Trilateral Committee will be highlighted,
including joint projects, business and investment opportunities, and
the promotion of partnership between the public and private sectors.
 
In view of the fact that the next Middle East/North Africa Economic
Summit will be held in Amman, the Trilateral Committee favors the
establishment of a continuous mechanism to promote the investment of
the private sector and to develop necessary strategies for regional
economic development, in conjunction with the Regional Economic
Development Working Group (REDWG) of the multilateral peace process.
The three sides will coordinate on preparations for the Economic
Summits within the trilateral framework.
 
c.  Regarding the importance of regional economic development, the
three sides believe it is essential to pursue and explore the creation
of a regional organization for economic development and creation of a
multilateral financing mechanism.  These concepts will be further
developed in the upcoming meeting of the REDWG Monitoring Committee and
in the Casablanca Conference.
 
d.  In order to encourage economic progress resulting from the ongoing
peace process, it was also decided:
 
1.  To address in the upcoming U.S.-Jordan Bilateral Commission ways in
which the U.S. can assist Jordan's economic development by encouraging
private investment, business development and entrepreneurship and
promoting bilateral trade.
 
2.  To explore the creation of a cooperative Free Trade Zone in
Aqaba/Eilat based on the principle of free flow of goods between
countries, at the upcoming expert level meeting in Israel from October
10-13 and Jordan from October 17-20, 1994.
 
3.  The exchange of selective delegations in the economic field between
Jordan and industrialists, bankers, heads of Chambers of Commerce and
economic media leaders.
 
e.  Regarding tourism as a major component of economic development, it
was agreed:
 
1.  The completion of construction by October 15, 1994, of a new
northern border crossing point for third country nations.
 
2.  A Red Sea Marine Peace Park, with a U.S. start-up grant from the
State Department's Oceans and International Environmental and
Scientific Affairs Bureau's Special Fund.
 
3.  The Trilateral Committee also agreed to promote Israel and Jordan
as a joint tourism destination, citing Jordanian- Israeli collaboration
on the September 28-29 Tourism in the New Middle East Workshop in
Cairo, the November 6-12 Lisbon Conference of the American Society of
Travel Agents, and the January- February 1995 Peace Trips for U.S. and
international tourism and travel sector representatives and the news
media (including representatives of the two countries).
 
4.  The new northern border crossing point for third country nations,
the Red Sea Marine Peace Park, and the inclusion of tourism in the
terms of reference of the Jordan Rift Valley Joint Master plan will
enhance both countries' appeal as a joint tourist destination, in
addition to the Aqaba-Eilat southern border crossing point and the Dead
Sea Lowest Point on Earth Park.
 
5.  Establishment of an Eilat/Aqaba Free Tourism Zone, where citizens
of Jordan and Israel can visit in addition to third country nationals.
 
f.  Water Resources:
 
1.  Based on the necessity to develop new and alternative water
resources on a regional scale the Trilateral Committee will develop
Terms of Reference in order to conduct relevant feasibility studies.
 
2.  Jordan and Israel will pursue in common financing of the dams as
agreed upon in recent Aqaba talks.
 
3.  Under the auspices of the Trilateral Economic Committee, and with
technical assistance and support from the U.S. Trade and Development
Agency and the U.S. private sector, a symposium on the Red Sea-Dead Sea
Canal proposal will be hosted by the Hashemite Kingdom of Jordan, in
conjunction with the Government of Israel. (###)
 
 
 
 
ARTICLE 7:
 
A Review of Developments In the Middle East Robert H. Pelletreau,
Assistant Secretary for Near Eastern Affairs Statement before the
Subcommittee on Europe and the Middle East of the House Foreign Affairs
Committee, October 4, 1994
 
Mr. Chairman, distinguished members of the subcommittee: I am pleased
to appear before you again to review recent developments in the Middle
East.  My statement today will cover the peace process, Gulf security,
and commercial policies in the region.  Let me begin by restating
American interests in the region.  They include:
 
--  Securing a just, lasting, and comprehensive peace between Israel
and all Arab parties with which it is not yet at peace;
 
--  Maintaining our steadfast commitment to Israel's security and
well-being;
 
--  Building and maintaining security arrangements that assure the
stability of the Gulf region and unimpeded commercial access to its
petroleum reserves, which are vital to our economic prosperity;
 
--  Ensuring fair access for American business to commercial
opportunities in the region;
 
--  Countering the proliferation of weapons of mass destruction, the
systems to deliver them, combatting terrorism; and
 
--  Promoting more open political and economic systems and respect for
human rights and the rule of law.
 
