U.S. DEPARTMENT OF STATE DISPATCH VOLUME 6, NUMBER 22, MAY 29, 1995 PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS ARTICLES IN THIS ISSUE: 1. The U.S. and Ireland: Dedication to a Future Of Cooperation and Prosperity--President Clinton 2. U.S. Policy Toward Cuba--Peter Tarnoff 3. Preview of the Intergovernmental Conference on Land-based Sources of Marine Pollution--Timothy E. Wirth 4. The Summit of the Americas: Implementation Work Program--Thomas F. McLarty III 5. The Caribbean Basin Trade Security Act--Alexander F. Watson 6. American Overseas Interests Act--Secretary Christopher 7. Code of Conduct on Politico-Military Aspects of Security 8. What's in Print: Foreign Relations of the U.S. ARTICLE 1 The U.S. and Ireland: Dedication to a Future of Cooperation and Prosperity President Clinton Address to Conference on Trade and Investment in Ireland, Washington, DC, May 25, 1995 Thank you very much. Secretary Christopher, Secretary Brown, Senator Mitchell, Deputy Prime Minister Spring, Mr. Patrick Mayhew, Mr. Ambassador, ladies and gentlemen--to all of you of Irish, British, and American heritage from the business communities of these great nations, I thank you for being here. I have looked forward to this day for a long time--to having people like you here who see the opportunities for trade and investment that come from peace, and the opportunities for trade and investment to support peace. I am especially delighted that so many are here from Ireland and the United Kingdom. To all of our friends from Northern Ireland, your attendance here shows your dedication to a future of cooperation and prosperity and we are particularly glad to have you. Let me say a special word of thanks to George Mitchell for the tremendous work he has done in organizing this conference. His devotion to the cause of nurturing peace and growth in Northern Ireland and the Republic's border counties has played a central part in the progress that we celebrate here today. I am delighted that he will lead another mission to Ireland this summer, and even more pleased that he has agreed to continue his work in overseeing our economic initiatives through the end of this year. Ireland is lucky to have George Mitchell on its side, even if it has to put up with the envy of the United States Senate, the Supreme Court, and Major League Baseball. You know, George is Irish and Lebanese. Maybe when we succeed in Ireland--if the Secretary of State is not finished--he will volunteer for other duty. As all of you know, the United States has a keen interest in a stable and democratic and prosperous Europe. But that interest is particularly strong when it comes to Ireland. Our strong bonds of kinship, culture, and history shared with the people of the United Kingdom and Ireland are well-known. This is a moment of historic opportunity for you and of historic interest for the United States. For my own part, people ask me from time to time why this is a matter of such deep personal interest to me. It goes beyond my Irish roots. I wish I could just say that is all there was to it. But an important part of our mission at this moment in time as Americans is to help to reconcile the divisions which keep people apart and sometimes lead them to violence both within our own country and around the world. If you look into the next century you could thank the good Lord that we may--we may--succeed in removing the nuclear threat from the children of the 21st century. But we still see these ancient impulses that keep people apart based on religious or racial or ethnic differences. I tell my fellow Americans all the time that the great genius of our country in the next century may be our ability to exalt the greatest amount of diversity of any large country in the world. But it is still a challenge for us here. You see it all the time. We can think of no greater mission in our quest to reconcile diversity than trying to help peace and prosperity succeed in Northern Ireland, and in Ireland, in general. This is, as I am sure you know, an extraordinary gathering of which you are a part. Never before have representatives of all the political parties in Northern Ireland, officials from the United Kingdom and Ireland, and so many business leaders joined to help us to build a better tomorrow. The conference shows anew the historic progress that has been made toward a just and lasting settlement, and toward a peace that respects the rights and traditions of both communities. In the last few months, thanks to the cease-fire and the momentum of the negotiations, a powerful transformation has begun. Peace is closer than it has been in a generation. For the first time in decades, children can walk to school without worrying. Families that have endured so much violence with so much dignity can now enjoy the blessings of days without violence and nights without fear. The roads between North and South are more open than they have been in 25 years. Citizens of the Republic are visiting the North in even greater numbers. In Belfast, the army patrols have ended, the body armor and helmets are gone, and hundreds of troops are now going home. These landmark achievements would not have been possible without the leadership and courage of Prime Minister Major, Prime Minister Bruton, and before him, Prime Minister Reynolds. With the Joint Framework Document, they are paving the way for a new and hopeful era of reconciliation. All true friends of Ireland are grateful to them and to the parties that have risen to their challenge. I salute them, and I salute others who work for peace--individuals such as Foreign Minister Spring, Sir Patrick Mayhew, and that tireless advocate of peace--our friend, John Hume. We pay tribute as well to the brave people of Northern Ireland whose courage has brought them to this point. The United States is proud to have helped them and all peacemakers, and today, I renew my pledge to do everything in my power to support their efforts. I know I speak for all Americans when I say that people who take risks for peace here and anywhere else in the world will always be welcome in the White House, in Washington, and throughout our country. This momentum must be maintained. The ministerial-level talks represent a step of tremendous promise. I hope the parties can soon sit down together to discuss the future and their differences. That is the best guarantee of a permanent peace. But there must be progress as well outside the conference rooms. Violence is diminished, but it has not disappeared. I call on all those who continue to employ violence to end the punishment beatings and the intimidation. And to all who are observing the cease-fire, I appeal to you to take the next step and begin to discuss serious decommissioning of weapons. Paramilitaries on both sides must get rid of their bombs and guns for good. The specter of violence that has haunted Ireland must be banished once and for all. It is also time to begin healing the wounds of a generation. Many innocents disappeared during The Troubles. Others were banished from their homes. Today there are families that still have not had the chance to grieve in peace, to visit the graves of their loved ones, or to reunite after years of separation. It is time to allow families to be whole again. As everyone knows, peace is more than cease-fires and formal agreements. It demands real hope and progress in the hearts of people. It demands common striving for the common good. It is time for those who have been most affected by the fighting to feel this kind of hope and this sense of progress. As Yeats wrote, "Too long a sacrifice can make a stone of the heart." There must be a peace dividend in Northern Ireland and the border counties so that everyone is convinced that the future belongs to those who build--not those who destroy, so that the majority that supports peace is strengthened, and so that there is no slipping back into the violence that frustration breeds. That is why this conference is so important. It underscores that all sides have an interest in investing in the future of Northern Ireland and that all sides will benefit from the peace. Our own experience here in America shows what a difference that kind of progress and benefit can bring. More than a century ago, our great sage, Ralph Waldo Emerson, said that trade was "the principle of liberty," that it "made peace and keeps peace." That is what we wish for Ireland. Now it is time to realize that wish. The end of organized violence makes that possible. So I urge American businesses and all others to consider investing in Northern Ireland and the border counties. The opportunities are excellent. The work force is well-educated and well-motivated. The productivity levels are high. The unit labor costs are low. The labor relations are good. The infrastructure, the communications, and the access to the European market are fine. With the prospect of an enduring settlement on the horizon, business confidence is rising fast. Experts predict investment booms on both sides of the border and an increase in tourism in the North that could exceed 100%. Already, the United States is the number-one investor in both Northern Ireland and the Republic. American companies employ nearly 10% of all the workers in Northern Ireland's manufacturing sector. Ireland imports almost $3 billion-worth of American goods. The firms we have in these markets are increasing their investments, strengthening their positions in Europe, and building businesses that create jobs on both sides of the Atlantic. By doing well, these companies are also doing good. More investment in Northern Ireland promises to lift the region out of the cycle of despair that leads to violence. It will reduce the chronic unemployment that runs around 50% in some urban areas and has deadened the dreams of so many. If growth is accompanied by an end to discrimination, by fair and nonsectarian employment practices, and by encouraging investment in areas in greatest need, then both Catholics and Protestants will feel that they have a stake in their society and its peaceful future. When both communities feel the benefits of peace and see that they are distributed fairly, despair will lose its hold, and all will have the chance they deserve to fulfill their God-given potential. "Peace," Yeats said, "comes dropping slow." The past will not be overcome in a day, but the perception of change provides the kindling for hope. The opportunities for positive, powerful, profitable change are now clearly present in Northern Ireland. As long as I am President, the United States will continue to encourage that change. I am proud of all that Secretary Brown has done in achieving--on his mission to Ireland last December. I am proud of the many efforts of the Department of Commerce, USAID, USIA, and other government agencies to support reconciliation in Ireland. I am proud of the work of the State Department, and I want to say a special word of thanks to our ambassadors in the area--Ambassador Crowe and Ambassador Jean Kennedy Smith--for the outstanding work that they both have done: Thank you. Ours is the first administration ever to include appropriations for the International Fund for Ireland. The IFI has lived up to our hopes for it. The Fund supports over 3,000 economic development projects and has created some 23,000 jobs in areas that were recruiting grounds for the paramilitaries. It is promoting cooperation across the border between communities. The record challenges us to go even further, so we have increased our funding request for the IFI to almost $60 million over the next two years. We are working to build more bridges across the ocean through exchange programs for managers, students, agricultural experts, artists, and scholars--programs that establish bonds of friendship while transporting ideas and information, benefiting people on both sides of the ocean. There are some in Washington who would like to cut our funding for these and other programs that support peace--in Ireland and throughout the world. That would be a grave error. The United States has an abiding interest in creating peace and the opportunities it brings. We must have the resources to foster peace and stand by those who take the hard risks for peace. We have seen time and again that our investments in peace--whether in the Middle East, Southern Africa, Haiti, or Ireland, have always yielded great benefits for the American people--in growing markets, greater stability, and increased security. I hope all those who want to see peace in Northern Ireland will keep that in mind. Peace has a price, but it is a small one compared to the alternative, and it is a price very much worth paying. I am also glad we have been able to help the cause of peace through this conference and other economic initiatives, because Ireland has given us so much. The two communities that today are coming together in cooperation have each given America a rich legacy. In our nation, Catholic and Protestant have been intertwined, and together they have contributed immensely to the greatness of our people and the success of America. There is evidence all around us. In places like New York, Pennsylvania, and Ohio, counties, cities, and towns with names like Londonderry, Ulster, and Antrim dot the map. Often, these places mark the frontier in the 18th century when Ulster Protestants--some of them my ancestors--pushed west to build new lives and a new nation. These settlers were the forebears of nearly a dozen American presidents, including Andrew Jackson, William McKinley, and Woodrow Wilson. Irish Catholics contributed just as much to our country's rise, whether in building railroads or institutions. A visiting journalist in the last century took the measure of that effort when he said that, in America, you could see "water power, steam power, horse power, and Irish power." "And," he concluded, "the last works hardest of all." In this half of our century, the names John F. Kennedy, Justice William Brennan, and Speaker Tip O'Neill only began to tell the story of Irish Catholics' contribution to all the branches of American democracy. These true traditions, harnessed together in the New World for common goals, has been America's great fortune. Time and again, we have seen people of different backgrounds and ancestries put freedom over faction and the goals of the community over the interests of its separate parts. Of the gifts we can give to Ireland, this example of people joining together for the common good clearly is the greatest. The challenges of the coming century demand that we keep in mind the examples of those who went before us, who built bridges across their differences, and found the strength to pull together. We now face a whole new set of challenges in this new era. The global economy, the explosion of information, the advance of technology, the growing mobility of people--all these forces are bringing us into a more integrated world, more full of possibilities than ever before. The next century can be the most exciting time in all human history because of the opportunities for human possibilities. But we have to recognize that all these forces of integration have a darker side as well. If we do not rise to the challenges they present, we become vulnerable to the organized forces of destruction and evil; for the modern world requires us to be open in order to take advantage of all the forces of integration. As we become more open, we become more vulnerable to those who would hate and those who would destroy. As the people of Northern Ireland are showing, we can seize the moment. We can turn away from terror. We can turn away from destruction. We can turn toward peace and unity and possibility. But to keep this process going--to lock in the