Group of Seven (G-7)
                           1995 Economic Summit
                           Halifax, Nova Scotia
                             June 15-17, 1995


     Speeches and Remarks
1.  The G-7 Summit: Addressing the Forces of Change - President Clinton
2.  The U.S. and Japan Pursue Shared Goals and Common Interests - 
President Clinton, Japanese Prime Minister Murayama
3.  U.S. Global Leadership Responsibilities: The G-7 Summit and Beyond - 
President Clinton

     Summit Documents
4.  Halifax Summit Communique
5.  Chairman's Statement

     Fact Sheets
6.  Key G-7 Economic and Political Data
7.  Economic Summits, 1988-95
8.  Uruguay Round Agreement Reforms and U.S. Trade Policy
9.  The World Trade Organization
10. Developing Country Debt
11. Global Environmental Issues


The G-7 Summit: Addressing the Forces of Change
President Clinton
Remarks prior to departure for G-7 Summit, Andrews Air Force Base, 
Maryland, June 15, 1995

Good morning. As you know, I am leaving for Halifax for my third annual 
meeting with the leaders of the G-7 industrialized nations. This summit 
marks another concrete step in our efforts to advance the security and 
prosperity of the American people by seizing the opportunities of the 
global economy.

At home, we are working hard to put our economic house in order. We are 
creating millions of jobs, working for economic growth, and cutting the 
deficit--which is already the lowest of all the advanced countries in 
the world. With our new budget proposal, we will wipe out the deficit in 
10 years, while still making room for the critical investments in 
education and training which our future demands. Going into this 
meeting, the United States is in a strong position to continue leading 
our allies in the fight for long-term global prosperity.

From the beginning of our Administration, we have led the international 
effort to expand trade on a free and fair basis. We helped to expand 
world markets with NAFTA and GATT, with trade agreements with the Asia-
Pacific countries, and, here, with the nations of the Americas. We are 
helping the former communist countries convert to free market economies. 
In all these areas, we have turned back the forces of isolation which 
tempt us to turn away from the challenges and opportunities of the 

In Halifax, together with our partners, we will focus on continuing to 
reform the institutions of the international economy--the World Bank, 
the International Monetary Fund, and others so that we can have more 
stable, reliable growth. For a half-century, they have been a sound 
investment and we are committed to maintaining our support for them. But 
now we have to give them new guidance in this new economy so that they 
can continue to serve our national interests in a changing global 

One of the key issues we will be addressing is to create ways to 
identify and prevent financial problems from exploding into crises as 
they did in Mexico. We will embrace joint initiatives to contain and 
defuse any crisis that does develop, so that the United States is not 
the world's lender of last resort. We will continue to explore how 
international organizations--which have helped so many countries improve 
the lives of their people--can better aid developing nations and expand 
the world's market economies.

Finally, together with Russia, we will examine the challenges to our 
safety and well-being that no country can resolve alone. We will look at 
new ways we can work together to combat the scourges of terrorism, 
nuclear smuggling, drug trafficking, and organized crime. Of course, we 
will discuss a number of security issues that concern us all--including 
Bosnia and Iran's nuclear ambitions.

When I arrive in Halifax today, I will be meeting with Prime Minister 
Murayama of Japan. Our relationship is strong and we are cooperating on 
a broad variety of issues, including North Korea--which is terribly 
important to both of us--the environment, and the problems of terrorism 
which have visited both our nations recently. But I also will make it 
clear to the Prime Minister that I am determined to carry through on my 
effort to open Japan's auto markets. Millions of American exports and 
thousands of American jobs depend upon our success. I will say again: It 
is in the long-term interest of both the Japanese people and the people 
of the United States that this trade effort succeed.

All around the world, free markets, open trade, and new technologies are 
bringing countries closer together. Every day they are producing untold 
new opportunities for our people. They also lead us into uncharted 
territory with new problems. I believe, on balance, that the future is 
very bright if we have the discipline to face these issues as they 

As the world's leading industrialized democracies, those of us in the G-
7 have a very special responsibility to address these forces of change. 
That is what we will be doing at Halifax. 



The U.S. and Japan Pursue Shared Goals and Common Interests
President Clinton, Japanese Prime Minister Murayama
Opening statements at press conference, Dalhousie University, Halifax, 
Nova Scotia, June 15, 1995

President Clinton. 
Good afternoon. Before turning to my meeting with Prime Minister 
Murayama, let me begin by thanking Prime Minister Chretien and the 
people of Halifax for welcoming Hillary and me and our delegation to 
Canada. Even on our short boat ride across the harbor we could see why 
this city and, indeed, all of Nova Scotia are favorite sights for so 
many American tourists. I hope the important business we do here won't 
prevent us from enjoying a little of this very beautiful place.

Our business today began with The meeting with Prime Minister Murayama--
the third in the constructive dialogue we began last November. Our 
discussion focused on the strength of the U.S.-Japan relationship, and 
we are determined to make it stronger still. Never have the ties between 
our nations been more important, and never have they been closer. 

Our two great democracies are also the world's largest economies. 
Together, we make up more than 30% of the world's gross domestic 
product. Trade between our people is growing rapidly. 

Our security ties have never been closer. Friends and foes alike know 
the Japanese-American relationship is the most important force for peace 
and stability in the Asia-Pacific region. Every day, our people work 
together on the vital challenges of our times--protecting the 
environment, responding to natural disasters, combating the deadly trade 
in illegal drugs, and fighting the terrorists who have threatened both 
our nations from abroad and from within.

No issue is more important to our nations than stopping the spread of 
nuclear weapons. Prime Minister Murayama and I, along with our South 
Korean allies, have worked tirelessly on our strategy to stop the 
development of North Korea's nuclear program. We pledged to push forward 
with this week's important agreement to implement that strategy. Japan 
has agreed to make a significant contribution to the light-water 
reactors that will supply energy to the North Koreans without producing 
weapons-grade materials. I thanked the Prime Minister for Japan's 
ongoing commitment to the fight against weapons of mass destruction.

The Prime Minister briefed me on plans for the upcoming meeting of the 
Asia-Pacific Economic Cooperation forum. APEC, as all of you know, has 
become an essential part of America's strategy for regional prosperity. 
Japan and the United States will work together so that November's 
meeting in Osaka sustains the momentum toward free and open trade in the 
Asia-Pacific region achieved in Seattle and, last year, in Indonesia.

We also discussed our progress and our disagreements on trade. Since the 
beginning of my Administration, the United States and Japan have 
concluded agreements 15 times--to open markets and increase trade across 
a wide variety of products and services.

The latest, reached just this week, offers tax and financial incentives 
to Americans who want to establish on-the-ground operations in Japan. 
The Prime Minister and I also agreed to extend the 1993 Framework on 
Trade Negotiations, and I am optimistic that that will advance both our 
interests in free and open trade. Once again, this proves that our 
countries can and do work together to solve our disputes and enable 
American companies to better compete in the Japanese market.

But we also, as all of you know, have little differences. The Prime 
Minister and I discussed the problem of access for U.S.-airline cargo 
carriers to the Japanese market, for example. I again expressed to the 
Prime Minister my concern that Japan honor rights that our carriers now 
have guaranteed under existing aviation agreements.

On the difficult issue of autos and auto parts, we had a frank and open 
exchange of our views. We agreed that our negotiators should redouble 
their efforts to seek a solution to those differences when they meet in 
Geneva next week. But I made it clear that I am determined to carry 
through on my effort to open Japan's auto markets. Billions of dollars 
in American exports and thousands of American jobs are at stake. They 
depend upon our success.

Opening these markets, as I have said repeatedly, will benefit not only 
the United States, but Japanese consumers as well. I have instructed our 
negotiators to pursue every possible avenue of resolution before the 
June 28 deadline, and I remain hopeful that an acceptable, meaningful 
agreement can be reached. But if a solution cannot be found by the 
deadline, I will impose sanctions, and the United States also will 
pursue a case before the World Trade Organization.

At times like these, it is tempting to focus only on the differences 
that bring our two nations to the negotiating table. But I ask you again 
not to lose sight of the broader truths of our relationship. Only 
decades after the end of the terrible war that pitted our people against 
each other, the United States and Japan are allies and share a profound 
commitment to democracy, security, and prosperity. Our common agenda 
embraces everything from the fight to preserve our global environment to 
the global fight against AIDS, promoting the cause of women in 
developing countries, to working together on natural disasters such as 
earthquakes, and dealing with our common concerns after Oklahoma City 
and the terrible incident in the Japanese subway with terrorism, and the 
proliferation of weapons of mass destruction.

In any relationship as broad and deep as ours, there always will be 
differences. But the United States and Japan agree: No one issue, no one 
difference will allow us to undermine our alliance or stop us from 
pursuing our shared goals and our common interests.

Our two great democracies will never rest in our pursuit of a better, a 
safer, and a more prosperous future for all of our people.

Prime Minister Murayama. 
In my meeting with President Clinton for a couple of hours until a while 
ago, I engaged in a candid exchange of views on the present and future 
of Japan-U.S. relations and the stance that we will take as we go into 
the G-7 meeting. And I think the meeting was very meaningful.

U.S.-Japan relations have grown over the past 50 years--since the end of 
the Second World War, and we are connected by a strong bond of 
cooperation and collaboration. 

President Clinton and I confirmed that the security dialogue is 
progressing smoothly. Thanks to the President's cooperation, the issue 
of U.S. military bases in Okinawa has seen important progress. The 
response to North Korea's nuclear development issue--which seemed to 
test our bilateral collaboration--has produced important results, thanks 
to the solidarity of our two countries and the Republic of Korea. It is 
a matter that we expressed appreciation for. A common agenda--that is to 
say our cooperation from global perspectives--is a symbol of creative 
partnership between our two countries. We, today, received a joint 
report containing new areas of cooperation. The President and I are of 
the view that such cooperation should be promoted further. 

As was mentioned earlier by the President, we also discussed the auto 
issue as well as the civil aviation issue. While the two countries 
remain apart on these issues, the President and I see eye-to-eye that we 
both will do our utmost to settle the issue as early as possible through 
the consultations slated for next week in Geneva.

By the way, since the President has alluded to this matter, I should 
like to say that I asked for expeditious removal of the unilateral 
measures since they violate the rules and the spirit of the World Trade 
Organization. Now, in connection with that, including the civil aviation 
issue, we both agree that Japan-U.S relations are a bilateral 
relationship of vital importance--so much so that the auto issue and 
aviation issue should not be allowed to adversely affect overall Japan-
U.S. relations. 

We will welcome President and Mrs. Clinton as state guests in November. 
Today's meeting with the President took place at a midpoint between my 
visit to Washington, DC, earlier in January, and his visit to Japan in 
November. I am determined to further strengthen our bilateral 
partnership in the run-up to the President's visit and beyond, into the 

Lastly, I proposed to the President to hold a bilateral symposium of 
seismologists on earthquakes, in order to enable the people of our two 
countries who have experienced the great Hanshin earthquake and the 
Northridge earthquake, respectively, and make the most of their 
experiences and the lessons. The President has agreed to the proposal. 
Thank you. 



U.S. Global Leadership Responsibilities: The G-7 Summit and Beyond
President Clinton
Opening statement at press conference, Dalhousie University, Halifax, 
Nova Scotia, June 16, 1995 (Introductory remarks deleted)

From the beginning of our Administration I have worked hard to make the 
global economy work for the American people. We live and work in a 
global market. Our living standards depend upon our ability to compete 
and to keep one step ahead of economic change. 

In the past two-and-a-half years we have fought at home for a 
comprehensive economic strategy that would create jobs and lift the 
incomes of our people, focusing on reducing the deficit  but investing 
in our people--in their education and their future. My new budget 
proposal continues to reflect these priorities. 

At the same time, we have worked to open more markets around the world 
to our products in free and fair competition with others, through NAFTA, 
GATT, and our work with the Asia-Pacific countries and with the 
countries of the Americas. We also have worked hard to encourage the 
global trend toward market democracy in the former communist countries. 

I am pursuing this strategy, above all, for one reason: to renew the 
promise of America in the 21st century. But I also want to preserve the 
leadership of America as a force for peace and freedom, for democracy 
and prosperity. 

This G-7 meeting has moved us a step closer to these goals. We've taken 
concrete steps to strengthen the international financial system--
something we promised to do last year in Naples. And let me give you 
one--and perhaps the most important--example. 

Earlier this year, we in the United States were confronted with a 
serious financial crisis in Mexico. It posed a risk to markets 
throughout the world, and it certainly threatened our own economic 
health, as well as our long-term relationships with Mexico, involving a 
number of other issues. We led the effort to stabilize Mexico, and, from 
all signs, it seems to be working. President Zedillo and his team have 
worked hard to live within the discipline the markets have imposed and 
to move Mexico to a brighter and better future. 

We learned two important lessons in dealing with the Mexico crisis. 
First, the world clearly needs better tools to identify problems such as 
this so that they can be prevented; and second, the international system 
must have a stronger way of resolving these crises once they do occur. 

We were fortunate in the Mexico instance that the United States had 
access to a fund which would permit us to make some guarantees and move 
to put together an international approach to this problem. But the U.S. 
will not be able to be the lender of last resort in other crises of this 
kind. So here in Halifax, we have begun to forge the tools to deal with 
these kinds of problems in the future. 

We agreed to create an early warning system that will sound the alarm 
when nations begin to encounter real problems, before a problem with the 
severity of the Mexico crisis develops. We call for early and full 
disclosure of critical monetary and financial information. We'll 
establish tougher reporting standards for nations so that markets will 
react more quickly and nations will be pressed to implement sound 
policies in a timely manner. This may be the best discipline for 
preventing future crises. 

When these problems do occur, we must respond decisively. Leaders of the 
G-7 have taken crucial steps toward that end. We've called upon the 
International Monetary Fund to establish a new mechanism to ensure that 
we can act swiftly when one nation's economic crisis threatens the world 
economy. We propose to double the funds available for this purpose to 
more than $50 billion from those nations with a stake in a stable 
international financial system. That will require loans from the United 
States which must be authorized by Congress. I know a lot of you are 
thinking about that, but they are scored as cost-free to the American 
taxpayers because they're viewed as risk-free because they go to the 
international institutions. 

The G-7 leaders also have agreed that the international financial 
institutions--the World Bank, the IMF--and the agencies of the United 
Nations must continue on a path of reform. These institutions have 
served us well for half a century, and we will continue to support them, 
but they must adapt for a new era. We put forward new principles that 
will focus their work on addressing vital human needs--alleviating 
poverty, supporting private sector development, and promoting 
sustainable development and environmental protection along side economic 
growth. The resulting economic growth will bolster democracy and 
stability in developing nations and, of course, create future markets 
for American exports. 

