U.S. Department of State Dispatch
Volume 6, Number 41, October 9, 1995
Bureau of Public Affairs


                       U.S. Department of State Dispatch
Volume 6, Number 41                                  October 9, 1995


ARTICLES IN THIS ISSUE:

1. The Israeli-Palestinian Interim Agreement--President Clinton, 
Jordanian King Hussein, Egyptian President Mubarak, 
PLO Chairman Arafat, Israeli Prime Minister Rabin

2. Israelis and Palestinians: Winning the Struggle for Peace--Secretary 
Christopher

3. Washington Summit on the Middle East Peace Process: Joint Declaration

4. A Common Strategy for Economic Growth In the West Bank and Gaza 
Strip--Secretary Christopher

5. The Middle East Peace Process: U.S.-Israeli-Palestinian Trilateral 
Commission Established--Secretary Christopher, PLO Chairman Arafat, 
Israeli Foreign Minister Peres

6. Trends in the Middle East Provide Opportunities for U.S. Businesses--
Joan Spero   

7. What's in Print: Foreign Relations of the United States 



ARTICLE 1:

The Israeli-Palestinian Interim Agreement
President Clinton, Jordanian King Hussein, Egyptian President Mubarak, 
PLO Chairman Arafat, Israeli Prime Minister Rabin
Remarks at signing ceremony of the Israeli-Palestinian Interim 
Agreement, Washington, DC, September 28, 1995

President Clinton. Prime Minister Rabin; Chairman Arafat; Your Majesty 
King Hussein; President Mubarak; Foreign Minister Peres; Mr. Abu Mazin; 
Prime Ministers Gonzalez, Filali, Bin Shaker; Foreign Minister Kozyrev--
our co-sponsor of the Middle East peace negotiations; distinguished 
foreign ministers and members of the Diplomatic Corps; and honored 
guests: I welcome you to the White House for this milestone on the path 
to reconciliation. Today, we take a great stride toward the fulfillment 
of a vision toward the day when two peoples divided by conflict are 
bound now by peace. Finally, the time is approaching when there will be 
safety in Israel's house; when the Palestinian people will write their 
own destiny; when the clash of arms will be banished from God's Holy 
Land.

Two years ago on another brilliant September day here at the White 
House, two men reached across one of history's widest chasms with a 
simple handshake. That moment is etched forever in our memory. With the 
eyes of the world upon you Mr. Prime Minister, you declared your wish to    
live side-by-side with the Palestinian people in dignity, in empathy, as 
human beings, as free men. And you, Mr. Chairman, vowed to wage what you 
called "the most difficult battle of our lives--the battle for peace."

In the days of labor that have followed, you have both shown profound 
courage in bringing us to this moment, and you have kept your word. The 
enemies of peace have fought the tide of history with terror and 
violence. We grieve for their victims, and we renew our vow to redeem 
the sacrifice of those victims. We will defeat those who will resort to 
terror. And we revere the determination of these leaders who chose 
peace, who rejected the old habits of hatred and revenge. Because they 
broke so bravely with   the past, the bridges have multiplied--bridges 
of communication, of commerce, of understanding. Today, the landscape 
changes, and the chasm narrows.

The agreement that now will be signed means that Israel's mothers   and 
fathers need no longer worry that their sons will face the dangers of 
patrolling Nablus or confronting the hostile streets of Ramallah. And it 
means that Palestinians will be able to decide for themselves what their 
schools teach, how their houses should be built, and who they choose to 
govern.

You, the children of Abraham, have made a peace worthy of your great 
forebear. Abraham, patriarch of both Arabs and Jews, sacrificed power 
for peace when he said to his nephew Lot: "Let there be no strife 
between thee and me. If thou will take the left hand, then I will go to 
the right." Patience and persistence, courage and sacrifice--these are 
the virtues, then as now, that set peacemakers apart. 

Mr. Prime Minister and Mr. Chairman: You are showing that it is not by 
weapons but by will and by word that dreams best become reality. Your 
achievement shines as an inspiration to others all around this world   
who seek to overcome their own conflicts and to secure for themselves 
the blessings of peace. 

Chapter by chapter, Jews and Arabs are writing a new book for their 
ancient lands--Camp David, the Declaration of Principles signed here two 
years ago, the peace of the Arava last year between Jordan and Israel. 
With each of these, the truth of this book has become clear to the 
world. As courageous leaders step beyond the bounds of convention, they 
build for their people a new world of hope and peace.

Now, as this new chapter begins, it is fitting that we are joined by so 
many from the camp of peace. Egypt's President Mubarak has carried forth 
the commitment to peace that began with Anwar Sadat and the miracle at 
Camp David. Before there was a glimpse of a breakthrough, President 
Mubarak stood for reconciliation. And he added his strength--his 
personal strength--time and time again in the days of the negotiations.

Almost a year ago on the border that had known only barbed wire and 
armed patrols, King Hussein and Prime Minister Rabin brought their 
nations together in peace. Already that border has been transformed, as 
have the lives of Israelis and Jordanians after 46 years as enemies. 
King Hussein stands as a rock on which peace can be built. In only a few 
weeks, he will host the economic summit in Amman that will bring 
together Israelis and Arabs from throughout the region and business and 
government leaders from throughout the world to map the promise of 
tomorrow.

Today, we are also joined by the largest group of Arab foreign ministers 
ever assembled to support the growth of peace. Prime Minister Filali of 
Morocco has traveled here to represent King Hassan, who has done so much 
to advance progress in the region. With us as well are representatives 
of nations that have provided vital support for peace, including the 
countries of the European Union, Japan, Canada, and, of course, Norway, 
whose assistance two years ago opened the way to this moment.

All those who doubt the spirit of peace should remember this day and 
this extraordinary array of leaders who have joined together to bring a 
new era of hope to the Middle East. The United States is proud to stand 
with all of them. 

Much remains to be done, but we will continue to walk each step of the 
way with those who work and risk for peace. We will press forward with 
our efforts until the circle of peace is closed--a circle which must 
include Syria and Lebanon if peace is to be complete. We will not rest 
until Muslims and Jews can turn their backs to pray without any fear; 
until all the region's children can grow up untouched by conflict; until 
the shadow of violence is lifted from the land of light and gold. Thank 
you very much. [The Israel-Palestinian Interim Accord is signed.]


King Hussein. President Clinton; Prime Minister Rabin; my brother, 
President Mubarak; President Arafat; and dear friends: What we are 
meeting here today to witness is all about responsibility, moral 
courage, physical courage, and maturity--for the interests of people is 
the driving, motivating force behind leaders--and fulfilling their 
duties to future generations.