accomplishments--we must make hope real. To grasp the opportunity, we must build stronger businesses and communities and families. We must have more and better jobs. We must strengthen the prospects of a better tomorrow. That is the way to preempt fanaticism. That is the way to close the book on old and bloody conflicts. That is the way to give our children the future they all deserve. The chance is there. It is here. It is now. We have it in our power to make all the difference. Let us do it. Thank you, and bless you all. (###) ARTICLE 2 U.S. Policy Toward Cuba Peter Tarnoff, Under Secretary for Political Affairs Statement before the Western Hemisphere Subcommittee of the Senate Foreign Relations Committee, Washington, DC, May 22, 1995 Mr. Chairman, thank you for the opportunity to testify before this subcommittee on U.S. policy toward Cuba. I know this subject is of great interest to the subcommittee's members and, indeed, to the Congress as a whole. There has been considerable discussion and debate in the press, in these halls, and in the community of those who care deeply about Cuba concerning recent steps taken by the Administration to further regularize our migration relations with Cuba. Another important debate is taking place with regard to proposed legislation on Cuba now before the Congress. I am here today not only to explain the Administration's position on these issues, but to place them in the context of the situation which prevails in Cuba today and our overall policy toward that troubled country. Despite the regime's strenuous efforts to resist them, the winds of change are beginning to blow across Cuba. Economic measures which would have been unthinkable only a few short years ago are being tolerated, with other, potentially more significant changes reportedly under consideration. The dramatic trends toward democracy, respect for human rights, and open markets that have swept the rest of the Western Hemisphere have not yet had an impact on Cuba, but they inevitably will. We strongly believe that U.S. policy must continue to play an important role in hastening the change that must soon come and in shaping the nature of the transition so that it unfolds in a peaceful and democratic manner. For over 30 years, during both Republican and Democratic Administrations, the overarching goal of U.S. policy toward Cuba has been to promote a peaceful transition to a democratic society which recognizes fundamental freedoms and respects human rights. We are resolute in our opposition to the undemocratic regime of Fidel Castro, but we have no hostile intent toward the Cuban people. Quite the contrary, the Cuban Democracy Act--CDA, which passed with strong bipartisan support in 1992 and which this Administration has faithfully implemented, is the cornerstone of our policy which puts pressure on the Cuban Government through diplomatic isolation and economic embargo while at the same time directing humanitarian assistance, information, and support to the Cuban people, including those who engage in peaceful struggle for human rights and democracy. Also consistent with the CDA, we remain prepared to respond to significant political and economic reform in Cuba with carefully calibrated measures. The Situation in Cuba Today Mr. Chairman, I would like to spend a few minutes discussing current economic and political conditions in Cuba. As many experts have noted, Cuba's economy entered into a steep decline following the collapse of the Soviet bloc beginning in 1989, even though the unilateral U.S. embargo had been in effect for a much longer time. Prior to 1989, the Soviet Union pumped $4 to $6 billion of assistance and subsidies into the Cuban economy each year, almost one-third of Cuba's gross domestic product at the time. The loss of this aid and preferential trade after the dissolution of the Soviet Union was devastating and exposed the Cuban economy's essential structural weaknesses. Cuba has not published economic statistics since 1989, but according to unofficial Cuban estimates the island's economic output has fallen by over 50%, to just over $10 billion. Cuba's economic free fall has had a disastrous impact on the Cuban people's standard of living. Ordinary Cubans struggle daily against scarcity. Their state ration coupons provide barely enough food for half the month, and they must scramble to find ways to get through the rest. Many Cubans must travel long distances to work on bicycles since gasoline is very expensive and can rarely be bought with pesos. Workers whose creativity and enterprise are stifled by the state-controlled system lack motivation; those who do not accept the party line risk unemployment or worse. The Cuban Government's response to this increasingly dire situation has been slow and stubborn. For four years, the regime took no significant steps to confront its own economic imbalances or alleviate the growing suffering of the population. It sought to blame the U.S. embargo for its ills--a charge rejected by nearly all independent analysts--and denied that its glaring problems were the result of its obsolete economic system. Finally, in 1993, the government began adopting tentative measures which have included the legalization of the dollar and of tightly circumscribed self-employment, and the establishment of agricultural and industrial craft markets. The government also converted large, state-run farms into state cooperatives and leased some land to individual families. In a particularly odd marriage of convenience, the Cuban leadership has aggressively courted foreign investment--something it previously considered anathema--to provide the capital it needs "to save socialism." Each of these small steps has moved Cuba away from the Marxist economic model that has retarded its development, suffocated private enterprise, and denied ordinary Cubans the right to make their own economic decisions. Each of the steps, however, also has been carefully limited to preserve the regime's control over economic and political life on the island. For example, cooperatives and farmers must still sell the vast majority of their produce to the government at prices it sets. Self- employment is only permitted in a few occupations, and those involved may hire only family members. University graduates may not participate at all in self-employment initiatives. Cuba's current investment climate still ranks among the world's riskiest, most arbitrary, and least attractive. The Cuban Government has claimed that the measures it has adopted have begun to turn its economy around. However, this year's sugar harvest-- Cuba's main export crop and its largest source of hard currency--appears to be even smaller than last year's record low. Factories all over the island are idle and food production continues to decline. While it appears that the Cuban Government's recent actions have slowed the economy's deterioration, we believe that prospects for complete economic recovery in Cuba remain dismal until the regime takes bolder measures that would liberalize the economy and unleash the Cuban people's entrepreneurial energy to solve their own problems. Because of the economic downturn, Cuban leaders have outlined plans to undertake a major downsizing of government and state enterprises this year that will create massive unemployment, possibly in the hundreds of thousands. Cuba's state-controlled economy currently offers almost no alternatives to government employment of one kind or another. When the state eliminates jobs, there is no private sector to help create new ones. As the Cuban regime grows less and less able to provide for the Cuban people, it must allow them to provide for themselves. While more fundamental economic reforms are necessary to improve Cuba's prospects for the future, the island's essential problem remains the lack of political freedoms and respect for human rights. Political/Human Rights Situation in Cuba While it has shown some limited flexibility on the economic side, the regime of Cuban President Fidel Castro remains politically unyielding. Relying on a network of neighborhood committees, government bureaus, Communist Party directorates, state security agencies, and the armed forces, the government controls the population and suppresses even peaceful opposition. The regime's rapid containment of a significant anti-government disturbance in Havana on August 5, 1994, demonstrated this continuing control. The riot and the mass outflow of "rafters" which overwhelmed Cuban authorities may have forced the regime to realize that more needed to be done to meet the material needs of the Cuban people. No lessons, however, appear to have been drawn regarding the need for a political opening. Indeed, Castro has made clear his opposition to any political reforms which might parallel the economic changes he has permitted. The monolithic government and Communist Party apparatus remain unyielding. Opposition parties and independent civic organizations remain prohibited. Freedom of association does not exist. The regime does not tolerate freedom of speech or opinion. Those who dare speak out for democratic principles are harassed if they become too vocal. In order to placate international public opinion, the government has recently become somewhat more subtle in its means of suppressing opposition. Reports of beatings, stonings, break-ins, or "acts of repudiation" by regime- directed mobs directed at dissidents have become less frequent in recent years. Rather, proponents of peaceful change are detained for hours or several days and released with a warning to alter their behavior or suffer the consequences. Opposition figures often suffer economic discrimination such as expulsion from their professions, layoffs, blacklisting, and loss of benefits. These tactics, combined with close surveillance and infiltration of the various small opposition groups, have been largely successful in marginalizing and fragmenting Cuba's nascent democratic movement. Contraction of the regime's economic control, however, has created tiny spaces in which Cuba's civil society, devastated by 35 years of dictatorship, is re-emerging. Attendance at religious services of all denominations has risen dramatically. The influence of the Roman Catholic Church, aided by the naming of the first Cuban cardinal in over 30 years--Monsignor Jaime Ortega--has increased. The charitable arm of the Catholic Church--CARITAS--has opened offices in seven regional centers for the distribution of humanitarian aid. Small independent associations of professionals, including academic researchers, economists, lawyers, journalists, and engineers have formed. This movement is nascent and fragile, but it provides an alternative to state-controlled organizations for a growing number of Cubans. In November 1994, the Cuban Government agreed to invite the UN High Commissioner for Human Rights Ambassador Jose Ayala Lasso to visit the island. In the weeks leading up to the visit, however, the regime detained some 55 human rights activists and harassed a number of others, threatening them with severe reprisals if they continued to denounce human rights abuses or contacted foreign diplomatic missions during the High Commissioner's stay. Ambassador Ayala did see a number of human rights activists during his four-day visit in meetings that took place on the fringes of his official program, which limited his contacts to government officials and officially approved groups and individuals. Still, no improvement in the human rights situation in Cuba has followed the visit. Ambassador Ayala presented Fidel Castro with a list of over 1,000 political prisoners and asked Cuba to free them; since the visit the regime has released fewer than 20 political prisoners, most on condition of their immediate exile from the country. As recently as last month, noted human rights leader Francisco Chaviano was sentenced by a closed military tribunal to 15 years' imprisonment on trumped-up charges of "revealing state secrets" and document fraud after being held for almost a year without formal charges. Ambassador Ayala also pressed the Cuban regime to sign the UN charter against torture and to permit the UN Special Rapporteur for Cuba, Swedish diplomat Carl-Johan Groth, to visit Cuba in order to fulfill his mandate. Ambassador Ayala's visit notwithstanding, the Cuban Government has taken no concrete steps to cooperate with the UN on human rights. While the regime claimed that its invitation to Ambassador Ayala demonstrated that it had nothing to hide where human rights were concerned, it continues to defy the repeatedly expressed will of the international community-- specifically the UN General Assembly and the UN Human Rights Commission- -by refusing to let Special Rapporteur Groth enter Cuba. Cuba has not yet signed the convention against torture, and hundreds of political prisoners remain in detention. A four-person international human rights delegation headed by the French organization "France-Liberte" visited Cuba April 27-May 5, after being invited by Fidel Castro during his visit to Paris early last month. The delegation interviewed 24 political prisoners in the reception areas of nine different prisons, but was not allowed to inspect the prisons themselves. The delegation called for the immediate, unconditional release of four of these prisoners who are seriously ill and expressed its concern about excessive sentences meted out for non-violent, political "crimes." Within days of their visit, however, we received reports that the Cuban Government had detained 15 members of a human rights organization whose leader had met with the delegation, as well as with other Western visitors. The Department of State intends to increase its support for Cuba's embattled activists and will continue to pursue aggressively in the UN and other international fora, as well as in diplomatic contacts with other countries, a policy of focusing attention on the need for democracy and improvement in the human rights situation in Cuba. On December 28, the UN General Assembly passed a U.S.-drafted resolution condemning systematic human rights abuses in Cuba. A similar U.S.