The leaders at Halifax also are discussing new security threats that no 
nation should face alone. We'll have more to say about that tomorrow. 
But let me say that we have agreed that the G-7 must work together far 
more energetically and comprehensively to counter the growing dangers 
posed by terrorists, international criminals, nuclear smugglers, and 
drug traffickers. We must cooperate and work closely to counter 
terrorism and criminal activities sponsored by states, groups, and 
individuals. These are among the foremost challenges of the post-Cold 
War world. 

These are issues which affect the lives of the American people in a very 
direct way. How we deal with them, whether and how we strengthen the 
international financial system and reform its institutions, and how we 
fight challenges such as terrorism will in no small way determine our 
citizens' future prosperity and security, how they feel about 
themselves, and the future their children will enjoy. 

To create new, high-wage jobs, to raise incomes, and to expand economic 
opportunity, the United States must continue to lead, even as we work 
hard on these matters at home. We cannot--I will say again--we cannot 
walk away from our global leadership responsibilities. In Halifax we 
have taken another solid step along that road. It will make the economy 
work better for the American people, and I believe it will help us 
prevent future "Mexicos" and deal with those crises in a much more 
effective way when they do occur. 



Halifax Summit Communique
Text of communique issued at Halifax, Nova Scotia, June 16, 1995.


1. We, the Heads of State and Government of seven major industrialized 
nations and the President of the European Commission, have met in 
Halifax for our 21st annual Summit. We have gathered at a time of change 
and opportunity, and have reaffirmed our commitment to working together 
and with our partners throughout the world.

Growth and Employment

2. The central purpose of our economic policy is to improve the well 
being of our people, allowing them to lead full and productive lives. 
Creating good quality jobs and reducing unemployment, which remains 
unacceptably high in too many of our countries, is thus an urgent 
priority for all of us. We are committed to establishing an economic 
environment conducive to the accomplishment of this goal.

3. We remain encouraged by the continued strong growth in much of the 
world's economy. While there has been some slowing, in most of our 
countries the conditions for continued growth appear to be in place and 
inflation is well under control. We will pursue appropriate 
macroeconomic and structural policies to maintain the momentum of 

4. Yet problems remain. Internal and external imbalances, together with 
unhelpful fluctuations in financial and currency markets, could 
jeopardize achievement of sustained, non-inflationary growth as well as 
the continued expansion of international trade.

5. We remain committed to the medium-term economic strategy that we 
earlier agreed upon. Consistent with it, we are determined to make the 
best possible use of the current economic expansion by taking steps to 
promote durable job creation. This requires determined action to further 
reduce public deficits, to maintain a non-inflationary environment and 
to increase national savings for the funding of a high level of global 
investment. Each country has to keep its own house in order.

6. We endorse the conclusions reached by G-7 Finance Ministers in 
Washington and ask them to maintain close cooperation in economic 
surveillance and in exchange markets.

7. Good fiscal and monetary policies will not on their own deliver the 
full fruits of better economic performance. We must also remove 
obstacles to achieving the longer-term potential of our economies to 
grow and create secure, well-paying jobs. This will require measures to 
upgrade the skills of our labour force, and to promote, where 
appropriate, greater flexibility in labour markets and elimination of 
unnecessary regulations. At Naples we committed ourselves to a range of 
reforms in the areas of training and education, labour market regulation 
and adjustment, technological innovation and enhanced competition. As we 
pursue these reforms, we welcome the initiation by the OECD of a 
detailed review of each member economy's structural and employment 

8. As a follow-up to our discussions, we agree to ask ministers to meet 
in France before our next Summit to review the progress made in job 
creation and consider how best to increase employment in all of our 

9. We are also committed to ensuring protection for our aging 
populations and those in need in our societies. To this end, some of our 
countries must take measures to ensure the sustainability of our public 
pension programs and systems of social support. Similar attention is 
required in some of our countries to ensuring the availability of 
private sector pension funds.

10. We welcome the results of the G-7 Information Society conference 
held in Brussels in February, including the eight core policy principles 
agreed to by Ministers, and encourage implementation of the series of 
pilot projects designed to help promote innovation and the spread of new 
technologies. We also welcome the involvement of the private sector. We 
encourage a dialogue with developing countries and economies in 
transition in establishing the Global Information Society, and welcome 
the proposal that an information society conference be convened in South 
Africa in spring 1996.

Meeting the Challenges of the 21st Century

11. International institutions have been central to our pursuit of 
stability, prosperity and equity for the past 50 years. Last year, in 
Naples, we called for a review of the international institutions to 
ensure that they are equipped to deal effectively with the challenges of 
the future. Today, in Halifax, we are proposing some concrete steps 
toward this goal. All countries have a stake in effective, efficient 
institutions. We pledge our full energies to strengthening the 
institutions in partnership with their entire membership to enhance the 
security and prosperity of the world.

Strengthening the Global Economy

12. The world economy has changed beyond all recognition over the last 
50 years. The process of globalization, driven by technological change, 
has led to increased economic interdependence: this applies to some 
policy areas seen previously as purely domestic, and to interactions 
between policy areas. The major challenge confronting us is to manage 
this increased interdependence while working with the grain of markets, 
and recognizing the growing number of important players. This is 
especially important in the pursuit of global macroeconomic and 
financial stability.

13. Close consultation and effective cooperation on macroeconomic 
policies among the G-7 are important elements in promoting sustained 
non-inflationary growth, avoiding the emergence of large external and 
internal imbalances, and promoting greater exchange market stability. 
Our Ministers have adopted a number of changes to the structure of their 
consultations over time, in order to strengthen policy cooperation, 
including enhanced consultation with the IMF.

14. The growth and integration of global capital markets have created 
both enormous opportunities and new risks. We have a shared interest in  
ensuring the international community remains able to manage the risks 
inherent in the growth of private capital flows, the increased 
integration of domestic capital markets, and the accelerating pace of 
financial innovation.

15. The developments in Mexico earlier this year and their repercussions 
have sharpened our focus on these issues. We welcome the recent more 
positive turn of events in Mexico, as well as the positive developments 
in a number of emerging economies.

16. The prevention of crisis is the preferred course of action. This is 
best achieved through each country pursuing sound fiscal and monetary 
policies. But it also requires an improved early warning system, so that 
we can act more quickly to prevent or handle financial shocks. Such a 
system must include improved and effective surveillance of national 
economic policies and financial market developments, and fuller 
disclosure of this information to market participants. To this end, we 
urge the IMF to:

--  establish benchmarks for the timely publication of key economic and 
financial data;

--  establish a procedure for the regular public identification of 
countries which comply with these benchmarks;

--  insist on full and timely reporting by member countries of standard 
sets of data, provide sharper policy advice to all governments, and 
deliver franker messages to countries that appear to be avoiding 
necessary actions.

17. If prevention fails, financial market distress requires that 
multilateral institutions and major economies be able to respond where 
appropriate in a quick and coordinated fashion. Financing mechanisms 
must operate on a scale and with the timeliness required to manage 
shocks effectively. In this context, we urge the IMF to:

--  establish a new standing procedure--"Emergency Financing Mechanism"-
-which would provide faster access to Fund arrangements with strong 
conditionality and larger up front disbursements in crisis situations.

18. To support this procedure, we ask:

--  the G-10 and other countries with the capacity to support the system 
to develop financing arrangements with the objective of doubling as soon 
as possible the amount currently available under the GAB to respond to 
financial emergencies;

19. To ensure that the IMF has sufficient resources to meet its ongoing 
responsibilities, we urge continued discussions on a new IMF quota 

20. Solid progress on the elements discussed above should significantly 
improve our ability to cope with future financial crises. Nevertheless, 
these improvements may not be sufficient in all cases. In line with 
this, and recognizing the complex legal and other issues posed in debt 
crisis situations by the wide variety of sources of international 
finance involved, we would encourage further review by G-10 Ministers 
and Governors of other procedures that might also usefully be considered 
for their orderly resolution.

21. We continue to support the inclusion of all IMF members in the SDR 
system. Moreover, we urge the IMF to initiate a broad review of the role 
and functions of the SDR in light of changes in the world financial 

22. Closer international cooperation in the regulation and supervision 
of financial institutions and markets is essential to safeguard the 
financial system and prevent an erosion of prudential standards. We 

--  a deepening of cooperation among regulators and supervisory agencies 
to ensure an effective and integrated approach, on a global basis, to 
developing and enhancing the safeguards, standards, transparency and 
systems necessary to monitor and contain risks;

--  continued encouragement to countries to remove capital market 
restrictions, coupled with strengthened policy advice from international 
financial institutions on the appropriate supervisory structures;

--  finance ministers to commission studies and analysis from the 
international organizations responsible for banking and securities 
regulations and to report on the adequacy of current arrangements, 
together with proposals for improvement where necessary, at the next 

23. We also recognize that international financial fraud is a growing 
problem. We are committed to improving communication between regulators 
and law enforcement agencies.

Promoting Sustainable Development

24. A higher quality of life for all people is the goal of sustainable 
development. Democracy, human rights, transparent and accountable 
governance, investment in people and environmental protection are the 
foundations of sustainable development. The primary responsibility rests 
with each country but bilateral and multilateral international 
cooperation is essential to reinforce national efforts. We are committed 
to securing substantial flows of funds and to improving the quality of 
our assistance.

25. IDA plays an indispensable role in helping to reduce poverty and 
integrate the poorest countries into the global economy. We urge all 
donor countries to fulfill promptly their commitments to IDA-10 and to 
support a significant replenishment through IDA-11. We look forward to 
the recommendations of the Development Committee's Task Force on 
Multilateral Development Banks.

26. Multilateral institutions play a crucial role by providing 
intellectual leadership and policy advice, and by marshalling resources 
for countries committed to sustainable development. The United Nations 
and the Bretton Woods institutions should build on their respective 
strengths. The UN offers a unique forum for consensus building on global 
priorities, is an advocate for core values, and responds to development 
and humanitarian needs. The Bretton Woods institutions have a particular 
role in promoting macro-economic stability, in supporting favourable 
environments for sustainable development and in mobilizing and 
transferring resources for development. We will work with the 
organizations and all their members to ensure relevant multilateral 

--  make sustainable development a central goal of their policies and 
programmes, including by intensifying and deepening the integration of 
environmental considerations into all aspects of their programmes;

--  encourage countries to follow sound economic, environmental and 
social policies and to create the appropriate legal and structural 
framework for sustainable development;

--  encourage countries to follow participatory development strategies 
and support governmental reforms that assure transparency and public 
accountability, a stable rule of law, and an active civil society;

--  encourage the development of a healthy private sector, expand 
guarantees and co-financing arrangements to catalyze private flows, and 
increase credit for small and medium-sized enterprises;

--  continue to provide resources for the infrastructure needed for 
sustainable development, where these are not available from the private 

27. We agree on the need to actively support the peace process in the 
Middle-East. Such support would include the establishment of a new 
institution and financing mechanism enhancing regional cooperation. We 
therefore urge the Task Force already at work to continue its 
deliberations with an aim to arriving at a suitable proposal in time for 
the Amman summit next October.

Reducing Poverty

28. An overriding priority is to improve the plight of the world's poor. 
Persistence of extreme poverty and marginalization of the poorest 
countries is simply not compatible with universal aspirations for 
prosperity and security. Sub-Saharan Africa faces especially severe 
challenges. We will work with others to encourage relevant multilateral 
institutions to:

--  focus concessional resources on the poorest countries, especially 
those in Sub-Saharan Africa, which have a demonstrated capacity and 
commitment to use them effectively, and take trends in military and 
other unproductive spending into account in extending assistance;

--  direct a substantially increased proportion of their resources to 
basic social programmes and other measures which attack the roots of 

29. We welcome the Paris Club response to our encouragement last year to 
improve the treatment of the debt of the poorest countries and urge the 
full and constructive implementation of the Naples terms. We recognize 
that some of the poorest countries have substantial multilateral debt 
burdens. We will encourage:

--  the Bretton Woods institutions to develop a comprehensive approach 
to assist countries with multilateral debt problems, through the 
flexible implementation of existing instruments and new mechanisms where 

--  better use of all existing World Bank and IMF resources and adoption 
of appropriate measures in the multilateral development banks to advance 
this objective and to continue concessional ESAF lending operations.

30. Open markets throughout the world are also crucial to accelerated 
economic growth in the developing countries. Multilateral institutions 
should work to assist the integration of the poorest countries into the 
world trading system. We encourage the WTO to monitor and review the 
Uruguay Round's impact on the least developed countries.

Safeguarding the Environment

31. We place top priority on both domestic and international action to 
safeguard the environment. Environmental protection triggers the 
development and deployment of innovative technologies, which enhance 
economic efficiency and growth and help create long term employment. In 
their policies, operations and procurement, G-7 governments must show 
leadership in improving the environment. This will require the 
appropriate mix of economic instruments, innovative accountability 
mechanisms, environmental impact assessment and voluntary measures. 
Efforts must focus on pollution prevention, the "polluter pays" 
principle, internalization of environmental costs, and the integration 
of environmental considerations into policy and decision making in all 

32. We underline the importance of meeting the commitments we made at 
the 1992 Rio Earth Summit and subsequently, and the need to review and 
strengthen them, where appropriate. Climate change remains of major 
global importance. We will work with others to:

--  fulfill our existing obligations under the Climate Change 
Convention, and our commitments to meet the agreed ambitious timetable 
and objectives to follow up the Berlin Conference of the Parties;

--  implement the medium term work program adopted pursuant to the 
Convention on Biological Diversity;

--  conclude successfully the work of the CSD intergovernmental panel on 
forests, and promote a successful UN Conference on Straddling Fish 
Stocks and Highly Migratory Fish Stocks and international consensus at 
the next CSD session on action to deal with the problems of the world's 

33. We encourage a clearer delineation of the mandates of the CSD and 
UNEP. CSD should be the global forum for identifying and agreeing upon 
long term strategic goals for sustainable development. UNEP should act 
as an international environmental voice and catalyst; it should focus on 
monitoring, assessment, and the development of international 
environmental law.

Preventing and Responding to Crises

34. Disasters and other crises complicate the development challenge and 
have exposed gaps in our institutional machinery. To help prevent and 
mitigate emerging crises, including those with human rights and refugee 
dimensions, we will ask:

--  the UN Secretary General to explore means to improve the analysis 
and utilization of disaster and conflict-related early warning 
information, particularly through the High Commissioners on Human Rights 
and Refugees;

--  the Bretton Woods institutions and the UN to establish a new 
coordination procedure, supported as necessary by existing resources, to 
facilitate a smooth transition from the emergency to the rehabilitation 
phase of a crisis, and to cooperate more effectively with donor 

--  the bodies involved in the provision of humanitarian assistance to 
cooperate more closely with the Department of Humanitarian Affairs in 
its assigned coordination role.