It is, indeed, the result of a commitment to peace--unwavering. You 
have, indeed, witnessed and seen the hours spent and the efforts made 
and the obstacles surmounted because there is goodwill. There is total 
commitment to peace by all those who played their part so far in shaping 
the comprehensive peace that we all seek in our part of the world.

In addition to all that, I believe for our Palestinian brethren--and 
they are the closest to us in the Arab world, and we are the closest to 
them--it is also the fulfillment of a dream they have struggled for for 
years--a chance to contribute their share in shaping their future and to 
have their word regarding that future and destiny.

I am proud to be a part of this occasion--on behalf of the government 
and the people of Jordan--to congratulate you on what you have achieved 
and to wish you every future success in the times ahead and to assure 
you all--President Clinton, all my colleagues, brother and friends 
starting with President Mubarak--for Egypt was a pioneer on the path of 
peace--President Arafat; Prime Minister Rabin, with his farsightedness 
and unquestionable moral and physical courage; and all the other 
wonderful people who have helped--the Secretary of State, and the vision 
of Shimon Peres, and everyone who has--Dennis Ross--so many. 

We will do everything we can. Hopefully, we will meet again. And if we 
don't, hopefully, the process will continue beyond this point toward 
establishment of the comprehensive peace we seek, giving people the 
dignity that is their right, the security, tearing down the barriers of 
suspicion and hatred and confusion. 

I believe that I issue a challenge to any leader in our part of the 
world or anywhere else in the world to demonstrate courage--moral and 
physical courage--to show what responsibility really means by joining 
the peace camp for the better future of all the people of our region.

I hope they won't be wanting; I hope they will be there; and I hope that 
we will have fulfilled--after all these years of struggle--our 
responsibilities toward our people and the generations to come--the 
children of Abraham and their descendants forever.

Thank you very, very much, indeed. I hope that next month we will see 
another major step in our part of the world when the economic summit is 
convened in Amman--with the presence of all who belong to the peace 
camp--to present our area in the context of peace and all our friends 
from throughout the world. For now, we need to build on what we have 
achieved--a better future for our people so they can see and enjoy what 
they have been denied for so long.

Mr. President, thank you once again for the kind invitation. On behalf 
of all those here from Jordan--my wife, the Prime Minister,  and my 
colleagues--we are deeply grateful. Thank you so much.


President Mubarak. President Clinton, dear friends, ladies and 
gentlemen: Today, we witness another significant step on the road to 
peace and reconciliation in the Middle East. The signing of this 
elaborate agreement testifies to the strength of the new spirit which 
has emerged in our region since we started the peace process years ago. 

It reflects the firm commitment of both Arabs and Israelis to a noble 
cause that was considered, until recently, a distant dream. They made a 
historic choice between the continuation of the unhappy past and the 
opening of a new horizon for their people. 

This dream could not have come true without the courage and the 
farsightedness of a group of determined men who worked together under 
the most difficult circumstances in order to translate their vision into 
a living reality. We commend these courageous leaders and congratulate 
the Palestinian and Israeli people on this historic achievement.  We 
also thank those friendly nations which have stood firmly in support of 
the peace efforts--notably, the American people and their energetic 
leadership who put their full weight behind the peace process. 

Dear friends, while we celebrate this historic event, we are determined 
that the challenge is not over yet. In the months ahead, we have to work 
hand-in-hand to facilitate the faithful implementation of the new agree 
ment. This process will require greater understanding and cooperation. 
Equally needed is the material and the moral support of different 
nations in all four corners of the world. 

We are also reminded that our mission of building peace will not be 
fulfilled until similar progress is made on the Syrian and the Lebanese 
tracks. All of us should reaffirm our fundamental goal of achieving a 
comprehensive, just, and lasting peace. Those who hold the key to 
progress on those tracks are urged to exert maximum effort in the months 
ahead in order to make this possible. 

On the other hand, we should not lose sight of the fact that what has 
been accomplished on the Palestinian front does not constitute a final 
settlement. It is still, nevertheless, an important step that is 
definitely going to make that goal easier to reach.

Finally, it is our duty to prove to all the people of the Middle East 
that the past is behind us at long last and that a brighter future is 
dawning throughout the area--a future that brings to realization not 
only the promise of peace and security but also greater prospects for 
balanced development and prosperity. This should be the cornerstone of 
the vision we have for the new era. Together, God willing, we shall 
succeed in our drive to write that bright chapter in the history of the 
Middle East. Thank you.


Chairman Arafat. President William Clinton, President of the United 
States; Your Majesty King Hussein, King of the Hashemite Kingdom of 
Jordan; President Mohammed Hosni Mubarak, President of the Arab Republic 
of Egypt; Prime Minister Felipe Gonzalez, Prime Minister of Spain and 
President in Office of the European Council; Mr. Yitzhak Rabin, Prime 
Minister of Israel; your excellencies; ministers and ambassadors; ladies 
and gentlemen: We are gathered today under the sponsorship of President 
Clinton, who has generously offered to host the signing of this 
agreement. It has been two years since we met at the White House to sign 
the Declaration of Principles which we and our Israeli partners had 
agreed to in Oslo. We meet again today to make new headway in giving 
hope to this historic process--the process of realizing a credible 
peace, reconciliation, and co-existence between the Palestinian and 
Israeli people, and the peace of the brave, which we achieved on 
Egyptian land at Taba under President Mubarak's auspices.

A significant portion of Palestinian national rights reverts today to 
the Palestinian people through their control of the cities, villages, 
and populated areas. Recovery of this portion is a step in the 
implementation of the interim agreement, the signing of which we are 
gathered here to witness.  It is also a step which paves the way to free 
and democratic Palestinian elections capping, thereby, the political 
components required for the establishment of an independent Palestinian 
national entity on the Palestinian territories.

These steps, which required tremendous efforts as well as exhausting and 
relentless work throughout the past months, do not make us oblivious of 
the fact that added diligence lies ahead to implement this agreement on 
our land in the West Bank. We still carry on our shoulders many other 
tasks, such as moving to the permanent status negotiations. 

The permanent status negotiations will deal with such issues as 
settlements, the delineation of the borders, the rights of Palestinian 
refugees as determined by the international legitimacy, and the 
fundamental issue concerning the status of Jerusalem, which our people, 
irrespective of their faith--Muslims, Christians, or Jews--consider to 
be the heart and soul of their entity and the center of their cultural, 
spiritual, and economic life. I would say that the sanctity of Jerusalem 
for us all dictates that we make it the joint cornerstone and the 
capital of peace between the Palestinian and the Israeli people, 
inasmuch as it is a beacon for believers all over the world.