This region, long plagued by war, has embarked on a historic journey
toward peace.  Former antagonists are negotiating and opening doors to
a new era of coexistence.  This comes at a time when many countries are
undergoing complicated internal transitions.  Governments and the
governed are seeking appropriate responses to currents of change set in
motion by the end of the Cold War.  The Middle East remains a
complicated and, in many ways, a dangerous neighborhood, but it is a
place where peace is gaining ground.
 
Just over a year has passed since Israeli Prime Minister Rabin and PLO
Chairman Arafat signed the Declaration of Principles on the south lawn
of the White House.  This accord addressed one of the core issues of
the Arab-Israeli conflict--Palestinian- Israeli co-existence--and
cleared the way for other agreements that have followed.  It has
produced the beginnings of Palestinian self-government, as well as
economic interaction and security cooperation with Israel.  Today in
the Middle East, normalization of relations between peoples is taking
root.  While the road to a full and lasting peace between Israel and
the Arab world remains long and difficult, we are firmly engaged on
that path and recent developments hearten and encourage us.
 
Following the Washington Declaration on July 25 and the dramatic
announcement by King Hussein that the state of war between Israel and
Jordan had ended, Secretary Christopher traveled to the Middle East in
early August to continue the Administration's effort to move the peace
process forward and to support those agreements already reached.  The
Secretary returned from the region impressed by the progress that has
been made and persuaded of the opportunities to move the process
forward.  Ambassador Dennis Ross visited the region in mid-September,
and the past week has witnessed important developments in New York and
Washington.  Secretary Christopher plans to visit the region again in
the next few days to continue the momentum toward our objectives of a
just, comprehensive, and lasting peace.
 
Mr. Chairman, let me briefly review with you the current status of each
of the bilateral and multilateral tracks of the peace process.
 
The Bilateral Negotiations
 
Israel-PLO.  Since the signing of the Declaration of Principles, Israel
and the PLO have remained engaged in direct negotiations, and have been
making steady progress.  In April, the two sides concluded an economic
agreement with far- reaching implications for their relations.  The
Gaza- Jericho Accords, signed on May 4 in Cairo, set out the terms for
implementation of the Declaration of Principles, and included annexes
on security arrangements, civil and legal matters, and economic
relations.  These accords cleared the way for the withdrawal of Israeli
forces from Gaza and Jericho, and for the Palestinians to assume
self-government responsibilities.
 
In August, a further agreement expanded Palestinian self-rule in the
West Bank with the transfer of authority over education and set the
stage for the Palestinians to assume responsibility for social welfare,
health, tourism, and direct taxation.  Yesterday, the two sides began
negotiations on the range of issues related to the holding of elections
for a Palestinian council, as provided for in the Declaration of
Principles.  The United States regards the holding of elections as a
vital step in the Palestinian self-governing process and one which
should be encouraged and supported by the international community.
 
The progressive transfer of authority to the Palestinians will demand
greater accountability on the part of the Palestinian administration.
We are troubled by the ongoing violence in the territories, such as the
stabbing on September 25 of a 17- year- old Jewish settler by a young
Palestinian in Gaza.  We welcome Chairman Arafat's quick condemnation
of the incident as an act of terrorism.  His characterization of the
attack as a challenge to the Palestinians is fully on the mark.  It is
clear that more must be done to prevent these kinds of incidents in the
future.
 
The Administration has exerted every effort to ensure that
implementation of the Declaration of Principles advances successfully.
The Agency for International Development is providing advice to the
Palestinians on the administration of elections and has other programs
underway for housing construction, food distribution, and health care
delivery.  In addition to our financial aid, we recognize the vital
role of private sector investment.  Last month, OPIC finalized an
agreement to begin offering loans, loan guarantees, and political risk
insurance to American companies with business ventures in the West Bank
and Gaza.  Seven projects already have been announced, representing an
investment of about $87 million, to create up to 5,000 permanent and
temporary jobs.
 