Reinforcing Coherence, Effectiveness and Efficiency of Institutions

35. To fulfill their missions effectively into the future, multilateral 
institutions must continue to undertake reforms and to improve 
coordination and reduce overlap. The international financial 
institutions have shown flexibility in responding to the changing needs 
of the world economy; there nevertheless remain a number of areas where 
improvements are desirable to better prepare the institutions for the 
challenges ahead. We will encourage:

--  the World Bank and the regional development banks to decentralize 
their operations wherever possible;

--  the IMF and World Bank to concentrate on their respective core 
concerns (broadly, macroeconomic policy for the IMF and structural and 
sectoral policies for the World Bank);

--  revision of the Ministerial committees of the IMF and World Bank to 
promote more effective decision-making;

--  the World Bank Group to integrate more effectively the activities of 
the International Finance Corporation and the Multilateral Investment 
Guarantee Agency into its country assistance strategies;

--  the multilateral development banks to coordinate their respective 
country programmes more effectively with bilateral and other 
multilateral donors.

36. So as to allow the United Nations better to meet the objectives in 
its Charter, we will encourage broadening and deepening the reform 
process already underway, and will work with others to:

--  complete the Agenda for Development, which should set out a fresh 
approach to international cooperation and define the particular 
contribution expected of UN bodies;

--  develop a more effective internal policy coordination role for the 
Economic and Social Council (ECOSOC); encourage deeper cooperation 
between UN and specialized agencies both at headquarters and in the 
field; consolidate and streamline organizations in the economic and 
social fields, such as humanitarian relief and development assistance; 
and encourage the adoption of modern management techniques, with a more 
transparent and accountable Secretariat;

--  update and focus mandates to avoid duplication; eliminate overlaps 
with new organizations, eg. UNCTAD with WTO, and consider the roles of 
certain institutions in light of evolving challenges, eg. Regional 
Economic Commissions and UNIDO.

We call upon Member States to meet their financial obligations and urge 
early agreement on reform of the system of assessment.

37. To increase overall coherence, cooperation and cost effectiveness we 
will work with others to encourage:

--  rationalization of data collection, analysis, priority setting, and 
reporting activities, and greater complementarity in the provision of 
assistance at the country level; 

--  improved coordination among international organizations, bilateral 
donors and NGOs;

--  all institutions to formulate and implement plans to effect 
significant reductions in operating costs over the next few years.


38. These are our initial proposals to prepare multilateral institutions 
for the challenges of the next century. We intend to promote them 
actively, working together with the wider inter- national community in 
all appropriate organizations. In particular, in the UN, we commit 
ourselves to working with other members to advance these goals. We will 
use the 50th anniversary celebrations in October 1995 to build consensus 
on these priorities with others. We will take stock at our meeting next 
year in France.

Creating Opportunities Through Open Markets

39. We recognize that new investment and increased trade are vital to 
achieving our growth and employment objectives. In a global market, 
opportunities for domestic and foreign producers and suppliers of goods 
and services depend as much on domestic policies as on external 
barriers. In order to improve market access, we intend to work for the 
reduction of remaining internal and external barriers.

40. We will implement the Uruguay Round Agreements fully, and reaffirm 
our commitment to resist protectionism in all its forms. We will build 
on the Agreements to create new opportunities for growth, employment and 
global cooperation. We will work together and with our trading partners 
to consolidate the WTO as an effective institution, and are committed to 
ensuring  a well-functioning and respected dispute settlement mechanism. 
We endorse closer cooperation between the WTO and other international 
economic institutions. We recognize the importance of enhancing the 
transparency of the WTO.

41. We support accession to the WTO in accordance with the rules that 
apply to all of its members and on the basis of meaningful market access 
commitments. We are committed to ensuring that our participation in 
regional trade initiatives continues to be a positive force for the 
multilateral system.

42. The momentum of trade liberalization must be maintained. We are 
committed to the successful completion of current negotiations in 
services sectors and, in particular, significant liberalization in 
financial and telecommunications services. We will proceed with follow-
up work foreseen in the Uruguay Round Final Act. We encourage work in 
areas such as technical standards, intellectual property and government 
procurement; an immediate priority is the negotiation in the OECD of a 
high standard multilateral agreement on investment. We will begin 
discussions on investment with our partners in the WTO. We recognize 
that initiatives such as regulatory reform have a particularly important 
contribution to make to trade liberalization and economic growth by 
removing administrative and structural impediments to global 

43. Consistent with the goal of continued trade liberalization, we will 
pursue work on:

--  trade and environment to ensure that rules and policies in these 
different  areas are compatible;

--  the scope for multilateral action in the fields of trade and 
competition policy;

--  trade, employment and labour standards.

44. We will work together with our partners in the WTO and other 
appropriate fora to create the basis for an ambitious first WTO 
Ministerial Meeting in Singapore in 1996.

Economies in Transition

45. We recognize the progress of many countries in transition toward 
democratic, market-based societies. Early and determined macroeconomic 
stabilization has proven the most effective strategy to allow an early 
return to growth. To consolidate these gains, the process of far 
reaching structural reform must be pursued vigorously. We will continue 
our support for economic reform in the economies in transition, and 
their integration into the global trade and financial systems. We 
recognize their need for improved market access.

46. We welcome the good start Ukraine has made on its bold program of 
economic reform. The recent Stand-By Arrangement with the IMF provided 
the basis for substantial financial support by the international 
financial institutions and bilateral donors. We encourage Ukraine to 
continue its reform efforts in close cooperation with the international 
financial institutions. Assuming the continuation of strong economic 
reform, an additional $2 billion in commitments could be available from 
the international financial institutions by the end of 1996.

47. We are encouraged by Russia's renewed commitments to financial 
stabilization and economic reform. Continued political reform is also 
necessary. We believe that a stable political, regulatory and legal 
environment, and the development of a modern financial sector, together 
with the full implementation of the policy measures outlined in the 
recently signed IMF Stand-By Arrangement, will promote Russian economic 
recovery. We welcome the June 3 Paris Club debt rescheduling agreement 
and recognize the relevance of a comprehensive multilateral treatment of 
Russia's external public debt. We also note Russia's interest in working 
in close cooperation with the Paris Club.

Nuclear Safety

48. Each country is responsible for the safety of its nuclear 
facilities. We welcome progress to date in improving levels of nuclear 
safety in the countries of central and eastern Europe and the Newly 
Independent States. We congratulate President Kuchma of Ukraine on his 
decision to close the Chernobyl nuclear power plant by the year 2000. We 
reaffirm the commitments of support made last year at Naples under the 
G-7 Action Plan for Ukraine's Energy Sector. We are pleased to note the 
replenishment of the EBRD Nuclear Safety Account and the commitment of 
bilateral resources for short-term safety upgrades and preliminary 
decommissioning work for the closure of Chernobyl. We invite other 
donors to join with the G-7 countries in contributing funds for this 

49. In order to assist the closure of Chernobyl, we will continue our 
efforts to mobilize international support for appropriate energy 
production, energy efficiency and nuclear safety projects. Any 
assistance for replacement power for Chernobyl will be based on sound 
cost-effective and environmental criteria. The World Bank and EBRD 
should continue their cooperation with Ukraine in devising a realistic 
long-term energy strategy. They should increase their financial 
contribution in support of appropriate energy sector reform and energy 
conservation measures, and mobilize private sector support for energy 

Next Summit

50. We have accepted the invitation of the President of France to meet 
in Lyon from June 27th to 29th, 1996. 



Chairman's Statement
Text of statement issued at Halifax, Nova Scotia, June 17, 1995.

1. In this 50th anniversary of the end of the Second World War and the 
birth of the United Nations, we discussed in a spirit of cooperation 
political issues of global importance. Noting with satisfaction what has 
been achieved through reconciliation and cooperation, we confirmed our 
desire to work together ever more closely in finding solutions.

Commitment to Multilateral Engagement 

2. We reaffirm our commitment to the UN, whose Charter lays down the 
fundamental principles for an international order based on peace and 
security, sustainable development, and respect for human rights. We 
support measures to strengthen the UN, which is called upon to play an 
ever more important role in the post Cold War period, and will work with 
other Member States to build, through concrete reforms of the 
institutions, a more effective and efficient organization to meet the 
challenges of the next half-century. We call upon Member States to meet 
their financial obligations and urge early agreement on reform of the 
system of assessment.

3. The United Nations must be able to act more quickly and effectively 
to address threats to international peace and security. We, for our 
part, are determined to coordinate more closely our individual efforts 
to assist in the prevention, management and resolution of conflicts. A 
high priority should be placed on the early warning of crises, political 
mediation and, in accordance with realistic mandates, the rapid 
deployment of UN civilian and military personnel, including 
peacekeepers, to areas of conflict. We encourage further efforts to 
improve operational planning and procedures for peacekeeping missions as 
well as to modernize command and control equipment, logistical 
arrangements and facilities. We also stress the need for measures to 
ensure the security of UN personnel, including the early entry into 
force of the recently-adopted UN Convention for the Safety of United 
Nations and Associated Personnel. We welcome the growing role of 
regional organizations and arrangements in building stability and 
security, in the prevention and management of conflicts, and we attach 
special importance to reinforcing cooperation between such organizations 
and the United Nations.

Arms Control and Disarmament

4. We welcome the indefinite extension of the Nuclear Non-Proliferation 
Treaty and the commitment of States party to the universalisation of the 
Treaty as well as their decisions to strengthen the review process and 
adopt a set of principles and objectives for non-proliferation and 
disarmament. The entry into force of START I is a major landmark in the 
process of nuclear arms control, which was greatly helped by the 
decision of Ukraine to accede to the NPT. We now look forward to the 
early ratification of START II. We support the safe and secure 
dismantlement of the nuclear weapons eliminated under START I and we 
welcome the work of the United States and Russia on measures that the 
fissile material from these weapons is rendered unusable for weapons 
purposes. The disposal of weapons-grade plutonium deserves particular 
attention and we encourage its further study.

5. We are encouraged by the growing international recognition of the 
need to complete without delay universal, comprehensive and verifiable 
treaties to ban nuclear weapons tests and to cut off the production of 
fissile material for nuclear weapons and other nuclear explosive 
devices. Recognizing the continuing dangers posed worldwide by criminal 
diversion and illicit trafficking of nuclear materials, and drawing on 
the decisions taken in Naples and the practical work undertaken by our 
experts since then, we resolve to work together to strengthen systems of 
control, accounting and physical security for nuclear materials; to 
expand our cooperation in the area of customs, law enforcement and 
intelligence and to strengthen through venues such as the IAEA and 
INTERPOL the international community's ability to combat nuclear theft 
and smuggling. We emphasize the importance of bringing the Chemical 
Weapons Convention into force at the earliest possible date, and call 
for rapid progress in developing verification systems for the Biological 
and Toxin Weapons Convention.

6. The excessive transfer of conventional arms, in particular to areas 
of conflict, is one of our main preoccupations. We are appalled by the 
continuing injuries to civilians caused by anti-personnel landmines. We 
urge States to become party to the 1980 Conventional Weapons Convention 
and to participate in its review conference this fall in an effort to 
strengthen multilateral controls over anti-personnel landmines. We urge 
all countries to support full implementation of the UN Register of 
Conventional Arms, and note that Article 26 of the UN Charter calls for 
"the least diversion for armaments of the world's human and economic 
resources". Regional organizations can help promote transparency and 
confidence-building measures that reduce excessive stockpiling of 
conventional weapons. We shall work with others for effective and 
responsible export controls on arms and sensitive dual-use goods and 

Promoting New Approaches

7. New approaches are needed in the UN and elsewhere to deal with 
emerging global challenges such as environmental degradation, 
unsustainable population growth, mass displacement of victims of 
conflict and involuntary migration across borders. Initiatives such as 
the UN Secretary General's Agenda for Development that highlight the 
linkages between economic, social and political issues could make an 
important contribution to international stability. We commit ourselves 
to working with other Member States to build on it. We also recognize 
the importance of non-governmental organizations in the UN's work on 
economic and social development, including human rights and humanitarian 
assistance, and believe that greater coordination of their efforts with 
those of the UN and other organizations would benefit the world 
community. We reiterate our firm belief in the necessity for the 
international community to promote efficient means to respond promptly 
to humanitarian emergencies, and support the work of the WEU in this 

8. Respect for the rights of the individual is at the heart of a 
durable, secure and prosperous international order. We will work to 
promote good governance and democratic accountability, which are the 
surest guarantees of respect for universal human rights and fundamental 
freedoms. We condemn all forms of discrimination and intolerance, 
including aggressive nationalism and the mistreatment of persons 
belonging to minorities. We call upon all States to protect the rights 
set out in the Universal Declaration of Human Rights, and to ratify and 
comply fully with international Covenants and other multilateral human 
rights instruments. We reaffirm our support for the UN High Commissioner 
for Human Rights and his coordinating role on human rights throughout 
the UN system. We call for the strengthening of international mechanisms 
of accountability for human rights violations, and on governments to 
cooperate fully with courts, tribunals and investigative commissions, 
including on the effective pursuit of individual cases within the bounds 
of international and domestic law.

9. We restate our resolve to defeat all forms of terrorism. Following 
recent outrages, we agree to share more intensively our experiences of, 
and lessons learned from, major terrorist incidents, and to strengthen 
our cooperation in all areas of counter-terrorism, including research 
and technology. We call upon all States that assist terrorists to 
renounce terrorism and to deny financial support, the use of their 
territory or any other means of support to terrorist organizations. We 
attach particular importance to measures to impede the ability of 
terrorist organizations to raise funds, and urge other governments to 
strenuously enforce laws against terrorist activity and join existing 
treaties and conventions against terrorism. In pursuit of these shared 
aims, we charge our terrorism experts group to report to a ministerial 
level meeting on specific, cooperative measures to deter, prevent, and 
investigate terrorists acts. These sessions should be held prior to our 
next meeting.

10. Transnational criminal organizations are a growing threat to the 
security of our nations. They undermine the integrity of financial 
systems, breed corruption, and weaken emerging democracies and 
developing countries around the world. To counter their criminal 
activities effectively, we will work to reinforce existing institutions, 
strengthen our cooperation, exchange of information, and assistance to 
other nations. Sanctuaries provided by some countries to transnational 
criminal organizations and their agents create a major difficulty in the 
implementation of justice. We all agree to cooperate more closely 
together, and with others, to ensure that they cannot escape justice by 
crossing borders. We encourage all governments to adhere to and 
implement relevant international conventions and the recommendations of 
the Financial Action Task Force. We recognize that ultimate success 
requires all Governments to provide for effective measures to prevent 
the laundering of proceeds from drug trafficking and other serious 
crimes. To implement our commitments in the fight against transnational 
organized crime, we have established a group of senior experts with a 
temporary mandate to look at existing arrangements for cooperation both 
bilateral and multilateral, to identify significant gaps and options for 
improved coordination and to propose practical action to fill such gaps. 
The group will report back to the Summit in 1996.


