U.S. Department of State Dispatch
Volume 6, Number 46, November 13, 1995
Bureau of Public Affairs

                           U.S. Department of State
November 13, 1995                               Volume 6, Number 46


1. Assassination of Israeli Prime Minister Yitzhak Rabin--President 
Clinton, Secretary Christopher
2. The Amman Economic Summit: Transforming the Middle East Through a 
Public-Private Partnership--Secretary Christopher
3. U.S. Government and Business Advance the Middle East Peace Process--
Secretary Christopher, Commerce Secretary Brown
4. Establishment of the Qatari-Palestinian Investment Fund--Secretary 
Christopher, Qatari Foreign Minister Shaikh Hamad bin Jasim Al Thani, 
PLO Chairman Arafat 
5. Exploration of New Business Opportunities in the Middle East--
Secretary Christopher, Commerce Secretary Brown, Jordanian Crown Prince 
6. The U.S. and Saudi Arabia: Working Together for Security, Stability, 
and Peace in the Middle East--Secretary Christopher, Saudi Foreign 
Minister Prince Saud Al Faisal
7. Containing Iran--Peter Tarnoff, Under Secretary for Political Affairs
8. Marine Degradation From Land-Based Activities: A Global Concern--Vice 
President Gore
9. American Fishermen To Be Reimbursed for Canadian "Transit Fee" 
10. U.S. Policy To Combat International Narcotics Trafficking and 
International Crime--Robert S. Gelbard
11. Joint Communique of the 27th R.O.K.-U.S. Security Consultative 


Assassination of Israeli Prime Minister Yitzhak Rabin
President Clinton, Secretary Christopher

President Clinton
Statement released by the White House, Office of the Press Secretary, 
Washington, DC, November 4, 1995.

The world has lost one of its greatest men--a warrior for his nation's 
freedom, and now a martyr for his nation's peace.

To Leah Rabin and her children, Hillary and I send our love and our 
prayers. To the people of Israel, I want you to know that the hearts and 
prayers of all Americans are with you. Just as America has stood by you 
in moments of crisis and triumph, so now we all stand by you in this 
moment of grieving and loss.

For half-a-century, Yitzhak Rabin risked his life to defend his country. 
Today, he gave his life to bring it a lasting peace. His last act, his 
last words, were in defense of that peace  he did so much to create. 
Peace must  be and peace will be Prime Minister Rabin's lasting legacy.  

Tonight, the land for which he gave his life is in mourning. But I want 
the world to remember what Prime Minister Rabin said here at the White 
House barely one month ago, and I quote: "We should not let the land 
flowing with milk and honey become a land flowing with blood and tears.  
Don't let it happen."

Now it falls to us, all those in Israel, throughout the Middle East, and 
around the world who yearn for and love peace to make sure it doesn't 

Yitzhak Rabin was my partner and my friend. I admired him, and I loved 
him very much. Because words cannot express my true feelings, let me 
just say shalom, chaver--goodbye, friend.

Secretary Christopher
Statement released by the Office of the Spokesman, Washington, DC, 
November 4, 1995.

I am deeply shocked and saddened by the tragic news of the assassination 
of Israeli Prime Minister Yitzhak Rabin. History will record Prime 
Minister Rabin as one of the towering figures of this century. He 
dedicated his life to Israel, its security, and the cause of peace. 
Heroic in war and in the service of his country, he pursued peace with 
the same courage and determination.

The world has lost a leader and a statesman, Israel has lost one of its 
finest sons, and we have lost a strong and true friend of the United 

We will rededicate ourselves to the very causes that inspired this great 
leader: the security of Israel, the unshakable bonds of friendship 
between the United States and Israel, and the promotion of Middle East 

I would like to extend my deepest condolences to his wife Leah and the 
people of Israel. 

President Clinton
Remarks at the state funeral of Prime Minister Rabin, Har Herzl 
Cemetery, Jerusalem, November 6, 1995.

To Leah, to the Rabin children, grandchildren, and other family members, 
President Weizman, Acting Prime Minister Peres, members of the Israeli 
Government and the Knesset, distinguished leaders from the Middle East 
and around the world--especially His Majesty King Hussein for those 
remarkable and wonderful comments--and President Mubarak for taking this 
historic trip here, and to all the people of Israel:

The American people mourn with you in the loss of your leader. And I 
mourn with you, for he was my partner and friend. Every moment we shared 
was a joy because he was a good man and an inspiration and because he 
was also a great man.

Leah, I know that too many times in the life of this country you were 
called upon to comfort and console the mothers and the fathers, the 
husbands and the wives, the sons and the daughters who lost their loved 
ones to violence and vengeance. You gave them strength. Now, we here and 
millions of people all around the world, in all humility and honor, 
offer you our strength. May God comfort you among all the mourners of 
Zion and Jerusalem.

Yitzhak Rabin lived the history of Israel. Through every trial and 
triumph--the struggle for independence, the wars for survival, the 
pursuit of peace and all, he served on the front lines--this Son of 
David and of Solomon took up arms to defend Israel's freedom and laid 
down his life to secure Israel's future. He was a man completely without 
pretense, as all of his friends knew. I read that in 1949, after the War 
of Independence, David Ben Gurion sent him to represent Israel at the 
armistice talks at Rhodes, and he had never before worn a necktie and 
did not know how to tie the knot. So the problem was solved by a friend 
who tied it for him before he left and showed him how to preserve the 
knot simply by loosening the tie and pulling it over his head. Well, the 
last time we were together, not two weeks ago, he showed up for a black-
tie event on time, but without the black tie. And so he borrowed a tie, 
and I was privileged to straighten it for him. It is a moment I will 
cherish for as long as I live.

To him, ceremonies and words were less important than actions and deeds.  
Six weeks ago--the King and President Mubarak will remember--we were at 
the White House for the signing of the Israeli-Palestinian agreement. A 
lot of people spoke. I spoke, the King spoke, Chairman Arafat spoke, 
President Mubarak spoke, our foreign ministers all spoke. Finally Prime 
Minister Rabin got up to speak and he said, "First, the good news--I am 
the last speaker."

But he also understood the power of words and symbolism: 

"Take a look at the stage. . . The King of Jordan, the President of 
Egypt, Chairman Arafat, and us,  the Prime Minister and Foreign Minister 
of Israel, on one platform. Please take a good, hard look. The sight you 
see before you was impossible, was unthinkable just three years ago. 
Only poets dreamt of it. And to our great pain, soldiers and civilians 
went to their deaths to make this moment possible."

Those were his words.

Today, my fellow citizens of the world, I ask all of you to take a good, 
hard look at this picture. Look at the leaders from all over the Middle 
East and around the world who have journeyed here today for Yitzhak 
Rabin and for peace. Though we no longer hear his deep and booming 
voice, it is he who has brought us together again here in word and deed 
for peace.

Now, it falls to all of us who love peace and all of us who loved him to 
carry on the struggle to which he gave life and for which he gave his 
life. He cleared the path and his spirit continues to light the way. His 
spirit lives on in the growing peace between Israel and her neighbors. 
It lives in the eyes of the children--the Jewish and the Arab children--
who are leaving behind a past of fear for a future of hope. It lives on 
in a promise of true security.

So let me say to the people of Israel, even in your hour of darkness, 
his spirit lives on, and so you must not lose your spirit. Look at what 
you have accomplished--making a once barren desert bloom, building a 
thriving democracy in a hostile terrain, winning battles and wars, and 
now winning the peace, which is the only enduring victory.

Your Prime Minister was a martyr for peace, but he was a victim of hate. 
Surely we must learn from his martyrdom that if people cannot let go of 
the hatred of their enemies, they risk sowing the seeds of hatred among 
themselves. I ask you, the people of Israel, on behalf of my nation that 
knows its own long litany of loss--  from Abraham Lincoln to President 
Kennedy to Martin Luther King--do not let that happen to you.

In the Knesset, in your homes, in your places of worship, stay the 
righteous course. As Moses said to the children of Israel when he knew 
he would not cross over into the promised land, "be strong and of good 
courage, fear not for God will go with you. He will not fail you. He 
will not forsake you." President Weizman, Acting Prime Minister Peres, 
to all the people of Israel, as you stay the course of peace, I make 
this pledge: neither will America forsake you.

Legend has it that in every generation of Jews from time immemorial, a 
just leader emerged to protect his people and show them the way to 
safety. Prime Minister Rabin was such a leader. He knew as he declared 
to the world on the White House lawn two years ago, that the time had 
come, in his words, "to begin a new reckoning in the relations between 
people, between parents tired of war, between children who will not know 
war." Here in Jerusalem, I believe with perfect faith that he was 
leading his people to that promised land.

This week, Jews all around the world are studying the Torah portion in 
which God tests the faith of Abraham, patriarch of the Jews and the 
Arabs.  He commands Abraham to sacrifice Yitzhak. "Take your son, the 
one you love, Yitzhak." As we all know, as Abraham in loyalty to God was 
about to kill his son, God spared Yitzhak. Now, God tests our faith even 
more terribly, for he has taken our Yitzhak.

But Israel's covenant with God--for freedom, for tolerance, for 
security, for peace--that covenant must hold. That covenant was Prime 
Minister Rabin's life's work. Now, we must make it his lasting legacy. 
His spirit must live on in us.

The Kaddish, the Jewish prayer for mourning, never speaks of death, but 
often speaks of peace. In its closing words, "May our hearts find a 
measure of comfort and our souls the eternal touch of hope"--"Oseh 
shalom bimromov hu ya'aseh shalom aleinu ve'al kol Yisrael, ve'imru 
amen. Shalom, chaver." 



The Amman Economic Summit: Transforming the Middle East Through a 
Public-Private Partnership
Secretary Christopher
Remarks at the Sports City Complex, Amman, Jordan, October 29, 1995

Excellencies, ladies and gentlemen: On behalf of President Clinton and 
the United States, I want to express my deep gratitude to King Hussein, 
Crown Prince Hassan, and the people of Jordan for hosting this economic 

Your Majesty, for four decades, you have been a force for peace in a 
region that has known so much war. You have infused your kingdom with a 
spirit of civility and tolerance. And working together with Prime 
Minister Rabin, Chairman Arafat, President Mubarak, King Hassan, and 
others, your vision and courage are transforming the Middle East.

Four short years ago, the Madrid conference launched a process that has 
demonstrated that negotiations can succeed. Enemies can become partners; 
and across lands whose ancient religions have long inspired humanity, 
peace can prevail.

One month ago in Washington, we witnessed another historic agreement 
between the Prime Minister of Israel and the Chairman of the PLO. 
Building on the 1993 Declaration of Principles, the deal they signed 
marks a great step toward the shining goal of Israeli-Palestinian 

And just one year ago, in the desert south of Amman, the world watched 
as you, Your Majesty, and Prime Minister Rabin built a bridge of peace 
between your two people. Last week, Israel and Jordan signed agreements 
on agriculture, economic cooperation, and development in the Gulf of 
Aqaba-- agreements that will bring the concrete benefits of peace.

If these accomplishments are to be truly secure, peace must be 
comprehensive. It must be extended to include both Syria and Lebanon. 
Today, I want to reaffirm on behalf of President Clinton that the United 
States will continue to work with the parties to help them achieve a 
breakthrough for peace.

We also know that peace must reach beyond diplomats and documents. 
Agreements between governments are the basis of peace. But the reality 
of peace is found in deeds, not words. Peace is the construction boom in 
Gaza, a four-fold increase in foreign investment in Israel, the 
desalination center planned in Oman, and the tour package jointly 
promoted by El Al and Royal Jordanian Airlines.