We urge you all to recognize the importance of this historic interim 
step. It demonstrates the irreversibility of the peace process. Its 
distinct significance lies in the verdict passed by history, the 
international community, and human civilization at the turn of the 
century--that a just and comprehensive peace be established on this 
sacred land, whereby the Israeli and Palestinian people would co-exist 
on the basis of mutual recognition of the rights, while enjoying a 
quality and self-determination without occupation or repeated wars, and, 
without terrorism.

At this point, I must tell our Israeli partners from this solemn rostrum 
and in the presence of our brethren and friends who have come here from 
the region and from all over the world, particularly those who 
contributed to the realization of this agreement, that our past 
experience underscores the need to be more credible and committed to our 
steps in the future. And the commitment should be precise, honest, and 
mutual. For our part, we will honor our commitments. 

That is why the continuation and expansion of the settlement drive, as 
the situation in the city of Hebron and elsewhere shows, lead to the 
persistence of tensions. Likewise, continued qualms about a new and 
dependent Palestinian birth convey to each and every Palestinian the 
feeling that his or her life shall remain in jeopardy.

Today, standing before you, I tell you with courage and a sense of 
responsibility that our participation in the great peace process means 
that we are betting everything on the future. Therefore, we must condemn 
and foreswear violence totally, not only because the use of violence is 
morally reprehensible, but because it undermines Palestinian aspirations 
to the realization of peace and the exercise of our political and 
national options and the achievement of economic and cultural progress 
in Palestine and in the region.

From this day on, we do not want to see any waste of, or threat to, any 
innocent Palestinian life or any innocent Israeli life. Enough killing 
and enough killing of innocent people.

I urge you, Mr. President, together with all our brethren and friends 
gathered here, to keep up the drive for a comprehensive and just 
settlement in our region on all tracks, especially the Syrian and 
Lebanese tracks, to complete all aspects of the process.

Ladies and gentlemen, we are still striving on two parallel fronts. One 
is to achieve a just political solution to    our problem; the other is 
to build a homeland on modern and democratic grounds. For us to succeed 
on both fronts, we are bound to base the emerging Palestinian political 
system on the principles of liberty, democracy, separation of powers, 
freedom of expression, and national initiative. We are also bound to 
continue building Palestinian institutions and the Palestinian national 
economy. But this enterprise is still in its early stages, and our 
institutions have yet to mature.

The road ahead remains long, indeed. We look forward to your continued 
support of our people. And we thank all friendly and brotherly donors 
for their assistance. Mr. President, the experience of your great 
country--the country of freedom, democracy, and human rights--taught us 
that freedom is absolutely indivisible. And here, I would like to 
emphasize to you and to our people and to our devoted friends that our 
people's freedom will remain lacking without all our detainees walking 
free. All the martyrs, the wounded, and the victims shared one dream. 
They dreamt of freedom and a just peace for their children, for Israeli 
children, and for the future generations on both sides. In keeping with 
that dream and with that correct vision, we shall continue along this 
path--the path and reconciliation of the brave, notwithstanding its 
difficulties.

In conclusion, Mr. President, I thank you deeply for your devotion to 
this process and the historic reconciliation. I greatly appreciate your 
personal involvement and the role played by your able aides and by 
members of your Administration who helped us all along to overcome and 
settle difficulties.

I am very grateful to my brother, His Excellency President Mohammed 
Hosni Mubarak, for his great and sincere efforts and for his fruitful 
involvement until the Taba Agreement was crowned with success. I hail 
the support of the custodial of the two holy shrines, King Fahd, and the 
stand and support of His Majesty King Hassan II. I especially thank my 
brother, His Majesty King Hussein, for his support, for his efforts, and 
for his invaluable counseling. 

I thank President Zine El Abidine Ben Ali for his diligence and efforts. 
I also thank my brethren, the Arab leaders, for lending us a willing 
hand. I appreciate the role of the Russian sponsor and that of President 
Yeltsin, who spared no efforts or advice to push the peace process 
closer to its historic destination.

I appreciate, too, the role of permanent member of the United Nations 
Security Council. I expressed my appreciation to Norway, a friendly 
country that has guided us throughout the process. I thank the 
presidency in office and the member states of the European Union who 
exerted maximum efforts and extended great support throughout this 
march. I thank Japan, a friendly country whose backing was vital to our 
efforts. I thank the friendly and brotherly nations which helped realize 
this historic event, particularly the non-aligned movement, the African 
countries, and the Islamic nations.

I am also grateful and thankful to Mr. Rabin, the Prime Minister of 
Israel; and Mr. Peres, the Israeli Foreign Minister; and their able 
aides and assistants for all their tireless efforts they exerted with us 
to reach this joint agreement. I tell them, let us nurture this peace of 
the brave for the sake of our grandchildren, of our people, and of the 
region as a whole. 

Thank you very much, Mr. President. I wish to thank you and the First 
Lady, and I wish to thank your country and your people. My best wishes 
and happiness and prosperity for all of you. Thank you. 


Prime Minister Rabin. First, the good news. I am the last speaker--
before, of course, the closing remarks by the President. 

The President of the United States; King Hussein; President Mubarak; 
Chairman Arafat; prime ministers; foreign ministers; distinguished 
members of the two Houses of the Congress; ladies and gentlemen: Now, 
after a long series of formal, festive statements, take a look at the 
stage--the King of Jordan, the President of Egypt, Chairman Arafat, and 
us--the Prime Minister and the Foreign Minister of Israel--on one 
platform with the President of the United States. Please, take a good, 
hard look. The sight you see before you at this moment was impossible--
was unthinkable just three years ago. Only poets dreamt of it. And to 
our great pain, soldiers and civilians went to their death to make this 
moment possible. 

Here we stand before you--men whose fate and history have sent on a 
mission of peace--to end once and for all 100 years of bloodshed. Our 
dream is also your dream--King Hussein, President Mubarak, Chairman 
Arafat, all the others, and, above all, assisting us, President Bill 
Clinton--a President who is working in the service of peace. We all love 
the same children, weep the same tears, hate the same enmity, and pray 
for reconciliation. Peace has no borders. 

Yes, I know our speeches are already repeating themselves. Perhaps this 
picture has already become routine. The handshakes no longer set your 
pulse racing. Your loving hearts no longer pound with emotion as they 
did then. We have begun to get used to each other. We are like old 
acquaintances. We can tell all about Arafat's grief. He and his friend 
can tell you all about ours. We have matured in the two years since we 
first shook hands here--the handshake that was the sign and symbol of 
the start of reconciliation.