11.  After five decades of division, we now have the historic 
opportunity to establish in all of Europe democracy, market economy, 
stability, peace and prosperity. We strongly support the contribution of 
the European Union to stability and cooperation through its Europe 
Agreements with Central European countries and the Baltic States as well 
as through Partnership Agreements with Russia, Ukraine and other newly 
independent States. We encourage States to take full advantage of the 
opportunities afforded by the Pact on Stability in Europe and NATO's 
Partnership For Peace program for enhancing security and stability in 
the whole of Europe. We encourage other multilateral fora and 
arrangements to assist in the integration of Europe. We are pleased with 
the steps taken at the Budapest Summit last year to strengthen the 
capabilities of the OSCE, and we will contribute to the OSCE study into 
a security model for Europe for the 21st century.

12. We are deeply concerned by the continuing escalation of hostilities 
in Bosnia, especially in the area of Sarajevo. We appeal to all parties 
to establish an immediate moratorium on military operations in order to 
allow political negotiations, without which no lasting solution is 
possible, to resume as quickly as possible on the basis of the Contact 
Group proposals which we urge the Bosnian Serbs to accept.

13. We condemn the taking of UN hostages by the Bosnian Serbs, their 
deplorable shelling of civilian populations and their obstruction of 
UNPROFOR's freedom of movement. We demand the immediate and 
unconditional release of the remaining hostages, and hold the Bosnian 
Serb leadership accountable for their safety. We call on the Bosnian 
government and all other parties to renew the Cessation of Hostilities 
Agreement, and to ensure the free passage of humanitarian assistance.

14. We welcome the decision of the UN Security Council to strengthen 
UNPROFOR and to provide it with a rapid reaction capacity to enhance its 
security and its ability to protect civilians, facilitate the delivery 
of humanitarian assistance and promote conditions for a lasting peace. 
The Rapid Reaction Force will be under UN command, as stipulated in the 
Security Council resolution, and operate in accordance with UNPROFOR's 
existing mandate.

15. We call for renewed impetus to be given urgently to the peace 
process and, in this connection, we welcome the appointment of Carl 
Bildt as EU negotiator, and offer our strong support to him and to UN 
negotiator Thorvald Stoltenberg in their efforts to achieve a durable 

16. We call for early mutual recognition between the republics in the 
former Yugoslavia within their existing internationally recognized 
borders; recognition between Bosnia and the Federal Republic of 
Yugoslavia would be an important first step, and we urge President 
Milosevic to take it. The Bosnian-Croat Federation is a way to advance 
reconciliation, and we continue to support steps to help stabilize the 
situation in the former Yugoslav Republic of Macedonia.

17. We remain concerned about the risk of further fighting in Croatia. 
Both the Croatian government and the Croatian Serbs must exercise 
restraint. We urge the parties to honour the March 29, 1994 ceasefire 
and to cooperate with the United Nations in implementing UNCRO's new 
mandate. We call for further development of the Economic Agreement 
between the two sides and the opening of political talks to achieve a 
settlement respecting the internationally recognized borders of Croatia 
while establishing autonomy for the Serb population on the basis of the 
principles underlying the Zagreb-4 Plan for Croatia.

Middle East and Africa

18. The Israel-Jordan Peace Treaty is an important building block for 
peace throughout the region. It is imperative that the momentum for 
peace be maintained. We encourage the conclusion of peace treaties 
between Israel and Lebanon and Syria. We pledge our firm support for the 
Israeli-Palestinian Declaration of Principles. We urge Israel and the 
Palestinian Authority to conclude, as agreed between them, the 
arrangements for elections in the Palestinian Autonomous Territory and 
the redeployment of Israeli Defense Forces. We also recognize the 
importance of the economic basis for peace, notably the need for 
regional integration. We reiterate our call to the League of Arab States 
to end its boycott of Israel.

19. We call upon the Government of Iran to participate constructively in 
regional and world affairs, and to desist from supporting radical groups 
that seek to destroy the Middle East Peace Process and destabilize the 
region. We also call on the Iranian Government to reject terrorism and, 
in particular, to withdraw its support from the continuing threats to 
the life of Mr. Salman Rushdie and others associated with his work. We 
call on all States to avoid any collaboration with Iran which might 
contribute to the acquisition of a nuclear weapons capability.

20. We reiterate our resolve to enforce full implementation of each and 
every relevant UN Security Council resolution concerning Iraq and Libya 
until they are complied with, and recall that such implementation would 
entail the reassessment of sanctions. We urge Iraq to reconsider its 
rejection of UN Security Council Resolution 986 which would permit the 
sale of oil and purchase of humanitarian goods.

21. We support the positive steps of the Algerian Government towards 
economic reform, and believe that peace and stability provide the only 
durable foundation for success. We call for an end to the violence in 
Algeria, and urge all parties that accept non-violent and democratic 
principles to pursue political reconciliation through peaceful dialogue 
and a genuine electoral process.

22. We applaud the peaceful and democratic transition of power in South 
Africa, the successful holding of elections elsewhere in Southern 
Africa, and the Angolan peace process. These developments provide good 
grounds for optimism about Africa's longer term prospects. We will 
continue to support efforts by African leaders to prevent conflict and 
enhance the welfare of their populations through democratization, 
structural reform, and economic liberalization.

23. We condemn extremists in Burundi and Rwanda and support measures to 
hold them accountable for their actions, including through the 
International Tribunal for Rwanda. We call for greater international 
support for humanitarian assistance for the Rwanda/Burundi region. We 
support the convening of a UN and OAU-
sponsored Conference on Stability and Security in the Lakes Region.


24. We welcome the emerging dialogue and cooperation in and with the 
Asia-Pacific region in various forms including the ASEAN Regional Forum. 
We welcome China's growing participation in international and regional 
fora dealing with political, economic and security issues. Each of us 
will pursue our respective dialogues with China in the interests of a 
more stable and prosperous world. We look forward to a smooth transfer 
of government in Hong Kong in 1997, with the object of maintaining its 
economic prosperity and social stability.

25. We call on North Korea to observe the agreements reached at the NPT 
Review and Extension Conference. We believe the Agreed Framework between 
the United States and North Korea offers a real prospect for resolving 
the North Korea nuclear problem, and we are encouraged by recent 
developments in this regard. We call on North Korea to fulfil its 
commitment to the regime of IAEA safe- guards and to uphold the terms of 
the Agreed Framework. The support of the international community can be 
demonstrated inter alia through participation in the Korean Peninsula 
Energy Development Organization (KEDO). We also believe that progress in 
the South-North dialogue will contribute to peace and security on the 
Korean Peninsula.

26. We are concerned about the potential for conflict in Kashmir and 
urge all parties to pursue a peaceful settlement. To help lower tension 
and build confidence on the subcontinent, as well as to strengthen the 
framework of global security, we urge India and Pakistan to support 
international arms control norms, accede to the Npt and refrain from 
taking further steps towards ballistic missile deployment or any other 
measures that might precipitate a regional arms race.

27. We call on the Government of Myanmar to release Aung San Suu Kyi and 
other political prisoners, without conditions, and to engage in a 
dialogue of reconciliation aimed at the full and early realization of 
democracy and national unity.

28. The South China Sea has become increasingly an area of territorial 
dispute. We call upon all parties to resolve their differences in a 
peaceful manner respecting international norms.


29. We encourage implementation by the States of the Americas of the 
Miami Summit Plan of Action to strengthen democratic institutions, 
eliminate the threat of terrorism, eradicate poverty and discrimination, 
conserve their natural environment, and negotiate the Free Trade Area of 
the Americas. We support the Government of Mexico's bold steps towards 
political reform and dialogue. We commend the efforts of the Guarantor 
Group of the Rio Protocol to help Peru and Ecuador achieve a permanent 
peace between them. We support international cooperation in Haiti's 
economic and democratic development, and look forward to free and open 
legislative elections scheduled for June 25. 



Fact Sheet: Key G-7 Economic and Political Data
(Japan uses gross national produce (GNP); all others use gross domestic 
product (GDP)


GDP (1993):  $552 billion. 
GDP growth rate (1993):  2.3%.  
Inflation rate (1993): 1.9%.
Unemployment rate (1993):  11.3%.
Foreign assistance (1993): $2.4 billion, 0.5% of GDP.

Area:  10 million sq. km. (3.8 million sq. mi.). 
Population:  29 million. 
Work force (14 million, 1993):  Community/business/personal service--
5 million.  Trade--2.4 million.  Manufacturing--2 million.  Public 
administration--1 million.  Agriculture--0.5 million. 
Natural resources:  Petroleum and natural gas, hydroelectric power, 
metals and minerals, fish, forests, wildlife.
Agriculture:  Products--wheat, livestock and meat, feed-grains, 
oilseeds, dairy products, tobacco, fruits, vegetables.
Industry:  Types--motor vehicles and parts, fish and forest products, 
processed and unprocessed minerals.
Merchandise trade (1993):  Exports--$144 billion: motor vehicles and 
parts, lumber, wood-pulp and newsprint, crude and fabricated metals, 
natural gas, crude petroleum, wheat.  Percent of GDP--20.1.  Major 
markets--U.S. 74%, EC 15%, Japan 4%.  Imports--$125 billion: motor 
vehicles and parts, industrial machinery, crude petroleum, chemicals, 
agricultural machinery.  Percent of GDP--24.6.  Major suppliers--U.S. 
72%, EC 8%, Japan 6%.
Government:  Confederation with parliamentary democracy.
Independence:  July 1, 1867.
Constitution:  Amended British North America Act, 1867;  patriated to 
Canada in 1982, charter of rights, and unwritten custom.

Currency exchange:  $1US=$1.38 Canadian.
Time conversion:  EST+0 (Ottawa).  


GDP (1993):  $1.3 trillion.
GDP growth rate (1993): -0.9%.  
Inflation rate (1993):  2.1%.
Unemployment rate (1993):  11.6%.
Foreign assistance (1993):  $7.9 billion, 0.6% of GDP.

Area:  547,030 sq. km. (218,812 sq. mi.). 
Population:  58 million.
Work force (25 million):  Services--47%. Industry and commerce--45%.  
Natural resources:  Coal, iron ore, bauxite, fish, forests.
Agriculture:  Products--beef, dairy products, cereals, sugar beets, 
potatoes, wine grapes.
Industry:  Types--steel, machinery, textiles and clothing, chemicals, 
food processing, aircraft, electronics, transportation.
Merchandise trade (1993):  Exports--
$195 billion:  chemicals, electronics, automobiles, automobile spare 
parts, machinery, aircraft, foodstuffs.  Percent of GDP--15.7.  Imports-
-$188 billion:  crude petroleum, electronics, machinery, chemicals, 
automobiles, automobile spare parts.  Percent of GDP--15.1.  Major 
partners--Germany, Belgium, Luxembourg, Italy, U.S., U.K., Netherlands, 
Government:  Republic.  Constitution:  September 28, 1958.

Currency exchange: $1US=5.0 francs.
Time conversion:  EST+6 (Paris). 

(Unless otherwise indicated, data are for the former West Germany only.)
GDP (1993):  $1.7 trillion.
GDP growth rate (1993):  1.7%.  
Inflation rate (1993):  4.1%.
Unemployment rate (1993):  6.1%.
Foreign assistance (1993): $6.9 billion, 0.4% of GDP.

Area:  356,910 sq. km. (142,764 sq. mi.). 
Population:  81 million. 
Work force:  40 million.
Natural resources:  Iron, hard coal, lignite, potash, natural gas.
Agriculture:  Products--corn, wheat, potatoes, sugar beets, hops, wine, 
lumber, fish.
Industry:  Types--iron and steel, coal, chemicals, electrical products, 
ships, vehicles, construction.
Merchandise trade (1993):  Exports--$363 billion:  chemicals, motor 
vehicles, iron and steel products, manufactured goods, electrical 
products. Percent of GDP--21.  Major markets--EC 54%, other European 
countries 19%, U.S. 8%, developing countries 7%. Imports--$318 billion:  
food, petroleum products, manufactured goods, electrical products, 
automobiles, apparel.  Percent of GDP--18.4.  Major suppliers--EC 
countries 52%, other European countries 16%, developing countries 10%, 
U.S. 7%. 
Government:  Federal republic.
Founded:  1949.  On October 3, 1990, the Federal Republic of Germany 
(F.R.G.) and the German Democratic Republic unified in accordance with 
Article 23 of F.R.G. Basic Law.

Currency exchange:  $1US=1.4DM.
Time conversion:  EST+6 (Bonn). 


GDP (1992):  $1.2 trillion.  
GDP growth rate (1992):  1%.
Inflation rate (1993):  4.4%.
Unemployment rate (1992 est.):  10.2%.
Foreign assistance (1993):  $3 billion, 0.3% of GDP.

Area:  301,230 sq.km. (120,492 sq. mi.). 
Population:  57 million.  
Work force (21 million):  Services--58%.  Industry and commerce--32%.  
Natural resources:  Fish, natural gas.
Agriculture:  Products--wheat, rice, grapes, olives, citrus fruits.
Industry:  Types--automobiles, machinery, chemicals, textiles, shoes.
Merchandise trade (1992):  Exports--$178 billion:  machinery and 
transport equipment, textiles, foodstuffs, chemicals, footwear.  Percent 
of GDP--
15.4.  Imports--$175 billion:  machinery and transport equipment, 
foodstuffs, ferrous and non-ferrous metals, wool, cotton, petroleum.  
Percent of GDP--15.1.  Major trade partners (1992)--Germany 20%, France 
16%, U.S. 7%, U.K. 7%, OPEC 5%, Russia 2%.
Government:  Republic since June 2, 1946.  Constitution:  January 1, 
1948.  Kingdom of Italy proclaimed March 17, 1861.

Currency exchange:  $1US=1625 lira.
Time conversion:  EST+6 (Rome). 


GNP (1993):  $4.3 trillion. 
GNP growth rate (1993):  0.1%.  
Inflation rate (1993):  1.2%.
Unemployment rate (1993):  2.5%.
Foreign assistance (1993):  $11.3 billion, 0.3% of GNP.

Area:  377,835 sq. km. (151,134 sq. mi.). 
Population:  125 million.
Work force (63 million):  Services--43%.  Trade, manufacturing, mining, 
and construction--32%. Agriculture--8%.  Government--7%.  
Natural resources:  Negligible mineral resources, fish.
Agriculture:  Products--rice, vegetables, fruits, milk, meat, silk.
Industry:  Types--machinery and equipment, metals and metal products, 
textiles, autos, chemicals, electrical and electronic equipment.
Merchandise trade (1993):  Exports--$351 billion: motor vehicles, 
machinery and equipment, electrical and electronic products, metals and 
metal products.  Percent of GNP--8.2.  Major markets--U.S. 29%, EC 21%, 
developing countries 43%.  Imports--$210 billion:  fossil fuels, metal 
ore, raw materials, foodstuffs, machinery and equipment.  Percent of 
GNP--4.9.  Major suppliers--U.S. 23%, EC 17%, developing countries 48%.
Government:  Parliamentary democracy.  Constitution:  May 3, 1947.

Currency exchange:  $1US=86 yen.
Time conversion:  EST+14 (Tokyo). 