While the donor response to the Palestinians' financial requirements
has been extraordinary, we have made it clear that it must also be
temporary.  The Secretary has urged Chairman Arafat to take the
necessary steps to establish a tax collection system in Gaza and
Jericho.  The donors are prepared to provide additional funds, but the
Palestinians must demonstrate that they have taken adequate steps to
generate revenues of their own.  Palestinian self-help efforts--
collecting taxes and tapping the resources of the Palestinian
diaspora--as well as cooperation between the Palestinians, Israel, and
other regional forces to implement economic cooperation are ultimately
the keys to Palestinian self- sufficiency.
 
Israel-Jordan.  Yesterday, President Clinton met with Jordanian Crown
Prince Hassan and Israeli Foreign Minister Peres to, as they expressed
after the meeting, "pursue their common purpose of creating a new era
of peace in the Middle East."  Yesterday's trilateral builds on the
progress made on July 25, when King Hussein and Prime Minister Rabin
signed the Washington Declaration, which officially marked the end of
Jordan's and Israel's state of belligerency.  The Declaration they
signed is a positive, forward-looking document, committing the
Jordanians and Israelis to work toward a treaty of peace.  In it,
Jordan also agreed that future negotiations with Israel will address
the abolition of all economic boycotts.
 
The Washington Declaration has already brought tangible changes on the
ground.  On August 8, Secretary Christopher participated in the opening
of a border crossing north of Eilat and Aqaba, an event of great
symbolic and practical importance for future Israeli-Jordanian
relations.
 
The Jordanians and Israelis have also agreed to a series of joint
projects that have emerged from their trilateral negotiations, in which
the United States plays a major catalytic role.  The joint communique
issued at the October 3 trilateral meeting expressed the interest of
the parties in exploring new forms of regional political and economic
cooperation.  The parties have agreed to the terms of reference for the
Jordan Rift Valley Master Plan.  Meanwhile, the Administration is
sponsoring a study of three U.S. parks for trilateral experts working
on the Dead Sea transboundary park and a Red Sea marine research park.
In their bilateral talks, the two sides are grappling with the crucial
issues of boundaries and water sharing, as well as civil aviation and
transportation issues.
 
The Administration will continue to work closely with Jordan and Israel
to support the bilateral and trilateral negotiations.  However, the
success of the talks between these two parties demonstrates that there
is no more promising avenue to peace than direct negotiations.
 
Israel-Syria.  While the Declaration of Principles dealt with the core
political issue of the Arab-Israeli conflict, the Israeli-Syrian talks
address the conflict's key strategic issues.  Prime Minister Rabin and
President Asad are serious and engaged on the substantive details of
their negotiations.  With the U.S. as an active intermediary, the
Israelis and the Syrians have begun to outline their views on
withdrawal, security, peace, timing, phasing, and the relationship
among those elements.  Since the end of April, Secretary Christopher
has conducted careful shuttle diplomacy to narrow these issues and
assist the parties in exploring how the key elements could fit
together.  Foreign Minister Shara will be in Washington this week to
discuss these issues.
 
The gaps are wide and the bargaining is hard, but both leaders want the
effort to continue, and neither is shrinking from the process of
engagement.  It is significant that President Asad has taken no steps
to disrupt the growing Palestinian and Jordanian co-existence with
Israel.  In his July Army Day speech, Asad spoke of a "peace with
honor."   On September 10, he outlined to the Syrian People's Assembly
a strategy of peace based on normalization of relations with Israel and
acknowledged the "objective requirements" of peace.  These are positive
signs, and we will remain actively engaged to advance the
Syrian-Israeli track in 1994.
 
Israel-Lebanon.  Progress has been slow in the Israel-Lebanon
negotiations, but we think that here, too, the fruit is ripening.  The
issues are clear:  The Lebanese seek Israeli withdrawal from southern
Lebanon.  Israel claims neither land nor water, but justifiably seeks
to secure its northern border from terrorist attack and to establish
formal peace and security arrangements between the two governments.
Meanwhile, Lebanon is making steady progress in emerging from the dark
years of civil war and in rebuilding its economy.  As Secretary
Christopher reiterated last week in New York to Foreign Minister Bouez,
the U.S. supports Lebanese independence, sovereignty, and territorial
integrity and shares the goals of the Lebanese people for a nation
secure and at peace, free of all foreign forces.
 