Today, we are more sober. We are gladdened by the potential for 
reconciliation, but we are also wary of the dangers that lurk on every 
side. The enemies of yesterday share a common enemy of today and in the 
future--the terrorism that sows death in our homes and on the buses that 
ply the streets. The sounds of celebration here cannot drown out the 
cries of innocent citizens who traveled those buses to their death. And 
your eyes shining here cannot erase for a single moment the sight of the 
lifeless eyes of the students who were going to their classes and 
housewives who were on their way to market when hatred struck them down. 
We are pained by their death and remember them with love.

I want to say to you, Chairman Arafat--leader of the Palestinians--
together we should not let the land that is flowing with milk and honey 
become a land flowing with blood and tears. Don't let it happen. If all 
the partners to the peacemaking do not unite against the evil angels of 
death by terrorism, all that will remain of this ceremony are color 
snapshots and empty mementos. Rivers of hatred will overflow again and 
swamp the Middle East.

We, gentlemen, will not permit terrorism to defeat peace. We will not 
allow it. If we don't have partners in this bitter, difficult war, we 
will fight it alone. We know how to fight, and we know how to win.

My brother Jews speak through the media to you of thousands of years of 
exile. And the dream of generations have returned us to our historic 
home in the land of Israel--the land of the prophets. Etched on every 
vineyard, every field, every olive tree, every flower is the deep 
imprint of the Jewish history; of the book of the books which we have 
bequeathed to the entire world; of the values of morality and  justice. 
Every place in the land of the prophets, every name is an integral part 
of our heritage of thousands of years of the divine promise to us and to 
our descendants.

Here is where we were born. Here is where we created a nation. Here we 
forged a haven for the persecuted and built a model of a democratic 
country. But we are not alone here on this soil, in this land. So we are 
sharing this good earth today with the Palestinian people in order to 
choose life. Starting today, an agreement on paper will be translated 
into reality on the ground. We are not retreating; we are not leaving. 
We are building, and we are doing so for the sake of peace.

Our neighbors, the Palestinian people--we who have seen you in your 
difficulties, we saw you for generations; we who have killed and have 
been killed are walking beside you now toward a common future, and we 
want you as good neighbors.

Ladies and gentlemen, this week the Jewish people, in thousands of 
places as this, have marked a new era. And in their Holy Day prayers, 
Jews everywhere are saying--[spoken in Hebrew.]  I am translating it to 
the best of my capability: May we be remembered and inscribe, before 
you, in the book of life and of blessing and peace and prosperity, of 
deliverance and comfort and opportunity--we and all your people, the 
House of Israel--for a good life and peace. 

These are my wishes to all the Jewish people. These are my wishes to all 
the citizens of Israel--a good life and a peace. These are also our 
wishes to our neighbors, to all the world's people--a good life and 
peace.

Ladies and gentlemen, look at us again. Look at the scene on the stage 
here in the White House. You are not excited anymore. You have grown 
accustomed to it. But in order for peace to be completed, in order for 
this picture to be completed, and for the Middle East to become a jewel 
in the world crown, it still lacks two people--the President of Syria 
and the President of Lebanon. I call upon them to come and join us, to 
come to the platform of peace.

Ladies and gentlemen, if and when this happens, we will again ask 
President Clinton to be our gracious host. We will again ask King 
Hussein, President Mubarak, Chairman Arafat, and all the others to 
return here to be partners in the glorious picture of all the people of 
the Middle East dwelling in security and peace. 

Ladies and gentlemen, let me extend my wish to all of us that we may 
meet here again, and soon. Happy New Year. [Spoken in Hebrew.]


President Clinton. As we adjourn, let me once again thank all of our 
guests from across the world who have come here to be a part of this, 
and to wish all the parties well. Let me thank those who spoke today for 
their contributions to the peace process.

Let me say a special word of thanks to the Members of Congress who have 
come here from both parties, including both Jewish Americans and Arab 
Americans represented in our United States Congress, for their support 
of the United States' effort. 

And let me close with this simple thought. As the Cold War has given way 
to a global village in which the enemies of peace are many and dispersed 
all across the world, the United States is honored and obligated to be a 
force for peace--from Northern Ireland to Southern Africa, from Bosnia 
to Haiti--to reduce the nuclear threat and the threat of biological and 
chemical weapons to fighting against terrorism and organized crime.

But this is special. For it is in this place that those of us who 
believe that the world was created by, is looked over by and, 
ultimately, will be accountable to one great God--all of us came from 
there, whether we find that wisdom in the Torah or the Koran or the 
Christian Holy Bible. If we could all learn in that place to find the 
secret of peace, then perhaps the dream of peace on earth can truly be 
realized. Thank you, and God bless you all.  (###)



ARTICLE 2:

Israelis and Palestinians: Winning the Struggle for Peace
Secretary Christopher
Remarks at signing ceremony of the Israeli-Palestinian Interim 
Agreement, Washington, DC, September 28, 1995

Mr. President, King Hussein, President Mubarak, Prime Minister Rabin, 
Chairman Arafat, Foreign Minister Peres, Foreign Minister Kozyrev, 
distinguished guests: Two years ago, Israelis and Palestinians embarked 
on a new history. After a century of bloodshed and pain, they took the 
first brave step in a long and difficult journey toward peace.

Today, we bear witness to another extraordinary milestone on that 
historic journey. Israelis and Palestinians have crossed much hostile 
territory since they first came together on this issue. This conflict's 
bitter past has not surrendered easily to a new, more hopeful future. 
But as we are reminded again this morning, the struggle for peace is 
being won. There is no turning back. The journey will be completed when 
Israelis and Palestinians finally live side-by-side as neighbors, with 
security and dignity.

Prime Minister Rabin, Chairman Arafat: This agreement is further 
testament to your courage and determination. Once again, you reaffirm 
our faith in the power of negotiations to overcome even the most 
daunting obstacles. In the face of extraordinary challenges, Israeli and 
Palestinian officials sat together, day after day, month after month 
talking, arguing, talking again, and, finally, in the end, reaching 
agreement.

The achievement you unveil today reflects and, over time, will reinforce 
this unflagging effort to meet the mutual needs of both sides. For 
Israelis, this agreement promises them the security they have long 
sought to live and to work free from terror and violence. For 
Palestinians of the West Bank and Gaza, this agreement gives them the 
opportunity to govern themselves for the first time in their history, 
and, through elections, the chance to build a democratic future. For 
both people, this agreement offers a pathway to a new relationship 
dedicated to peace and prosperity.