- drafted resolution which extended the Special Rapporteur's mandate was adopted on March 7 by the UN Human Rights Commission in Geneva. The United States took the lead in deploring in the strongest terms the ramming and sinking by Cuban Government vessels of the tugboat "13th of March" on July 13, 1994, which resulted in the deaths of at least 40 people. The Department detailed at length in its Country Report on Human Rights Practices for 1994, submitted to the Congress on January 31, the deplorable state of basic freedoms in Cuba. Our findings of repression, of arbitrary arrest, and harassment of democratic opposition figures are echoed in the Report on the Situation of Human Rights in Cuba, submitted to the UN Human Rights Commission by Special Rapporteur Groth. Numerous other impartial and expert studies, including the 1994 report of the Inter-American Commission on Human Rights and a Human Rights Watch report, are critical of the Cuban regime. In a region where democratic reform and economic liberalization are fast becoming the norm, Castro's anachronistic policies and iron-fisted repression have provoked strong criticism from Latin American governments. Today, when Fidel Castro and Foreign Minister Robaina travel abroad, they hear the same message throughout the hemisphere and beyond: democratization and respect for human rights are urgently needed. The Rio Group, which includes some of the most important regional nations, publicly called, in September 1994, for "a peaceful transition to a democratic and pluralistic system which respects human rights and freedom of opinion." Similarly, at the June 1994 Ibero- American Summit at Cartagena, Colombia, at which 20 democracies and Cuba were present, one head of state after another lamented the lack of democracy in Cuba. In December 1994, the regional consensus was that only Cuba, the lone non-democratic state in the entire region, should be excluded from the first Summit of the Americas. While we have been pleased at the increased willingness by many countries to speak out for democratic reform and respect for human rights in Cuba, increased diplomatic and economic engagement with the regime has, so far, shown no evidence of hastening democratic change there. As I indicated before, we believe that there should be a broadening of contact, not with the Government of Cuba, but with those valiant individuals and organizations struggling for democratic change. The Cuban Democracy Act Mr. Chairman, earlier I described our concerted effort to mobilize international pressure to encourage the Cuban Government to reform, to create democratic openings, to respect human rights, and to liberalize its economy. In the UN, the OAS, regional gatherings, and international fora our message is clear and understood. But this is only a small part of our effort to force Castro to recognize that he must change and end his totalitarian rule and communist aspirations which history has demonstrated are unjust, unworkable, and unsustainable. The thrust of this effort is embodied in the Cuban Democracy Act, endorsed by both Presidents Bush and Clinton and passed with bipartisan support by the Congress in 1992. As you know, the CDA provides for a dual approach to reform in Cuba by both maintaining firm pressure on the Cuban Government by denying it legitimacy through international and direct pressures such as those I mentioned just a moment ago, and, more importantly, by imposing tough economic sanctions. To augment the comprehensive U.S. economic embargo on Cuba, the CDA added further restrictions on trade by U.S. subsidiaries abroad with Cuba. These provisions have reduced such trade from over $700 million in 1992 to nearly zero today. In August of last year, during the migration crisis, the President imposed additional restrictions on remittances and transactions related to travel to Cuba. We strongly believe that the embargo is the best leverage the U.S. has to promote change in Cuba and that particularly in the years since Soviet support to Cuba ended, it is working. It denies the Castro regime the benefits that U.S. trade, investment, and tourism would provide. While the inherent inefficiencies of Cuba's socialist economy make it ultimately unsustainable, a large influx of hard currency from the U.S. could allow the regime to resist change and stay afloat for years longer. Because of the embargo, Castro faces tough choices now. The modest economic reforms that he has authorized would almost certainly not have taken place without the added pressure that our embargo applies. We are dedicated to maintaining the embargo in place until we see the kind of meaningful, far-reaching reform contemplated in the CDA. Should such significant, permanent reforms take place, we are prepared to respond with calibrated steps contemplated in the CDA. Mr. Chairman, while it is essential that we keep up this intense pressure on the regime, it is also important that we do everything we can to empower those living under its yoke to be able to continue their struggle for democratic reform and human rights. That is why we have vigorously sought to reach out to the Cuban people through private humanitarian assistance, increased flow of information, and improved telecommunications. Hundreds of thousands of Americans have already taken advantage of easier telephone access to Cuba as a result of last year's telecommunications agreements. Over the past two years, we have licensed more than $65 million in private humanitarian aid to Cuba, mostly medicines and mostly from U.S. religious groups. Other key elements of Track II to date have been book donations, licensed travel to Cuba for research, human rights and other activity, and the broadcasts of Radio and TV Marti. These actions are intended to give hope to legitimate opponents of the regime to allow them to sustain the risks and pressures of maintaining their struggle for democracy. We believe that we can and must do more to help in these areas. Let me stress something very important--these outreach measures are designed to open Cuba to the world in selective ways that reinforce the message of democratic reform without allowing Castro and his government to exploit international trade or our hard dollars to perpetuate his dictatorship. An entire generation of Cubans has grown up under Castro's domination--we must be able to reveal to them what they have been denied. The things we take for granted--the ability to speak freely, to seek information without restriction, to exchange ideas without fear, to vote for change, to protest against the government--all of these are denied to Cubans. The information highway has no exit to Havana because the Cuban Government is afraid of what might happen if the average Cuban had access to the freedom bulletin board on the Internet. Our efforts bring the average Cuban a chance to learn about what we value so highly- -democracy, freedom, human rights, human values--and help those who seek to advance democratic reform in Cuba. With the liberation of Eastern Europe, we have seen that non- governmental institutions such as business groups, churches, professional associations, news organizations, human rights groups, and political organizations can form the bedrock of democracy. We must support these struggling entities in Cuba so that whenever change comes, there is a strong and well-prepared foundation on which to build a new democracy. We need to do more to increase our support for the brave activists and independent organizations that already exist on the island and increase their contact with potential partners here in the U.S. The CDA calls on the Administration to engage in these efforts and I know that this committee has expressed its support for them. The Proposed Cuban Liberty and Democratic Solidarity Act I know all the members of this subcommittee share with us the objectives stated in the Cuban Democracy Act, and many of you are co-sponsors of Chairman Helms' proposed legislation--the Cuban Liberty and Democratic Solidarity Act--which elaborates on those goals. As you know, on April 28, we formally conveyed the Administration's views on the House version of this legislation to Chairman Gilman in a letter from Assistant Secretary of State for Legislative Affairs Wendy Sherman. Since I am certain that you and other committee members have seen that letter, I will not go into great detail here. There are aspects of the bill we support. These include making the embargo more effective, accelerating planning for assistance to Cuba under a transitional or democratic government, and protecting American property interests in Cuba. As the President has stated, we believe the Cuban Democracy Act provides the necessary framework to pursue our central goal of promoting a peaceful transition to democracy in Cuba, and we are ready to work with the Congress to discuss ways in which we can strengthen this policy. As currently drafted, however, some of the bill's provisions would not effectively advance our ability to further a peaceful, rapid transition to democracy in Cuba. One concern is to ensure that legislation not infringe upon the President's authority under the Constitution to conduct foreign policy, nor on his flexibility to respond appropriately to evolving situations. We are also concerned that a number of the bill's provisions could conflict with other important U.S. interests, including our compliance with major international trade and investment agreements, including GATT, NAFTA, and Treaties of Friendship, Commerce and Navigation, and our arms control cooperation with and support for democracy in Russia. Language in one section might also conflict with U.S. obligations under the charters of international financial institutions such as the IMF and World Bank. Several of the bill's provisions, particularly those concerning confiscated U.S. properties overseas, could be difficult to defend under international law. The bill's sanctions could affect persons not directly related to any decision to invest in or do business involving confiscated U.S. properties: shareholders in mutual funds, spouses and dependents of principals, and others. As you are aware, our allies and most important trading partners in Europe and North America have voiced their strong opposition to several provisions of the bill. If enacted, these provisions could prompt retaliatory measures that would severely disrupt essential U.S. trade relationships. Some could also set precedents that could undermine U.S. commercial interests around the globe. For example, the proposed ban on the entry into the U.S. of sugar products from countries that import Cuban sugar would likely be viewed by others as a secondary boycott, similar to the Arab League boycott on Israel that the U.S. has vigorously opposed. The provision enabling owners of claims on confiscated U.S. property to sue "traffickers" in those properties in U.S. courts, meanwhile, could open the door to a wave of lawsuits in the U.S. and undermine principles of international law that have served U.S. business and the U.S. Government well. The provision, as drafted, is global and could invite a variety of foreign nationals to seek U.S. citizenship in order to pursue their property issues in our court system. The United States Government is firmly committed to protecting the property rights of all Americans, including those persons who became U.S. citizens after their property was taken. However, as currently drafted, the proposed legislation might arouse concerns among Cubans on the island that their property interests will be ignored under a future democratic government. Such fears, fed by the regime, could retard the process of democratic change. We believe there may be more effective ways than those the bill provides to protect American property interests in Cuba and create incentives for a future Cuban Government to provide compensation for, or restitution of, confiscated U.S. properties. We know that members of the committee share our interest in promoting peaceful, democratic change in Cuba in ways that are effective and do not invite complex international litigation and bitter disputes with major trading partners which would only delight and benefit the Government of Cuba. We continue to believe our concerns can be resolved through consultation and look forward to meeting with sponsors to discuss the proposed legislation. Migration Issues Mr. Chairman, I would like to turn now to the recent migration agreements that we have reached with the Cubans and explain to you how they serve the U.S. national interest. The economic changes that have wrenched Cuba in recent years have had a powerful social impact. Mounting unemployment and deteriorating quality of life have led to a loss of faith in the government's ability to live up to its promises to provide a better life for Cuban citizens. This growing frustration with the status quo reached a crisis point in the summer of 1994 when tens of thousands of Cubans put to sea in dangerously unseaworthy vessels in desperate attempts to reach Florida. An untold number may have died during the massive, uncontrolled migration. Hundreds of rafters landed on the beaches of neighboring countries from the Bahamas to Mexico. The courageous men and women of our Coast Guard rescued tens of thousands of imperiled rafters, numbers which threatened to overwhelm our ability to care for and absorb them. To save lives and to ensure the integrity of U.S. national borders, the President ordered, on August 19, that Cuban migrants rescued at sea would no longer be taken to the United States, but would be given safe haven at our naval base at Guantanamo Bay. As the number grew beyond Guantanamo's capacity, we secured the agreement of Panama to allow us to open a safe haven there as well. We are grateful to Panama for responding positively to our request for help. The President also instructed us to seek an agreement with the Cuban Government to bring an end to the uncontrolled migrant outflow. On September 9, 1994, we concluded such an agreement. The Cuban Government pledged to take effective action to prevent unsafe and irregular departures. It agreed to receive any rafter who chose to return to Cuba; about 1,600 have since returned voluntarily either through official channels or by walking or swimming directly from Guantanamo to Cuba. For our part, we committed to ensuring that legal migration from Cuba increased to at least 20,000 per year. The agreement has worked; the outflow of migrants seeking to reach the United States by raft and other unsafe means has been significantly reduced. In April 1995, for example, Cuban migrants intercepted by the U.S. Coast Guard at sea totaled 189, as opposed to 726 in the same month last year. It must be stressed that the legal migration program established by the September 1994 accord represents a significant increase in legal migration levels from Cuba. In the years prior to the accord, the U.S. Interests Section never processed more than about 6,000 people-- including immigrants and refugees--for migration to the United States. On October 12, 1994, we announced plans to expand immigrant visa and refugee processing and to use parole authority to meet the 20,000 minimum. The U.S. Interests Section in Havana is on schedule with regard to issuing the required travel documentation. As of May 12, the Interests Section has issued travel documents to 13,795 Cubans in categories which count toward the 20,000 commitment. Another 5,414 travel documents had been issued in categories which do not count toward our numerical commitment, for example, spouses and minor children of U.S. citizens and those on the immigrant visa waiting list on the day the agreement was signed. A lottery designed to make migration to the U.S. possible for all Cubans, including those without relatives in the U.S., was announced in November; over 189,000 requests were received and an expected 5,000 will be documented for entry into the United States by September of this year. As part of our enhanced legal migration program for Cubans, the pre- existing in-country refugee program--one of only three the United States conducts in the world--was expanded to process some 7,000 refugees during the period September 1994-September 1995. The previous level of issuance of refugee documents in Havana was about 3,000 per year. The refugee program provides a mechanism for those individual Cubans under pressure by the authorities for attempting to exercise fundamental rights and freedoms, including the right to criticize the government and to come to the United States. The September accord also called for periodic meetings to review progress toward its implementation; three such sessions have been held thus far. Our ongoing review indicates that the Cuban Government has lived up to its commitment to use persuasive methods to dissuade Cuban citizens from unsafe departures. We have no evidence that violence or coercion have been used to deter such departures or that those attempting to leave the country using irregular means have been persecuted or discriminated against. It is important to note that despite the lack of human rights and political freedom in Cuba, the Castro regime has not taken action against the tens of thousands of Cubans who have applied for legal immigration to the U.S. at the U.S. Interests Section in Havana or against those who have returned voluntarily to Cuba from Guantanamo since September 9, 1994. Notwithstanding the successful implementation of the September agreement, there remained a potential threat to our borders and thus to our national security posed by a new outflow of Cuban migrants which might have been stimulated by further economic dislocation in Cuba and by the uncertain future for those being held in Guantanamo. To address these critical issues and to prevent additional loss of life at sea during the coming months and to find a responsible humanitarian solution to the problem of the Cuban migrants at our safe haven at Guantanamo, the President directed that we build on the September 1994 agreement to further regularize U.S.