The Multilateral Negotiations
 
As you know, Mr. Chairman, in early 1992, shortly after the Madrid
Middle East Peace Conference, a set of multilateral negotiations was
launched to complement the bilaterals.  For almost three years now,
representatives of Israel, the Palestinians, 13 Arab countries, and
more than 30 parties from outside the region have been meeting in
various working groups to address issues facing the region as a whole:
water, the environment, economic development, refugees, and  arms
control and security.  Progress in these talks has surpassed our
expectations.  Israeli delegations are becoming routine features in
Arab capitals where such meetings occur:  five of the six meetings of
the last round of multilateral talks were held in the region--in
Morocco, Tunisia, Egypt, Qatar, and Oman.
 
Syria and Lebanon have not yet agreed to join the multilaterals,
pending progress in their respective bilateral negotiations with
Israel.  The door remains open to them.
 
Let me briefly describe the activities of the five working groups:
 
--  The Arms Control and Regional Security Working Group is
establishing a communications network among its members patterned after
the CSCE network.  The group also is working on a declaration on
security principles to guide the conduct of regional parties.
 
--  The Environment Working Group is developing an oil spill
contingency plan for the Gulf of Aqaba.  Israel, Jordan, the
Palestinians, Egypt, and Tunisia have developed a regional work plan to
combat desertification.  This group and the Water Resources Working
Group are cooperating on a project for waste- water treatment and
re-use for small communities in the region.
 
--  The Refugee Working Group is working to improve living conditions
of Palestinian refugees, especially outside the occupied territories.
It is developing projects for vocational training centers, housing
rehabilitation, and a health master plan.  The group completed a study
on living conditions of refugees in West Bank camps, which is now being
used to set up a Palestinian statistical office in the territories.
 
--  The Regional Economic Development Working Group recently adopted an
action plan containing over 40 initiatives in the areas of tourism,
transportation, communications, training, and agriculture.
 
--  The Water Resources Working Group is testing rain catchment systems
in the parched Gaza Strip, and has agreed to establish a center on
desalination research and technologies in Oman.  It also is developing
regional water data banks and low-cost desalination technologies,
examining how to rehabilitate small community water systems, and
providing water sector training to regional water managers and
technicians.
 
Additionally, the Multilateral Steering Group, which I co- chair with
my Russian counterpart, is working on guidelines for regional
development and a paper on the future of the Middle East.
 
The multilaterals provide several benefits to the process as a whole.
They reinforce the bilateral negotiations and buffer periods of
difficulty.  They are building networks of Arab and Israeli
professionals with similar interests.  They provide mechanisms through
which regional problems can be addressed and constitute an available
forum for other states to join at the appropriate time.  They are also
spawning new areas of cooperation, and here I would cite the decision
by Israel and Morocco to open liaison offices, the agreement by Israel
and Tunisia to open economic liaison offices, and the Middle East/North
Africa Economic Summit that will take place in Casablanca at the end of
this month.  The multilaterals are proving to be a catalyst for
positive change and may be giving us a glimpse of what the region will
look like when the countries of the area cooperate in an era of
comprehensive Arab-Israeli peace.
 
The Middle East/North Africa Economic Summit
 
Although not formally tied to the multilateral process, the upcoming
Middle East/North Africa Economic Summit represents an unprecedented
opportunity to reinforce the dramatic developments that have occurred
in Arab-Israeli peace-making over the past two years.  The summit,
sponsored by the Council on Foreign Relations and the World Economic
Forum, will include participants from business and government.
President Clinton and Russian President Yeltsin are honorary co-chairs.
Summit participants will be encouraged to work toward the creation of a
regional financing mechanism, a regional Chamber of Commerce and Middle
East/North African economic community, and a regional tourist board,
and to agree to a follow-on business conference in 1995.
 