Mr. Prime Minister, Mr. Chairman: As you press forward to finish this 
historic work, you should know that the United States will continue to 
stand with you. Working with the two great leaders by your side--King 
Hussein and President Mubarak--we will strive to widen the circle of 
peace to Syria and to Lebanon and across the entire Middle East. 
Starting this afternoon, with our partners in the international 
community, we will redouble our efforts to extend the political and 
economic support you need to make real the promise of this day.

Three months ago in Jerusalem and again three weeks ago in Washington, I 
met with Israeli and Arab children who spent the summer together in a 
program called Seeds of Peace. By developing new friendships, they are 
demolishing old prejudices. By reaching across communities, they are 
resolving a conflict that for too long has divided their people. It is 
their spirit that brings us here today, their lives, their dreams, their 
future--let us not betray them.

We owe it to them and to all of our children to realize the full promise 
of this day. Let us again rededicate ourselves to complete the noble 
task we have started--a task that, in the words of Abraham Lincoln, "the 
world will forever applaud, and God must forever bless." Thank you very         
much.  (###)



ARTICLE 3:

Washington Summit on the Middle East Peace Process: Joint Declaration
Released by the White House, Office of the Press Secretary, Washington, 
DC, September 28, 1995.

President Clinton, His Majesty King Hussein, President Mubarak, Prime 
Minister Rabin, and Chairman Arafat met today to review the dramatic 
progress which has already been made on the road to realization of a 
just, comprehensive, and lasting peace in the Middle East and to 
consider ways and means together to reinforce and accelerate that 
progress.

The leaders affirmed the historic importance of the Israel-Palestinian 
Interim Agreement and praised the dedication and skill of the 
negotiating teams led by Foreign Minister Peres and Chairman Arafat. 
They expressed their support for the Palestinian Authority as it assumed 
self-government responsibilities under the agreement and their hope that 
Palestinian elections would be held as soon as possible. The leaders 
pledged to do everything possible to ensure successful and complete 
implementation of the agreement. They agreed to have their 
representatives meet to discuss ways to support this process and build 
upon it to achieve a comprehensive peace.

The leaders noted their appreciation for the international efforts 
undertaken since September 13, 1993 to support the Israel-Palestinian 
Declaration of Principles and its implementing agreements. They 
recognized the importance of economic cooperation and development in 
supporting a lasting peace in the region and committed themselves to 
enhance mutual coordination for the common benefit of their people and 
all the region. In this regard, they pledged their full support for the 
upcoming Amman economic summit and for the establishment of a Middle 
East Development Bank. They reiterated their call for an end to the Arab 
boycott as soon as possible.

The five leaders expressed their condemnation in the strongest possible 
terms of all acts of violence and terror. They reaffirmed their 
determination to confront all enemies of peace and reiterated the need 
for all possible measures to be taken--founded upon the rule of law--to 
ensure security for the citizens of Israel and for the Palestinian 
people.

The leaders reviewed progress in the Syria-Israel negotiations and 
reaffirmed their conviction that early conclusion of a peace treaty 
between these two countries and between Israel and Lebanon would be key 
steps toward their common goal of a just, comprehensive, and lasting 
peace in the region.  (###)



ARTICLE 4:

A Common Strategy for Economic Growth in the West Bank and Gaza Strip
Secretary Christopher
Remarks at opening session of the Ad Hoc Liaison Committee meeting, 
Washington, DC, September 29, 1995

Fellow ministers and dignitaries: Welcome to the State Department. We 
convene at a moment of great promise and urgency. The agreement signed 
this morning must be viewed from the perspective not of a few years, or 
a decade, or even a generation, but from the perspective of an entire 
century of conflict and suspicion. Defying the odds, Israelis and 
Palestinians have again taken a major step forward on the road to peace. 
It is an opportunity none of us can afford to lose. The effort to create 
a better future for the Palestinians has been one of the international 
community's highest priorities for three decades. Today, with this 
agreement, that goal finally lies within our grasp.

Israelis and Palestinians have done their part. They have completed an 
extremely complex set of negotiations. They have overcome intense 
political opposition. They have stood firm in the face of repeated acts 
of terror and violence. Now we must do our part. Two years ago, at our 
first donors' meeting, we correctly identified our central task--to help 
the Palestinians convert the promise of peace into real improvements in 
their lives. We understood that for peace to endure and win lasting 
support, it needed to produce tangible benefits for people on the 
ground.

Since then, important gains have been made. With our support, the 
Palestinian Authority has come into being. There now exists a working 
set of institutions for Palestinian self-governance. In Gaza, a 
construction boom is beginning to transform the landscape. For the first 
time, Palestinians there can see the signs of a better future beginning 
to take shape. We must build on that progress and extend it to the West 
Bank. To succeed, we must re-energize and refocus the assistance effort. 
For this next phase, we should agree today on a common strategy for 
building the infrastructure necessary for sustained economic 
development. The resources of the international community must be 
targeted on key projects like new roads, wells, and water and sewage 
systems. Above all, we must help Palestinians create the jobs and 
economic opportunities that will broaden the constituency for a lasting 
peace. The United States and the World Bank have identified a list of 
priority infrastructure projects. On October 18, in Paris, the Bank will 
chair a Consultative Group meeting at which our experts can discuss 
these projects in more detail. Then, during the first week of December, 
in conjunction with Norway and the EU, we will convene a conference on 
economic assistance to the Palestinians. At that time, we expect 
countries to announce the specific projects they will undertake, backed 
by formal pledges of resources.

The United States has already begun redesigning its assistance program 
to reflect this new focus and urgency. At this conference, we plan to 
announce the allocation of a substantial part of our five-year, $500 
million commitment. Among our highest priorities will be water projects 
throughout the West Bank, including an immediate upgrade of the water 
distribution system in Hebron. Our aim is to help ease shortages and 
raise the quality and quantity of water--an issue of strategic 
importance to both sides.

The United States will also support plans by Israel and the Palestinian 
Authority to create industrial zones that will attract new business and 
private investment, while generating rapid job growth. The United States 
has been working with Israeli and Palestinian officials to grant 
reciprocal duty-free status for products manufactured in the West Bank 
and Gaza. We are now moving to conclude these negotiations.

While our focus will shift to infrastructure, the Palestinian Authority 
will continue to need help in meeting its own start-up costs, especially 
as it gains responsibility for the West Bank. The IMF estimates that 
additional resources will be required in 1996. The United States will 
announce a substantial pledge to the Holst Fund, and we urge others to 
do the same. We also hope the need for outside budgetary support will be 
eliminated as soon as possible, and we appreciate Palestinian efforts to 
hold down costs and collect taxes.