For too long, this has been a region of warriors and widows. Let it 
again become a region of builders and traders. Let its future be shaped 
by   the imagination and ingenuity of its entrepreneurs, the knowledge 
and curiosity of its children, and the wisdom and memory of its people.

This vision of a prosperous peace first brought us together a year ago 
in Casablanca. Here in Amman, we will fulfill the pledges we made in 
Casablanca. We will launch a series of regional institutions that share 
an overarching purpose--to improve the ability of the private sector to 
do business in the Middle East and to promote the region's economic 
development and integration.

First, we will create the Bank for Economic Cooperation and Development. 
The bank's establishment is a major milestone--not least because it is 
the first such initiative put forward by the parties to the peace 
process themselves. Jordan, Egypt, the Palestinians, and Israel all 
agreed on the need for a bank that would support the region's most 
worthy private sector projects, promote essential infrastructure 
development, and encourage privatization and wide-ranging economic 

The United States is committed to ensuring that the bank meets these 
critical needs and that it is governed by strict rules of 
accountability. The bank must complement, not duplicate, the efforts of 
other institutions such as the World Bank. The bank must learn from the 
experience of similar regional institutions. We will work with our 
partners in the region and the international community to make sure that 
the Bank succeeds.

Second, this summit will establish the Middle East-Mediterranean Travel 
and Tourism Association. Open to governments and private firms 
everywhere, the association will harness the world's largest industry--
and one of its best sources of hard currency earnings--as a catalyst of 
regional economic growth. It will encourage cooperation within the 
region and support integration into global tourism networks.

In these lands of miracles and monuments are the red temples of Petra, 
the golden colonnades of Palmyra, the Roman ruins of Caesarea, the vast 
amphitheater of Carthage,  and the giant thrones of Abu Simbel. Peace 
should throw the wonders of the Middle East open to the world. Already 
Jordan's tourism revenues have doubled in the year since it made peace 
with Israel. Other nations can do the same.

Third, we will launch the Regional Business Council with leaders from 
private business and government. The council will be a permanent forum 
for exchanging information, developing investment opportunities, and 
encouraging a world-class business environment. I want to acknowledge 
the role of my Cabinet colleague, Secretary of Commerce Ron Brown, in 
establishing this voice for business in the region.

Here in Amman, we must also go beyond our work at Casablanca. We must 
reinforce our public-private sector partnership for peace and foster 
patterns of commercial cooperation across the Middle East. Governments 
have a responsibility to lay the foundations for peace and prosperity. 
But the private sector has the opportunity to build the structure of a 
lasting peace reinforced by rising prosperity.

This public-private partnership is based on three mutually reinforcing 
pillars: first, the private sector; second, countries outside the region 
that have been at the forefront of efforts to support the peace process; 
and third, governments in the region. Let me briefly describe the unique 
challenges that each must meet.

The private sector must recognize and seize the business opportunities 
that peace is creating. The fact that hundreds of businesspeople have 
come to Amman is evidence that they are doing just that.

I am proud to say that among them are more than 125 American companies, 
many of whom are leading the way. Lockheed-Martin will conduct a 
feasibility study for a regional airport that will link Aqaba in Jordan 
and Eilat in Israel. The communications firms Sprint and AT&T will 
announce joint ventures with Jordanian partners to hook Jordan up with 
the information superhighway. Culligan Water Technologies will sign an 
agreement to manufacture bottled water in Jericho. And General Electric 
is close to finalizing a large contract to supply Egypt with 

Ladies and gentlemen: Last year we announced that the Middle East was 
open for business. This year we declare that the Middle East is doing 
business. As the peace process pushes on, agreement by agreement, the 
risks for business diminish, day by day. Business can profit while 
making a decisive contribution at a moment of rare historic opportunity.

At the same time, governments from outside the Middle East must do their 
part to accelerate the momentum of private sector involvement. The 
United States will continue to work with its friends around the world to 
promote the region's prosperity. We look especially to the European 
Union and Japan to continue their significant contributions to this 

For our part, the U.S. Department of Commerce, the Overseas Private 
Investment Corporation, the Exim Bank, and the Trade and Development 
Administration are working hard to ensure that American companies can 
take full advantage of regional trade and investment opportunities. 
These agencies are funding feasibility studies, providing investment 
guarantees, and offering risk insurance. OPIC, for example, is 
capitalizing a $250-million regional fund for the Middle East and North 

The United States also has launched a number of important bilateral 
initiatives with key regional parties. With the Palestinians, we have 
helped mobilize the international donor effort and pledged $500 million 
in American assistance. Our trade representative, Mickey Kantor, has 
just finalized an agreement with the Palestinian Authority to allow 
exports from the West Bank and Gaza duty-free access to the American 
market. With Jordan, we are considering a bilateral investment treaty, 
and we have forgiven more than $700 million of Jordanian debt to the 
United States. With Egypt, we have launched a pathbreaking joint 
partnership for economic growth and development under the leadership of 
President Mubarak and Vice President Gore.

Of course, it is the governments in the region that bear the greatest 
responsibility for making the Middle East a world-class business 
environment. In the past, there has been far too much government 
regulation and inefficient public investment. Local private capital has 
fled the region and foreign capital has found greater incentives 

To their credit, many  governments in the region are now taking bold 
steps to put their economic house in order. Tunisia and Morocco, for 
example, have embraced real economic reform. In the last decade, 
privatization, deregulation, budget discipline, and currency reform, 
among other steps, have produced impressive leaps in economic growth in 
both countries. Not surprisingly, the private sector has responded. 
Between 1989 and 1994, direct foreign investment in Morocco more than 

Jordan is another nation taking important steps toward reform. Its new 
investment code will give foreign firms the legal protections they need 
to take advantage of Jordan's many opportunities.

But more must be done across the region. Governments need to remove 
restrictions on trade and investment. They must reform capital markets, 
modernize tax systems, and stamp out corruption. They need to ensure 
fair business practices through legal systems and commercial dispute 
mechanisms that are transparent and fair. And they must continue to 
deregulate and get bureaucracies out of the way of business.

I also call on the region's governments to remove the most harmful 
political barrier to greater economic openness. The boycott against 
Israel maintains walls at a time when negotiations are bringing them 
down. It impedes regional economic integration. The boycott serves no 
one. While the boycott is being dismantled and many of the countries 
here no longer observe it, the moment is right to end the boycott 

All these steps are essential if the region is to attract the skills and 
capital of international business. Now is the time for the Middle East 
to prepare to compete in the global economy. Now is the time for the 
Middle East to reinvent itself for the 21st century. 

The Middle East is on the verge of reconnecting its rich past to the 
boundless possibilities of the future. For centuries, this region 
witnessed the constant movement of people, ideas, and goods across its 
borders. Linen, glassware, olive oil, incense, pungent spices, and 
precious metals were traded across the deserts and over the seas. The 
world passed through the Middle East, and the Middle East passed through 
the world.

Today, we see this legacy in the Arabic numerals the world uses to count 
and in the coffee, first ground from arabica beans, that the world loves 
to drink. And we see this legacy in the words we use--for damask cloth 
from Damascus and gauze from Gaza.

As we approach a new millennium, we can revive the trading routes of 
centuries past and create new ones for today. Caravans of culture and 
commerce can travel by air, by fax, by microchip, and along the 
information superhighway.

The Middle East also has old words to return to the world--and most of 
all to itself. Let Salaam and Shalom become the watchwords of a 
prosperous new Middle East at peace.

A year ago in Casablanca, I borrowed a line from Humphrey Bogart when I 
suggested  that the first summit could be the beginning of a beautiful 
friendship. Allow me now to borrow once again from the spirit of that 
famous movie. Today, in Amman, it is time to play it again, Sam. Thank 
you very much.  



U.S. Government and Business Advance the Middle East Peace Process
Secretary Christopher, Commerce Secretary Brown
Joint statements at reception for the American Business Delegation to 
the Amman Economic Summit, Amman, Jordan, October 29, 1995 (introductory 
remarks deleted)

Secretary Christopher 

Thank you. Well, we are running on Middle East time. I am sorry we got a 
little behind, but the result of this is a happy one for you because I 
have thrown away my 45-minute speech and I am just going to thank you 
very much for coming. You are what makes this go. Governments can 
provide the foundation, but it is business that really does the job. I 
am so grateful that all of you are here. And I am grateful for the good 
talk I hear around the corridors in the deals that have been announced. 
It is a real tribute to American business that you have the courage and 
determination to be out here.

We are trying very hard to help. When I say we, I mean a unified 
government team. I thought it was a nice touch that the first person who 
applauded at the name of our ambassador was the Secretary of Commerce. I 
think that is a reflection of how closely Ron Brown, myself, and others 
are working together on this. It is a unified team. The Small Business 
Administration is represented here by Phil Lader. Ruth Harkin of OPIC 
has been delayed on her flight in Brussels. I know that she will be here 
tonight. The Trade and Development Administration is heavily involved. 
We want to make clear to you that our Administration is friendly to 
business. We want to do all we can to help business.

Without reaching over too hard to pat myself on the back, I think this 
is the best relationship between the State Department and the Commerce 
Department--probably in history. Certainly, it is a very good one. That 
is what American business deserves. You have made a big difference here. 
I think we have an opportunity to capitalize on Casablanca and to move 
it forward. Frankly, after Casablanca last year I was worried. I worried 
whether or not we could sustain our momentum. Now, I am satisfied that 
not only are we going to be able to do the three things we committed do 
in Casablanca--to set up the bank, to set up the tourism association, 
and to set up the business association--but we can move beyond these 
goals to new areas of cooperation. I have just come from meeting with 
the King, who, I think, is justifiably proud of what has been done here 
in Amman.

One of the nice things happening here is that people are beginning to 
compete for future events like this. A number of countries that want to 
host next year's event are even talking about 1997 events. The growing 
competition to host the bank and where various elements are located is 
the measure, I think, of the success of these endeavors. My experience 
with American businesses is that they have their eye on the ball and 
they are here because they think that there are opportunities. You have 
a business opportunity, but you also have a chance to participate in 
probably the most historic transformation of any region we have seen in 
a long, long time. You just could not imagine, two years ago, a 
conference such as this taking place. I was watching King Hussein and 
Prime Minister Rabin sitting together at lunch today. They acted as 
though they had been friends for 40 years. It was a very close 
relationship between the two of them. I think more progress has been 
made between Jordan and Israel in the last year than has been made with 
almost any other pair of countries. That is all good news. I hope that 
this means good things for you. 

Now, with a great deal of pleasure, I introduce my partner in this 
endeavor, Ron Brown, Secretary of Commerce.