United Kingdom 

GDP (1993):  $1 trillion.
GDP growth rate (1993):  2.1%.
Inflation rate (1993):  1.5%.
Unemployment rate (1993):  10.3%.
Foreign assistance (1993):  $2.9 billion, 0.3% of GDP.

Area:  244,820 sq. km. (97,928 sq. mi.). 
Population:  58 million.
Work force (about 28 million in 1991): Services--64%.  Manufacturing and 
engineering--26%.  Construction--5%.  Mining and energy--3%.  
Natural resources:  Coal, oil, gas (North Sea).  
Agriculture:  Products--cereals, livestock, livestock products, fish.
Industry:  Types--steel, heavy engineering and metal manufacturing, 
textiles, motor vehicles and aircraft, construction, electronics, 
Merchandise trade (1993):  Exports--$182 billion: machinery and 
transport equipment, petroleum, manufactures, chemicals.  Percent of 
GDP--19.2.  Major markets--EC, U.S., Sweden, Saudi Arabia, Nigeria, 
Switzerland, South Africa.  Imports--$202 billion: machinery and 
transport equipment, manufactures, foodstuffs, petroleum, chemicals.  
Percent of GDP--21.4.  Major suppliers--EC, U.S., Japan, Norway, Sweden, 
Government:  Constitutional monarchy.  Constitution:  Unwritten;  partly 
statutes, partly common law and practice.

Currency exchange: $1US=0.7 pound.
Time conversion:  EST+5 (London). 

United States
(Figures for U.S. industry are calculated based on workforce categories 
of “goods-producing” and “service-producing” industries.)

GDP (1993):  $6.3 trillion.
GDP growth rate (1993):  3.1%.
Inflation rate (1993):  3.0%.
Unemployment rate (1993):  6.7%.
Foreign Assistance (1993):  $9.7 billion, 0.2% of GDP.

Area:  9.3  million sq. km. (3.6 million sq. mi.). 
Population:  258 million.
Work force (about 118 million in 1992):  Goods producing--26%.  Service 
Natural resources:  Coal, copper, lead, molybdenum, phosphates, uranium, 
bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, 
crude oil, natural gas, timber.  
Agriculture:  Products--grain, livestock, livestock products, fish.
Goods-producing industry3:  Types--petroleum, steel, motor vehicles, 
aerospace, telecommunications, chemicals, electronics, food processing, 
consumer goods, fishing, lumber, mining.
Merchandise trade (1993):  Exports--$457 billion: capital goods, 
automobiles, industrial supplies and raw materials, consumer goods, 
agricultural products.  Percent of GDP--7.2.  Major markets--EC, Japan, 
Canada.  Imports--$589 billion: crude and partly refined petroleum, 
machinery, automobiles, consumer goods, industrial raw materials, food 
and beverages.  Percent of GDP--9.3.  Major suppliers--EC, Japan, 
Government:  Federal republic;  strong democratic tradition.  
Independence:  July 4, 1776.  Constitution:  September 17, 1787, 
effective June 4, 1789.  



Fact Sheet: Economic Summits, 1988-1995

Leaders of Group of Seven (G-7) industrial countries--the United States, 
Japan, Germany, France, Italy, the United Kingdom, and Canada--plus the 
President of the European Commission (now European Union), have 
discussed and made decisions on a wide range of international economic 
and political issues at economic summit meetings  that have been held 
annually since 1975.  The following information provides background on 
each of the eight summits since 1988.

June 15-17, 1995


The Halifax summit reaffirmed the G-7 commitment to promoting free 
markets and democratization.  Leaders assessed the stability of global 
financial markets and fulfilled their Naples summit pledge to review the 
international economic architecture.  The summit reinforced successful 
efforts by President Clinton in APEC, NAFTA, the Summit of the Americas, 
and the GATT to retool the international economic architecture to meet 
the needs of the 21st century.  President Clinton and the other G-7 
leaders achieved significant consensus and commitment to action in three 
major areas: 1) safeguarding the financial system from future crises; 2) 
reforming the UN economic and social organizations; and 3) responding to 
new global security challenges.  For the second year, Russian President 
Boris Yeltsin participated in the full range of political and security 

Economic Accomplishments

--  Commitment to increase stability of global financial markets by 
supporting more rigorous IMF surveillance and "early warning" to 
countries at risk, establishing a new IMF emergency financing mechanism, 
and considering options for increasing the IMF's ability to borrow to 
respond to financial emergencies.

--  Review of international and multilateral institutions, leading to 
agreement that:

--Multilateral institutions should focus on sustainable development, 
concentrate on the poorest countries, and develop a comprehensive 
approach to reducing the multilateral debt of the poorest countries.

--The UN should consolidate and streamline its social and economic 
bodies along functional lines, reform the UN Secretariat to meet modern 
standards of management and accountability, and review and update 
mandates of UN agencies.

--Multilateral financial institutions and the regional development banks 
should decentralize and focus on their core concerns.

--All such institutions should develop comprehensive plans to reduce 
operating costs.

--  Agreement to meet at the ministerial level to continue work on 
growth and employment begun by the 1994 Detroit Jobs Conference.

--  Commitment to consolidate the World Trade Organization and maintain 
momentum for trade liberalization through follow-up work to the Uruguay 
Round. Agreement to pursue new initiatives in standards, tariffs, 
intellectual property, and procurement; to make the OECD Multilateral 
Agreement on Investment (MAI) a top priority; and to continue work on 
trade and environment and trade and labor standards.

--  Pledge to promote up to $2 billion in loans to Ukraine from 
international financial institutions and negotiate comprehensive 
multilateral debt rescheduling with Russia.

--  Reaffirmation of Naples summit commitments to Ukraine on nuclear 
safety and pledge to continue to mobilize international support for 
Ukraine's energy sector in support of plans to close Chernobyl.

Political Accomplishments

--  Strong G-7 consensus, announced by the summit host, Canadian Prime 
Minister Jean Chretien, to ban transfers of nuclear reactors or 
associated activities to Iran, because of "grave concern that such 
cooperation could be misused by Iran towards a nuclear weapons program."

--  G-7 and Russian concurrence in support of a wide range of key U.S. 
foreign policy initiatives.

--  Agreement to convene a special summit meeting on nuclear safety in 
Moscow in 1996.

--  Pledge to hold a ministerial-level meeting on counter-terrorism 
before the 1996 Lyon Summit.

--  Creation of senior experts working group to develop specific 
proposals for new anti-crime initiatives and to report to the 1996 Lyon 

--  Endorsement of a new U.S. initiative against nuclear smuggling, 
based on stronger systems of control, accounting, and physical security 
for nuclear materials and expanded cooperation to combat nuclear theft.

--  Stronger focus on human rights, including citation of specific cases 
and support for stronger international mechanisms of accountability for 
human rights violations.

--  Reaffirmation of commitment to the United Nations and agreement that 
it should act more effectively to address threats to international peace 
and stability.

--  Reiteration of commitment to conclude treaties covering non-
proliferation and nuclear weapons test bans.  

--  Strong support for extension of the nuclear Non-Proliferation 
Treaty, entry into force of START I, and early ratification of START II.

--  Endorsement of the Pact on Stability in Europe and NATO's 
Partnership for Peace as mechanisms to enhance security in Europe.

--  On the conflict in Bosnia, expression of concern about escalation of 
hostilities and condemnation of hostage-taking.

--  On the Middle East, recognition of the economic basis for peace and 
support for conclusion of peace treaties between Israel and Lebanon and 

--  Renewed calls for an end to the Arab League boycott of Israel.  

--  Agreement to retain sanctions on Iraq and Libya.

--  Call for Iran to cease support for terrorist groups seeking to 
destroy the Middle East Peace Process and destabilize the region.

--  On North Korea, reaffirmation of support for the agreed framework 
between the U.S. and North Korea to resolve the nuclear problem.  Noted 
the opportunity for the international community to demonstrate support 
through participation in the Korean Peninsula Energy Development 
Organization (KEDO).

July 8-9, 1994


The Naples summit reviewed the changes occurring in the world economy 
and the globalization of national economies.  Leaders pledged their 
adherence to the principles of democracy and open markets, agreed to 
look at ways to renew and revitalize the international economic 
institutions, and accepted the challenge of integrating the newly 
emerging market democracies into the world economic system.  As a signal 
of G-7 support for Russian reform, G-7 leaders invited Russian President 
Yeltsin to participate in the political discussions.

Economic Accomplishments

--  Agreement to use the 1995 Halifax summit to review the international 
economic architecture.

--  Renewed commitment to Tokyo summit growth strategy; action plan on 
efforts to create jobs; plan for G-7 conference on global information 

-- Pledge to establish the World Trade Organization by January 1, 1995, 
continue momentum on trade, including new trade issues:  labor, 
environment, and competition rules.

--  Renewed commitment to sustainable development; agreement to speed 
implementation of the Rio Climate Treaty.

--  Agreement that Paris Club should work to reduce debt stock and 
increase concessionality for the poorest countries and those in special 
difficulties and that G-7 should mobilize international financial 
institutions to help countries emerging from economic and political 

--  Action plan providing resources for closure of Chernobyl and for 
greater nuclear safety in Central and Eastern Europe and Russia.

--  Pledge to provide up to $4 billion for economic reform in Ukraine; 
renewed support for economic reform in Russia.

--  Renewed support for the Financial Action Task Force on money-

Political Accomplishments

--  Support for a U.S.-led diplomatic approach under which North Korea's 
nuclear program would be frozen and international safeguards maintained 
while high-level talks to resolve nuclear and other issues continued.

--  Strong support, under the President's leadership, for the Contact 
Group's efforts to end the Bosnia conflict.

--  On the Middle East, endorsement of continued financial assistance 
for implementing the Declaration of Principles, a key U.S. objective.

--  Endorsement of U.S. policy on Haiti to pressure the military regime 
to live up to its obligations to depart and make way for a return to 

--  Expression, following the President's lead, of great concern about 
Iranian behavior, especially regarding terrorism.  This was the first 
time Russia joined in condemning terrorism and in a call for states to 
deny terrorists access to their territories.

--  Reaffirmation of the view that proliferation is one of the most 
serious threats to international peace and security.  In addition to 
supporting key treaties and agreements, the group agreed for the first 
time to cooperate in the prevention of nuclear smuggling.

--  Expression, for the first time, of the high priority placed on 
curbing the indiscriminate use of anti-personnel landmines, halting 
their export, and assisting in their clearance worldwide.

--  The President continued emphasizing the need for a future-oriented 
foreign policy and the importance of building institutions for the next 

July 7-9, 1993


The Tokyo summit noted that, despite remarkable progress toward 
democratization and market economies since the previous summit, 
considerable challenges remained for the industrialized nations in 
achieving economic recovery and job creation, integrating countries in 
transition into the world economy, assisting developing countries, and 
reconciling global growth and attention to the environment.  Leaders 
underscored their determination to enhance international cooperation, in 
particular by strengthening multilateral institutions, in an effort to 
create a more secure and humane world.  Leaders also agreed to work to 
streamline the summit process to make it more responsive to major issues 
of common concern.  This was the first economic summit meeting attended 
by President Clinton.  Russian President Boris Yeltsin again 
participated in meeting with G-7 leaders on the third day of the summit.

Economic Accomplishments

--  Commitment by all countries to implement a mutually reinforcing 
strategy to encourage global growth and job creation, including prudent 
macroeconomic policies to promote non-inflationary, sustainable growth 
and structural reforms to improve the efficiency of markets.

--  Endorsement of recent significant progress toward a large market 
access package as a major step toward completion of the Uruguay Round of 
the GATT multilateral trade negotiations by the end of 1993.

--  Reaffirmation of support for economic reform efforts in Central and 
Eastern Europe, the Baltic states, the New Independent States of the 
former Soviet Union, and Mongolia.  Creation of a $3-billion special 
Privatization and Restructuring Program for Russia and establishment of 
a Support Implementation Group in Moscow to improve delivery of 

--  Determination to publish national action plans by the end of 1993 to 
implement objectives outlined at the 1992 UN Conference on Environment 
and Development to secure environmentally sustainable development.

--  Emphasis on the urgent need to coordinate safety measures as agreed 
in 1992 in Munich, with a view toward establishing a framework for 
coordinated action by those countries concerned.

--  Commitment to pursue a comprehensive approach to development 
assistance, based on the requirements and performance of individual 
countries, and integrating aspects of trade, investment, and debt 
strategy, as well as assistance.

Political Accomplishments

--  Support for efforts to strengthen the UN's capacity for preventive 
diplomacy, as well as its peacekeeping and peacemaking roles.

--  Pledge to oppose terrorism and to devote increased attention to the 
problems posed by increasing numbers of displaced persons and refugees.  
Recognition of the protection of human rights as the responsibility of 
all countries as affirmed by the World Conference on Human Rights.

--  Call for enhanced cooperation to combat the proliferation of weapons 
of mass destruction, including universal adherence to the nuclear Non-
Proliferation Treaty, the Chemical Weapons Convention, and the 
Biological Weapons Convention.  Call for North Korea to change its 
decision to withdraw from the nuclear Non-Proliferation Treaty and to 
comply with International Atomic Energy Agency safeguards on agreement 
to denuclearize the Korean Peninsula.

--  Support for universal adherence to the Non-Proliferation Treaty and 
its indefinite extension in 1995.

-- Pledge to ensure effectiveness of the UN Register of Conventional 

--  Pledge to continue strengthening the Missile Technology Control 
Regime and to bolster exports.

--  Reaffirmation of commitment to the territorial integrity of Bosnia-
Herzegovina and to a negotiated settlement based on the principles of 
the London Conference.  Commitment to assist in the implementation of UN 
Security Council Resolution 836 establishing safe havens.

--  Expression of concern about aspects of Iran's behavior.

--  Reiteration of the call to end the Arab League boycott of Israel.

--  Support for Russian reform efforts under President Yeltsin and for 
the reform process in Ukraine.

--  Support for recent progress toward non-racial democracy in South 

--  Support for restoration of legitimate authorities in Haiti and for 
UN and OAS efforts in that regard.  

July 5-7, 1992


Leaders at the Munich summit emphasized the necessity of achieving 
stronger world economic growth as a prerequisite for solving the 
problems of the post-Cold War era.  Concern over lack of progress in the 
global trade negotiations, the future of high-risk nuclear reactors 
still operating in the former Soviet republics, and the civil war in the 
former Yugoslavia dominated the discussions.  Russian President Boris 
Yeltsin joined G-7 leaders at the close of the summit to review the pace 
of reform efforts in his country.

Economic Accomplishments

--  Pledge to work collectively and individually to promote sustainable 
world economic growth, encourage investment, and create new employment 

--  Support for conclusion of the Uruguay Round of multilateral trade 
negotiations by the end of 1992.