We must also continue to support key sectors of the Palestinian 
Authority. The development of a professional police force is essential 
to maintain order and fight terrorism. Multilateral efforts have made an 
important contribution toward this goal. The United States has donated 
hundreds of vehicles to the police. Spain, Russia, and Japan have 
offered other equipment or housing. Egypt and Jordan have provided 
training, and Norway, Saudi Arabia, and others have funded police 
salaries. Public health is also a top priority. Complementing the 
efforts of other donors to improve Palestinian medical services, the 
United States has just delivered a large package of equipment and 
supplies for use in health facilities in the West Bank.

Finally, we must support next spring's Palestinian elections and the 
development of democratic institutions in the West Bank and Gaza. We 
applaud the EU's leadership role in organizing election monitors. In all 
of these efforts to help the Palestinians, the broader our international 
coalition, the better. All of us face  constraints. Therefore, all of us 
must share the burden, not just in providing resources, but in 
mobilizing wider donor support. Only a broad-based, coordinated effort 
can help the Palestinians succeed. Regional initiatives such as the 
Middle East Development Bank must also play a critical role in building 
a wider foundation for regional prosperity. At next month's economic 
summit in Amman, I expect we will agree to create the bank and to pursue 
other means of spurring private sector investment and job creation.

In closing, let me urge each of your governments to review expeditiously 
the strategy we outline today, especially the list of infrastructure 
projects. Now is the time for us to act--with vision and boldness--to 
consolidate the agreements the Israelis and Palestinians have 
courageously concluded. I look forward to hearing from you today and to 
intensifying our cooperation in the crucial weeks ahead. Thank you very 
much. (###)



ARTICLE 5:

The Middle East Peace Process:U.S.-Israeli-Palestinian Trilateral 
Commission Established
Secretary Christopher, PLO Chairman Arafat, Israeli Foreign Minister 
Peres
Remarks following trilateral meeting, Washington, DC, September 29, 1995


Secretary Christopher

Good morning. I am very pleased to welcome back to the State Department 
Chairman Arafat and Foreign Minister Peres. Yesterday was certainly a 
great day, and I take this opportunity to congratulate them again on 
their accomplishment and creativity--I guess also I ought to say, 
considering the kind of a day it was, their endurance and staying power.

This morning, we have the first meeting of the U.S.-Israeli-Palestinian 
trilateral commission. This commission is called for in the agreement 
that was signed yesterday, and it underscores the role of the United 
States as a full partner in this process. There is a similar trilateral 
commission between the United States, Jordan, and Israel that has proved 
to be very valuable; this commission will follow in those footsteps.

In our meeting this morning, the parties agreed that the new commission 
would have, among others, the following purposes. 

First, to promote cooperative efforts--both public and private in 
character--to foster economic development, not only in Gaza, but, of 
course, in the entire West Bank now. This would include the 
establishment of industrial zones and other projects of great interest 
to the people such as, perhaps, an electricity grid or tourism, 
including hotels.

The second purpose will be to explore how to increase the availability 
of water resources--both additional resources and the more efficient use 
of water resources.

Third, the commission will consult on matters of mutual interest to 
enhance the success of the Interim Agreement that was signed yesterday.

Finally, this new commission will  promote trilateral cooperation on 
regional issues. A good regional issue to start on is the Amman summit 
at the end of October.

It is worth emphasizing that this commission does not replace bilateral 
efforts. Certainly the bilateral efforts will be the primary focus, but 
the trilateral group will seek to support and complement the bilateral 
efforts. We are going to set up a working group to carry forward the 
activities. This working group will be under the leadership of an 
experts group. The experts group will consist of Dennis Ross, Uri Savir, 
and Abu Alaa--all of whom have the advantage of great familiarity with 
the document that was signed yesterday. As I say, this experts group 
will direct the work of working groups on specific issues.

As I conclude, let me simply emphasize that the meeting this morning 
emphasizes the continuing commitment of the United States to this 
process, and we will try to carry that out in the form of this 
trilateral commission, maintaining our long-standing position to help 
the parties achieve a durable peace and to assist the parties who have 
taken risks for peace.

Thank you, Mr. Chairman and Shimon, and I offer you, Mr. Chairman, an 
opportunity to make a brief comment, and then Foreign Minister Peres.


Chairman Arafat

First of all, we have to thank His Excellency for giving us this very 
important opportunity. This meeting today is one of the most important 
results of what was agreed upon yesterday. We hope that what was 
mentioned and what was discussed--especially the industrial zones and 
the water treatment and all other projects--will be very soon 
implemented because we are in need of it, as you know.

We hope for that through this coordination between all of us. And we 
hope that we will have also, besides that, the support and agreement 
with the Jordanians and the Egyptians so that we can have a full program 
in the whole area, including the preparation for the Amman economic 
conference--and including the investment bank which we have discussed 
together. But what is important is how to implement accurately and 
honestly and very quickly what has been agreed upon.

I am sure that Your Excellency will push--with His Excellency, Mr. 
Peres--to get the use of what had been mentioned and has been agreed 
upon. Thank you very much.


Foreign Minister Peres

I think I owe the world an explanation. Many of our American friends 
think that we are taking advantage of the White House and the lawn of 
the White House for ceremony-making. It is not the case.

The real case is that the United States is today heading an 
administration for peace. For many good years, the United States was in 
charge of containing the great dangers of our time. Today, the United 
States is the only country in the world that has the mechanism, the 
will, the capacity, the intellectual interest, and the detailed 
knowledge to really run the peace process--over all the other places--
and we are very grateful for it. I can say from our point of view how 
important this Administration is.

Then I would like to add that between the peace agreement and the peace 
reality lies the economic success. I think all of us have to mobilize 
the best we can to enable our Palestinian friends not only to gain what 
they have gained in independence in the way of running their lives, but 
also to make their lives happier and wealthier--both for every 
individual and all of them. It is for that purpose that we have agreed 
to follow the Jordanian example and create, as the Secretary said, a 
three-party committee. We have specific ideas--such as industrial parks 
along-side the dividing line between us and the Palestinians instead of 
putting mines. We want to build occasions for cooperation.

The second point is water and electricity. These are two materials that 
do not submit to politics. Neither electricity nor water tend to be left 
or right or respect frontiers. Unless we follow nature, we shall lose 
it. We want to have full cooperation in it, including, as the Chairman 
has said, the Jordanians and the Egyptians, eventually, as well. Then we 
want to see what can be done in the way of housing and in the way of 
tourism.