-Cuban migration relations. As you know, additional discussions were held with the Cuban Government last month which resulted in a new migration agreement. These discussions were unpublicized for one reason only: To avoid the very real possibility that rumors about the talks might trigger a massive exodus of new rafters seeking to anticipate any new U.S.-Cuban migration agreement. Such a disorganized panic would have presented serious risks of loss of life for Cubans on the high seas, as well as risks for U.S. military personnel who are charged with maintaining order at Guantanamo. Let me stress that these talks involved only migration issues--there were no side agreements or secret understandings. There are two principal features of the May 2, 1995, migration agreement. Drawing Down the Guantanamo Safe Haven. The first element of the new migration agreement concerns the Cuban migrants currently in our safe haven at Guantanamo. We will continue to bring into the United States those persons who are eligible for parole under the guidelines announced last October and December. These cover mainly children, the elderly, and the medically ill, with their families. Over 11,000 such persons have already arrived and an additional 5,000 remaining at Guantanamo will likely be eligible for parole on these same grounds. Following completion of processing under these categories, we will continue to parole into the United States on a case-by-case basis all other Cubans in the safe haven, provided they are not ineligible for admission because of criminal record; medical, physical, or mental condition; or commission of acts of violence while in U.S. safe havens--these persons will be returned to Cuba. In admitting these additional migrants we will bear in mind the impact of this "special Guantanamo entrants" program on state and local economies. The President has directed that the relevant agencies work urgently to determine how the Federal Government can be of assistance to Florida in coping with this problem. In addition, we are mindful of the need for adequate sponsorships. As has been the case for all Cubans and Haitians previously paroled into the United States from Guantanamo, sponsorship and resettlement assistance will be arranged prior to entry. We expect this process to take about eight months, resulting in the closing of the Guantanamo safe haven by early spring 1996. These special Guantanamo entrants, who are expected to number about 15,000, will not represent a net increase in overall Cuban migration. Rather, they will be credited against the 20,000 annual Cuban migration figure which the United States agreed to in September 1994, at a rate of 5,000 per year for three years, beginning September 1995, regardless of when the parolees arrive in the United States. The Government of Cuba has agreed to accept all Cuban nationals in Guantanamo who wish to return home, as well as persons at the safe haven who were previously excluded or deported from the United States or whom the United States deems ineligible for admission. This course of action was necessary because the situation at the Guantanamo safe haven was not sustainable over the long term. We became convinced that the potential for unrest--and quite possibly violent unrest--in the Guantanamo camps was real, especially following the departure by mid-summer of the last of those who qualified under the existing humanitarian parole categories. In addition, the cost of administering the safe haven is approximately $1 million per day, and at least $90 million would have been needed for civilian contracting if the facilities were to be used over the long term. Finally, these particular migrants, owing to the length of time they had remained outside Cuba proper, had been dislocated, lost their jobs, and in some cases their housing, and this represents a humanitarian way to address their situation. Future Unauthorized Migration. The second element of the May 2 agreement provides that Cuban migrants rescued at sea while attempting to reach the United States will be taken back to Cuba, where U.S. consular officials will meet them at the dock and advise them how to apply to come to the United States through existing legal mechanisms. All such returnees will be permitted to apply for legal migration, including the expanded refugee program. The Government of Cuba has committed to the United States that no one will suffer reprisals, lose benefits, or be prejudiced in any manner, either because he or she sought to depart irregularly, or because he or she applied for legal migration to the United States. As noted above, the Cuban Government has lived up to a similar commitment made in the context of the September 1994 agreement. Let me describe how this has worked so far. After being rescued by the U.S. Coast Guard, Cuban rafters heading for the United States will be read a statement explaining that they will be taken back to Cuba where they can apply for legal migration. Trained, Spanish-speaking Immigration and Naturalization Service officers will be available on Coast Guard cutters to evaluate any claims the migrants may make regarding fear of return to Cuba. These are the procedures which were followed in the handling of the initial groups of rafters rescued since May 2. In all these cases the INS officer's determination was that the migrants could safely be returned to Cuba. A similar process will be available for post-May 2 arrivals at Guantanamo. In the cases we have had thus far, a U.S. Coast Guard cutter returned the rafters directly to Puerto Cabanas, Cuba, where officers of the U.S. Interests Section boarded the cutter. They spoke with all the migrants and gave them information and application forms for legal migration to the United States, as well as a pass to the Interests Section in Havana. The migrants then left the cutter and boarded Cuban buses which took them to a Havana center for reentry processing. U.S. Interests Section officers waited at the center to ensure all the migrants got through the reentry without incident--and thus far there have been no incidents. The migrants were then provided transportation by the Cuban Government back to their homes. Now as I said earlier, the Cuban Government lived up to its September 1994 commitment not to harass those who voluntarily returned to Cuba from a U.S. safe haven, and we demanded firm commitments that returned rafters would not be subject to arrest or harassment because of their illegal departure. We received those commitments. We insisted that the U.S. would have to be able to verify for ourselves that rafters were not being threatened or penalized, and Cuba agreed we could do so. After the first group of rafters returned to Cuba on May 9, the Cubans facilitated the immediate travel of two U.S. Interests Section officers to Camaguey to meet with each of the first 13 returnees. In private interviews the officers verified that migrants had returned directly home from the processing center, that they were able to return to their lives without repercussion for their illegal departure. Allegations of mistreatment of the first group of 13 returnees were not substantiated and criticism of the role played by U.S. Interests Section officer Ted O'Connor in this operation were irresponsible and without foundation. Mr. O'Connor boarded the U.S. Coast Guard cutter on May 9 to brief the migrants on their right to apply for legal migration, to inform them that U.S. officers would monitor their status closely, and to urge them to come to the U.S. Interests Section if they had any problems. Mr. O'Connor is well-known to the thousands of Cubans who have passed through the doors of the U.S. Interests Section in the past year as a dedicated public servant. Verbal attacks against Mr. O'Connor labeling him an agent of Cuban state security were malicious and unjust and led to threats against him. In monitoring the second group of 11 migrants who were returned to Cuba on May 12, U.S. Interests officials became aware of two possible incidents in which it appeared possible that returnees were being disadvantaged by their effort to leave Cuba illegally. In both cases we have protested to Cuban authorities who have recognized their commitment to comply with the accord and have promised to take corrective action. The U.S. Government will continue to monitor the treatment of these and all other returned Cuban migrants through calls and spot visits by U.S. Interests Section personnel, reports from non-governmental organizations working on human rights, and through direct reporting from the returned migrants and their families. The U.S. Interests Section will collect and maintain records on returned migrants to facilitate subsequent monitoring, and the Department will ensure that the office in Havana has the requisite personnel and resources to carry out these functions. Cubans who reach the United States through irregular means will be placed in exclusion proceedings and treated as are undocumented migrants from other countries, including being given the opportunity to apply for asylum. It must also be noted that the arrival of warm weather has signaled the start of the period in which rafting historically reaches a peak. While prior to May 2 the number of interdicted rafters was well below the same period last year, it has been evident that some Cubans intended to persist in this risky venture. The announcement that Cuban migrants henceforth will not be allowed to enter the United States by illegal means should have a deterrent effect on future irregular departures. We in the Administration feel deeply about the plight of the people in Cuba. We, too, feel frustration at the lack of progress toward political freedom on the island and the economic deprivation borne by its 11 million inhabitants. U.S. policy is designed to bring about change in this sad state of affairs. At the same time, we came to the reluctant conclusion that it was not possible for the U.S. to continue to admit all Cubans who sought to come here, and that leaving migrants indefinitely in Guantanamo was neither humane nor sustainable. It is important to understand that our migration accords with the Cubans and the decision to allow Cubans to enter the U.S. from Guantanamo were made in order to help the U.S. better control its borders, to deal with the humanitarian problem posed by prolonged migrant residence on Guantanamo, and to promote legal, orderly migration from Cuba that ensures adequate sponsorship of new arrivals and ends the life- threatening rafter phenomenon. These migration agreements stand alone. They do not signal any change in our policy toward Cuba, which is--let me state one more time--that we seek a peaceful, timely transition to a democratic government in Cuba, one which respects basic freedoms and human rights, one which promotes economic liberalization and individual enterprise, one which provides opportunity and liberty to all its citizens. It would be a mistake to encourage hope on the part of the Cuban Government that there has been or will be a change in U.S. policy toward Cuba as a result of these migration agreements. Conclusion Recent discussion on Cuba in the press and elsewhere has focused on migration questions and on the legislative proposals now before the Congress. These are significant issues and merit considered debate. They should not, however, distract us from the real problem--the dire situation in Cuba itself--nor from our fundamental goal: a peaceful transition to democracy, respect for the human rights of the Cuban people, and an open economy with opportunity for all. We are keenly aware that the people of Cuba continue to suffer under a repressive regime whose misguided economic policies have deprived many of them of hope for a better life. I have described at length above the many measures we have in place to apply pressure on the regime and to initiate a revival of civil society which would empower the Cuban people to begin to be able to act in their own self-interest. Our policies are at least partially responsible for the halting steps being taken in the right direction on the economic front. The solution to the Cubans' problems lies not beyond Cuba's borders, but rather within them. To resolve its current predicament, the Castro regime must look inward, toward the Cuban people and dialogue with them, not to seek political dialogue with the United States or other foreign governments. Some in this country and abroad are calling for negotiations between the U.S. and Cuba over political changes on the island and what the U.S. will do to encourage such movement. This we will not do. The future of Cuba must be decided by the people of that country, and this will happen only when democracy is practiced there. Change is coming in Cuba. How it happens will affect not only the people of Cuba but the people of the United States. We will do everything we can to help steer this change into peaceful, democratic channels, to ease what will undoubtedly be a difficult transition for the Cuban people. When Cuba becomes democratic, there will be much less desire to leave the island. We agree with those in Congress who believe that the Cuban people should know that the U.S. Government and the American people are prepared to help them get back on their feet once they are on the road to democracy. We will continue to draw international attention to the woeful record of the Cuban Government and to isolate that regime. But now is also the time to encourage new leaders, free-thinking intellectuals, the democratic opposition, and those first, struggling entrepreneurs and let them know there is a place in the world community for a free Cuba. Now is the time to encourage church, human rights, academic, and other independent organizations in Cuba to push the boundaries of state control and assert peacefully their right to basic freedoms. Now is the time for us to support journalists, writers, and thinkers who seek to free themselves of the shackles of state-controlled thought and promulgate new ideas, and new approaches to life. The Summit of the Americas, held in Miami in December, marked a major milestone; 34 of 35 nations in the hemisphere reinforced their commitment to the shared values of democracy, human rights, and prosperity for all their citizens. Only Cuba was excluded, because its government continues to shun those principles. We will help speed the day when the Cuban people can benefit from the great wave of democracy, respect for human rights, and open markets which has swept the hemisphere in recent years. Although the people of Cuba must determine their own destiny, we are ready to help them go the way of their neighbors. We look forward to the day when we will be able to work with a freely elected Cuban Government and welcome Cuba into the community of democratic nations. (###) ARTICLE 3 Preview of the Intergovernmental Conference on Land-based Sources Of Marine Pollution Timothy E. Wirth, Under Secretary of State For Global Affairs Address to the Oceans Conference of the Global Legislators Organization For a Balanced Environment, Washington, DC, May 25, 1995 It is a pleasure to be with you today to talk about this fall's Intergovernmental Conference on Land-based Sources of Marine Pollution. This conference will continue a long-standing tradition of identifying ocean issues by some of the more obtuse and lengthy--not to mention less than thrilling--titles in international affairs. Later this year, we can also look forward to the UN Conference on Highly Migratory and Straddling Fish Stocks--and Senator Kerry is all too familiar with the U.S.