U.S. DEPARTMENT OF STATE DISPATCH
VOLUME 6, SUPPLEMENT NO. 4, JULY 1995
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
Group of Seven (G-7)
1995 Economic Summit
Halifax, Nova Scotia
June 15-17, 1995
ARTICLES IN THIS ISSUE:
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
ARTICLE 1:
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
world.
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
economy.
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
arise.
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.
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ARTICLE 2:
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
future.
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.
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ARTICLE 3:
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.
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ARTICLE 4:
Halifax Summit Communique
Text of communique issued at Halifax, Nova Scotia, June 16, 1995.
Preamble
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
growth.
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
policies.
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
countries.
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
review.
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
system.
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
urge:
-- 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
Summit.
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
institutions:
-- 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
sector.
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
poverty.
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
necessary;
-- 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
sectors.
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
oceans.
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
countries;
-- 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.
Follow-up
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
competition.
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
purpose.
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
investments.
Next Summit
50. We have accepted the invitation of the President of France to meet
in Lyon from June 27th to 29th, 1996.
(###)
ARTICLE 5
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
technologies.
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
area.
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.
Europe
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
settlement.
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.
Asia-Pacific
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.
Americas
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.
(###)
ARTICLE 6:
Fact Sheet: Key G-7 Economic and Political Data
(Japan uses gross national produce (GNP); all others use gross domestic
product (GDP)
Canada
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).
France
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%.
Agriculture--8%.
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,
Japan.
Government: Republic. Constitution: September 28, 1958.
Currency exchange: $1US=5.0 francs.
Time conversion: EST+6 (Paris).
Germany
(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).
Italy
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%.
Agriculture--10%.
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).
Japan
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%.
Agriculture--2%.
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,
chemicals.
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,
Switzerland.
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 Ògoods-producingÓ and Òservice-producingÓ 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
producing--74%.
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,
Canada.
Government: Federal republic; strong democratic tradition.
Independence: July 4, 1776. Constitution: September 17, 1787,
effective June 4, 1789.
(###)
ARTICLE 7:
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.
Halifax
June 15-17, 1995
Summary
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
discussions.
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
Summit.
-- 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
Syria.
-- 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).
Naples
July 8-9, 1994
Summary
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
infrastructure.
-- 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
disruption.
-- 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-
laundering.
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
democracy.
-- 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
century.
Tokyo
July 7-9, 1993
Summary
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
assistance.
-- 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
Arms.
-- 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
Africa.
-- Support for restoration of legitimate authorities in Haiti and for
UN and OAS efforts in that regard.
Munich
July 5-7, 1992
Summary
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
opportunities.
-- 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
efforts.
-- 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.
London
July 15-17, 1991
Summary
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.
Houston
July 9-11, 1990
Summary
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
1990.
-- 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
agreements.
-- 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
weapons.
Paris
July 14Ð16, 1989
Summary
S
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
Layer.
-- 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
aviation.
-- Condemnation of political repression in China and agreement to
suspend the shipment of arms and the extension of loans to China.
Toronto
June 19Ð21, 1988
Summary
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
countries.
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.
(###)
ARTICLE 8:
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
system;
-- Effective rules on antidumping, subsidies, and import safeguards;
and
-- 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
years.
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
concerns.
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
standards.
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.
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ARTICLE 9:
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
understanding.
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
rules.
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
terminate.
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").
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ARTICLE 10:
Fact Sheet: Developing Country Debt
Background
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
reform.
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
1995.
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
basis.
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
reduction.
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.
Conclusion
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.
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ARTICLE 11:
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