Secretary Brown

Let me just say that you are the reason that we are here. One of the 
things that was most pleasing to me is that Secretary Warren Christopher 
some months ago approached me and asked me to be here with him in Amman. 
I think that gives you a signal that reinforces what Secretary 
Christopher said about our relationship. But the relationship goes 
further than just between two individuals and between two departments in 
the Federal Government. It permeates throughout the Clinton 

The fact is that our commercial offices are working more closely with 
our ambassadors than ever before. We are all part of the same team, 
pulling in the same direction--some people tell me for the first time in 
recent American history. It is all agencies of our government working 
together because we understand a simple truth. That is, it is the 
private sector that fuels the engine that pulls the train of economic 
growth and job creation. We in government have a role to play as well. 
That role is to clear the tracks so that the train can run smoothly and 
swiftly. So it can get to its destination, we remove any barriers that 
get in the way. That is the kind of partnership that we have attempted 
to create with you. We believe it is working. We believe that it is 
making a difference. This is the way business is done in this new global 
economy. Unless we have a partnership between the public and private 
sector, we are not going to be able to achieve our objectives. We 
believe in not only competing in the global economic arena but in 
winning in the global economic arena. That can only happen if your 
government stands shoulder-to-shoulder with you--to be strong and 
effective advocates for your interests, not for philosophical or 
ideological reasons but because we want to be relentlessly programmatic 
in doing what is best for the American economy. Therefore, it behooves 
us to see economic growth in Jordan, in Gaza, in Israel--economic growth 
all over this region. Not only because it helps the people of this 
region improve their lives, but because it provides a great market for 
our goods, products, and services, allowing more exports to supply some 
of the capital goods for these major infrastructure projects. To show 
that we are more than just talk--that we are serious--we have produced 
what we call an opportunities book, which contains more than 100 
opportunities here in this region that we want to share with you and 
that we hope you will pursue. We hope we can coordinate and communicate 
with you so that we are able to advocate your interests as you pursue 
those opportunities.

You all know that, particularly in the developing world, the most 
important decisions are made by government officials. So it stands to 
reason that when your government officials are advocating your interest, 
it helps to level the playing field because we know what our commercial 
competitors are doing. We know that they are using their governmental 
resources to help their companies. We certainly can do no less for ours.

On behalf of Secretary Christopher and President Clinton, we want to 
express our appreciation to all of you for being here in Amman. We know 
it has been a long journey for nearly all  of you. We hope it will be 
worthwhile. We hope that you share our view that we have to be here on 
the ground. We have to be here participating in the economic growth that 
will take place here because we know that there is no better way to 
support the peace process. As peace comes to this region, the 
expectations of the people rise considerably. The way to meet those 
expectations is through investment, trade, and commerce--through 
promoting the economic world and economic opportunity. That is the only 
way to change the lives of the people for the better. We intend to be 
there with you over the long haul to see that we accomplish that 
mission. Once again, we thank you for joining us here in Amman. Thank 
you very much.   



Establishment of the Qatari-Palestinian Investment Fund
Secretary Christopher, Qatari Foreign Minister Shaikh Hamad bin Jasim Al 
Thani, PLO Chairman Arafat
Remarks during announcement of the Qatari-Palestinian Investment Fund, 
Amman, Jordan, October 29, 1995

Foreign Minister Shaikh Hamad bin Jasim Al Thani

Ladies and gentlemen, Mr. President Arafat, Mr. Secretary of State 
Christopher: It is our pleasure to be here to announce a new company--Al 
Sallam Company--which is being done with share-holders from Qatar and 
from Palestinian share-holders and from the other Arabs willing to come. 
This company has the capital of $250 million, of which $25 million is 
already secured. The purpose of this company--it is the belief of my 
company and my people in Qatar and his highness Al Amir Shaikh Hamad bin 
Khalifa, that this company will participate in the peace process. It 
will implement what we have been talking about for a few years now after 
the Madrid Conference. It will encourage both the Palestinians and 
others to gain from peace. This is part of it. As I introduce this 
company here, and announce it, I would like to thank all the people 
here, especially President Arafat and Mr. Secretary Warren Christopher, 
that they are here to share with us this moment, and I hope that this is 
the first time and not the last. Thank you very much. 

Chairman Arafat

We have to thank His Excellency. Please convey to your Amir, the Shaikh 
of Qatar, our thanks for what he is doing, especially for the 
Palestinians, and not only for the Palestinians. It is a great push for 
the peace process and we are welcoming this very important step which 
will encourage others in the same line, for the sake of not only the 
Palestinians, but for the sake of the whole region. I am very happy that 
His Excellency Mr. Christopher is participating with us in this moment 
because we cannot forget that His Excellency President Clinton was 
pushing in all directions to help the Palestinians and to help the peace 
process. Again, we have to thank Your Excellency for what you have 
mentioned, and what you have declared, and also convey to my brother 
Sheikh Al Amir of Qatar my best wishes and regards and thanks. We hope 
that we will continue in this attitude on many levels by all means. I 
hope that what has been done by Your Excellency and by your country will 
be a very important signal for all of us to follow up with all our 
capacity--to push the peace process and to let our people feel the 
strong foundation and the benefit of the peace process. Again, I have to 
thank you from my heart to what you have mentioned and what you have 
declared. I also thank His Excellency Mr. Secretary Christopher for 
insisting and accepting to participate with us in this very important 
moment to declare this very important declaration. Thank you again. I 
have to thank you not only by myself--by my name--but by the name of all 
our people. Please convey to His Excellency again, Sheikh Hamad, best 
wishes and best regards from his brother Yassir Arafat and from the 
Palestinian people, many thanks. May I offer this to Your Excellency, 
what we had prepared for investment in Palestine as a start.

Secretary Christopher

I am just delighted to be here with the Chairman and the Foreign 
Minister to note this extraordinary, positive occasion. Qatar has long 
been a very strong supporter of the peace process, especially in its 
support to the Palestinians. I think this event today with the 
establishment of this considerably sized fund is a very good indication 
indeed. I think it is a model of the kind of support that can be given 
to the Palestinians. I hope other people will see in it a model they 
want to emulate. The working relationship that is developing here is an 
ideal one. I thank them, and I really want to commend the Government of 
Qatar for stepping forward as well as the willingness of the Chairman 
for responding the way he did. The courage that he has had to move the 
peace process forward really deserves recognition--the kind of 
recognition that was given by this day's event. As a co-sponsor, I am 
pleased to be here and to congratulate both of them, and to congratulate 
the people of both of their entities for the result that has been 
achieved by the establishment of this very considerable fund. 
Congratulations and thank you for letting me participate.  



Exploration of New Business Opportunities in the Middle East
Secretary Christopher, Commerce Secretary Brown, Jordanian Crown Prince 
Remarks prior to press conference at the Amman Economic Summit, Amman, 
Jordan, October 29, 1995

Crown Prince Hassan

With the participation of Secretary of State Warren Christopher and 
Secretary of Commerce Ron Brown, I would like to say that the day, from 
our perspective as hosts, has gone extremely well. I would like to 
commend the regional parties as well as the international community, 
participating in both the plenary and the parallel thematic discussions 
on furthering the discussion of the role of the international community 
of supporting and underpinning the task of peace, building on creative 
ideas which have been exchanged, not only in the thematics, but also 
between the business community with regard to creating the regional 
stock market. More important, I would like to say that the relevance of 
our legislative process is not only to develop new structures and 
policies but also to develop the by-laws in the form of a user-friendly 
manual which will reassure the visitors to this country, and I hope that 
the parallel exists in other countries in the region. It is not only a 
question of the legislation involved but is also a question of how 
reasonable that legislation is when we speak of promoting investment. 

Of course, the concepts of trade financing have received a boost today 
by the creation of several new regional institutions which I think 
reflect the unanimity of opinion of the summit. The four institutions 
which were called for at the Casablanca summit include the Bank for 
Economic Cooperation and Development in the Middle East--which in itself 
is a singular achievement, the Middle East Mediterranean Travel and 
Tourism Association--MEMTTA, the Regional Business Council, and the 
Economic Summit Executive Secretariat. I would like to say that these 
institutions are not only initiatives but they are concepts which are 
alive and well and have, in terms of substance, a great deal of input 
from these ongoing discussions. Of course, we are still in day one and I 
would expect by day three that all of us will have collapsed with either 
exhaustion or elation, but whichever way it works out I think that 
certainly good things are being done in hard times.

I had the pleasure earlier of announcing that the Multilateral Steering 
Group has agreed to establish the Regional Economic Development Working 
Group--REDWG--Monitoring Committee Secretariat as a permanent 
institution and, of course, this is a subject on which further 
reflection will be given in the reading   of the draft or the final 
declaration of the summit, so I won't dwell on it too long. All I would 
like to say is that these institutions reflect the paradigm to foster 
sustained consultation among the parties of the region and to enhance 
regional cooperation for economic development and social progress. These 
institutional frameworks will facilitate the evolution of the Middle 
East as it prepares to enter the next millennium and to integrate itself 
into the global economy. I would like to acknowledge the key role played 
by the United States, particularly that of Secretary of State 
Christopher and Secretary of Commerce Ron Brown, in the establishment of 
these institutions. I would also like to say that Japan has played a 
central role in the establishment of the tourism association; the 
European Union--EU--has played an important and vital role in the gavel-
holding responsibilities of the REDWG Secretariat and indeed in the 
commitment to putting greater substance into REDWG interaction. 

I would just like to make one statement here and that is: I just have 
come from a lengthy meeting with Prime Minister Harris Silajdzic. It is 
a singular honor for this conference to have the opportunity at a very 
difficult moment for the negotiations in the Balkans--the peace 
negotiations that we hope will lead to reconstruction of that war-torn 
country and region, to be able to host the Prime Minister of Bosnia-
Herzegovina. We certainly were deeply interested in the thoughts and 
proposals for the reconstruction--not only of Sarajevo, which as we know 
has been a subject of shared concern not least of all with the United 
States--and it is my hope that the day will come where we can either 
host or participate in a conference dedicated to the reconstruction of 
Bosnia-Herzegovina and indeed that war-torn region. We know where they 
are coming from and we hope that Middle East peace can be peace for the 
world and peace for the Eastern Mediterranean.

I thank you, ladies and gentlemen, and I will turn the floor to the two 
distinguished gentlemen to my right and to my left. They happen to be 
geographically to my right and to my left. I don't know about them 
ideologically, but I would welcome their contribution and certainly 
would be happy to question any of their answers. 

Secretary Christopher

Good evening. First, on behalf of Secretary Brown and myself and our 
entire delegation, I want to thank His Majesty King Hussein and Crown 
Prince Hassan for their superb efforts to ensure that this summit is a 
genuine success. They have attracted an extraordinary level of 
participation by both governments and private companies; private 
companies not only from the Middle East but from around the world. The 
Crown Prince told me over lunch today that they stopped taking 
reservations at about 1,500 business people and that, unfortunately, 
many had to be turned away. 

As I sat on the stage today and looked at those who had come to Amman, I 
found myself thinking of what Prime Minister Rabin had said at the White 
House as he and Chairman Arafat signed the interim agreement. He asked 
us to look around at those who were assembled there at the White House 
that day and consider what a remarkable scene it was. Today, I marveled 
at those who had been assembled here in Amman. This time it was the 
officials and the private sector representatives from around the region 
and from around the world. They came not to witness the signing of a 
peace agreement, but rather, they came to explore commercial 
opportunities. They came to talk projects and they came to do business. 
This evening, I heard that same message directly from the 
representatives of 125 American companies who were represented here. I 
want to pay tribute, as I did this morning, to the extraordinary 
cooperation from Secretary Brown and the Department of Commerce which I 
think was very instrumental and made possible the participation of so 
many American companies. Though we still have a long way to go to build 
a comprehensive peace, we should remember that we have come a long way. 
The landscape of this region is changed in ways that few could have 
imagined only four or five years ago. The changes set a pathway for the 
future, and there is simply no turning back.

Results of this summit and the specific projects that will emerge from 
this regional consultation, and from the new institutions that have been 
created such as the Tourist Association or the Business Council--these 
will connect the pathway to the future.