--  Call for the New Independent States of the former Soviet Union to 
continue economic reform policies aimed at building market economies.  
Support for financial credits and a debt rescheduling program for Russia 
and the creation of consultative groups for Russia and other New 
Independent States.

--  Pledge to continue efforts to increase the quality and quantity of 
official development assistance in accordance with existing commitments, 
with emphasis on the poorest countries.

Political Accomplishments

--  Pledge to continue shipments of humanitarian aid to Bosnia-
Herzegovina, combined with support for more vigorous enforcement of UN 
Security Council sanctions against Serbia-Montenegro, including the use 
of military force if necessary.

--  Agreement on the need to safeguard nuclear materials and to prevent 
the transfer or illicit production of nuclear weapons.  Establishment of 
a multilateral program to improve the safety and management of Soviet-
design nuclear power plants.

--  Recognition of the progress of the new states of Central and Eastern 
Europe in achieving economic and political reform, and a call for 
increased investment by the industrialized countries to supplement these 

--  Support for the role of the United Nations in maintaining 
international peace and security and recognition of the need to 
strengthen the conflict prevention and crisis management  capabilities 
of the Conference on Security and Cooperation in Europe.

--  Call for all countries to carry forward the momentum of the UN 
Conference on Environment and Development by publishing national action 
plans by the end of 1993; providing additional technical and financial 
assistance to developing countries; and implementing commitments on 
climate change, protection of forests and oceans, and preservation of 
marine resources.

July 15-17, 1991


The London summit emphasized the need to strengthen the international 
order following the revolutions in Central and Eastern Europe and the 
intervention against Iraq in the Persian Gulf.  Looking ahead to the UN 
Conference on Environment and Development in 1992, participants pledged 
support for a variety of initiatives designed to integrate environmental 
considerations into government policies.  A unique feature of the London 
meeting was the special invitation to Mikhail Gorbachev to meet at the 
conclusion of the summit with the heads of the G-7 industrialized 
countries.  Talks focused on the economic situation in the Soviet Union.

Economic Accomplishments

--  Recognition of the successful efforts of the Paris Club to negotiate 
debt reduction packages for lower middle-income countries to improve 
their potential for economic growth.

--  Commitment to secure stable worldwide energy supplies, remove 
barriers to energy trade and investment, encourage high environmental 
and safety standards, and promote international cooperation on research 
and development in these areas.

--  Agreement on the necessity of enhancing both the quality and 
quantity of support for priority development issues, such as alleviating 
poverty,  improving health education and training, and providing 
additional debt relief for the least-developed countries.

Political Accomplishments

--  Commitment to continued support for reform efforts in Central and 
Eastern Europe and to the integration of these countries into the 
international economic system.

--  Commitment to achieve a framework convention on climate change and a 
preliminary agreement on the management, conservation, and sustainable 
development of forests prior to the UN Conference on Environment and 
Development in 
June 1992.

--  Pledge to promote mobilization of financial resources to assist 
developing countries with environmental problems, support stronger 
international efforts to deal with environmental disasters, and increase 
cooperation in environmental science and technology.

July 9-11, 1990


The Houston summit was held against the backdrop of movement toward 
democracy and freer markets in many parts of the world, including 
elections in Central and Eastern Europe and Nicaragua, momentum toward 
German unification, and political reforms in the Soviet Union.  The 
summit leaders agreed on most international economic and political 
issues but also agreed that intense discussions were needed on 
agricultural subsidies in the Uruguay Round of multilateral trade 
negotiations, economic assistance to the Soviet Union, and global 
warming before consensus could be reached.

Economic Accomplishments

--  Agreement on progressive reductions in internal and external support 
and protection of agriculture and on a framework for conducting 
agricultural negotiations in order to successfully conclude by December 
1990 the Uruguay Round of multilateral trade talks under the auspices of 
the GATT.

-- Request to the IMF, the World Bank, the Organization for Economic 
Cooperation and Development, and the European Bank for Reconstruction 
and Development to undertake, in close coordination with the European 
Community, a study of the Soviet economy, to make recommendations, to 
establish the criteria under which Western economic assistance could 
effectively support Soviet reforms, and to submit a report by the end of 

--  Support for aid to Central and East European nations that are firmly 
committed to political and economic reform, including freer markets, 
encouragement of foreign private investment in those countries and 
improved markets for their exports by means of trade and investment 

--  Pledge to begin talks, to be completed by 1992, on a global forest 
convention to protect the world's forests.

Political Accomplishments

--  Promotion of democracy throughout the world by assisting in the 
drafting of laws, advising in fostering independent media, establishing 
training programs, and expanding exchange programs.

--  Endorsement of the maintenance of an effective international nuclear 
non-proliferation system, including adoption of safeguards and nuclear 
export control measures, and support for a complete ban on chemical 

July 14–16, 1989

The Paris summit marked the celebration of the 200th anniversary of the 
French Revolution and the Declaration of the Rights of Man.  It also was 
the first economic summit meeting for President Bush, who had just 
returned from trips to Poland and Hungary.  These developments 
reinforced for the summit leaders the importance of supporting political 
and economic reform in Eastern Europe.  The leaders also expressed 
strong concern about environmental and narcotics issues; at least one-
third of the economic declaration dealt with the environment.

Economic Accomplishments

--  Agreement on several multilateral trade issues, including a pledge 
to make effective use of the GATT  dispute settlement mechanism, to 
avoid new restrictive trade measures inconsistent with the GATT, and to 
make further substantial progress in the Uruguay Round in order to 
complete it by the end of 1990.

--  Commitment to a strengthened debt strategy to rely, on a case-by-
case basis, on such actions as economic reforms in developing countries, 
provision of more resources by a financially stronger World Bank and 
IMF, continued debt rescheduling by creditor governments, and more 
voluntary, market-based debt reductions by commercial banks.

--  Continued cooperation in foreign exchange markets.

--  Support for ending as soon as possible and not later than the end of 
the century the production and consumption of chlorofluorocarbons 
covered by the Montreal Protocol on Substances that Deplete the Ozone 

--  Commitment to limit the emissions of carbon dioxide and other 
greenhouse gases as well as conclusion of an international framework 
convention on global climate change.

--  Support for the preservation of tropical forests and condemnation of 
the practice of dumping waste in the oceans.

Political Accomplishments

--  Call for a meeting of all interested parties to discuss concerted 
assistance to Poland and Hungary and a request that the European 
Community coordinate these efforts.

--  Support for effective programs to stop illegal drug production and 
trafficking, including assistance for the anti-drug efforts of producing 
countries and the United Nations, increased international cooperation to 
seize drug proceeds and prevent money laundering, and support for a 1990 
international conference on cocaine and drug demand reduction.

--  Continued strong condemnation of international terrorism by states, 
including hostage taking and attacks against international civil 

--  Condemnation of political repression in China and agreement to 
suspend the shipment of arms and the extension of loans to China.

June 19–21, 1988


This summit, one of the most harmonious of the 1980s, marked the end of 
the second seven-year cycle of economic meetings.  The leaders expressed 
satisfaction with their accomplishments in bringing down inflation in 
the 1980s and laying the basis for sustained strong growth and improved 
productivity.  Among still unresolved problems they noted the emergence 
of large payments imbalances among major countries, greater exchange 
rate volatility, and continuing debt service difficulty in developing 
countries.  In response to these developments, the leaders made further 
refinements in the multilateral surveillance system to improve the 
coordination of their economic policies.  They also committed themselves 
to further trade liberalization at the Uruguay Round and offered new 
initiatives to relieve the debt burden of the poorest developing 

Economic Accomplishments

--  Improvement of the multilateral surveillance system by adding a 
commodity price indicator to the existing indicators monitored by the 
seven nations and by integrating national structural policies into the 
economic coordination process.

--  Support for efforts at the Uruguay Round to achieve trade 
liberalization in all areas including trade in services, intellectual 
property rights (such as copyrights and trademarks), and trade-related 
investment measures; to strengthen the GATT's surveillance and 
enforcement mechanism; and to reduce all direct and indirect subsidies 
affecting agricultural trade.

--  Support for a  $75-billion general capital increase for the World 
Bank to strengthen its capacity to promote adjustment in middle-income 
developing countries.

--  Agreement to relieve the debt burdens of the poorest developing 
countries, particularly in Sub-Saharan Africa, by urging creditors to 
grant partial debt forgiveness, reduced interest rates, and/or 
lengthened debt maturities.

--  Support for the ratification of the Montreal agreement on the ozone 
layer and the completion of other ongoing negotiations on emissions and 
the transport of hazardous wastes.

Political Accomplishments

--  Confirmation of the policy of constructive dialogue and cooperation 
between East and West, particularly in the light of greater freedom and 
openness in the Soviet Union.

--  Reaffirmation of previous summit agreements to combat terrorism and 
support for the policy of no takeoffs for hijacked aircraft once they 
have landed.

--  Support for U.S. Government initiatives to improve cooperation 
against narcotics trafficking.  



Fact Sheet: Uruguay Round Agreement Reforms and U.S. Policy

On December 15, 1993, 123 countries, accounting for more than 90% of 
world trade, concluded a historic agreement to reform international 
trade.  The Uruguay Round of multilateral trade negotiations, conducted 
under the auspices of the General Agreement on Tariffs and Trade (GATT), 
extended the GATT's rules to new areas of trade and updated its 
organization to conform to a more dynamic global trading system.  As of 
May 1995, 128 countries are either members or in the process of acceding 
to the World Trade Organization (WTO).

The WTO effectively replaced the GATT on January 1, 1995.  By reducing 
barriers to global commerce, the WTO agreements  expand U.S. trade 
opportunities and increase U.S. economic competitiveness and thus can 
help generate higher real wages and living standards for Americans.

Specifically, they include:

--  Lower tariff and non-tariff barriers for manufactured products and 
other goods;
--  Rules to protect the intellectual property of entrepreneurs, 
entertainment industries, and software producers;
--  New rules on trade in services;
--  Fairer competition and more open markets in agriculture;
--  Full participation by the developing countries in the global trading 
--  Effective rules on antidumping, subsidies, and import safeguards; 
--  A more effective dispute settlement system.

Reducing Tariff and Non-tariff Barriers to Trade

The eighth round of negotiations under the GATT began at a meeting of 
trade ministers in 1986 in Punta del Este, Uruguay.  Since the 
establishment of the GATT in 1948, international trade negotiations had 
resulted in tariff reductions of about 85%.  However, significant 
barriers remained, especially with regard to agricultural exports, and 
areas such as services were unregulated.

The Uruguay Round resulted in significant reform in the GATT process.  
It achieved a more than one-third across-the-board reduction in tariffs, 
which will be entirely eliminated in some industries.  Just as 
significant as these tariff reductions is that many non-tariff barriers-
-such as quotas, discretionary licensing, import bans, or voluntary 
export restraints--will be eliminated or reduced.  Agriculture export 
subsidies also become subject to constraints.  Under new agriculture 
market access provisions, countries are required to provide a minimum 
level of import access opportunities for certain products, usually set 
at 3% of domestic consumption.  Future multilateral trade negotiations 
will be simplified, since countries will no longer be able to use non-
tariff measures to restrict trade.

Specific Areas of Focus
Tariffs.  Previously existing as well as newly established tariffs will 
be "bound."  Once bound, a tariff cannot be increased without 
compensation to other countries.  In addition, all countries are 
required to begin reducing tariffs in 1995, with specific schedules 
established for each member.  For developed countries, tariffs will be 
reduced a minimum of 15% per product line and an overall average of 36% 
over a six-year implementation period.  Developing countries are 
permitted smaller reduction commitments and longer implementation 
periods (10 years to cut tariffs by 24%).  Important gains include 50-
100% cuts in tariffs on electronic items (such as semiconductors and 
computer parts) and harmonization of tariffs in the chemical sector at 
low rates. 

Services.  The agreement on trade in services establishes new rules in 
more than 150 service sectors and subsectors (such as advertising, law, 
accounting, information and computer services, environmental services, 
engineering, and tourism), thus enabling U.S. firms operating overseas 
to be treated as fairly as local firms.

Intellectual Property.  The agreement on trade-related intellectual 
property rights establishes improved safeguards to protect intellectual 
property rights.  Computer programs and databases are protected under 
copyright.  Patents for virtually all types of inventions, including 
those in pharmaceuticals and chemicals, are protected for up to 20 

Agriculture.  The agreement on agriculture requires that all members 
reduce aggregate support to their domestic agricultural sectors by 20% 
from a 1986-88 base period.  (The U.S. already has reduced domestic 
support so that further reductions will not be necessary.)  Agricultural 
products, which represent 10% of total U.S. merchandise exports, were 
the second-largest contributor to the overall U.S. trade balance in 
1992.  Since the U.S. is the world's major exporter of agricultural 
products, with a share of world trade averaging about 15% in recent 
years, increased market access and reduced subsidies for agriculture 
will create important opportunities for U.S. producers and exporters.

An agricultural export subsidy agreement specifies reductions in 
spending on export subsidies (36% over six years for developed 
countries, 24% over 20 years for developing countries) and outlaws the 
extension of subsidies to new products not subsidized during a 1986-90 
base period.

An agreement on sanitary and phytosanitary measures establishes a 
scientific standard for measures restricting plant and animal product 
imports on the basis of health or safety concerns, thereby eliminating 
import restrictions based on arbitrary or unsubstantiated health 

Environment.  Although environmental issues were not included in the 
original Uruguay Round, the U.S. initiated discussion of the environment 
in the late stages of the negotiations.  The new Committee on Trade and 
Environment in the WTO will review the relationship of economic and 
environmental objectives in trade negotiations. 

Improving Structure and Procedures

Under the Uruguay Round Agreement, the World Trade Organization replaces 
the GATT, with responsibility for enforcing the revised international 
trade rules, providing procedures for negotiating additional reductions 
of trade barriers, and settling disputes arising in areas covered by the 
new trade agreements.  The new dispute settlement process enhances the 
ability of the U.S. to combat unfair trading practices by allowing 
"cross-retaliation" when a country fails to bring its trade measures 
into conformity in response to a dispute settlement decision.

Benefits to the U.S. Economy

Exports.  Exports of goods and services have been steadily rising as a 
share of the U.S. economy's total output.  An increase in U.S. export 
opportunities helps stimulate greater capital investment; technological 
innovation; higher productivity; job growth; and rising living 

Export growth is important not only for U.S. export producers but also 
for U.S. industries which provide the intermediate and capital goods 
used by producers of exports as well as the U.S. firms and workers 
supporting the export process.  A large and growing share of the U.S. 
work force depends on U.S. exports for employment.  By 1990, the jobs of 
7.2 million U.S. workers were supported by U.S. merchandise exports, an 
increase of 44% from 5 million in 1986.  

Imports.  The substantial reductions in trade barriers negotiated in the 
Uruguay Round will result in lower prices for imported intermediate and 
final products and a greater variety of goods for American consumers.