May I say that the chairmanship of the United States--the State 
Department and the Secretary of State--is of real and important help and 
meaning. I believe I have to say it, because we created the impression 
that we are busy in ceremonies--ceremonies are just an occasion to raise 
a glass once we have a justification for it. But, otherwise, we have 
hard work to do, and we are doing it together very well. Thank you.  
(###)



ARTICLE 6:

Trends in the Middle East Provide Opportunities for U.S. Businesses
Joan Spero, Under Secretary for Economic, Business, and Agricultural 
Affairs
Address before the Business Council for International Understanding, New 
York City, September 26, 1995

I am pleased to have the opportunity to speak with you today about the 
Middle East, and I appreciate very much BCIU's invitation. BCIU's 
contributions to international understanding--ranging from your 
sponsorship of our Middle East Ambassador's tour to your work helping to 
set up a White House event for the American Irish community--are well 
known to and  much appreciated by Secretary Christopher and the rest of 
us at the Department of State.

I just returned from a tour of the Middle East, and I am excited about 
where the Middle East is headed. Speaking as a former business 
executive, I believe that there are real opportunities here for you to 
be excited about as well. Three trends are emerging simultaneously: 
peace, economic liberalization, and regional cooperation. If they 
continue, they will reinforce each other and help brighten the future 
for the Middle East.

Status of the Peace Process

The peace process is key to this region's economic future. This historic 
process is shaping a stable climate in the region, changing its economic 
prospects for the years ahead. While we do  not yet have a comprehensive 
peace,  progress is stunning. We have witnessed extraordinarily 
important political changes in the region in the  last few years--the 
agreements between Israel and Jordan and the Palestinians. I was just in 
Gaza where I  saw with my own eyes the physical and psychological 
transformation which has taken place in the past year. As the peace 
process moves ahead, regional rivalries will yield to regional 
cooperation, and we will see new opportunities for economic growth.

A just, lasting, and comprehensive peace in the Middle East is a 
fundamental goal of Arabs and Israelis alike. In the past two decades, 
the United States has played a vital role in helping the regional 
parties achieve this goal. We will continue to do so until the task is 
accomplished. Economic progress has been and will continue to be 
critical to the success of peace in the Middle East--because, 
ultimately, long-term peace depends on concrete benefits for  the people 
in the region. Those benefits will not flow without increased 
entrepreneurial energy, trade and investment, and regional cooperation.

Many of you have watched the peace process and undoubtedly wish to  
explore the economic changes it will bring. The region certainly has 
great potential. The Middle East has a well-educated population of more 
than 100  million, rich culture and traditions, and enormous natural 
resources. You know the potential for development clearly exists. But 
historically, the region has been and still is an economic 
underachiever, attracting less than 5% of international capital. Armed 
conflict, regional rivalries, and statist economic thinking have 
contributed to poor economic performance.

Few would have foreseen the extent of the peace achieved thus far in the 
Middle East. As peace takes hold and expands, travel to the region is 
flourishing, sparking new investment in the hospitality and tourism 
industry. Capital investment projects once blocked by political barriers 
are now commercially viable, and growing regional stability is putting 
potential investors at ease about the safety of their investments.

Reform and Liberalization

As the peace process has moved forward, a parallel process of economic 
reform and liberalization also has begun to take shape. Protectionism 
and a  heavy state hand have long characterized most economies in the 
Middle East. For too long, the countries in the  region relied on state-
owned industry, closed their national markets, depended on a few 
products for exports, and did not look to export-led growth and 
international markets. You  know that the recent economic success 
stories--East Asia and Latin America--started by creating a positive 
environment for private sector development and for exports as a basis 
for their economic takeoff. For the countries in the Middle East to 
fulfill their economic potential, they also must promote free markets at  
home and trade with the world. Without liberalization, the economic 
opportunities created by regional peace will not materialize. And 
without economic growth led by strong private sector activity, the 
prospects for long-term regional peace and stability are vastly 
diminished.

We can see the beginnings of this liberalization process at the national 
level. In Jordan, which I also visited last week, I was briefed by the 
Crown Prince and key ministers on the strides the country has taken in 
recent months to create a business-friendly climate. A new, more open 
investment code passed the Jordanian Parliament this month, and tax 
reforms passed the Parliament a few weeks before. The new codes will 
make business practices in Jordan much more friendly to foreign and 
private investment. 

The government has successfully launched its privatization program, 
starting with the booming tourism sector. Sound macroeconomic management 
has enabled Jordan to meet IMF targets. In  fact, Jordan recently 
received a $33-million disbursement under its $268-million extended 
credit facility. The U.S. also has helped by agreeing to write off 
Jordan's entire official debt of $700 million. Jordan's economy is 
expected to grow 6% in 1995, exceeding the IMF's original estimate. 
While more work lies ahead--on intellectual property rights and 
membership in the World Trade Organization, for example--Jordan is 
clearly committed to moving in the right direction.

Israel and Egypt are also vigorously pursuing economic reform. Over the 
past two years, Israel has made considerable progress in reforming its 
financial and capital markets and has sharply reduced its budget 
deficit. Its GNP is up 6% this year, and inflation is down to less than 
5%. Three major Israeli state firms have recently been privatized, and 
planning is underway for international bidding for stakes in two major 
banks and several other major enterprises. We continue to encourage 
senior Israeli officials to advance privatization and economic reform, 
as I did last week in Israel, when I chaired the U.S. delegation to the 
U.S.-Israel Joint Economic Development Group--JEDG.

In Egypt, President Mubarak recently announced important steps to  
improve the business climate. He stated his intention to liberalize 
investment procedures and construction licenses, take new steps to 
attract foreign investors, and increase the sale of shares of public 
sector companies on the stock exchange from the current 10% of share 
value to 40%. Over the past four years, Egypt has unified its multiple 
exchange rates, liberalized interest rates, reduced its budget deficit 
from 17% of GDP to less than 2%, cut inflation in half, and developed a 
healthy balance-of-payments position.

We are working closely with Egyptian leaders to encourage them to build 
on these successes by unleashing the Egyptian private sector to make the 
investments needed for greater economic growth and job creation. Vice 
President Gore and President Mubarak announced last March the formation 
of a Partnership for Economic Growth, which establishes a cooperative 
effort between the U.S. and Egyptian Governments and their respective 
private sectors as well. A key element in the partnership is the 
formation of a Presidents' Council of private senior executives to 
advise the two governments on ways to remove barriers to private sector 
growth and cooperation.

In contrast to these positive elements, some of the traditional problems 
connected with doing business in this area still exist. The Arab 
boycott, while eroding steadily, remains a barrier to be eliminated. 
Jordan deserves praise for recently passing legislation rejecting this 
symbol of the past. The Gulf Cooperation Council countries also 
announced a year ago that they would end their adherence to aspects of 
the boycott. We look forward to the early disappearance of the boycott 
in its entirety, and we will continue to press Arab League members to 
dismantle it. The elimination of the boycott would send a strong market 
signal that the regional economy is open for business.