Let me just add this word: I will be leaving here somewhat earlier than 
I had anticipated to return to the United States via Damascus in order 
to open the conference in Dayton, Ohio, on the problems of the former 
Yugoslavia. I thought it was very significant that Prime Minister 
Silajdzic was here today. Many of us hope that one day before too long 
there might be a somewhat comparable conference, modeled on this one 
perhaps, to talk about the reconstruction of the former Yugoslavia. That 
would be a consummation for which to be devoutly wished. I hope it will 
happen and I think that Prime Minister Silajdzic's presence here today 
will cause us to redouble our efforts to achieve that result.

Now, I introduce my cabinet colleague, Secretary of Commerce Ron Brown.

Secretary Brown

Thank you very much, Secretary Christopher. I am indeed honored to be 
here with Secretary Christopher. I think our presence together 
demonstrates very clearly a whole new working relationship. I don't 
believe the relationship between the State Department and the Department 
of Commerce in the United States has ever been closer. I think that is 
reflective of the new world in which we live. We believe in commercial 
engagement. In fact, we believe that our commercial activities--the 
kinds of relationships that are formed--can be a foundation on which a 
long-standing peace and stability can be built. 

I must say that His Majesty the King and His Royal Highness the Crown 
Prince and all the Jordanian people have much to be proud of. This 
summit meeting, even after its first day, can be declared a rousing 
success. We are exhilarated by the reception that we have received here, 
but more importantly by the hard and good work and results that have 
already been achieved. There is no question that much progress has been 
made in assuring economic growth and economic opportunity throughout the 
region. There were 1,600 people at the opening ceremony this morning, 
including 160 business leaders from the United States. We were over-
solicited as a matter of fact. There were many more who wanted to be a 
part of the delegation whom we could not accommodate. There were 200 
specific contacts and appointments made by our American Business Center. 
That is a joint enterprise by the State Department and the Commerce 
Department. It has just been open since Saturday, and already 200 
appointments have been made for American business leaders seeking to do 
business in this region. We have published what we call an opportunities 
book where we have identified 100 specific opportunities for American 
companies to be involved in joint ventures or investment or in other 
matters of commerce or trade. Some agreements that were announced today: 
Chris Rooney of Sprint International--the President of Sprint 
International, and his Jordanian joint-venture partner, Habib Gawi--they 
are seated in the front. They ought to stand and be recognized for the 
agreement they entered into today. 

Tomorrow, while Secretary Christopher is in Damascus, I will be here in 
Amman breaking ground on a new Sheraton ITT hotel which is not only very 
much needed but very much wanted here in Amman. 

Just yesterday, early in the day, I was in Gaza making my third trip to 
Gaza within the last year and a half. You have to be heartened by the 
tremendous amount of construction that is going on--providing housing 
for people and creating employment opportunities. While there with 
Chairman Arafat, we witnessed the signing of an agreement between the 
Culligan company--another American company, and a Palestinian partner 
for bottled water that would be distributed, not only in the West Bank 
and Gaza, but would be available for export as well. Also, later 
yesterday in Jerusalem, we participated in another signing between an 
American company, Mid-Atlantic, and the Israeli Electric Corporation, 
which is a breakthrough--the first private power generation in Israel 
using oil shale in order to produce energy, using new technology for 
that purpose. 

I think what this demonstrates is the awareness of the incredible 
potential of this region, a potential that has not been availed yet, but 
a potential that is there. If anything needs to demonstrate the 
awareness of this potential, it is the presence of all who are 
participating in this summit and the positive attitude they bring to it 
and their understanding of its importance in relationship to the peace 
process itself. These opportunities are here because peace is coming and 
because so many of the barriers and hurdles have been overcome. There is 
still more to be done; that is obvious. Thanks to Secretary 
Christopher's hard work and his partners in the region, we are more and 
more confident that it will be done. But, in fact, the landscape is 
being set, the climate is being created to attract investment for 
infrastructure projects in order to build the economy and create 
economic opportunity and jobs for the people. That really is what this 
summit is all about. That is how it should be measured. 

Casablanca was important because it was historic, because, for the first 
time, countries of the Middle East and North Africa got together to talk 
about matters economic, to talk about regional economic development. One 
of the proudest moments today, I believe, was the signing of the 
regional business council agreement--bringing together private sector 
leaders, understanding that we in government can help create vehicles--
but it really is the private sector that is going to determine the 
economic future of this region. There is no question that the summit is 
off to a good start, thanks to the leadership of His Majesty the King 
and His Royal Highness the Crown Prince.  



The U.S. and Saudi Arabia: Working Together for Security, Stability, and 
Peace in the Middle East
Secretary Christopher, Saudi Foreign Minister Prince Saud Al Faisal
Remarks prior to meeting, Washington, DC, October 25, 1995

Secretary Christopher. Good morning. It is my pleasure to welcome here 
to the State Department again His Royal Highness Prince Saud, a long-
time friend of the United States and my friend, I'm glad to say. The 
Foreign Minister of Saudi Arabia's visit here is a reflection of our 
long friendship and work together. We have a strong commitment to 
security and stability in the region where his country is, as well as to 
working together for peace in the Middle East.

We will focus this morning, among other things, on Iraq. We continue to 
work with Saudi Arabia to ensure Iraqi compliance with all the UN 
Security Council resolutions, as well as to support the work of UNSCOM. 
I am very pleased, Mr. Minister, to note that the Saudi Defense Minister 
met with King Hussein of Jordan in New York. Probably you were in that 
meeting. I think that Saudi-Jordanian cooperation will advance our 
common effort to isolate Saddam Hussein and to compel his compliance 
with the UN resolutions.

The Foreign Minister and I also will review the status of the 
comprehensive efforts that we are making for peace in the Middle East. I 
was very pleased that the Foreign Minister was here for the signing last 
month of Part Two of the Israeli-Palestinian Agreement at the White 
House. I am sure we will be talking about how we can continue to work 
together to sustain the momentum for peace.

As you know, I'll be attending the Amman Economic Summit this weekend, 
where Saudi Arabia also will be represented. I think this is a good 
opportunity for us to encourage private sector investment in the region 
to ensure that the Middle East, as we say, is "open for business."

Now, if I may change the subject for just a paragraph--with your 
permission, Your Highness. The Russian Government is in the midst of 
announcing or soon will be announcing that the three Balkan presidents 
will go to Moscow just prior to the beginning of the talks in Dayton, 
Ohio. We welcome this initiative. It reflects President Yeltsin's 
personal commitment--the commitment of Russia--to work with the United 
States and the Contact Group to achieve a successful outcome of the 
peace talks, which will start in Dayton on the first of November.

There are many difficult issues ahead. It will take a strong, common 
effort, but I welcome this announcement in Moscow because I think it 
ensures that the three Balkan presidents will know that Russia and the 
United States and the other Contact Group members are working together, 
hand-in-hand, to achieve a peaceful resolution.

Thank you very much. Welcome, again, Your Highness.

Foreign Minister Prince Saud. Thank you, Mr. Secretary. Indeed, it is a 
pleasure to be here and to meet with you again and continue our close 
cooperation in the many areas that you have mentioned.

Saudi Arabia has been part and parcel of the peace process, and we 
continue to be committed to this peace process. It is, indeed, an 
opportunity for me to review with you the state of these discussions, 
and, hopefully, we will see in the near future further steps.

We attended the signing here not too long ago of the second part of the 
Palestinian-Israeli Agreement, and we hope that we will see further 
movement on the Syrian-Lebanese track.

I am also pleased to review with the Secretary this morning our common 
position toward the implementation of the UN resolutions dealing with 
Iraq, because we think this is the best way to assure the continued 
stability in the region on the one hand and to benefit the Iraqi people, 
because the way to alleviate the suffering of the Iraqi people is 
through the implementation of the UN resolutions. The only reason that 
this alleviation has not happened is because of the decision of the 
Iraqi Government not to cooperate on this basis.

We are heartened also by the news that we heard this morning that before 
the Dayton meeting the Balkan countries are going to meet in Russia. We 
hope that this continuing cooperation between the United States and 
Russia will finally bring peace to this tragic conflict in the Balkans.

So I look forward to our discussions today, Mr. Secretary, and I hope 
our continued cooperation will help in furthering peace and stability in 
our region.



Containing Iran 
Peter Tarnoff, Under Secretary for Political Affairs
Statement before the House International Relations Committee, 
Washington, DC, November 9, 1995

This Administration has maintained and intensified its efforts to 
contain Iranian actions and policies that threaten U.S. interests and 
values. We know we share that objective with Congress. Six months ago, 
President Clinton imposed an embargo against Iran. With this strong 
action, he confirmed American leadership toward Iran. The President's 
decision complements long-standing American determination to counter 
Tehran's rogue activities. Today, as we evaluate our policy toward Iran, 
let us first review some fundamental issues. Why is Iran's behavior 
important to U.S. interests? What measures have we taken to address 
those concerns? Why were these steps chosen? What effect are they 
having? I believe this review will demonstrate that the Clinton 
Administration has devised a responsible and realistic policy--a policy 
which safeguards American interests and deserves your support.

Assessing the Iranian Threat

Let me highlight some key facts about Iran that have affected our 
thinking. Our strategic interest in ensuring the free flow of oil from 
the Persian Gulf and in maintaining regional stability requires us to 
focus attention on Iran. When we look at Iran, we find a country of over 
60 million people that dominates the littoral of the Persian Gulf. Iran 
sits adjacent to Iraq, across from important Gulf Arab allies, and 
astride the gate to Central Asia. Iran is the largest and most populous 
state in the Middle East and contains 9% of the world's proven oil 
reserves and 15% of the world's proven gas reserves. Iran also has claim 
to the petroleum-rich Caspian Sea. Proud of its long and distinguished 
history, Iran believes it should be a regional power. We also know that 
Iran harbors a deep resentment about America's relations with the Shah. 
Today, Tehran fears America's military prowess in the Gulf, and objects 
to our prominent regional influence. Finally, we know that Iran has 
fractious relations with most of its Arab neighbors. In particular, 
after enduring eight years of war with Iraq and centuries of enmity, 
Iran is deeply distrustful of Baghdad.

Iraq is the other dominant state in the Gulf, and the interaction 
between Iraq and Iran has long driven western policy. To prevent either 
regime from challenging our interests in the Gulf region, this 
Administration developed the strategy of dual containment. We designed 
this strategy to counter, in the ways most appropriate for each specific 
threat--the set of challenges presented by Baghdad and the set of 
challenges posed by Tehran. I know the recent story of Iraq is familiar 
to you. In order to maintain our deterrence of Iraq and to protect our 
Gulf allies, the United States maintains a significant military presence 
in the Persian Gulf.

Iran has presented us with a different type of challenge. Our problems 
with Iran are based on our concerns about specific Iranian policies, 
which we judge to be unacceptable to law-abiding nations. Our goal is to 
convince the leadership in Tehran to abandon these policies and to abide 
by international norms. We know our objections are familiar to you, and 
shared by you. Iran engages in terrorism by assassinating its opponents. 
It provides material and political support to Palestinian rejectionists 
trying to undermine the Middle East peace process through violence. Iran 
also supports opposition groups seeking to subvert secular regimes in 
the Muslim world. It is pursuing the development of weapons of mass 
destruction--that is, nuclear, chemical, and biological weapons and the 
missile systems to deliver them. Iran is also engaged in a conventional 
military build-up that threatens regional peace and stability. At home, 
Iran abuses the human rights of its citizens, particularly the rights of 
political dissidents, women, and religious minorities.