-Canada dispute on whether or not Icelandic sea scallops are sedentary or mobile creatures. Behind these convoluted conference headings, however, is a piece of some of the most exciting issues emerging in foreign policy--issues that increasingly define the work of parliaments and governments and are ever more a part of the overriding mission of this and all nations--cross- cutting, global issues which we are confronting in the context of profound change for our country and the world. For my generation, the East-West confrontation was certainly the formative experience. It defined who we were as a country, what we thought was valuable, and what we thought was important. For my children, however, the Cold War is ever more a distant reflection in the rearview mirror. In its place, we face a range of unfamiliar challenges--diverse and complicated all--emerging and infectious diseases, rapid population growth, global climate change, and ozone depletion. Taken together, these global challenges are demonstrating that the community of nations must work together, that our interests and objectives are overlapping, that the new era unfolding is characterized by interdependence, not isolation. Threats to the Marine Environment Few issues highlight the notion of interdependence as does protection of the world's marine environment. The combined forces of population growth and economic development have placed corresponding pressures on the world's oceans. The productive and regenerative capacity of the oceans are increasingly threatened by the introduction of pollutants, over- utilization of marine resources, habitat destruction, and dramatic coastal development. In turn, these trends affect a range of interests for all nations--not least the United States. The U.S. interest in the marine environment and high seas is as complex as it is profound. U.S. Oceans Interests First and foremost, we have a range of well-explored national security interests related to navigation and passage in the oceans. With one of the longest coastlines in the world, we have basic resource and environmental interests. In many ways, the health and well-being of our coastal population--more than 60% of all Americans--are inextricably linked with the quality of the coastal marine environment. We have a highly developed and extensive fishing industry, whose jobs provide livelihoods and whose catch provides food for our people. Beyond fishing, we have critical commercial interests--ranging from shipping and transportation to recreation and tourism. We also have cultural interests related to coastal communities and Native Americans. Most broadly, we have transnational environmental interests related to the diversity of marine biology and the critical role that oceans play in the functioning of the planet. International Progress Underlying all of these issues is the fact that achievement of oceans policy objectives requires international cooperation--at the bilateral, regional, and global level. Accordingly, the United States has engaged with the international community in a broad range of cooperative efforts aimed at protecting the oceans. The problems, like the solutions, transcend the ability of any one nation to act unilaterally. Our interests are shared by others--we are all in this boat together; the oceans are a primary illustration of the abstract concept of the global commons. Over the past several decades, remarkable progress has been made-- from the difficult negotiation of the Law of the Sea Convention, now amended to meet our requirements, to the network of international agreements to prevent pollution from vessels as established through the International Maritime Organization. We have negotiated and amended the London Dumping Convention and developed a rich fabric of regional mechanisms for fisheries and pollution. Conference Issues and Goals Despite all of this progress, much more remains to be done, in particular to promote more widespread compliance internationally with the standards and measures set in place by the various agreements to protect the marine environment. Land-based Sources of Marine Pollution. Overarching all of these gaps is the void we have and the challenge we face in combating ocean pollution that originates on land. Land-based sources--LBS--include municipal, industrial, and agricultural effluents--which reach the marine environment directly from the coast through outflows or run-off, through rivers or other watercourses, and via the atmosphere. All told, these are the source for 70%-80% of the total pollutant- loading in the marine environment and includes such sources as the vast volume of coastal sewage which is discharged untreated; the sediments that wash into the sea from onshore development, logging, and construction; and the nutrient runoff from fertilizers and persistent organic compounds from pesticides. Land-based pollution can cause the decline or total demise of entire fisheries stocks and the industries based upon them. Pollution also affects and reduces the habitat available for marine life and lowers reproductive success. Contamination can shut down entire coastal fishing areas, as we have seen with frequency here in the United States, where approximately one-fourth of all shellfish beds are closed each year to avoid public health problems caused by pathogens. While most nations have recognized the priority of addressing land-based sources of pollution, their complexity, range, and intractability have made concerted effort elusive. Consequently, pollutants from land-based activities have resulted in major impacts on estuaries and near-shore environments. As a growing body of evidence indicates, there are international problems as well. Pollutants transported by lateral coastal currents and global circulation patterns have led to transboundary impacts in the Gulf of Mexico, the Gulf of Maine, and the Caribbean, to name only those in our own backyard. The inadequacy of efforts to control and manage land-based sources of marine pollution was recognized at the Earth Summit in Rio three years ago. Chapter 17 of the 500-page action plan, known as Agenda 21, called for stepped-up efforts to prevent point and non-point pollution sources and to address the whole range of issues associated with land-based pollution. The centerpiece of these efforts is the convening of the UN conference that the U.S. will host later this fall. The principles outlined in Agenda 21 serve as a model for the approach that must be set in addressing land-based marine pollution--emphasizing the balance that must be struck between local interests and initiatives with broader, more international responsibilities. Conference Goals. We do not pretend the conference in Washington will find every answer for every input into the marine environment--that is not realistic. But we hope to develop important tools and information sources so that information will flow to even the smallest governments, encouraging action at the national and local level. We have four specific goals for this November's conference: First, we want to develop a methodology that will enable governments and regional organizations to strengthen efforts to identify approaches and prioritize actions to deal with land-based activities; Second, we want to develop a clearinghouse that will link expertise, programs, and resources with identified needs and stated requests; Third, we hope to reach agreement on policy guidance to guide the critical activities of the major funding institutions, such as the World Bank and the Global Environment Facility; and Fourth, we want to continue making progress toward addressing the troubling issues raised by certain persistent organic pollutants--POPs. Persistent Organic Pollutants. I want to take a moment to discuss the issue of persistent organics, because I believe it is emerging as one of the great environmental challenges the world faces. Persistent organic pollutants include well-known and obscure substances such as PCBs; dioxins and furans, which are the unintended by-products of manufacturing and combustion; and a variety of pesticides. PCBs were used in the past quite extensively in various industrial and commercial applications, most commonly as a non-conducting fluid in electrical equipment. Commercial--non-research--production of PCBs has been virtually eliminated across the globe, but these substances still present risks resulting from reuse of products and the need to ensure proper management and disposal of existing stocks. Dioxins and furans are often referred to as unintended by-products of manufacturing and production. They are typically lumped together, because they are generally controlled by the same technology. Chlorinated pesticides are getting much of the attention in the current debate about POPs. These pesticides have been extensively analyzed in the U.S. in terms of risk, resulting in their virtual elimination due to their negative effects. Chlorinated pesticides include aldrin, dieldrin, DDT, endrin, chlordane, mirex, toxaphene, and heptachlor. All of the persistent organics pose a problem because of their longevity, toxicity, tendency to bioaccumulate, and their potential for long-range transport. Chlorinated hydrocarbon pesticides were first introduced at the end of WWII precisely because of their persistence: They offered the potential to keep down agriculture pests for generations at a time. They were cheap, and initial testing revealed them to be non-toxic to mammals. In early experiments, prison volunteers ate spoonfuls of DDT without getting sick. The acute toxicity of these chemicals in mammals is, indeed, very low. Many are suspected carcinogens in lab animals but have not been shown to be so in humans. But a feature first noted in birds and more recently in other species is the effect on hormones, particularly estrogens. Long- term administration of the chlorinated compounds has feminizing effects not only in male birds but also in mammals. While the precise impacts on humans and certain wildlife are not pinned down with precision, there is no doubt that biopsies of fatty tissues of humans throughout the world reveal significant deposits of chlorinated compounds. Rachel Carson brought the issue of chlorinated compounds to national attention with Silent Spring, in which she documented the effects of DDT on birds. She found that birds, at the high end of the food chain, were consuming large quantities of DDT and dying off--dying outright from over-ingestion or having trouble maintaining egg quality. While most of the persistent organic pesticides have been banned in developed countries, they continue to be used in Africa and India for the control of malaria--in view of their availability and the lack of cheap alternatives. This large-scale use accounts for the dispersion of chlorinated compounds throughout the world. Unfortunately, the exact pathways and transport mechanisms for persistent organics remain uncertain. A growing body of evidence suggests not only that sources are widely dispersed, but that the mammalian effects are enormous--ranging from infertility to reproductive abnormalities. The key question is whether chlorinated compounds originating in Africa, for example, are turning up in people in the Arctic. There is broad agreement, therefore, that we need to gather more information about costs, production, substitute availability, trade in POPs, global transport characteristics, and use in developing countries. At the UNEP Governing Council this week, we are seeking to reach agreement on several concrete steps--beginning with a call for the Inter- governmental Forum on Chemical Safety to set up a working group to assess the threats to human health and the environment posed by POPs. We hope that they ultimately will develop recommendations for international actions to be considered in 1997. In June, Canada will be hosting a technical meeting on POPs in Vancouver, which is intended especially to introduce this subject to experts from developing countries. To complement and further these efforts, we are anxious to use the LBS meeting to endorse the efforts underway and to adopt a call for global action, bringing attention to the urgency of the POPs problem for the health of the marine environment, as well as directly and indirectly for human beings. I want to highlight just a couple of other top priorities on the Administration's oceans agenda--which are part of and complement our work on land-based sources. Coral Reefs. One priority is the exciting international consensus we have forged around the idea of protecting the world's coral reefs. Sometimes referred to as "the rain forests of the ocean," coral reefs rank among the most biologically productive and diverse ecosystems. They are an essential supplier of fish and plant protein to coastal subsistence communities; a valuable source of revenue for developing countries through exploitation of reef resources and tourism; a natural barrier which protects land; and a reservoir of unique biological materials. To forge international resolve, the United States has assembled an international partnership--the International Coral Reef Initiative-- involving Japan, Australia, France, Barbados, a host of other nations, and international institutions such as the World Bank. The Coral Reef Initiative has been successful beyond our wildest dreams, and we are looking forward to launching this initiative in a major way at a meeting we have organized in the Philippines next week. The Arctic Environment. Also, we have placed a priority on addressing the myriad environmental challenges in the Arctic. The Arctic Environmental Protection Strategy, an initiative of the eight Arctic nations, is now developing recommendations as to the protection of the Arctic environment as a whole. To accomplish this, four major working groups have been established, two of which involve land-based sources of pollution--one on Arctic Monitoring and Assessment, which will assess the health and ecological risks associated with contamination from radioactive waste, heavy metals, persistent organics, and other contaminants, many of which have a land-based origin; and one on the Protection of the Arctic Marine Environment, which will examine how land-based sources affect the Arctic marine environment and will recommend ways of addressing such problems. We look forward to continuing this progress with the help of Senator Stevens and his colleagues, who have been terrific supporters of these efforts and a range of other ocean issues. We are proud to work with them. Conclusion Land-based sources of marine pollution, protection of coral reefs, and attention to the Arctic--these are all pieces of a broad ocean agenda that we must work together on. Meeting these challenges is in our interest as Americans and for the collective security and cooperation of the world. Make no mistake: This agenda is not costless and, certainly, not barrier-free. More optimistically, the question is no longer what to do- -the question is how to facilitate what so clearly needs to be done. Success would send benefits rippling across our nations, our economies, and, most important, the lives of present and future generations. Our legacy depends in large measure on our ability to understand and react to these new challenges. More ominously, the future habitability and stability of the world is in the balance. In this way, protecting the globe is a metaphor for the degree to which we recognize the interdependent nature of the world unfolding before us. In 1948, when the notion of space exploration was still science fiction, the astronomer Fred Hoyle said: Once a photograph of the Earth, taken from the outside, is available . . . a new idea as powerful as any in history will be let loose. Twenty years later, when space travel became a reality, the travelers themselves provided powerful testimony to Hoyle's sense of the unity of the world. Let me read to you from our own astronaut, James Irwin: That beautiful, warm, living object looked so fragile, so delicate that if you touched it with a finger it would crumble and fall apart. And now from a Russian cosmonaut: After an orange cloud--formed as a result of a dust storm over the Sahara--reached the Philippines and settled there with rain, I understood that we are all sailing in the same boat. In this last decade of the millennium, we have the power and enormous responsibility to captain that boat carefully. We also have the ability to shape change for the benefit of the entire world. The interests and intellectual capacity reflected in this room today bear a special burden in this regard. Working together, your talents, your energy, and your power are more than a match for the challenges and the institutions involved. I hope that each of you will engage in this effort and that we can harness that energy and wisdom in service of these objectives. Our future certainly depends on it.