Competition in the U.S. market from increased imports stimulates U.S. 
industries to improve their productivity, quality, and technology; this 
can benefit both the firms and U.S. consumers who buy their goods at 
reduced prices. 

U.S. Trade Policy

U.S. trade policy aims to raise standards of living in the U.S. and 
around the world.  Trade accounts for one-quarter of the U.S. gross 
domestic product; for many nations, the figure is much higher.  In a 
changing and more interdependent world, the key to prosperity and 
improved living standards is engagement rather than withdrawal and 
protectionism.  The Administration is committed to harnessing the forces 
of change for the benefit of all Americans and the people of all nations 
through reducing trade barriers and promoting sustainable development.

When the General Agreement on Tariffs and Trade (GATT) began after World 
War II, it dealt only with tariffs.  Later, the U.S. began to address 
non-tariff barriers to global trade.  Opening new markets is critical to 
fostering global growth and creating jobs both in the United States--
richer countries are able to buy more goods and services from the U.S.--
and abroad.

But sustainable development also is important to such growth, and it has 
both environmental and social dimensions.  As President Clinton 
cautioned in January 1994:

While we continue to tear down anticompetitive practices and other 
barriers to trade, we simply have to ensure that our economic policies 
also protect the environment and the well-being of workers.

More nations are recognizing that economic growth must occur at a rate 
that the environment can sustain.  The U.S. strongly favored the 
establishment of the World Trade Organization's Committee on Trade and 
Environment to discuss, inter alia, the environmental aspects of 
sustainable development.

Another dimension of sustainable development is that a rise in 
productivity should occur in tandem with the growth of middle classes, 
the rise in standards of living, and the improvement of internationally 
recognized labor standards.  Such labor standards include freedom of 
association, freedom to organize and bargain collectively, freedom from 
forced or compulsory labor, a minimum age for the employment of 
children, and conditions of work.

The U.S. supports improved environmental and labor standards; at the 
same time, it will resist efforts to use them as protectionist tools. 



Fact Sheet:  The World Trade Organization

As a result of the Uruguay Round of multilateral trade negotiations, 
global rules for international trade have been improved and extended to 
most trading nations on an equivalent basis.  Responsibility for 
enforcement of these rules has been entrusted to the new World Trade 
Organization (WTO).  The WTO also will provide procedures for 
negotiating additional reductions of trade barriers and for the prompt 
and effective settlement of disputes in all the policy areas covered by 
the new world trade agreement.

U.S. Objectives

The principal trade negotiating objectives of the United States 
regarding the improvement of the General Agreement on Tariffs and Trade 
(GATT) and multilateral trade negotiation agreements were:

--  To enhance the status of the GATT;
--  To improve the operation and extend the coverage of the GATT and 
such agreements and arrangements to products, sectors, and conditions of 
trade not adequately covered; and
--  To expand country participation in particular agreements or 
arrangements, where appropriate.

The agreement establishing the WTO facilitates the implementation of 
trade agreements in the diverse areas of trade in goods, trade in 
services, and the protection of trade-related intellectual property 
rights.  The WTO encompasses the former GATT structure and extends it to 
new disciplines that have not been adequately covered in the past.  By 
bringing together disciplines on government practices affecting trade in 
goods and services and the protection of intellectual property rights 
under one institutional umbrella, the WTO agreement also facilitates the 
"cross-retaliation" mechanism of the integrated dispute settlement 

In addition, the WTO resolves the "free rider" problem in the world 
trading system. WTO benefits only extend to its members who have agreed 
to adhere to all of the Uruguay Round agreements and who submit 
schedules of market access commitments for industrial goods, 
agricultural goods, and services.  This eliminates the shortcomings of 
the former GATT system in which, for example, only a handful of 
countries voluntarily adhered to disciplines on subsidies under the 1979 
Tokyo Round agreement.

The WTO agreement establishes a number of institutional rules (described 
below) that are applied to all Uruguay Round agreements.  It establishes 
an international organization with a stature commensurate with that of 
the World Bank and the International Monetary Fund.  The organization is 
similar to that of the existing GATT Secretariat.

Key Provisions

Trade and Environment.  The WTO agreement recognizes the importance of 
environmental concerns.  This addresses a key interest among U.S. 
environmental and conservation groups, which have often expressed 
concern that international trade agreements have failed to take 
environmental issues into account.  A WTO committee on trade and 
environment aims to ensure the responsiveness of the multilateral 
trading system to environmental objectives.

Decision-making.  The U.S. has successfully retained the practice of 
general decision-making by consensus followed under the GATT since 1947.  
Consensus is achieved "if no member, present at the meeting where the 
decision is taken, formally objects to the proposed decision."  This 
continues to enable the U.S. to prevent a decision that it perceives to 
be contrary to its interest.

Amendments.  The agreement permits amendments but ensures that an 
amendment of the substantive rights and obligations not be binding on 
the U.S. without acceptance of the amendment.  In contrast, amendments 
to pure procedural provisions of the Uruguay Round agreements will be 
binding on all members in order to avoid the destabilizing effect that 
would result if different members were subject to different procedural 

Waivers.  The agreement allows members to grant waivers of substantive 
provisions in the various Uruguay Round agreements, but only in 
exceptional circumstances.  In the case of an obligation subject to 
phased-in implementation, such as those in the agreement on trade-
related intellectual property issues (TRIPs), which has not yet been 
fulfilled by the requesting member, members may grant a waiver only by 
consensus.  Also, the waiver provision substantially increases the 
threshold for obtaining waivers, from two-thirds of members present to 
three-quarters of all members.  Any waivers granted are subject to 
specific conditions, including a date on which the waiver will 

Interpretations.  Under the WTO, the reports of dispute settlement 
panels do not constitute "authoritative" interpretations of the relevant 
agreements.  Only the members themselves--acting through the Ministerial 
Conference or General Council--can adopt such an interpretation.  The 
agreement also states that interpretations not be used in a manner that 
undermine amendment provisions.

Non-application.  The agreement does not permit sector non-application. 
Thus, for example, India is precluded from not applying the TRIPs 
agreement to the U.S.  With respect to WTO members that accede to the 
WTO but are not "original members" (generally, are not GATT contracting 
parties), a member can invoke "global" non-application.  Thus, with 
respect to the People's Republic  of China and possibly other acceding 
members, the U.S. can choose not to apply the GATT and the Uruguay Round 
agreements to that country as a whole.

Definitive Application.  In joining the WTO agreement, members agree to 
the definitive application of the obligations of the Uruguay Round 
multilateral trade agreements. (Accession to the multilateral trade 
agreements, such as the agreement on government procurement, is limited 
to those members who affirmatively accept these agreements.)  Annex 1 to 
the WTO agreement eliminates the protocol of provisional application and 
corresponding provisions in protocols of accession to the GATT that had 
the effect of allowing certain existing legislation of contracting 
parties that are inconsistent with the GATT.  However, Annex 1 includes 
a clause that protects from GATT challenge U.S. maritime laws relating 
to cabotage ("Jones Act"). 



Fact Sheet: Developing Country Debt


The ability of many developing countries to pay their foreign debt 
deteriorated in the 1980s, leading to a debt crisis. As a result of 
actions by creditor countries and continued support by international 
financial institutions, the situation clearly has improved. By providing 
financial support for countries undertaking macroeconomic adjustment, 
and, through an improvement in commercial bank relations with major 
debtor countries, the risk to the international financial community has 
been greatly reduced. 

The U.S. has encouraged debtors to undertake economic reforms and 
persuaded banks, governments, and international financial institutions 
to support such efforts. In 1985, the U.S. introduced an international 
debt strategy designed to improve and sustain growth in debtor 
countries. Since 1990, it has complemented this strategy with efforts to 
reduce bilateral official debt--both alone and in concert with other 
governments, most notably through debt reductions in the Paris Club.

Origins of the Crisis

Several factors contributed to the debt crisis of the early 1980s. 
Inappropriate domestic policies in many debtor countries resulted in 
large budget deficits and overvalued exchange rates. Many countries used 
substantial borrowing to maintain these policies, financing consumption 
and inefficient investment rather than investing in needed infra-
structure or productive enterprises. Many of the same countries relied 
on short-term, variable rate loans that made them vulnerable to rising 
interest rates. External shocks, such as the 1979 oil price jump, a 
sharp increase in international interest rates, a large drop in 
commodity prices, and recession in the developed countries compounded 
the repayment strain on heavily burdened countries. Finally, commercial 
banks overestimated the ability of these economies to generate the 
necessary foreign exchange to repay their large commercial debts.

The Initial Response

Beginning with the Mexican crisis of August 1982, the U.S. was a leader 
in responding to the developing country debt problem of the 1980s. In 
1985, to restart growth in the debtor countries, the U.S. proposed an 
international debt strategy which encouraged International Monetary Fund 
(IMF), World Bank, and commercial bank lending to support economic 
reform. In 1989, the plan was strengthened by incorporating voluntary 
commercial bank debt and debt service reduction to support economic 

Dramatic progress has been made under the strengthened international 
debt strategy. Twenty-one countries (Argentina, Bolivia, Brazil, 
Bulgaria, Chile, Costa Rica, Dominican Republic, Ecuador, Guyana, 
Jordan, Mexico, Niger, Nigeria, the Philippines, Poland, Sao Tome and 
Principe, Uganda, Uruguay, Venezuela, and Zambia) have reached 
agreements which feature debt reduction options. These countries 
represent the great majority of the total commercial bank debt of the 
major debtor nations. Similar negotiations are at various stages with 
Congo, Cote d'Ivoire, Gabon, Honduras, Nicaragua, and Panama. Some 
countries, such as Argentina, Chile, and Mexico, have made significant 
progress toward attracting private foreign capital, as evidenced by 
their ability to maintain access to international capital markets 
despite the uncertainty created by Mexico's liquidity crisis early in 

Multilateral Debt Relief

With the success of the strengthened international debt strategy in 
gaining voluntary, market-based reduction of commercial debt, focus has 
shifted somewhat from commercial to official bilateral (government-to-
government) debt within the Paris Club, an informal group of official 
creditors. Creditor governments have supported country reform efforts by 
rescheduling payments--both interest and principal--due on official 
bilateral debt. Such reschedulings are provided to countries receiving 
IMF support of their comprehensive economic reform programs.

In the fall of 1988, the Paris Club implemented the Toronto economic 
summit mandate to provide debt relief to heavily indebted, low-income 
Sub-Saharan African countries. "Toronto terms" offered three options for 
providing debt relief: debt reduction, concessional interest rates, or 
extended maturities. In 1990, these terms were extended to the poorest 
and most heavily indebted countries in other regions on a case-by-case 

In addition, in response to the 1990 Houston economic summit mandate, 
the Paris Club devised more generous terms for lower-middle income 
countries (LMICs)--those not poor enough to qualify for enhanced Toronto 
terms but still heavily indebted. Congo, Dominican Republic, El 
Salvador, Honduras, Jamaica, Jordan, Morocco, Nigeria, Peru, and the 
Philippines have received reschedulings on these LMIC, or "Houston 
terms," which extend the repayment periods but do not provide debt 

In December 1991, the Paris Club implemented the London economic summit 
mandate to provide even more generous terms to the poorest of the poor 
countries. Stimulated by a proposal by U.K. Prime Minister John Major in 
Trinidad, these "enhanced Toronto terms" introduced options under which 
creditors reduce debt service by up to 50% on a net present value basis. 
Since December 1991, Benin, Bolivia, Burkina Faso, Cameroon, Central 
African Republic, Cote d'Ivoire, Ethiopia, Guinea, Guyana, Honduras, 
Mali, Mauritania, Mozambique, Nicaragua, Niger, Senegal, Sierra Leone, 
Tanzania, Togo, Uganda, Vietnam, and Zambia have received reschedulings 
under enhanced Toronto terms. 

In December 1994, the Paris Club took another critical step to support 
reform efforts and improve the prospects for economic growth and better 
living standards in the poorest countries by agreeing to terms for 
further reduction of the debt of the poorest countries. The new terms, 
known as the "Naples Terms" because they were recommended at the 1994 G-
7 Economic Summit in Naples, provide, on a case-by-case basis, two-
thirds debt service reduction for the poorest countries. More 
significantly, the Paris Club creditors also agreed for the first time 
to provide for reduction of the stock of debt for countries with a 
sustained record of economic reform (rather than just for payments 
coming due in a specific period). The countries that have so far 
benefited from Naples terms include Bolivia, Cambodia, Chad, Equatorial 
Guinea, Guinea, Guinea-Bissau, Haiti, Mauritania, Nicaragua, Senegal, 
Togo, and Uganda.

Bilateral Debt Relief

In June 1994, in recognition of steps Jordan had taken toward peace with 
Israel, President Clinton pledged to seek congressional authorization 
and funding to forgive all of Jordan's approximately $700 million in 
debts to the United States. In September, Congress authorized 
cancellation of Jordan's debts and appropriated funds sufficient to 
forgive $220 million of the total debt. The Administration is working 
with Congress to complete the forgiveness of the remaining debt. The 
Administration also has urged the G-7 to join the United States in 
addressing Jordan's financial needs in view of the courageous steps 
Jordan has taken for peace.

In April 1991, the Paris Club agreed to special debt relief for Poland, 
providing 50% phased-in debt reduction on a net present value basis in 
support of multi-year economic restructuring agreements with the IMF. 
The U.S., citing the need to provide extraordinary assistance to Poland 
in its transition from a centrally planned to a free market economy, 
approved a 70% reduction in May 1991. 

At the end of 1990, the U.S., in recognition of Egypt 's supportive role 
during the Gulf crisis, canceled Egypt 's $6.7-billion military debt. In 
May 1991, Egypt 's Paris Club creditors followed this action with a 
phased-in 50% debt reduction, available within the context of IMF-
supported economic reform programs.

In 1989 and 1990, the U.S. Congress provided authority to forgive, 
first, U.S. Agency for International Development economic assistance 
and, later, PL-480 loans to Sub-Saharan Africa and other least-developed 
countries that are undertaking economic reform. More than $2.7 billion 
owed by 27 African, Latin American, and South Asian countries has been 
forgiven under these authorities since FY 1990. The U.S. also has 
reduced the non-military debt of seven Latin American nations under the 
framework of the Enterprise for the Americas Initiative, an integrated 
program to increase trade, promote capital flows, ease debt burdens, and 
protect the environment.


The decade of the 1990s is seeing a new focus on the debt problems of 
the poorest countries, as private capital flows increasingly replace 
official financing for the more credit-worthy developing countries. In 
particular, increasing attention is being given to debt owed to 
multilateral lending institutions by some of the world's poorest, most 
heavily indebted countries. Mexico's liquidity crisis in early 1995 
highlighted the increasing integration of global capital markets and the 
potential for such crises to spread rapidly.  As a consequence of this 
crisis and the lessons learned in organizing an international financial 
package for Mexico, greater attention is being given to the need for 
transparency and international cooperation in surveilling and regulating 
international capital markets. 