Confronting the Iranian Threat

This behavior is an affront to American interests and values. But 
neither the behavior nor American concern and action are new. With the 
President's support and under Secretary Christopher's leadership, this 
Administration has accorded a high priority to our efforts to deny Iran 
the military capabilities and financial resources it needs to 
successfully implement these policies. We have acted alone when 
necessary and collectively when possible.

First, we concentrated on blocking the transfer to Iran of dangerous 
goods and technologies. We began with the strictest national export 
controls in the world. We have engaged in close negotiations with other 
governments to obtain agreement to keep Iran from acquiring armaments 
and sensitive dual-use items and technology for military purposes. We 
also have been working with other governments to thwart Iran's efforts 
to acquire items useful for its programs of weapons of mass destruction. 
By checking Iran's military capabilities, we have severely constrained 
Iran's ability to threaten us or our allies with offensive action.

Second, by pressuring Iran's economy, we seek to limit the government's 
finances and thereby constrict Tehran's ability to fund rogue 
activities. We launched an initiative to block Iran's access to the 
international capital its economy needs. We have worked bilaterally and 
within international financial institutions to keep other governments 
from providing Iran with credit. On May 6, President Clinton issued 
Executive Order 12959, which imposed an embargo against Iran. The 
President's decision to sever American trade and investment with Iran 
signaled our commitment to exert the maximum efforts of this country to 
deny Iran financial resources. In particular, by barring American 
investment in Iran and prohibiting U.S. companies from buying Iranian 
oil, we have stopped the flow of money from the United States to Iran. 
We are now seeking to dissuade the international community from 
investing in Iran's petroleum sector. With these efforts, we are taking 
advantage of Iran's economic vulnerabilities, particularly its shortages 
in hard currency. We recognize that economic pressure takes time, but we 
are convinced that making Iran pay a price for its unacceptable 
activities is the best way to convince the Iranian leadership that it is 
in their country's best interest to abandon these policies.

Choosing a Protective Policy

The United States has a special responsibility to lead the world in 
confronting states that persist in flouting international norms. To 
contain Iran, we have employed the full panoply of political and 
economic measures. By imposing an embargo, we have demonstrated to our 
friends and allies that Iran's actions make it unacceptable to conduct 
"business as usual." But while we continue to pursue every option 
available to us to increase the cost to Iran of its unacceptable 
activities, the costs we can impose by acting alone are limited. We 
believe this effort to compel Iran to change its behavior deserves 
multilateral support. Therefore, through diplomatic channels, we are 
working aggressively to urge other governments to join us. We seize 
every opportunity--in bilateral conversations and during multilateral 
consultations--to make our point. Let me cite just a few of these 
activities so you can appreciate the range of our efforts. They include 
but are not limited to the following: phone calls from the President; 
meetings with the Vice President; personal letters from Secretary 
Christopher; visits to capitals by myself and Near East Assistant 
Secretary Pelletreau; consultations by other cabinet officials including 
Defense Secretary Perry, Energy Secretary O'Leary, and Commerce 
Secretary Brown; and frequent exchanges between our ambassadors and 
heads of state.

I can tell you, from my own experience, that these exchanges on Iran are  
candid and detailed. Our persistence has paid off, however. When I began 
having these conversations about Iran almost three years ago, my 
interlocutors were still skeptical about the scope of Iranian 
misbehavior and resistant even to including the subject of Iran on our 
agenda. Today, because of the undeniable pattern of evidence we have 
presented to them, most share our wary view of Iran's threatening 
conduct. Nonetheless, our exchanges on the issue of tactics--how best to 
bring about a change in this behavior--have intensified.

Having an Impact

To recap, we have reviewed why Iran's behavior is important to us and 
what regional realities we must consider in our policy formulation. We 
have identified which Iranian policies we find objectionable. To 
convince Tehran to abandon these policies, we have focused our efforts 
on limiting Iran's military capabilities and financial resources and 
have taken both unilateral and multilateral action to achieve those 
limits. Because of the attention and resources devoted to this issue, it 
is now reasonable to consider the impact we are having.

Because of U.S. leadership, 28 nations have agreed to cooperate in 
preventing Iran from acquiring armaments and sensitive dual-use goods 
and technology for military end-uses. As these nations include most of 
the world's major arms suppliers, this collective consensus should 
dramatically limit Iran's future acquisitions.

In addition, most nuclear suppliers, including our major allies, have 
assured us that they will not engage in nuclear cooperation with Iran. 
For example, earlier this year in Halifax, Canadian Prime Minister 
Chretien spoke on behalf of the G-7 nations, stating that: 

"G-7 countries have adopted restrictive policies on nuclear cooperation 
with Iran . . .out of our grave concern that such cooperation could be 
misused by Iran toward a nuclear weapons program."

Russia and China remain exceptions to this consensus, although our 
vigorous diplomacy has resulted in some modest limits on their nuclear 
cooperation with Iran. However, we will not be satisfied until they stop 
all nuclear cooperation with Iran, and we continue to discuss this issue 
with Moscow and Beijing at the highest levels of government. We also 
work closely with other supplier nations to limit Iran's access to goods 
and technologies applicable to chemical or biological weapons programs. 
Similarly, we seek to block transfers useful to Iran's ballistic missile 
program. We have succeeded in gaining the cooperation of most 
industrialized nations, and we are working to bring around those few 
states that lack our commitment to denial.

Our efforts to block Iran's access to international finance have also 
met with some important successes. Since the President announced the 
embargo, no government has extended new official credit to Iran. Japan 
continues to withhold development assistance to Iran. We continue to 
successfully block aid to Iran from the World Bank and other 
international financial institutions. Specific U.S. action also has hurt 
Iran's economy. The embargo resulted in a dramatic devaluation of Iran's 
currency, which is still aggravating Iran's inflation and impeding 
commercial activity. By making Iran work harder to sell its oil, the 
embargo has added operating costs and cut into the government's 
available hard currency. Moreover, the effectiveness of our action has 
been boosted by Iran's own economic mismanagement. The cumulative impact 
of these factors is imposing strains on Iran's ability to meet its 
external expenses, and we expect the situation to worsen next year when 
the government's debt payments are scheduled to double.

While our allies share our concerns about Iranian behavior, they do not 
share our conclusion that economic pressure is the most effective way to 
change this behavior. They prefer a policy of dialogue. We point out to 
them that their dialogue has not produced an improvement in Iran's 
behavior. Yet they remain reluctant to take action, in part because it 
would negatively affect the commercial interests of their businesses, 
and in part because of an honest disagreement with us over whether or 
not economic pressure will alter Iran's behavior. Still, I believe that 
our constant diplomatic pressure on our international partners is 
resulting in tangible measures that support U.S. policy. For example, it 
is reasonable for us to expect that we can hold the line on stopping new 
official credit, government aid, and investment in Iran.

Taking Additional Action

We have drawn some lessons from our regular discussions about Iran with 
our G-7 partners and other nations. Building a coalition requires time 
and determination. We believe our current approach of leading by example 
and working cooperatively with allies needs to be given a real chance to 

We also know that Congress is now considering a proposal to sanction 
foreign companies that sell equipment and technology to Iran's petroleum 
industry. We share your desire to explore additional steps that increase 
pressure on Iran. We, too, want to limit the development and 
exploitation of  Iran's oil and gas resources and obtain support from 
foreign companies for our embargo. We have some concerns with the bill, 
however, that we would want to work with you to address.

First, we must find a way to further our objectives that hurts Iran more 
than it hurts America's broader interests. For example, we need to 
ensure that any proposed sanctions do not just drive foreign firms to 
cut off their business relations with U.S. companies in favor of Iran's 
market. This would only jeopardize American jobs and exports without 
restricting Iran's ability to acquire imports.

A second concern is whether we could administer such sanctions. 
Accurately monitoring trade between Iran and the world's major foreign 
suppliers would be very difficult, especially since we could not count 
on trading nations to cooperate with us.

A final concern is that, whatever approach we and the Congress choose, 
we not engender a spate of acrimonious international litigation with our 
closest trading partners or fragment the increasingly effective 
diplomatic coalition that we have successfully forged to counter 
objectionable Iranian policies. We would also weigh carefully the 
implications for our broader trading interests of adopting a secondary 

We would welcome the opportunity to consult with you in greater detail 
about this legislation and to discuss the most appropriate timing for 
any further action.


Our comprehensive efforts have checked Iran's military ambition and 
frustrated its financial situation. We must maintain and strengthen 
these efforts, but our vigilance is succeeding in protecting American 
interests. We are working from a strong base to implement a responsible 
policy. Because our policy is grounded in a thoughtful assessment of  
regional and international realities, we are confident that we can deter 
any Iranian threat. We depend on Congressional support for and 
commitment to our efforts, and we look forward to continuing 
consultations on this policy. 



Marine Degradation From Land-Based Activities: A Global Concern
Vice President Gore
Remarks at the Ministerial Level Plenary Session of the UN Environmental 
Program Inter-governmental Conference on the Protection of the Marine 
Environment From Land-Based Activities, Washington, DC, November 1, 1995

Madam Executive Director, distinguished ministers, Your Excellencies, 
ladies and gentlemen: Thank you for giving me the honor and opportunity 
to address such a dedicated and distinguished gathering--and at such a 
crucial moment for the world we share.

Thirty years ago, when President Lyndon Johnson signed a piece of 
legislation which would be the precursor to this nation's Clean Water 
Act, he said, "The banks of a river may belong to one man or one 
industry or one State, but the waters which flow between the banks 
should belong to all the people." 

Johnson was talking about a domestic issue: What could we do here in the 
United States to enhance public health and protect our rivers, our 
lakes, and our streams? But his message that "the waters which flow 
between the banks should belong to all the people," is exactly why we, 
as an international community, are here today. Because, as you all know, 
we have a common threat to a shared and precious resource: oceans 
pollution caused by land-based activities.

As we are well aware, oceans cover 71% of the earth's surface. And more 
than half of the world's population--close to 3 billion people--live 
within just 60 kilometers of the shoreline. The marine environment is 
the home to countless species of animals and plants. It is a constant 
supplier of food--and not only for humans, but for much of the food 
chain of most living beings. It is a vital part of our economies. Here 
in the United States, for example, coastal areas provide for 28 million 
jobs, and in many of your countries, the dependence on the coastal 
environment is even greater. In short, and as Executive Director 
Elizabeth Dowdeswell has said, oceans are indispensable in the 
maintenance of life on earth. Our oceans' survival is our survival. If 
they thrive, we can thrive.

That is why it is so disturbing to see that after thousands of years of 
very little geological change, we are now beginning to witness profound 
degradation of the marine environment. Algal blooms, for instance, 
appear to be occurring more frequently and are showing up in the waters 
where they have never been observed before. There was a bloom off the 
coast of Guatemala in 1987 which poisoned almost 200 people, killing 26. 
Here in the United States, in 1987-88, 740 dead dolphins washed up on 
beaches in the most extensive such kill ever recorded. And a newly 
discovered algae family-- dinoflagellate--may be the cause of 
unexplained fish deaths that have occurred in the various regions of the 
world over the past 20 years. They rest on an estuary floor, and when a 
school of fish passes, they release toxins that disable their prey, 
sometimes causing death.