(###) ARTICLE 4 The Summit of the Americas: Implementation Work Program Thomas F. McLarty III, Counselor to the President and Secretary of State for the Summit of the Americas Address to the Council of the Americas, Washington, DC, May 23, 1995 When I was asked by the President and the Secretary of State earlier this spring to be their Special Representative to the hemisphere, I was honored--knowing that one of my privileges in this position would be to address organizations like the Council of the Americas that have made a real contribution and a real difference over the years. I am particularly pleased to be able to address your 25th Washington Conference today. I want to say at the outset that I have only the highest regard for this outstanding organization and for its mentor and founder David Rockefeller, who has done so much to promote understanding within and throughout the hemisphere. As the President commented when we were visiting about this this morning, the State of Arkansas has a long and productive history with the Rockefeller family. Many of you may recall that Winthrop Rockefeller was governor there for four years in the late 1960s, leaving a rich and lasting legacy. David is someone I admire greatly. It is not an exaggeration to say that his work for many, many years has laid a foundation for the hemispheric architecture which we are in the process of building in a spirit of bipartisanship and mutual respect. I am also pleased to see so many other familiar faces here today: John Avery, Ambassador Ted Briggs, Susan Kaufman Purcell, Kim Flower, and others. Your long experience in the region and sage advice have brought the council continued success. Your contributions to the Summit of the Americas last December in Miami were critical. You helped us shape the agenda and provided counsel and insight we simply would not have had without your involvement. I personally appreciate your efforts, as do the President and Secretary of State. Hemispheric Interests Linked to Domestic Interests From the beginning of his Administration, President Clinton has laid out a series of foreign policy goals: remaining firm in our commitments to building greater security; spreading democracy; and ushering in a new age of open markets and prosperity across the world. These pillars of foreign policy are grounded in the reality that fluctuations in the global economy have direct consequences for the American economy and jobs at home. I'm sure you would agree that in order to project economic and strategic power in the international arena, we must first have a strong and growing economy domestically. As the President has said time and time again, we are working on the economic fundamentals, just as progressive, reforming governments in the hemisphere are doing. The President's program stresses putting our financial house in order so as not to mortgage our children's futures; highlighting job creation as a means to expand our middle class and allow full participation of our society in ever-higher levels of economic activity; encouraging a longer term economic perspective through savings and investment, in particular investment in human capital through education and training; and expansion of markets through aggressive pursuit of international trading opportunities. This hemisphere is a natural ally in our efforts. To this end, the President has devoted considerable energy and demonstrated consistent commitment to improving the economic and political health of countries within our own hemisphere. These goals fit clearly within our broader foreign policy framework: promotion of free markets; increasing economic and political integration; and promotion of democracy. I believe it is fair to state that our Administration has made significant strides in achieving these goals--three of which I should note. First, we passed the NAFTA, the cornerstone of a new hemispheric policy, which promotes free markets, creates jobs in the United States and elsewhere, and promotes hemispheric stability by linking us more closely with Mexico. NAFTA was a bipartisan effort, which passed with assistance for organizations such as the council. Second, we passed the GATT Uruguay Round--again bipartisan and with your support. The Uruguay Round is the largest trade agreement in history, which incorporates vast new sectors of heretofore unregulated international trade. Importantly, we have institutionalized Uruguay Round gains by supporting creation of the WTO. Third, we hosted the Summit of the Americas in Miami in December. The summit, as you know, brought together all of the democratic countries of the hemisphere for the first time. It was a historic event which exceeded expectations, establishing an agenda for the hemisphere based on shared values and common interests. Implementation of Summit Commitments These three achievements have really formed much of the basis for our hemispheric relations. Open markets and strong democracies are not mutually exclusive; they are reinforcing. The Summit of the Americas recognized this linkage, and our work program in the implementation of summit commitments is consistent with that premise. When the 34 democratically elected hemispheric leaders gathered together last December in Miami, it was evident then--and it remains evident now- -that we have moved toward a hemispheric consensus of values which was perhaps unthinkable even a few short years ago. Miami charted a course for the hemisphere which is visionary yet achievable, expansive yet practical, dramatic yet fully grounded in the experiences and prerogatives of our individual nations. Just as the United States is in the process now of "reinventing government," so we consider the summit to have been the beginning of regional efforts to reinvent hemispheric relations in keeping with the foundation you've helped put in place over the years. Many of the countries in our hemisphere have already taken concrete actions--both individually and collectively--to move forward with the hemispheric agenda. We are encouraged by that. I want to discuss briefly several instances. Haiti. Perhaps the best example is Haiti. In less than two weeks, I will travel to Port-au-Prince with the Secretary of State for the annual General Assembly of the Organization of American States. The General Assembly would obviously not be taking place in Haiti had we not taken action--collectively, purposefully, and with resolve--to rid that country of its de facto leadership. Such collective action would not have been possible even a few short years ago. This is a tangible result of our hemispheric cooperative agenda and an excellent example of the successes that joint cooperation can produce. Mexico. Another example is our firm, dedicated response to the recent Mexican peso crisis, which directly or indirectly affected many other countries in the hemisphere and, indeed, around the world. The health of each of our economies is inextricably inter-twined with each other hemisphere-wide; our interests are consonant. Our citizens, our markets, our pensioners, our importers and exporters, our everyday investors-- demand confidence in hemispheric finances. When this confidence was threatened soon after the summit concluded, we worked closely together with international financial institutions and other countries in the hemisphere to provide the leadership necessary to restore confidence. Immediate, unflinching collective action was required to address the problem. In December, it was said that the surprises from Mexico were all bad. Since March, the surprises from Mexico have been all good. Although the financial crisis is not yet over, the trend-line is better, and indications are good that Mexico is beginning to move forward on a road to recovery. Other affected economies have regained stability and some vibrance. Last week, I attended a dinner in honor of Mexico's Treasury Secretary Guillermo Ortiz. The presentation he made was impressive, providing a realistic assessment of the progress made and steps yet to be taken, especially in the area of employment. The markets are responding. Investment is flowing back into Latin America, much of it brick-and- mortar investment which will remain even during future financial dislocations. For example, the largest employer in my home state, Wal- Mart, Inc., has just announced major investment in Brazil and Argentina, and previously planned investments by General Motors and other major companies are moving ahead on schedule. Other investments have been put on hold--not canceled. We must maintain steadiness of purpose and resolve in our actions. We must have realistic expectations; that is the right place to be in my view. Peru and Ecuador. Finally, the recent border dispute between Peru and Ecuador was handled--appropriately--by the Rio Protocol guarantors. Ambassador Watson played an important role in making progress toward resolving a long-outstanding dispute in the region. Under Brazil's valued leadership and with the welcome participation of Argentina and Chile, we remain committed to assisting the parties to reach a long-term solution on the underlying issues. As we have said time and time again, the summit did not promise that there would no longer be serious problems to contend with in this hemisphere; rather, the promise of the summit was that we now have a means to address, cooperatively, problems which arise in the hemisphere for our collective good. We continue to watch the border situation carefully and look forward to the day when the matter is not a point of bilateral or multilateral contention. Building on our successes, the foreign ministers of the hemisphere plan to issue a report in Haiti which details significant summit-related actions that individual governments have taken to date. The report also sets forth a framework for future efforts. It is specific and clear; we have moved the process forward. Included in this report will be specific actions taken on trade, crime prevention, sustainable development, and the reinvigorization of the inter-American system. Progress is seldom easy. There have been and will continue to be problems and complications, but we have achieved a solid beginning after the summit meeting in Miami. Trade We have made progress in promoting prosperity hemisphere-wide. Recognizing the importance of open markets, free trade, and the participation of the private sector to broad-based economic prosperity, our leaders in Miami called for negotiation of a free trade area of the Americas by 2005. Ambassador Kantor has said, "I want to clearly state that we are committed to pursuing the goal." Trade ministers in the hemisphere have taken up this challenge, committing themselves to two ministerials in the next 10 months. The first one, which will take place in Denver June 30 under Ambassador Kantor's leadership, will discuss steps to be taken as we begin to lay a foundation upon which negotiations can later proceed; the second will occur in March 1996. The Denver ministerial in June will be followed immediately by the Trade and Commerce Forum--hosted by Ambassador Kantor and Commerce Secretary Ron Brown--a cooperative public and private effort designed to expand hemispheric economic activity. As you have now heard from Ambassador Barshefsky and others, we are also moving ahead with discussions to admit Chile into the NAFTA, the next critical step of our commitment to regional openness and shared prosperity. We want to move ahead quickly with Chile's accession to the NAFTA to send a positive signal to our hemispheric partners at a critical juncture. President Bush noted this when he recently spoke in Santiago. As Congressman Lee Hamilton has argued, in the end trade is good because it creates markets for the United States and bolsters the economies and stability of the countries we trade with. That is the kind of common-sense approach we seek. General fast-track hearings have already begun, and timely action by Congress is essential. Former Secretary of State Henry Kissinger recently wrote that if we do not seize the opportunities now facing us, there is a real danger the United States will become marginalized--a bystander in our own hemisphere. In reaching out to others, we directly help ourselves. At bottom, we seek a closer economic relationship with our neighbors, based on shared values and mutual objectives, in order to promote what is clearly in the interests of our own citizens. Crime Prevention We are also taking a tough stand against crime. Support is growing for the Mexico-United States draft on counter-narcotics strategy for the 21st century, which offers a comprehensive plan to eradicate the illegal narcotics trade hemisphere-wide. Already, half the countries in the hemisphere support this strategy. Hemispheric experts on money laundering met in April to shape an agreement on eliminating this activity; other meetings are scheduled in June to put the final touches on the accord. Additionally, the United States plans to increase its drug control budget to almost $15 billion, more than 36% of which will be spent for demand reduction. Steps have also been taken to combat corruption to level the playing field for U.S. business. Of special note is Colombia's recent contract with the Swiss company, SWIPCO, for the purpose of ensuring that multi- million-dollar defense-related purchases will be undertaken with transparency and fairness. This is the kind of concrete action with direct relevance to private sector activities which many summit initiatives are designed to provide. Sustainable Development There are numerous examples of innovative programs to foster economic growth while protecting the environment throughout the hemisphere. The Central American countries have taken an important leadership role in this area through the Central American Alliance for Sustainable Development. The United States is supporting this effort with $5 million through CONCAUSA--Conjunta Centro- America-USA--part of a $22.6-million environmental initiative for the Americas funded by USAID. We are also moving forward