The UN International Conference On Population and Development
 
Although the population conference, held in Cairo in the first half of
September, was global in nature and subject matter, the fact that it
was held in the Middle East and contains important implications for
Middle Eastern nations makes it relevant to this report.  The U.S.
delegation was led by Vice President Gore and played an active role in
negotiating the final program of action.  President Mubarak and the
Government of Egypt are to be commended for hosting this conference--it
was a gigantic undertaking from the organizational and security points
of view as well as in a substantive sense.  It also offered an
opportunity to show-case Egypt's own family planning program which,
under the energetic leadership of Dr. Maher Mahran, has brought growth
rates in Egypt down over the last decade from 2.7% to 2.2%, a
significant reduction.
 
Challenges to Peace and Stability
 
Development in the peace process and the successful outcome of the
Population Conference allow a degree of optimism that would have been
unrealistic and impermissible in past years, but they do not condone
complacency.  A great deal of work still needs to be done.
 
We also must be vigilant in the face of challenges to peace and
stability.  Forces of terrorism and rejection will continue to
complicate the task of peacemaking.  The pursuit of weapons of mass
destruction by some states poses a long-term threat to the region.
Some governments also face challenges from opposition movements,
religious and secular, that use violence and terrorism as the path to
political power.  Also, the activities of Iran and Iraq in the Gulf
region remain a source of great concern.  Let me briefly review our
policy toward the Gulf.
 
Gulf Security
 
No one familiar with the history of the second half of the 20th century
needs to be reminded of the importance of this region to the United
States or the world.  U.S. exports to Gulf countries are in the
billions of dollars annually.  Sixty- five percent of the world's known
petroleum reserves is located here.  American presidents have
identified unimpeded access to these resources as a "vital"
interest--one for which we will, if necessary, commit military forces,
as we did in Desert Storm.
 
In this vein, a key objective is to ensure the physical security of the
Persian Gulf--to reduce the chances that another aggressor will emerge
to seek control over the area, threaten the independence of existing
states, or dictate policy in the region.  Iraq, despite its defeat in
the Gulf War, is still ruled by Saddam Hussein and still harbors
ambitions of regional domination.  It has yet to show any serious
willingness to demonstrate its peaceful intentions toward its neighbors
or its own citizens as demanded by the Security Council.  Our stance
toward Iraq is unambiguous:  It must fully comply with all relevant UN
Security Council resolutions and with the measures taken by the
international coalition to enforce and monitor them.
 
There is no convincing evidence that Saddam Hussein's regime is
prepared to meet this standard.  Iraq is not today in full compliance
with any of the relevant UN Security Council resolutions.  It has not
even met the basic requirements of the resolution which ended the
fighting in the Gulf War--such as formally recognizing the
UN-demarcated border with Kuwait.  With such a record, Iraq's calls for
the immediate lifting of sanctions ring hollow.
 
But the United States has no quarrel with Iraq's much- oppressed
population.  We work closely with the UN, international donors, and
non-governmental organizations in carrying out a humanitarian relief
program.  We strongly support the continued territorial integrity and
unity of Iraq.  We also support the Iraqi National Congress in its
efforts to unify and strengthen the Iraqi opposition, and to bring a
democratic, pluralistic government to Iraq, one which can live in peace
with its neighbors and its own people.  In sum, we are determined that
the will of the international community, as expressed in UN Security
Council resolutions, be enforced to ensure that an Iraqi tyrant does
not again threaten his neighbors or pose a threat to broader peace.
 
Let me repeat that we bear no ill will toward the Iraqi people.  Saddam
Hussein's brutal treatment of Iraq's civilian population is a matter of
record.  The Iraqi Government could alleviate the suffering of the
Iraqi people by ceasing its repression, especially in the north against
the Kurds and in the south against the Shiites, and by taking advantage
of UN Security Council resolutions 706 and 712, which allow Iraq to
sell oil under UN control to purchase food, medicine, and other
humanitarian goods.
 
As for Iran, we have very deep and serious concerns about its behavior
in five areas:
 
--  Its quest for nuclear and other weapons of mass destruction, and
the means for their delivery;
 
--  The continued involvement of the Iranian Government in terrorism
and assassination worldwide;
 
--  Its support for violent opposition to the Arab-Israeli peace
process;
 
--  Iran's threats and subversive activities against its neighbors; and
 
--  Its dismal human rights record at home.
 