Chances are, the presence of these blooms can be attributed to human 
activity. In fact, over 80% of marine degradation can be traced to human 
activities on land. When we speak of human activities, or land-based 
activities, we are talking about source and non-point source pollution. 
We are talking about toxic pollutants, metals and radionuclides, 
sedimentation, and two of the most pressing issues of this conference--
which I understand you will be discussing today--sewage and persistent 
organic pollutants, or POPS. Untreated and improperly managed sewage is 
perhaps one of the most widespread problems affecting human health and 
our environment.

Microbial contamination from sewage causes many human diseases, 
including cholera and hepatitis A. In most Pacific Island countries, 
microbiological contamination from sewage is the principal water-quality 
problem, with nitrate and phosphate levels high enough to have 
significant effects on coral reefs and to force closure of swimming 

Likewise, we have seen a growing body of evidence demonstrate the severe 
adverse environmental effects of certain chemical compounds. This 
problem is one that all nations share in, not just because of the 
dangerous consequences in areas close to their use and production, but 
also because we have seen these compounds migrate far from their source.

It is time, once and for all, to stop viewing our terrestrial and marine 
environments as two separate and isolated cycles. We must recognize and 
address these systems as one. Our task  here of adopting a global 
program of action--the Washington Declaration--on the protection of the 
marine environment from land-based activities is of the utmost 
importance to the overall health of this planet. Unless we take action 
now, increased human concentration in coastal areas will undoubtedly 
result in even greater economic,  social, and environmental loss.

We share the oceans. We share the waters that flow between the banks. 
Now is the time to share in the solutions to all that threatens those 

As recognized at the earth summit in Rio in 1992, the need to address 
marine degradation from land-based activities is a global concern. Now, 
some three years and several experts' meetings later, we find ourselves 
with a very real opportunity to adopt the first global program--a 
program that will lead to more sustainable interaction between mankind 
and the world's oceans. How do we do it?

It is not a simple task, nor do we pretend it to be. It does not involve 
a single policy, technology, or idea. It requires a comprehensive 
approach which is multifaceted, balanced, and accessible. And although 
it will very much be a global program, I think that many of the best 
models for what we plan to do come from local and national efforts.

-- Efforts that are often small-scale and community-based, because, 
without question, the sum of our individual actions will have--and 
already has had--tremendous and direct impact.

-- Efforts that are efficient, because in a time of decreasing budgets, 
we cannot afford waste.

-- Efforts that are technologically up-to-date. Technologies are 
important to facilitate the exchange of information on a global scale of 
"what works" when combating marine pollution. Truly, one of the greatest 
challenges facing us today is the management of available information--
making sure that we can organize information so that it is readily 
available, easy to access, up-to-date, and in a language that can be 
understood by everyone.

The United States has been privileged to host the environmental 
management and technology forum over the last two weeks. The 
environmental technology exhibit featured over 40 exhibitors from the 
public and private sectors--both domestic and international. They 
gathered to share with you technologies which are predominantly low-
cost, low-tech, easily maintainable, and readily available to stem 
marine degradation from land-based activities.

Finally, and perhaps most important, the way to achieve more sustainable 
interaction between mankind and the world's oceans is by modeling our 
attempts after local and national efforts that embody true partnership. 
We will only be successful if we work together--both the public and the 
private sector--from the elected official to the business owner to the 
involved citizen.

I understand that last weekend's field trips offered an opportunity for 
you to witness first-hand how the United States attempts to manage one 
of our nation's most prized natural resources: the watershed of the 
Chesapeake Bay. With topics ranging from research vessel tours to marine 
debris clean-up programs, from habitat restoration to non-point source 
pollution management practices, we hope that you were able to share in 
our experiences and that it sparked ideas about solutions that may be 
implemented in your countries.

Not too long ago, garbage floated in the Chesapeake Bay. Today, it is 
one of the great environmental success stories in this country. What 
changed? Government and citizens stood as one and said it's time to 
clean this place up. And as President Clinton said when we stood on the 
shores of the Chesapeake on Earth Day, "The beauty you see is God-given, 
but it was defended and rescued by human beings." I believe the same 
fate awaits our oceans--that their beauty is a gift from God, but they 
will forever be defended by those who put responsible stewardship over 
carelessness and destruction. 

I am confident about this, because the Chesapeake isn't our only success 
story. Take Long Island, New York, for example. There, they have what 
they call the "Long Island Sound License Plate Program." It's really 
quite simple.

They sell vanity plates--those are the license plates where you can 
register your own name or message. Mine, for instance, might read "U.S.-
VEEP" or, perhaps, what a political opponent once called me in reference 
to my concern for environmental issues: "OZONE MAN"--a title I wear with 

What is important here is that the money from these vanity plates goes 
to promoting environmental projects, conservation management, and 
habitat restoration. It's simple, it's small-scale and inexpensive, it's 
efficient, and it's working.

In the city of Houghton, Michigan, the waterfront was literally 
abandoned by an industry that closed shop. The consequences could have 
been devastating to the economy. Instead, the federal government worked 
in partnership with state and local governments--and with the community-
-and revitalized the area. Now there is a new marina, a boat launch, and 
public access for recreation--not to mention 2,500 new jobs. Houghton 
was even named recently as one of this country's top 100 small towns to 
live in.

Of course, I mention these communities with pride--and a bit of bias. 
But when it comes to environmental success stories--stories about 
protecting the marine environment--the United States isn't alone--not by 
a long shot

Ecuador is a great example of successful community-based management of 
coastal resources. An estuary was becoming polluted because of competing 
and conflicting interests--those from agriculture, the banana industry, 
fishing, shrimping, mining, and municipal industry. So they did two 
things. First, they issued a presidential decree which recognized the 
importance of coastal resources. Second, with the help of USAID--because 
developed countries need to support the efforts of developing countries 
in protecting shared resources--they initiated a wide range of 
community-based activities.

On Ferguson Island, Papua New Guinea, local villagers set up a 
management committee in response to the concern many felt over 
uncontrollable hunting that was resulting in the scarcity of species 
like crocodiles. The committee banned all but traditional methods of 
hunting crocodiles and the collection of their eggs. Other committees 
have been formed to address the use of commercially manufactured nets, 
lights, and poisons for fishing.

In the Philippines, where over-exploitation of that country's coral 
reefs has become too common, we have seen similar community-based 
approaches. Marine management committees, established by local 
villagers, have established marine reserves, including a fishery 
breeding sanctuary and a surrounding buffer area for ecologically 
sustainable fishing. Also, fishing methods that use dynamite and very 
small mesh gill nets--biomass fishing--have been halted. The result has 
been an increase in species diversity, a greater total fish yield, and 
sustainable economic growth.

Let me cite one more example--the coral reefs off Thailand, in Phuket 
Bay. Because of tourism and fishing, the coral reefs are vital to 
Thailand's economy. 

Worldwide, coral reefs are widely recognized as one of the world's 
"essential life support systems." But, as we all know, they are in grave 
danger. Some sources estimate that 10% of all reefs have been degraded 
beyond recovery and that 20% to 30% may be lost--primarily due to human 
activity--by the year 2010.

After the earth summit in 1992, the United States--along with Japan, 
Australia, Jamaica, France, the United Kingdom, the Philippines, and 
Sweden--embraced a major initiative to protect coral reefs in 
partnership with non-governmental organizations, development banks, the 
private sector, and other coral reef nations such as Thailand. The 
International Coral Reef Initiative is not a treaty, a body of 
cumbersome regulations, or a bureaucracy. It is a framework for 
interested parties--public and private--to work together to tackle a 
common, shared problem before it gets out of hand.

For Thailand, that has meant an extensive campaign for public education 
which has taught the people of Thailand to give the highest importance 
to investing in their own resources. This, in turn, has meant the 
development of a series of small-scale projects which have brought 
concrete results.

We must continue to be creative in finding innovative ways to meet the 
enormous challenge of protecting the world's oceans from our actions on 
land. We must also be creative in tackling the issue of institutional 
reform, for it offers us the potential to critically examine how we 
address global environmental challenges.

Mahatma Gandhi once said we must become the change we wish to see in the 
world. If we want to see a cleaner environment in this world, we must 
all actively participate in cleaning it up. And even more, we must 
continue to educate others about the challenges ahead. As we have seen 
from negotiating the draft global program of action, formulating 
solutions to global environmental threats is a very large task--one 
inhibited by large and competing bureaucracies and which may place 
individual interests over the good of the whole.

Are there ways to reform how we approach sustainable solutions to our 
global environmental concerns? Can we simplify the task of formulating 
global actions to protect the planet from further degradation? There 
are, and we must.

Last week when leaders from around the world came to New York to 
celebrate the 50th anniversary of the United Nations, you heard a 
constant theme, that it is time to reinvent, to modernize, to 
restructure. I would echo that theme today as you continue to work on 
this very important declaration. But remember that the reason for having 
a United Nations at all still remains the same. The very first paragraph 
of the UN Charter ends with the words: "to promote social progress and 
better standards of life in larger freedom." When it was drafted, 
perhaps they didn't have the environment in mind. They were looking for 
a way to prevent wars.

Make no mistake; there is a war being waged on our coastal environment 
and natural resources. And it is being waged by mankind. But the fact 
that so much of this war is being waged by mankind means that it can, 
indeed, be stopped. We have the know-how,  we have the technology, and 
we have the desire. We must look toward the future with the hope that 
through cooperation and reform, a revitalized international system can 
assure that our children and our children's children inherit a planet 
that is healthier than it is today.

On Friday, let's adopt a global program of action that is effective, 
affordable, and sustainable. We must face the reality that we are all 
accountable for our own actions--that the way in which we live today 
affects the way in which we live tomorrow, and that the resources that 
sustain us this very moment are finite. The oceans of this world are 
interdependent, and thus the impacts of land-based activities by one 
country affect us all. The water that flows between the bank does belong 
to us all. The only way to stop the degradation of the marine 
environment from land-based activities is to share the solutions, just 
as we share the oceans.

Promoting  social progress and better standards of life in larger 
freedom is still our task.  And through your work--and the work of 
millions across the world--it will be our accomplishment.  



American Fishermen To Be Reimbursed for Canadian "Transit Fee"
Released by the Office of the Spokesman, Washington, DC, November 21, 

Congress has authorized reimbursement payments to U.S. fishermen who in 
June and July of 1994 were forced by Canada to pay a "transit fee" to 
traverse the "Inside Passage" between Vancouver Island and the British 
Columbia mainland, while traveling between Washington State and Alaska. 
Under the Fisheries Act of 1995, these fishermen have until February 1, 
1996, to file a claim for the reimbursement. Claims for reimbursement 
for any transit fees paid to the Government of Canada to permit transit 
of the vessel and crew through the Inside Passage in June and July 1994 
should be submitted to:

Program Administrator, Fishermen's Protective Act 
U.S. Department of State 
OES/OMC, Room 7820 
Washington, DC 20520-7818

A typical claim should consist of the following documents:

-- An affidavit from the claimant stating the facts which led to the fee 
payment and indicating that it was paid under protest.
-- Documents (ex.: photocopy of the photograph page from a valid U.S. 
passport) establishing that the master of the vessel at the time of the 
seizure was a U.S. citizen.
-- Photocopies of U.S. Coast Guard vessel documentation establishing 
that  the vessel was of U.S. registry at the time of the seizure.
-- Documentation of the ownership of the vessel (ex.: certificate of 
-- Receipts and copies of other relevant legal documents related to 
the payment of the transit fee "under protest" to the Government of 
-- Full name and address where reimbursement should be sent. The 
Department of State will review each claim to ensure that the 
circumstances under which the vessel paid the fee meet the criteria set 
forth in the Act, and to ensure that only appropriate costs are 
reimbursed. Accepted claims will be reimbursed via U.S. Department of 
the Treasury check. Claimants have 90 days from November 3, 1995, in 
which to submit their claims. Therefore, all claims must be postmarked 
by 12:00 p.m. midnight PMT, February 1, 1996. More information and a 
sample affidavit letter are available from the Department of State's 
Home Page on the World Wide Web beginning November 22 at: 


For further questions, please call (202) 647-3941.