on pollution prevention. Various countries in the hemisphere now have plans to dramatically reduce lead--one of the main causes of childhood retardation--in their gasoline. Inter-American System A final key achievement is the process now underway for revitalization of the inter-American system. The OAS, under the vigorous leadership of Secretary General Gaviria, is reinventing itself in response to summit mandates. The summit leaders proposed a significant increase in the budget of the Unit for Promotion of Democracy, the Inter-American Commission for Human Rights, and the Inter-American Court. They also asked that a trade unit to provide technical studies on trade integration be created. Secretary General Gaviria has been responding to these requests, and the United States is proud to have made additional voluntary contributions to the democracy unit and to the human rights bodies. We are also very pleased that the Inter-American Development Bank, under the extremely able leadership of Enrique Iglesias, has committed itself to increasing its lending in education and health--two summit priorities--by some $5 billion over the next five years. And, with First Lady Hillary Rodham Clinton, the Pan-American Health Organization has just launched a program to eradicate measles throughout the hemisphere, forever eliminating fear of this disease from childhood experience. Next Steps These are just some of the key activities drawn from an impressive list of tangible actions. Our implementation work program is expansive but focused. In closing, however, I must add a word concerning potential stormclouds which are on the horizon. An audience as sophisticated in Latin American and Caribbean affairs as the one here today understands the importance of this hemisphere in calculations of our national interests. Latin America already represents the fastest-growing market for U.S. goods and services of any region in the world--$92 billion in exports last year, triple what it was only a decade ago. Yet legislation now being considered by Congress--H.R. 1561--would have negative effects on our ability to conduct a vigorous hemispheric foreign policy. This legislation would violate the separation of powers and deny the executive branch adequate resources to defend U.S. foreign policy objectives and U.S. national interests in Latin America and the Caribbean. It would put us on the path toward isolationism. To advance key foreign policy objectives, including implementation of summit commitments, we need all instruments of foreign policy available to us. Our ability to help advance the summit agenda--in key areas, including anti-corruption, administration of justice, health, education, and the environment--would be seriously damaged by proposed legislation. This legislation would not only destroy important foreign policy implementing agencies, but it would also cut, at a minimum, 35%-40% in program resources for Latin America, even though, as you know, we have already cut our funding in the region to the bone. The cuts would also spell an immediate and unjustified end to the Inter-American Foundation. This legislation should not pass. We need your help to substantially modify it or defeat it. This hemisphere is the second fastest-growing economic region in the world. Latin America's infrastructure needs alone will require an estimated $500 billion in investment in the coming decade. The opportunities for U.S. business and industry are immense. But we must work cooperatively both in the United States and region-wide to sustain mutually beneficial progress. Economic integration is a natural and desired course. President Clinton and his colleagues in the hemisphere have sketched a visionary blueprint--an architecture if you will--to guide hemispheric relations well into the next century. The President feels strongly about this commitment. As one pundit wrote recently, the President is attacking insecurity by confidently defining the future. Now is not the time to withdraw. The opportunities presented by greater integration in the hemisphere are vast. We will leave our children an expansive legacy if we seize them. (###) ARTICLE 5 The Caribbean Basin Trade Security Act Alexander F. Watson, Assistant Secretary For Inter-American Affairs Statement before the Subcommittee on Trade of the Senate Finance Committee, Washington, DC, May 15, 1995 Mr. Chairman, I wish to express my deep gratitude for the opportunity to testify before your Committee on Senate Bill 529, the Caribbean Basin Trade Security Act of 1995. The Caribbean Basin Initiative, which S. 529 seeks to enhance, is important in promoting two of our most important foreign policy objectives in the hemisphere--the growth of democracy and economic prosperity. The broad bipartisan support which has marked the passage of CBI legislation in the past reflects a consensus in Congress and the executive branch that the U.S. has a strong interest in, and remains committed to, the economic and political well-being of the Caribbean Basin. The United States is, and will remain, engaged in not only the Caribbean Basin's economic development and integration, but also that of the entire hemisphere. This commitment was reaffirmed in Miami at the Summit of the Americas last December when the United States and the other nations of the hemisphere pledged to work toward greater economic integration and the goal of a Free Trade Agreement for the Americas by the year 2005. CBI: A Success To date, the Caribbean Basin Initiative has been an unqualified success. The fundamental economic goal of the CBI--broadening and diversifying the economic base of the beneficiaries--is being realized. Since the CBI went into effect in 1984, non-traditional exports from the region have grown at a rate of nearly 25% per year. But CBI has not simply benefited those countries: It has resulted in increased U.S. exports to and investment in the region. The last decade has seen impressive growth in trade in both directions. U.S. exports to the region have grown rapidly, strengthening the overall job base in the U.S. U.S. Interests in the Region The Caribbean Basin is often referred to as the third border of the United States. Much of our trade with the hemisphere passes through the sea lanes, ports, and airports of the region. Democracy, stability, and broad-based economic growth grounded in free market principles are the goals we share with the countries in the region. The countries of Central America and the Caribbean are enjoying increasing prosperity and positive political change. The region is continuing to implement market-oriented reforms and is beginning to gather some of the fruits of these reform efforts. Growth last year for the CBI region as a whole amounted to 3.1%. This is an encouraging sign, although it does not yet represent the kind of vibrant growth necessary to address the deep-seated poverty and social problems of many of the countries in the region. After the turbulent and economically devastating decade of the 1980s, however, our neighboring countries in the hemisphere are well on the road to consolidating democracy and building market-based economies. I want to mention some recent progress the CBI countries have achieved. In El Salvador, which struggled through more than a decade of armed aggression between the government and the FMLN rebels, a negotiated settlement was achieved on the last day of 1991. Implementation of the UN-sponsored peace accords was vigorously pursued by all parties and has resulted in the integration of many former guerrilla leaders into the political system and most former combatants into the productive sector. The process of reconciliation continues apace, and the highly successful UN mission, known as ONUSAL, has completed its task. Only a much reduced office reporting to the UN Secretary General continues to monitor the peace process. The impressive economic reforms undertaken by the governments of President Alfredo Cristiani and of President Armando Calderon Sol have stimulated critical foreign investment and are fueling impressive growth, which reached 5% in 1994. Nicaraguans chose a democratic future when they elected Violeta Barrios de Chamorro as President in 1990. The previously warring factions are now pursuing political change through the National Assembly and are preparing for the next general elections set for November 1996. There is new leadership in the national army, and the size of the armed forces has decreased more than 70%. While improvements have been made in improving the investment climate, we continue to vigorously pursue further progress with the Government of Nicaragua. Panama, at the center of the Western Hemisphere, elected a dynamic new president last year--Ernesto Perez-Balladares. His government is pursuing policies of democratic consolidation and vastly more open markets. In the Caribbean, democracy is becoming the rule, not the exception. The legitimate government of Haiti was restored in October 1994 by the U.S.- led Multinational Force authorized by the United Nations. This action sent a powerful message to those who do not respect the authority of electoral outcomes and would rule instead by repression and force. The challenge to legitimate power in Haiti led to one of the most direct security challenges to the United States and all democracies of the Caribbean--the tragic outflow of thousands of boat people over many months following the September 1991 coup d'etat. Developments in Haiti following the U.S.-led action, however, are very promising. Parliamentary and local elections are set for June 25. A new civilian police force is in training, and the new police academy will graduate its first class next month. The human rights situation has shown vast improvement, and the U.S. is joining other donors to assist in completely overhauling the justice system. Haiti has experienced a drastic decline in per capita income, which is the lowest in the hemisphere. In 1990, per capita GDP was 21% below that of 1981; in 1994, it dropped another 34%. The new signs of political reform in Haiti provide hope for the political stability and economic development which this country so desperately needs. With the end of the Cold War, the real threats to the political stability of democracies in the area are posed by endemic internal problems rather than by foreign aggressors. Uneven development, poverty and widespread unemployment, poor education and health systems, and public sector corruption are the new forces of destabilization. We must work with countries in the region to develop consensual and transparent democratic government, encouraging citizens to work within the system rather than outside it and to make the necessary economic changes to ensure further economic growth and development. While development assistance has played a significant role in the development of the Caribbean Basin, CBI nations are now adjusting to declining real levels of external assistance. The CBI countries must compete on a global basis for markets and investment capital. Those economies with the most efficient market forces will reap the greatest rewards and those with the greatest protectionism will be least likely to attract foreign capital. The legislation the committee is considering today, with the changes outlined by Ambassador Barshefsky, will strongly increase the ability of these nations to reap the rewards of economic reform. Many of the CBI countries, including Haiti, have made great strides to reform their economies to become more competitive in the world marketplace. But these reforms often entail high short-term costs. Dislocation and unemployment are natural by-products of such reform. Through the opportunities created by the CBI, and those offered in S. 529, countries of the CBI will have the tools to support their continued economic reform and to bring this region a step closer to the goals established by the Summit of the Americas. This legislation can also help the U.S. and the CBI nations address two additional problems--drug trafficking and illegal immigration. While the threat of externally generated political/military challenge in the region has nearly dissipated, it has been replaced by the different but highly insidious threat of international narco-terrorism and drug trafficking. These problems pose a serious threat to the political stability of many of the countries in the region. Prosperous and growing economies offer alternatives to the lucrative and corrosive narcotics trade destined for the U.S. and Europe. Another phenomenon of underdevelopment, and an increasing threat to the U.S., is illegal immigration. Increased jobs and opportunities at home reduce the number of people seeking to cross our borders illegally. NAFTA's Impact on CBI The passage of the NAFTA by the 103rd Congress was a triumphant event in the relationship of the United States and all democracies of the Western Hemisphere. It marked a new era of mature partnership. This legislation offers an opportunity to address the unintended consequences of the NAFTA on the CBI and to move forward in partnership with the CBI nations toward shared economic goals. Leaders of the Caribbean Basin countries met with President Clinton in 1993 and 1994 to express their serious concerns about the impact of NAFTA on their economic development. They did not come seeking a handout. They came seeking enhanced access to our market. Their objective is laudable--to strengthen their economies in order to be more competitive as the hemisphere deepens its integration. The President responded to their concerns last year by proposing the Interim Trade Program--ITP. Due to circumstances at the time, it was withdrawn for future consideration. The Administration supports legislation to enhance the CBI and hopes that it will win the same bipartisan support enjoyed by earlier CBI legislation. Such legislation is needed to ensure that U.S. firms working and investing actively in the Caribbean Basin will continue to do so, improving our overall healthy level of trade activity with the Caribbean Basin. As I often hear from private sector groups I meet with, this legislation is of great interest to U.S. firms exporting to and investing in the region. They are looking for our government to take action to reinforce the economic and financial vitality of the Caribbean Basin as a market for U.S. goods and a destination for U.S. investment. Further, we support such legislation because we want to continue to promote the impressive economic and political reforms undertaken, while encouraging further changes in critical areas like protection for intellectual property rights, market access, and investment protection. Toward the FTAA At the Summit of the Americas last December, the nations of the hemisphere threw their support fully behind democracy, open markets, and free trade. The democratically elected leaders of these countries pledged to work toward the goal of a Free Trade Area of the Americas by 2005. The Caribbean Basin Trade Security Act, as amended, would be a positive step in that direction, providing the countries in the region with an opportunity to move toward market economic reform and greater economic integration. Legislation addressing the effects of NAFTA on the CBI will help ensure that CBI beneficiaries implement necessary and far- reaching reforms to enable them to stand by the market discipline required to compete in a free trade area, and to continue their economic development. We believe that these objectives serve the foreign policy interests of the United States. Sound and stable democracies throughout the bordering Caribbean region, with increasing opportunities for economic advancement at home, means greater export opportunities for U.S. manufacturers and a