Our policy is not aimed at changing the Iranian Government but at
inducing Iran to change its policies in these areas.  We have made
clear that we are prepared to enter into dialogue with authorized
representatives of the Iranian Government to discuss the differences
between us.  We seek to persuade Iran that it cannot expect to enjoy
normal state-to-state relations so long as it violates basic standards
of international conduct.  Thus, we work with other countries to deny
Iran access to military or dual-use technology and other means it might
use to pursue international destabilization and terrorism, as well as
acquire weapons of mass destruction.
 
We seek positive change in Iranian policy to allow the Iranian people
to join the widening circles of peace.  But so far, Iran has turned
backward, choosing resistance rather than co- existence.
 
In recent weeks there has been an effort by the Iranian opposition
group Mojahedin-e-Khalq, with the support from some members of Congress
and some media opinion, to press the Administration to establish
contacts with this group.  The argument goes that we cannot prepare an
unbiased report on the Mojahedin-e-Khalq as mandated by Congress
without sitting down and talking to its leaders.  We believe such
contacts are unnecessary, Mr. Chairman, to meet the Congressional
requirement.  The U.S. Government possesses a great deal of information
on the group's activities, some of it directly from Mojahedin-published
sources.  I can assure you that the report will be comprehensive and
factual.
 
Collective Security Among Gulf States
 
A second focus of our policy in the Gulf, complementing our efforts to
counter the threatening potential of Iran and Iraq, is bolstering the
defensive capabilities of our friends in the Gulf region.  The U.S. is
urging the members of the Gulf Cooperation Council to work more closely
together on collective defense and security.  We have also strengthened
our own ability to act quickly by maintaining strong forces in the
region, pre-positioning equipment and material, and concluding defense
cooperation agreements with several GCC states.
 
Our goal here is to complement, not replace, the Gulf states' own
collective security efforts.  We do not intend to station troops
permanently anywhere in the region.  Our objective is to increase
regional stability and deter threats, and to raise the threshold at
which direct U.S. military action might be needed; that is, reducing
the likelihood that we and our allies would have to fight to repel an
aggression.
 
U.S. Commercial Interests
 
Before closing, let me say a few words about our economic cooperation
in the Gulf region and U.S. support for private business.  From
President Clinton down, this Administration has made crystal clear its
view that supporting American business overseas would be at the heart
of our foreign policy interests.  This Administration's support for
NAFTA and GATT and its promotion of our country's efforts to secure
specific commercial contracts show we are taking that mandate
seriously.  We wish to reduce barriers to trade and investment and to
ensure that the rights of American businesses are not infringed.  We
are working to protect the integrity of American patents, copyrights,
and trademarks by asking all Middle Eastern states to join the
international convention protecting intellectual property rights.
 
Saudi Arabia's decision to purchase up to $4 billion worth of
telecommunications equipment from U.S. manufacturers demonstrates how
our partnership with private industry can translate into large orders
for goods and services produced by American workers.  Sup-port for
American business is a priority of each of our ambassadors overseas.
 
Our embassies have been active elsewhere in the Gulf helping American
business to secure, for instance, over 500 construction contracts in
Kuwait worth approximately $5 billion and a $98-million contract to
dredge a channel in Doha.
 
We also are working to develop increased linkages between the U.S.
private sector and its counterparts in the region.  With this in mind,
Vice President Gore and Egyptian President Mubarak agreed on September
6 to intensify the U.S.-Egyptian partnership in economic areas.  The
core of this partnership will be a new, high-level Joint Committee for
Economic Growth, which will facilitate contacts between the U.S. and
Egyptian private sectors, strengthen science and technology
cooperation, and establish an "economic dialogue" that will foster
development of a broad-based economic relationship focused more on
trade, investment, and mutual commercial benefit than on assistance.
 
A major impediment that remains to economic expansion in the region is
the Arab boycott of Israel.  It suppresses economic growth at a time
when trade and economic development are critical to the area's
stability.  I   am pleased to say that the validity of the case against
the boycott is increasingly recognized by the Arab states themselves.
Last week the Foreign Ministers of the Gulf Cooperation Council,
meeting in New York, agreed to end the secondary and tertiary aspects
of the boycott and to support Arab League action to end the boycott in
its entirety.  The U.S. objective remains a complete end to the
boycott, and we continue to press Arab leaders at every opportunity.
 