Fishermen may wish to use the following sample affidavit, with other 
supporting documentation, as a guide when making claim for a 
reimbursement of the "transit fee."  

[Box item]

Sample Affidavit

Date:    /   /   (mo/day/yr)

To:  Program Administrator, Fishermen's Protective Act 
U.S. Department of State 
OES/OMC Room 7820 
Washington, DC  20520-7818

I, (your name)                                   of (your residence)
                   certify that I paid a fee of $1,500 Canadian dollars 
to Canadian Government authorities for a license to transit selected 
Canadian Pacific Coast waterways. I further certify that I paid this fee 
under protest.

The fee was paid at          o'clock am/pm on the day of               , 
1994 at (town/location)             , British Columbia, Canada. The fee 
was paid while I was transiting from (home port)                       
in the state of                  to (destination)                      
in the state of                  , both of which are territories of the 
United States of America. I am the owner and/or master of the vessel 
which is registered with the U.S. Coast Guard under U.S. Documentation 
Number                   . I am engaged in the (type of fishery) fishery 
with this vessel.

I request that my reimbursement check be sent to me at the following 

full name: 
street address/p.o. box: 
ZIP Code:

(print name)
(signature and date)   

[End box]



U.S. Policy To Combat International Narcotics Trafficking and 
International Crime
Robert S. Gelbard, Assistant Secretary for International Narcotics and 
Law Enforcement Affairs
Statement before the House International Relations Committee, 
Washington, DC, October 31, 1995

Mr. Chairman and members of the committee: Thank you for this 
opportunity to update you on the Administration's policy and programs to 
combat international narcotics and the growing trans-national crime 
problem. Few American leaders have worked as arduously over the years as 
Chairman Gilman to keep this important public policy topic in the 
forefront of our minds. We all firmly support efforts aimed at thwarting 
these devastating influences. So, we might ask, what is different now? 
Undeniably, our world has changed and so have the dangers that confront 
us. In the post-Cold War era, we recognize that international crime is a 
major threat to world stability and our own national security. More than 
ever before, the American people and American leaders are insisting upon 
practical measures to combat it.

Mr. Chairman, I have been associated with these difficult challenges in 
one capacity or another for over a decade, and I have been directly 
responsible for them in the foreign policy arena for nearly two years. 
This experience has taught me that there are no easy solutions to these 
problems. It has also taught me that if we are going to invest American 
money, effort, and prestige in fighting them, we have an obligation to 
produce concrete results. Over the past two years, we have made a 
heightened commitment to doing this, and we are succeeding. Simply put, 
we are making other countries shoulder more of their responsibility for 
fighting the global threats of narcotics trafficking and international 
organized crime. We are also ensuring that worldwide programs and 
policies target the most critical, the most significant aspects of these 

Countries today are taking truly pragmatic steps to combat criminal 
elements that undermine the many positive gains we are witnessing around 
the world. Nowhere was this more evident than at the 50th anniversary 
proceedings of the United Nations in New York just 10 days ago. Many 
nations stood up and pledged fresh resolve to work together against 
transnational crime, which has devolved into our common enemy.

As he called upon nations to meet the growing dangers posed by 
international organized crime, the President announced a series of major 
U.S. initiatives against the criminal underworld. Taken as a whole, they 
are practical steps aimed at solidifying recent successes and 
strengthening the foundation of our international crime and drug control 
efforts. As the President put it, 

"In our global village, progress can spread quickly, but trouble can, 
too. Trouble on the far end of town soon becomes a plague on everyone's 
house . . . Nowhere is cooperation more vital than in fighting the 
increasingly interconnected groups that traffic in terror, organized 
crime, and drug smuggling."

Responding to the Narcotics Threat

My bureau in the Department of State now includes responsibility for 
international law enforcement and crime initiatives, but I would like 
first to focus on our traditional overseas drug control programs where a 
large share of our funding is dedicated.

The President's National Drug Control Strategy represents a flexible and 
integrated response. It involves demand reduction and drug awareness at 
home, law enforcement and interdiction at home and abroad, and a variety 
of law enforcement, diplomatic, and alternative development initiatives 
designed to get other countries to take more aggressive actions on their 
own. In relative terms, the funding we have for overseas programs aimed 
at attacking cocaine and heroin is very limited. Our counternarcotics 
budget in FY 1995 was less than 1% of the Federal Government's overall 
anti-drug spending that year. This means that every penny counts. It 
means that the pressures and incentives we apply must be carefully 
orchestrated to achieve maximum effect. It also means that we must work 
to convince countries that confronting the threat ultimately serves 
their own national interest. The key elements of our overseas strategy 
seek to:

-- Reduce coca cultivation in the Andes, with the ultimate aim of 
eliminating coca and dismantling the global trafficking networks based 
in Colombia and elsewhere.
-- Disrupt the transshipment of drugs, especially through Mexico, 
Brazil, Central America, and the Caribbean.
-- Work through international organizations and with our European and 
Asian allies and other key countries to prevent criminals from 
laundering trafficking proceeds through legitimate or sophisticated 
underground financial systems.
-- Disrupt cultivation and trafficking of opium poppy in Southeast and 
Southwest Asia, to the extent possible, given the difficult political 
and security situations such as in Burma, Afghanistan, or Iran.
-- Stop the spread and eventually roll back the global trafficking 
networks that got their start in Nigeria and now have spread their 
tentacles throughout Africa and beyond.

With regard to cocaine, the centerpiece of our program lies in the 
source countries that grow coca and the international organizations that 
control most cocaine processing and worldwide distribution. The crops 
and organizations are daunting targets, but the price that countries pay 
for not confronting them is high. Drug money and corruption and violence 
destroy democratic institutions and their leaders. The drug economy 
undermines economic stability in developing nations and drug use sickens 
and kills their people.

The focus of our coca crop reduction and trafficking efforts is in Peru, 
Bolivia, and Colombia, where virtually all the cocaine manufacturing and 
global export has its source. In the Andes as well as the transit zone, 
we are supporting law enforcement operations aimed at seizing drugs and 
evidence, thwarting money laundering, and disrupting transportation 
elements of Colombia-based and other major syndicates. Central to the 
effort, we believe, is helping to strengthen the institutional base for 
effective law enforcement in these countries by helping them enact good 
drug control laws and by strengthening their police and judicial 
capabilities. We provide training, technical, and material assistance to 
countries that demonstrate they are serious about narcotics control. And 
to continue receiving our help, they are expected to achieve results.

Keeping Up the Momentum

Our diplomatic efforts and programs are producing significant 
achievements on all supply reduction fronts: crop control, interdiction, 
and criminal investigations. These are gains against core targets, and--
if supported and sustained with resources and commitment--they will 
produce lasting progress. Let me highlight a few gains.

One of the most outstanding accomplishments of the past year has been a 
two-pronged attack on air smuggling operations from South America to the 
United States. It begins with the disruption of drug smuggling flights 
between Peru and Colombia, known as the "airbridge," followed by the 
thwarting of jet cargo flights delivering multi-tons of cocaine into 
Mexico from Colombia and elsewhere.

The "airbridge" was once a simple, cheap, and unfettered smuggling 
operation in which traffickers flew raw coca materials from central Peru 
to cocaine processing labs throughout Colombia. We took a series of 
steps to help security forces in both countries-- including the 
development of and support for policies consistent with international 
law--to force down drug smuggling aircraft. And now this critical route 
has been cut. Deterred by the pressure, traffickers are increasingly 
reluctant to close deals. Those who do are now forced to find alternate, 
longer, more expensive, and less certain routes through Brazil and 
elsewhere. The adverse consequences to the trade are evident: Coca 
prices at the farmgate in Peru are falling, operating costs in Colombia 
are increasing--profits at both ends are being squeezed. In Peru, we are 
working to translate lower coca prices into intensified crop control 

We also are countering traffickers' efforts to smuggle multi-ton loads 
of cocaine to the United States from Colombia via Boeing 727-type jet 
cargo aircraft--a tactic adopted by traffickers to evade interdiction, 
cut costs, and recoup losses. We became aware in mid-1994 that key Cali-
based traffickers were successfully sending 5-10 tons of cocaine at a 
time to Mexico--so-called "carga" flights--en route to the U.S., via 
Colombia's international airports. In response to this threat, we 
immediately joined forces with Colombia and Mexico to develop 
intelligence collection and interdiction strategies designed to deny 
traffickers this profitable transshipment alternative. We beefed up our 
detection and monitoring assets, Colombia took greater control of its 
commercial airstrips, pulled operating licenses of suspect air cargo 
companies, and seized and grounded a large number of aircraft, while 
Mexico enhanced its response forces. This unprecedented multilateral 
response shut down the Cali-directed "carga" flights and significantly 
upped the stakes for other traffickers tempted to invest in multi-ton 
cargo flights of cocaine.

In other developments:

-- Colombian law enforcement authorities are apprehending the world's 
most wanted criminals--the Cali cartel kingpins--and preparing to 
prosecute them.
-- Eradication operations in Colombia, Venezuela, and Bolivia are 
destroying thousands of hectares of coca and opium poppies.
-- Thailand has arrested 10 key international heroin traffickers and is 
processing U.S. requests for their extradition.

None of these efforts, however, has yet broken the back of the trade. 
Indeed, worldwide drug use remains so large and the profits so great, 
that the traffickers' response is to find alternate routes and methods 
rather than quit. And as the pressure mounts, I am certain they will 
also fight it with intensified efforts to corrupt or intimidate senior 
counternarcotics officials abroad. It is, therefore, imperative that we 
keep up the pressure and sustain the momentum to consolidate our gains 
and confront the new and continuing challenges we face.

U.S. Narcotics Certification

The Foreign Assistance Act requires that each year the President 
identify the major drug-producing and drug transit countries and 
determine whether they have fully cooperated with the U.S. or taken 
adequate steps on their own in narcotics control. The U.S. must cut off 
most foreign assistance to those countries that are not certified and 
vote against their request for loans from six multilateral development 
banks. For countries found not to be fully cooperating or taking 
adequate steps on their own, the President may grant a national interest 
certification if the vital interests of the U.S. require continued 
provision of foreign assistance.

In the last two years, we have used certification as one of the most 
powerful and cost-effective tools in our counternarcotics arsenal. This 
year, the President expanded the majors list to 29 countries, denied 
certification to five countries, and granted national interest 
certifications to six others. There were no "rubber stamp" approvals. 
Indeed, our frank appraisals meant denial of full certification for some 
countries with which we have enjoyed strong bilateral relationships. We 
are gearing up now for the next certification cycle, a process that 
involves possible modifications to the majors list and fresh 
assessments. Let there be no mistake: Countries care about where they 
stand, and their concrete performance--in the Andes as well as Asia and 
elsewhere--may be substantially linked to narcotics certification.