brighter future for citizens of the Caribbean Basin. (###) ARTICLE 6 American Overseas Interests Act Secretary Christopher Text of a letter to the Speaker of the House of Representatives, May 22, 1995. Dear Mr. Speaker: This week, the House of Representatives will consider legislation that could undermine this and every future President's ability to safeguard America's security, to advance America's interests, and to provide American leadership in the world. The "American Overseas Interests Act," H.R. 1561, is deeply flawed. If this bill were presented to the President, I would have no choice but to recommend that the President veto it. H.R. 1561 wages an extraordinary assault on this and every future President's constitutional authority to manage foreign policy. It contains numerous restraints and restrictions that would do immense harm to our nation's foreign policy. It drastically reduces our resources. And it mandates a costly and disruptive reorganization of the Executive Branch that will damage our ability to promote American interests worldwide. On the most fundamental constitutional grounds, I am deeply opposed to the elaborate and unnecessary restraints that H.R. 1561 would impose. If enacted, they would compromise our ability to follow through on the North Korea Framework Agreement. They would undermine our effective participation and weaken our leverage in international organizations. They would compel changes in our refugee policy that could pose a serious threat to our borders, limiting the President's ability to respond to boat migration and possibly exacerbating the illegal smuggling of aliens into the United States. The bill would seriously impair the President's responsibility to manage our delicate relations with China at a time of its transition in leadership. Numerous conditions on our assistance to Russia and the other New Independent States could derail our steady support for democratic and market reform in a region that remains the site of tens of thousands of nuclear weapons. Other provisions of the bill would seriously disrupt our ability to move decisively when warranted by rapidly changing circumstances as well as our relations with a variety of countries. These far-reaching restrictions, combined with the sharp reductions in resources for the International Affairs budget, would cripple our ability to respond to the complex opportunities and challenges of the post-Cold War world. At a time when American strength, vision, and leadership are essential, this legislation would force our unilateral retreat. As you know, the International Affairs budget represents only 1.3% of total federal spending. It has absorbed substantial real cuts in recent years. The resources we are requesting, in my judgment, are the rock bottom minimum we need to advance our nation's vital interests. The International Affairs budget has always been a prudent investment that produces clear benefits for the American people. It protects American lives by combating the spread of nuclear weapons, the scourge of drugs, and the threat of international terrorism. It has helped lead to the detargeting and dismantlement of missiles in the former Soviet Union and facilitated the departure of Russian troops from the Baltics. It has advanced peace in the Middle East. It has helped to end the violence in Northern Ireland and to assist the transition to democracy in South Africa. It has promoted free trade and U.S. exports, creating more than one million high-paying American jobs in the last two years alone. Whether in the case of South Korea or South America, our foreign assistance over the years has ultimately put more dollars in the pockets of the American taxpayer than it has ever taken out. Moreover, the preventive diplomacy that the International Affairs budget funds is our first and least costly line of defense. Compare the cost of diplomatic action to stem proliferation to the price we would pay if rogue states obtained nuclear weapons. Compare the cost of promoting development to the price of coping with famine and refugees. If we gut our diplomatic readiness today, we will face much greater costs and crises down the line. H.R. 1561's cuts in Function 150 resource levels are flatly irresponsible. H.R. 1561's elimination of ACDA, USIA, and AID, as well as cuts in the State Department's operating expenses, threatens our ability to achieve our foreign policy goals through effective international affairs agencies. The State Department, ACDA, AID, and USIA are all proceeding vigorously with their own streamlining efforts. Each is actively cutting costs, realigning resources to better match policy priorities, and updating communications and information technologies. Together, these measures are lowering costs and raising productivity in each of the international affairs agencies. H.R. 1561 would disrupt and deflect these comprehensive efforts by abolishing ACDA, AID, and USIA in name only and reassigning their functions to the State Department. The turmoil and inevitable dislocation could seriously undermine the conduct of U.S. foreign policy by hampering a flexible response to continually evolving world crises and opportunities. Like the Army, Navy, Air Force, and Marines, which operate under the overall direction of the Secretary of Defense, AID, ACDA, and USIA each has a distinct mission that can be best performed under the overall foreign policy guidance of the Secretary of State. As the sole remaining superpower, we have an unprecedented opportunity to shape the world we seek--a world of open societies and open markets. Our nation's foreign policy cannot be supported on the cheap; we cannot protect our interests as the world's most powerful nation if we undermine the role of the President or if we do not marshal the resources to stand by our commitments. We cannot lead if we do not have the tools of leadership at our disposal. This is equally true whichever party is in power at any given moment. Last November's elections may have changed the balance of power between the parties. But they did not change--indeed, they enhanced--our responsibility to cooperate on a bipartisan basis in foreign affairs. The election was not a license to lose sight of our nation's global interests or to launch an assault on the President's constitutional responsibility to conduct foreign policy. I regret to conclude that this legislation would have us do both. Sincerely, Warren Christopher (###) ARTICLE 7 Code of Conduct on Politico-Military Aspects of Security At the Budapest summit of the Organization for Security and Cooperation in Europe (OSCE) in December 1994, the OSCE heads of state adopted the Politico-Military Code of Conduct that had been negotiated in the OSCE Forum for Security Cooperation. The code is a politically binding agreement among OSCE states; it is not a treaty or a legal document. In the tradition of the Helsinki Final Act, the Code of Conduct sets standards to guide OSCE states in the actions toward one another, as well as toward their own citizens. It is designed to foster the open consultative process that is one of the strengths of the OSCE and to encourage responsible and cooperative norms of behavior on politico- military aspects of security. The code focuses particularly on the democratic control and use of armed forces. The code's standards have relevance for all OSCE members and will be particularly useful for those new states which are in the process of building the structures necessary to ensure effective democratic control over armed forces. Following is the text of the Code of Conduct, adopted at the summit and entered into effect on January 1, 1995. Preamble The Participating States of the Conference on Security and Co-operation in Europe (CSCE), Recognizing the need to enhance security co-operation, including through the further encouragement of norms of responsible and co-operative behaviour in the field of security, Confirming that nothing in this Code diminishes the validity and applicability of the purposes and principles of the Charter of the United Nations or of other provisions of international law, Reaffirming the undiminished validity of the guiding principles and common values of the Helsinki Final Act, the Charter of Paris and the Helsinki Document 1992, embodying responsibilities of States towards each other and of governments towards their people, as well as the validity of other CSCE commitments, Have adopted the following Code of Conduct on politico-military aspects of security: I 1. The participating States emphasize that the full respect for all CSCE principles embodied in the Helsinki Final Act and the implementation in good faith of all commitments undertaken in the CSCE are of fundamental importance for stability and security, and consequently constitute a matter of direct and legitimate concern to all of them. 2. The participating States confirm the continuing validity of their comprehensive concept of security, as initiated in the Final Act, which relates the maintenance of peace to the respect for human rights and fundamental freedoms. It links economic and environmental co-operation with peaceful inter-State relations. 3. They remain convinced that security is indivisible and that the security of each of them is inseparably linked to the security of all others. They will not strengthen their security at the expense of the security of other States. They will pursue their own security interests in conformity with the common effort to strengthen security and stability in the CSCE area and beyond. 4. Reaffirming their respect for each other's sovereign equality and individuality as well as the rights inherent in and encompassed by its sovereignty, the participating States will base their mutual security relations upon a co-operative approach. They emphasize in this regard the key role of the CSCE. They will continue to develop complementary and mutually reinforcing institutions that include European and transatlantic organizations, multilateral and bilateral undertakings and various forms of regional and subregional co-operation. The participating states will co-operate in ensuring that all such security arrangements are in harmony with CSCE principles and commitments under this Code. 5. They are determined to act in solidarity if CSCE norms and commitments are violated and to facilitate concerted responses to security challenges that they may face as a result. They will consult promptly, in conformity with their CSCE responsibilities, with a participating State seeking assistance in realizing its individual or collective self-defence. They will consider jointly the nature of the threat and actions that may be required in defence of their common values. II 6. The participating States will not support terrorist acts in any way and will take appropriate measures to prevent and combat terrorism in all its forms. They will co-operate fully in combating the threat of terrorist activities through implementation of international instruments and commitments they agree upon in this respect. They will, in particular, take steps to fulfil the requirements of international agreements by which they are bound to prosecute or extradite terrorists. III 7. The participating States recall that the principles of the Helsinki Final Act are all of primary significance and, accordingly, that they will be equally and unreservedly applied, each of them being interpreted taking into account the others. 8. The participating States will not provide assistance to or support States that are in violation of their obligation to refrain from the threat or use of force against the territorial integrity or political independence of any State, or in any other manner inconsistent with the Charter of the United Nations and with the Declaration on Principles Guiding Relations between Participating States contained in the Helsinki Final Act. IV 9. The participating States reaffirm the inherent right, as recognized in the Charter of the United Nations, of individual and collective self- defence. 10. Each participating State, bearing in mind the legitimate security concerns of other States, is free to determine its security interests itself on the basis of sovereign equality and has the right freely to choose its own security arrangements, in accordance with international law and with commitments to CSCE principles and objectives. 11. The participating States each have the sovereign right to belong or not to belong to international organizations, and to be or not to be a party to bilateral or multilateral treaties, including treaties of alliance; they also have the right to neutrality. Each has the right to change its status in this respect, subject to relevant agreements and procedures. Each will respect the rights of all others in this regard. 12. Each participating State will maintain only such military capabilities as are commensurate with individual or collective legitimate security needs, taking into account its obligations under international law. 13. Each participating State will determine its military capabilities on the basis of national democratic procedures, bearing in mind the legitimate security concerns of other States as well as the need to contribute to international security and stability. No participating State will attempt to impose military domination over any other participating State. 14. A participating State may station its armed forces on the territory of another participating State in accordance with their freely negotiated agreement as well as in accordance with international law. V 15. The participating States will implement in good faith each of their commitments in the field of arms control, disarmament and confidence- and security-building as an important element of their indivisible security. 16. With a view to enhancing security and stability in the CSCE area, the participating States reaffirm their commitment to pursue arms control, disarmament and confidence- and security-building measures. VI 17. The participating States commit themselves to co-operate, including through development of sound economic and environmental conditions, to counter tensions that may lead to conflict. The sources of such tensions include violations of human rights and fundamental freedoms and of other commitments in the human dimension; manifestations of aggressive nationalism, racism, chauvinism, xenophobia and anti-semitism also endanger peace and security. 18. The participating States stress the importance both of early identification of potential conflicts and of their joint efforts in the field of conflict prevention, crisis management and peaceful settlement of disputes. 19. In the event of armed conflict, they will seek to facilitate the effective cessation of hostilities and seek to create conditions favourable to the political solution of the conflict. They will co- operate in support of humanitarian assistance to alleviate suffering among the civilian population, including facilitating the movement of personnel and resources dedicated to such tasks. VII 20. The participating States consider the democratic political control of military, paramilitary and internal security forces as well as of intelligence services and the police to be an indispensable element of stability and security. They will further the integration of their armed forces with civil society as an important expression of democracy. 21. Each participating State will at all times provide for and maintain effective guidance to and control of its military, paramilitary and security forces by constitutionally established authorities vested with democratic legitimacy. Each participating State will provide controls to ensure that such authorities fulfil their constitutional and legal responsibilities. They