Fact Sheet: Global Environmental Issues

The environmental challenges confronting the world today are greater 
than at any time in recent history. Threats to the global environment--
such as climate change; stratospheric ozone depletion; and the loss of 
biological diversity, forests, and fish stocks--affect all nations 
regardless of their level of development. As a result, the environment 
is an increasingly important part of the foreign policy agenda. The 
United States accords high priority to addressing global environmental 
problems and is pursuing a wide-ranging agenda of action to protect the 
environment and promote the goal of sustainable development.

UN Conference on Environment And Development

The June 1992 UNCED was a landmark event in addressing the global 
environment. Unlike other environmental conferences, UNCED focused on 
"sustainable development," i.e., economic growth that takes into account 
environmental concerns. UNCED resulted in the adoption of three key 

-- Agenda 21--an action program 
to guide national and international environmental and development 
efforts into the 21st century; 

--  The Rio Declaration--a statement of principles regarding the 
environment and development;  and

-- A statement of principles for the conservation and sustainable use of 
forests worldwide.

Based on UNCED's recommendation, the United Nations has established a 
Commission on Sustainable Development (CSD) to monitor implementation of 
Agenda 21 recommendations. The U.S. strongly sup- ports the CSD as a 
primary international body for promoting sustainable development 
worldwide. The CSD will  next convene in early 1996 to review progress 
on the ocean environment. It meets annually to pursue follow-up to the 
Rio Conference; in April 1995, it reviewed forest issues.

The United States works domestically to implement the recommendations 
made at the Rio Conference. On June 14, 1993, President Clinton 
announced the formation of the President's Council on Sustainable 
Development (PSCD), which now is developing policy recommendations for a 
national strategy for sustainable development that can be implemented by 
the public and private sectors. The PSCD represents a ground-breaking 
commitment to explore and develop policies that encourage economic 
growth, job creation, and effective use of natural resources.

In addition to the treaties on biodiversity and climate change, UNCED 
also endorsed a convention to combat desertification. In October 1995, 
the U.S. signed a new UN Convention on Desertification, which promotes 
international cooperation on the sustainable use of fragile, dry-land 
ecosystems, particularly in Africa. It also addresses one of the root 
causes of African poverty and hunger. The convention is being prepared 
to be submitted to the Senate for ratification.

Global Climate Change

That human activities may cause climate change is a serious 
international environmental concern. The United States has led the 
effort in response to this threat. Negotiations on a Framework 
Convention on Climate Change--which began near Washington DC, in early 
1991--culminated in an agreement that received more than 150 signatures 
at the UN Conference on Environment and Development (UNCED) in Rio de 
Janeiro in June 1992;  the convention entered into force March 21, 1994.

The climate change convention establishes a process to deal meaningfully 
with this issue. Industrialized countries are developing specific action 
plans to limit emissions of greenhouse gases and enhance forests and 
other greenhouse gas "sinks."  Other countries are to take similar 
actions in the future.  President Clinton announced in April 1993 that 
the U.S. intends to return its greenhouse gas emissions to 1990 levels 
by the year 2000. In October 1993, the President presented the National 
Climate Change Action Plan, containing nearly 50 domestic measures 
designed to meet the U.S. commitment.

In September 1994, the United States made its national submission, the 
U.S. Climate Change Report, which details U.S. actions to address the 
threat of global climate change. It includes the U.S. Initiative on 
Joint Implementation (USIJI) which promotes cooperation between 
countries on projects that will reduce or sequester greenhouse gas 
emissions. The first seven projects for inclusion in the initiative were 
announced in February 1995. Partner countries include Costa Rica, 
Honduras, Belize, the Czech Republic, and Russia. The United States 
expects to announce another round of projects in the near future.

In fiscal years 1994 and 1995, the United States offered $30 million in 
financial support and technical assistance to assist developing 
countries and countries in transition to market economies in 
establishing analytical foundations for addressing the threat of climate 
change. Eligible efforts included inventories of greenhouse gas 
emissions, vulnerability studies, and analyses of options to address 
vulnerabilities and reduce greenhouse gas emissions. The United States 
is now working with more than 50 countries on such studies.

The First Conference of the Parties to review the climate change 
convention was held in Berlin, Germany, March 28-April 7, 1995. The 
participants secured a mandate to negotiate "next steps" for the post-
2000 era by 1997 as well as to begin a pilot phase for "joint 
implementation" projects. The United States hopes that the USIJI and 
similar programs will assist in the development of international 
criteria for the partnership projects needed to reduce worldwide 
greenhouse gas emissions.  

Protection of the Ozone Layer

The depletion of the ozone layer continues to be a serious problem. The 
United States has led efforts to address this threat, beginning with a 
decision in 1978 to ban the use of chlorofluorocarbons (CFCs) in non-
essential aerosols. The U.S. urged the conclusion of an agreement to 
restrict the use of CFCs and other ozone-depleting substances in all 

This effort has led to a succession of landmark international agreements 
since 1985 designed to protect the ozone layer, including the 1985 
Vienna Convention and the 1987 Montreal Protocol. Countries will 
completely phase out the production of CFCs and most other ozone-
depleting substances by the end of 1996. The U.S. has met its 
commitments to phase out halons by the end of 1994 and continues toward 
meeting phase-out targets for CFCs and allied substances by January 1, 

Conservation and Sustainable Use of Biological Diversity

A central objective of U.S. environmental policy is the preservation and 
sustainable use of natural resources, pursued through a combination of 
bilateral and multilateral activities.

The United States is party to the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora (CITES), which enables the 
122 CITES signatories to monitor and control international trade in wild 
species. CITES was crucial in efforts by the U.S. and other countries to 
protect the African elephant by banning trade in elephant ivory, and it 
is now involved in efforts to protect the rhino and tiger. The Ninth 
CITES Conference of Parties was held in Fort Lauderdale, Florida, 
November 7-18, 1994.

While CITES has been effective in protecting species that are threatened 
as a direct result of international trade, the main cause of species 
loss is habitat destruction. The U.S. seeks to address this issue 
through a variety of means, such as increased funding for forest 
conservation programs, the establishment of protected areas under the 
World Heritage Convention and other agreements, and through the Ramsar 
Treaty on International Wetlands.

On June 4, 1993, the United States signed the UN Convention on 
Biological Diversity, which establishes a framework for countries to 
cooperate on protecting the earth's species. The convention presents a 
unique opportunity for nations not only to conserve the world's 
biological diversity, but also to realize economic benefits from the 
conservation and sustainable use of its genetic resources. The treaty is 
now before the U.S. Senate for ratification. 

The U.S. is promoting sustainable use of the world's forest resources 
through the UN Commission on Sustainable Development, which, in April 
1995, established an intergovernmental panel to explore more efficient, 
better coordinated international programs. The U.S. Government and non-
governmental organizations are cooperating to help preserve threatened 
biodiversity-rich forests in countries such as Suriname and Papua New 
Guinea, and on a regional basis in Central Africa and the Amazon.

The U.S. also has launched a new international partnership--the 
International Coral Reef Initiative--to promote the protection, 
sustainable management, and monitoring of coral reefs and related 
ecosystems, such as mangroves and sea grasses. U.S. partners in this new 
undertaking include Japan, Australia, Jamaica, the United Kingdom, 
France, and the Philippines.

Population and Environment

During the 1990s, world population growth will increase by 90 to 100 
million people annually. Unaddressed, global population will almost 
certainly double and could triple before the end of the next century. 
The implications of such growth for global economic, political, social, 
and environmental security are profound.

The third UN International Conference on Population and Development 
convened in Cairo, Egypt September 5-13, 1994. This conference provided 
a once-in-a-decade opportunity to marshal resources behind a 
comprehensive global effort to stem rapid population growth. The U.S. 
worked with its international partners to develop comprehensive 
programs, which include addressing the unmet need and demand for family 
planning and reproductive health services;  developing strategies for 
improving women's health needs and improving child survival; improving 
the social, economic, and political status of women; and mobilizing 
institutional and financial resources to meet these goals. All these 
initiatives influence population growth and are most effective when 
pursued together; efforts in this regard will continue.

Financing Environmental Protection

The United States supports effective use of resources and institutions 
to promote the goals of sustainable development and environmental 
protection. It has long been a leader among bilateral donors in 
supporting environmental programs abroad and ensuring that environmental 
considerations are taken into account in assistance programs. The U.S. 
foreign assistance budget emphasizes sustainable development, including 
programs for ameliorating natural resource degradation; protecting 
water, air, and land from pollution; and making progress toward 
environmental conservation, among others.

Multilateral institutions remain essential to efforts to promote 
economic reforms and development in a rapidly changing world; they also 
are important instruments to promote sustainable development and 
environmental protection. The United States helps ensure that the 
multilateral development banks take environmental considerations into 
account in all their lending programs. The U.S. also strongly supported 
creation of the Global Environmental Facility, which helps fund projects 
that provide global environmental benefits, such as those related to 
climate change and the loss of biodiversity.

Marine Conservation and Pollution

The world's oceans are threatened by human activities such as 
unsustainable resource use and pollution. The United States long has 
played an active role in ocean conservation programs--from its efforts 
early in the 1980s to protect whales to a UN-sponsored moratorium in 
1992 on the destructive practice of driftnet fishing. The collapse of 
several valuable fisheries, concern about the continued sustainability 
of fully and over-exploited fisheries, and the development of new 
fisheries have brought special attention to international fisheries 
matters and point to the need for new mechanisms of international 

Overall, the U.S. leads international efforts to better conserve and 
manage important living marine resources through global cooperation. It 
is a leading proponent of two major international agreements to address 
marine pollution: the Convention for the Prevention of Pollution from 
Ships, which regulates discharges of harmful substances during the 
normal operation of ships at sea;  and the London Convention, which bans 
the ocean disposal of a number of wastes and lists others that may be 
disposed of only with special care.

The United States promotes efforts to address pollution from land-based 
sources--the most serious threat to the marine environment. UNCED 
delegates adopted a U.S. proposal calling for an intergovernmental 
conference--which will be hosted by the United States in Washington, DC, 
in October 1995--to consider effective ways to deal with this threat.

As a result of the 1980s focus on the adverse impacts of large-scale 
pelagic driftnet fishing, the UN General Assembly, in 1990, adopted a 
resolution calling for a global moratorium on the use of large-scale 
driftnets on the high seas. The United States attaches great importance 
to continued compliance with this resolution and continues to encourage 
all nations to take measures to prohibit their nationals and vessels 
from undertaking any activity contrary to the terms of the resolution.

Through U.S. leadership and international cooperation, the incidental 
take of dolphins in the eastern Pacific Ocean's tuna fishery area has 
been reduced to its lowest levels. The United States also is 
participating in multilateral negotiations toward concluding a Western 
Hemisphere Sea Turtle Protection and Conservation Convention.

Since 1993, the United States has participated in the UN Conference on 
Straddling Fish Stocks and Highly Migratory Fish Stocks--an outcome of 
UNCED, which called for a global conference to promote effective 
implementation of the provisions of the 1982 UN Convention on the Law of 
the Sea dealing with fish stocks. 

To date, the conference has completed four substantive sessions and 
hopes to complete its work in August 1995. More than 80 nations are 

In addition, the United States is engaged in efforts through the UN Food 
and Agriculture Organization (FAO) to improve international fishery 
conservation and management. The U.S., FAO, and other countries are 
preparing an international code of conduct for responsible fishing, 
which will provide principles and standards applicable to the 
conservation, management, and development of all fisheries. The code 
will address such issues as fishing operations, aquaculture, habitat, 
fisheries research, and the integration of fisheries into coastal area 
management plans. 

The Environment and the G-7

Environment has been a key issue for the G-7 since the 1989 Paris 
Summit. The Halifax Summit reinforced efforts that have been made over 
the past few years to implement the Rio Earth Summit's blueprint for 
sustainable development--as Agenda 21--and showed support for the 
conventions on climate change, biodiversity, and the CSD process on 

Climate Change. The United States will encourage all developed countries 
to meet their commitments to return greenhouse gas emissions to their 
1990 levels by the year 2000 and to consider what measures should be 
taken with regard to greenhouse gas emissions in the post-2000 period.

Biodiversity. The U.S. works through a wide range of multilateral and 
bilateral mechanisms to address arresting the rapid loss of species 
worldwide. It is, however, the only G-7 country which has not ratified 
the biodiversity convention--one of the major outcomes of the 1992 Earth 

Forests. The U.S. strongly supports efforts by the UN Commission on 
Sustainable Development to develop proposals on the sustainable 
management and conservation of forests through an "open-ended 
intergovernmental panel on forests." This panel will provide proposals 
for action on a range of priority areas. It will consider ways to 
enhance international forest aid coordination and recommend a clearer 
division of forest-related work among UN agencies. It also will examine 
factors effecting trade in forest products and assess the need for 
additional international agreements, possibly establishing a legally 
binding forest convention.

 On April 30 and May 1, 1995, G-7 environment ministers met in Hamilton, 
Ontario. EPA Administrator Carol Browner and Under Secretary of State 
for Global Affairs Timothy Wirth attended the meeting, together with 
environment ministers from other G-7 countries. The meeting focused on 
three themes:

-- International institutional arrangements for sustainable development 
and environment issues; 
-- Environment-economy integration with emphasis on "greening of 
government operations;" and 
--  Progress on major international environmental issues, including 
those related to the conventions on climate change and biodiversity.

 The institutional arrangements theme focused on CSD and UN Environment 
Program (UNEP) mandates. It was agreed that the CSD should be the high-
level global forum at which broad policy directions and strategic goals 
for sustainable development are set. UNEP was urged to reaffirm its 
mandate as the environmental voice of the UN system, focusing on 
science, environmental monitoring and assessment, catalyzing regional 
responses to common environmental problems, and promoting the 
development of international environment law.

Discussions also focused on the role of international financial 
institutions (IFIs)--expressing the view that the G-7 should encourage 
the World Bank and other IFIs to emphasize the quality, rather than 
simply the quantity of loans, and to continue to progress toward 
transparency and openness by making information available early in the 
project evaluation process.

Environment-economy integration discussions focused on "greening" 
government operations. Participants reviewed their domestic policies to 
find common challenges related to greening government policy; for 
example, removing unsound subsidies, using environmental assessments, 
implementing green tax reform, and promoting job creation through 
environmental technologies. Participants urged G-7 governments to take 
the lead in making their operations and activities more environmentally 
sustainable and sound through their procurement practices, energy use, 
and building maintenance. The U.S. Government already is moving in this 
direction through President Clinton's various executive orders regarding 
the use of recycled products, alternative fuel vehicles, energy-
efficient and water-saving equipment, "green" computers, and the 
reinventing government initiative.

Finally, the participants reviewed ongoing international efforts to 
address issues related to climate change, biodiversity preservation, and 
trade in wastes and toxic chemicals. All G-7 countries support action to 
address global environmental concerns, although each country emphasizes 
different issues. 




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