Conclusion
 
Even as the region's political landscape is being transformed by the
logic of peace, it remains a dangerous neighborhood, demanding our
unwavering vigilance.  Forces of terrorism and rejection will continue
to complicate the task of building a comprehensive peace.  It is
critical to stanch the flow of weapons of mass destruction into the
region.
 
A collective security framework must be strengthened and maintained on
the Western side of the Gulf to deter governments with aggressive
intentions toward their neighbors.  Non- governmental movements,
whether religious or secular, that use or espouse violence and
terrorism as the path to political power will continue to pose a threat
to stability until they decide to work peacefully and respect human
rights.  But we also need to continue our work with governments in the
region to encourage greater openness and responsiveness in their
political systems and to enhance the protection of human rights.
Otherwise, terrorism and radicalism will prosper.
 
Mr. Chairman, let me end with a perspective on recent developments in
the peace process.  The agreements and activities I have described
today were set in motion by courageous leaders.  These accords are
creating new political and economic bonds across traditional lines of
conflict.  They are also catalysts for expanding reconciliation among
peoples.  I have seen this when Jordanian and Israeli war veterans
embraced one another at the opening of their border.  It is evident  in
the multiplying contacts between Arabs and Israelis to explore tourism,
commerce, and cultural activities.  It is also evident in small signs
such as graffiti welcoming peace on the walls  of Gaza, and Palestinian
and Israeli theater troupes joining in a production of Romeo and
Juliet.  These signs testify that the region is turning a corner.
Peace is not only being pushed by politicians and diplomats; it is also
being pulled by the people of the region.
 
This administration recognizes that there is no more compelling goal of
statecraft than to seek and consolidate peace and reconciliation
between countries and peoples.  President Clinton, Secretary
Christopher, and all of us involved in carrying out our policy will do
everything in our power to make that goal a reality in tomorrow's
Middle East.
 
Mr. Chairman, this concludes my prepared remarks;  I would now be happy
to take questions from the committee.   Thank you.  (###)
 
 
 
 
ARTICLE 8:
 
Northern Ireland:  Contacts With Sinn Fein Party Leaders Statement
released by the White House, Office of the Press Secretary, Washington,
DC, October 3, 1994.
 
On August 31, President Clinton welcomed the IRA announcement of its
decision to join the political process and end its campaign of
violence.  He pledged that the United States would continue to assist
in advancing the cause of peace and reconciliation in Northern Ireland
in full support of the process initiated by British Prime Minister John
Major and Irish Prime Minister Albert Reynolds in their Downing Street
Declaration of December 1993.
 
In view of the role of Sinn Fein leader Gerry Adams in bringing about
the IRA's cease-fire announcement of August 31, the Administration
authorized a waiver of his ineligibility for a U.S. visa in order to
permit him to visit the United States and to explain his views on the
peace process in Northern Ireland.
 
In light of that historic announcement and the peace it has brought
over the last month, the United States is today lifting its
long-standing ban on contacts between U.S. officials and members of the
Sinn Fein party so that a dialogue may begin.  In a brief conversation
this morning, the Vice President informed Mr. Adams of this action.  We
expect that this dialogue will take place primarily through our embassy
in Dublin and our consulate general in Belfast, and that it will help
advance the search for a just and lasting peace in Northern Ireland.
This dialogue will be consistent with the United States' practice of
maintaining contacts with political parties throughout the world that
seek to advance their political objectives by peaceful means.
 
As a first step in this dialogue, a meeting with Mr. Adams to discuss
the peace process will take place at the Department of State on
Tuesday, October 4, hosted by Ambassador John Kornblum, the Senior
Deputy Assistant Secretary of State for European and Canadian Affairs.
Ambassador Kornblum will be joined by Leon Fuerth, Assistant to the
Vice President for National Security Affairs; Nancy Soderberg, Staff
Director of the National Security Council; and other State Department
and NSC officials.  (###)
 
 
[END OF DISPATCH VOL 5, NUMBER 41]

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