Another serious problem in the Middle East--the chronic problem of 
capital flight--will diminish with political stability combined with 
appropriate market signals. The Middle East is a net exporter of 
capital. Large amounts of capital from the region sit in banks around 
the world because the owners do not feel that it will be secure in the 
region. That needs to change. When that private indigenous capital is 
leveraged with public funds, the region can really begin to take off.

Regional Initiatives

As countries in the region pursue modernized economies, they also are 
beginning to pursue a coordinated approach to regional development. 
Jordan and Israel are working together to develop an integrated 
development plan for the Jordan Rift Valley, and the Israelis and the 
Palestinians are cooperating to establish joint industrial zones. The 
Regional Economic Development Working Group--REDWG-- created as a part 
of the Madrid peace process, has made notable progress over the past 
31/2 years in promoting economic cooperation across the region. And 
central to all of this is the Middle East/North Africa Economic Summit, 
which will take place in Amman at the end of October.

The first such economic summit was held in Casablanca last year. It 
broke new ground for the region in economic terms, just as the Madrid 
conference in 1991 was the symbol of a political transformation. 
Casablanca opened the door for a region-wide public/private partnership. 
The Amman summit will capitalize on the possibilities of this 
partnership.

At Casablanca, government and business representatives from nearly 60 
countries announced several regional initiatives, and we have been 
working to bring them to fruition for the Amman summit. We are working 
with our friends in the area to bring into being two of these--a 
Regional Business Council and a Regional Tourism Association. These two 
bodies will act as advocates for the private sector point of view, 
sources of data on business opportunities, and engines of new cross-
border business ties.

Another of the key regional bodies--the Middle East/North Africa 
Development Bank--also will be oriented toward the private sector. This 
bank was the subject of many of my conversations in the Middle East last 
week and in Paris, where I stopped to meet senior officials in the 
Foreign Ministry and the offices of the President and Prime Minister. 
Although it will finance some public projects, the bank will focus more 
on commercial projects and the private sector. We are  pursuing 
capitalization of approximately $5 billion, with paid-in capital of  
roughly $1.25 billion. Those funds would be used to leverage resources 
that already exist, for example, in the  private sector, the World Bank, 
and  the  European Investment Bank. The bank will foster regional 
projects and  regional economic cooperation in  general. We plan to 
announce the formation of the bank at the Amman summit.

In addition to these regional institutions, the Amman summit will place 
a major emphasis on the concerns of business. While there will be high-
level political participation, the sessions will be largely focused on 
business opportunities and networking among business people. The summit 
will feature workshops, project briefings, and numerous opportunities to 
engage senior regional policymakers. For example, a breakfast will 
permit international business people to mix informally with their 
Jordanian counterparts. The World Economic Forum, which is organizing 
the summit sessions, will also provide an e-mail system for participants 
to keep in touch, and the United States will operate a business center 
to help U.S. participants make the contacts they want.

We are convinced that the Amman summit will help businesses tap into the 
potential of the region. There are genuine investment opportunities. 
There are a broad range and scope of projects being offered in the 
energy, telecommunication, transportation, and tourism sectors. Some 
projects are already well along and will be inaugurated in Amman. A 
joint Israeli-Jordanian airport is in the works in the Eilat/Aqaba area. 
While I was in the region last week, government ministers from the four 
key regional parties met in Amman and agreed on a short list of high-
profile projects to highlight at the summit. In addition to the joint 
airport, these include joint tourism activities, roads, bridges, 
interconnection of electricity grids, telecommunications upgrades, and 
special economic zones.

Conclusion

To sum up, peace and security and the  eventual reconciliation among the  
peoples of these ancient lands have begun to create an environment for 
sustained economic development. Those who pursue investment in today's 
Middle East will be in on the ground floor of an exciting transformation 
in this region of history and tradition. We have no illusions that doing 
business in this part of the world is easy. Success will not come 
overnight, but there is remarkable progress. In Casablanca last year, we 
said the Middle East was open for business. In Amman next month, we plan 
to say the Middle East is in business. We are convinced that determined 
business people like you can succeed, and we will do whatever we can to 
help you do so. (###)



ARTICLE 7:

What's in Print 
Foreign Relations of the United States

The latest volume in the Department of State's long-standing series 
Foreign Relations was recently released--Foreign Relations of the United 
States, 1964-1968, Volume XIII, Western Europe Region. This volume 
documents the policies and developments during the administration of 
President Lyndon B. Johnson.

Relations with the Soviet Union had entered a somewhat less 
confrontational period after the easing of tensions over Berlin. 
However, burgeoning West European economic power, revived French 
nationalism, and Germany's growing role inside NATO posed new challenges 
for the Atlantic alliance.

To meet these challenges, U.S. policymakers initially concentrated on 
the Multilateral Force (MLF) concept as a tool to achieve their goals of 
consolidating the defense of Europe, avoiding the proliferation of 
national nuclear capabilities, and promoting closer European 
cooperation. In the end, however, the MLF proved to be politically 
unworkable.

The attention of policymakers was diverted from MLF by French President 
Charles de Gaulle's challenge to the structure of NATO. His decision to 
withdraw France from military participation in the alliance and to place 
all foreign forces and military installations in France under French 
command put U.S. interests in Europe in danger. President Johnson 
instructed his senior aides to reconstruct NATO outside of France as 
quickly as possible, and after effectively isolating France from 
discussions on the subject, NATO members agreed to move NATO 
Headquarters from France. 

The level of West German offset payments to the United States and the 
United Kingdom for the cost of stationing their troops there was another 
troubling issue. Settlement of this issue--crucial to both countries--
was concluded successfully. 

This volume, prepared by the Department of State's Office of the 
Historian, is one of 35 planned volumes documenting the foreign policy 
of the Johnson Administration. For further information, contact David C. 
Humphrey, Chief of the General and European Division, at (202) 663-1142; 
fax (202) 663-1289.

Copies of Volume XIII (GPO Stock No. 044-000-02401-2) may be purchased 
for $37.00 postpaid ($46.25 for foreign orders). VISA, MasterCard, and 
personal checks are accepted. Order from:

U.S. Government Printing Office
Superintendent of Documents
P.O. Box 371954
Pittsburgh, PA 15250-7954 

To order by phone, call (202) 512-1800; to fax your order, call (202) 
512-2250. (###)

[END OF DISPATCH VOL 6, NO 41]

(###)

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