The President's national interest certification in 1995 shocked 
Colombia, and a campaign launched by the police soon thereafter rounded 
up and put into pretrial detention many of the major Cali cartel 
players. Six of Colombia's major dealers are in jail and there is 
continuing pressure to apprehend and arrest the "successor" generation. 
National interest certification of Bolivia sparked the government to 
eradicate more coca in three months than it had in the entire previous 
year. Bolivia still has a long way to go to meet its self-imposed 
eradication goal of 5,400 hectares of coca by the end of the year, but 
its government understands that effective eradication efforts are a 
criterion for full certification. Failure to eradicate in Peru--the 
world's largest producer of coca leaf-- also precluded a full 
certification resulting in a national interest certification for that 
country. While Peru has adopted a national drug strategy, we continue to 
press the Fujimori Government to take concrete steps to reduce its coca 

Our certification message has also been clear to Mexico: Programs to 
eradicate opium poppy and marijuana are well ahead of last year's pace. 
Moreover, at home and in Washington, President Zedillo has proclaimed 
his intention to thwart trafficking and make corrupt officials 
accountable. He is also moving to revamp security forces and expand the 
military's counternarcotics role. At the same time, we are concerned 
about increasingly sophisticated Mexican trafficking networks. We know 
that Colombian traffickers are operating in Mexico and Mexican 
traffickers are getting a greater share of the illicit drug trade 
destined for the U.S. More ominously, the September seizure by Peruvian 
police of more than four tons of cocaine from a Bolivian cargo plane 
destined for Mexico signaled a growing capability to bypass entirely the 
Colombian middlemen

I can assure you that we will again use the certification process to 
persuade key drug-related countries to meet the most important 
counternarcotics goals. The pattern is clear:   We will recognize and 
reward those countries that respond positively, but we will not accept 
piecemeal, misdirected, or last-minute efforts.

The Heroin Challenge

Turning to heroin, while there have been some advances, I must candidly 
say that the U.S. today faces a worldwide heroin threat of unprecedented 
magnitude. Purity levels are up, production has more than doubled in the 
past decade, it is spreading, and it is increasingly occurring beyond 
the effective reach of the U.S. and of central governments where it is 
produced. Moreover, trafficking networks are proliferating and new 
markets and sources have created an increasingly complex web of routes 
and organizations that span every continent. We are beginning to feel 
the repercussions in terms of greater domestic heroin addiction.

These are grim trends, but there are some areas of progress. Today, as 
opposed to the past, Thailand is--in large part because of U.S. 
assistance-- a marginal heroin producer. And in Pakistan, although other 
factors warranted granting it only a national interest certification, 
illicit opium production was down in 1994 to only 160 tons as compared 
to 800 tons in 1978. Eradication in Pakistan is directly attributable to 
the government's commitment, with U.S. funding, to reduce the poppy 

Our comprehensive review of the international heroin control policy has 
shown that a number of practical steps are available to us:

-- We can implement effective programs if we have an opportunity and the 
resources to work with committed governments. Intensified law 
enforcement operations--like last year's Operation Tiger Trap in 
Thailand, which identified, located, and apprehended key members of a 
major trafficking network--are an especially high priority.
-- We must keep our efforts focused on the most critical, and not the 
easiest, parts of the trade.
-- We must be committed to a sustained effort--fundamental progress 
requires time. In this regard, we underscore the importance of regional 
and multilateral cooperation, especially in such trouble spots as 
Afghanistan and Central Asia.

We know that the key today to opium control is Burma, the world's 
largest producer and contributor to a staggering 60% of the heroin that 
comes to American shores. We rightly suspended drug control assistance 
in 1988 following the Burmese military's brutal suppression of the pro-
democracy movement. But as Burmese heroin continues to flow into the 
U.S., we must search for new ways to attack the problem. As we have said 
many times, we will not, under any circumstances, undercut our democracy 
and human rights goals in Burma in the face of the brutal SLORC--the 
State Law and Order Restoration Council. But we believe a vigorous 
counternarcotics policy is not incompatible with a democracy and human 
rights policy. In the long run, an accountable Burmese Government that 
enjoys legitimacy in opium-growing areas will be more willing and able 
to crack down on the drug trade.

Our strategy has four elements:

First, we want to continue our in-country training program for carefully 
vetted Burmese officials.

Second, we want to continue our exchange of law enforcement information 
to support Burmese counternarcotics operations, especially against the 
dominant heroin trafficking organization, the Shan United Army and its 
leader Khun Sa.

Third, absent a major setback in human rights, we want to increase 
support for regional alternative development projects administered by 
the UN Drug Control Program--UNDCP--with the objective of reducing and 
preventing opium cultivation in ethnically controlled areas of Burma. We 
believe such assistance serves a positive human rights goal; we would 
insist also that the UN condition assistance on the requirement that 
poppy cultivation be reduced in the project areas.

Finally, we will continue to encourage Burma's neighbors-- particularly 
China and Thailand--to work closely with us to increase their pressure 
on the Burmese regime to intensify counternarcotics efforts.

The Crime Initiative

In recent years, we have seen an evolution in the crime and narcotics 
field. In today's world, drug trafficking is not a discrete problem to 
be challenged in a vacuum. It is part of the overarching problem of 
transnational crime, which is not simply a law enforcement matter. As 
the President and others have stated so clearly, crime is a threat to 
our national security. Perforce, then, domestic policy, foreign policy, 
and global policy are intertwined concerns.

The world has changed and our foreign policy thinking must change with 
it. There are fundamental issues that transcend bilateral relationships. 
Governments frequently regard the issues of narcotics and crime as 
internal--not foreign policy issues. They resist external pressure as 
inappropriate intervention into internal affairs. Sometimes they do so 
out of sincerely held beliefs; sometimes they are corrupted. To respond 
through traditional means in the years ahead will not be sufficient. As 
the UN Secretary General put it, "globalization will generate an array 
of problems" and with them "transnational criminal activity will grow."

The Decision Directive on International Crime, which the President 
announced at the UN on October 22, outlines the Administration's policy 
framework for combating this growing threat to our national security. 
Key to this framework are the Executive Order under the International 
Emergency Economic Powers Act--IEEPA--aimed at undermining major 
narcotics traffickers centered in Colombia and a money-laundering-
initiative, which will go after the profits of these criminals. At the 
UN, the President asked members to take similar measures in their own 
countries and work with us to develop effective bilateral and 
multilateral cooperation and mechanisms, including accession to a number 
of existing international agreements.

The Executive Order under IEEPA--which focuses on the Cali cartel--
blocks the assets of specified traffickers, their front companies, and 
individuals acting on their behalf. Moreover, it prohibits U.S. persons 
from commercial and financial dealings with them. The companion 
initiative instructs the Secretaries of State and Treasury and the 
Attorney General to identify the nations which are most egregious in 
facilitating criminal money laundering and press them to enter into 
bilateral or multilateral arrangements to conform to international 
standards against money laundering. Such standards, in fact, have been 
established by the 28-member Financial Action Task Force.

On the legislative side, the President also instructed the 
Administration to prepare a comprehensive legislative package to enable 
law enforcement authorities to better investigate and prosecute 
international criminals. The Administration will also seek appropriate 
authorities for U.S. agencies to provide additional training and other 
assistance to friendly governments to help in their own efforts to 
combat international crime. Finally, the President called for the 
negotiation of an international Declaration on Citizens Security and 
Combating International Organized Crime. This declaration would also 
call on participants to focus on the nexus of issues related to crime 
and narcotics such as terrorism and the illegal trafficking of arms and 
deadly materials.

The President's crime initiative builds on programs already under way. 
In my bureau, we are involved in the coordination of international 
policy and foreign assistance aimed at helping other nations to combat 
the full range of international organized crimes that threaten the 
United States. We participate with the FBI, DEA, Justice, Customs, Coast 
Guard, DoD, Treasury, and others in the coordination of policy on 
international crime. This process ensures that overseas law enforcement 
policy and programs complement each other and address the highest 
priority needs in recipient countries--from modernizing old guard police 
forces to helping fledgling agencies deal with modern financial crimes. 
In the last year, the Administration has:

-- Created the Budapest training academy with the FBI and other Justice 
and Treasury agencies which is now supporting rapid law enforcement 
reform in Central Europe and the former Soviet Union;
-- Coordinated the National Crime Bureau initiative with U.S. embassies 
to suppress the trade in millions of stolen American cars smuggled to 
Central America; and
-- Invested in training and technical assistance programs of the 
Financial Action Task Force and the Secret Service to meet the threat 
posed to the international financial system by criminal groups.


Mr. Chairman, the President's public position on narcotics and crime is 
bold and his fresh initiatives are practical. His objectives are shared 
around the world and are now an integral part of our bilateral and 
multilateral relationships and endeavors. Transnational criminal 
elements that undermine our values, threaten our security, and attack 
the fabric of our society are on the defensive. We and the international 
community will not tolerate business as usual.

As we go about our work, I want to reiterate our continuing appreciation 
for the support from this committee and many others in the Congress who 
are wholeheartedly committed to confronting the international scourge of 
drugs and crime. Over the years, too, your help in ensuring that we get 
the money we need to get the job done has been essential. But also 
important--especially in this era of tight budgets and diminishing 
resources--is the unswerving moral support you have given us in the 
public arena as we work against these serious problems that directly 
affect the health and well-being of all Americans.

We know that the vast majority of American people consider illegal drugs 
and crime to be top national and foreign policy priorities. For these 
Americans, the facts are obvious: Crime degrades all that we hold dear. 
We must build now on the momentum we have achieved. In President 
Clinton's words, we must confront the forces that "jeopardize the global 
trend toward peace and freedom, undermine fragile new democracies, sap 
the strength from developing countries, and threaten our efforts to 
build a safer, more prosperous world."  



Joint Communique of the 27th R.O.K.-U.S. Security Consultative Meeting
Text of communique released following meeting, Seoul, South Korea, 
November 3, 1995.

1. The 27th Security Consultative Meeting (SCM) between the Republic of 
Korea (R.O.K.) and the United States of America (U.S.) was held in 
Seoul, Korea on November 2-3, 1995. R.O.K. Minister of National Defense 
Lee Yang Ho and U.S. Secretary of Defense William J. Perry led their 
respective delegations, which included senior defense and foreign 
affairs officials. Prior to the SCM, the Chairmen of the respective 
Joint Chiefs of Staff, General Kim Dong Jin and General John M. 
Shalikashvili, presided over the 17th R.O.K.-U.S. Military Committee 
Meeting (MCM) on November 2, 1995. During his stay in Seoul, Secretary 
Perry paid a courtesy call on President Kim Young Sam and exchanged 
views on security issues of mutual concern.

2. Minister Lee and Secretary Perry reviewed the international situation 
and overall strategic environment on the Korean peninsula. They 
reaffirmed the view that the security of the Korean peninsula is 
essential to the stability and prosperity of the Asia-Pacific region, 
which in turn is vital to the security of the United States and to world 
peace. They noted that U.S. forces in Korea have made and continue to 
make a significant contribution to the deterrence of war on the Korean 
peninsula and to the stability of the Northeast Asian region. They also 
agreed that the R.O.K.-U.S. long-term security relationship should 
continue to be developed in a mutually beneficial way.

3. Both ministers agreed that the full implementation of the Agreed 
Framework of October 21, 1994 would greatly enhance regional stability. 
They called upon North Korea to come into full compliance with its 
obligations under the NPT and its IAEA safeguards agreement, in order to 
ensure transparency of past, present, and future nuclear activities of 
North Korea, as required by the Agreed Framework. They affirmed that the 
Republic of Korea and the United States would continue to work together 
to resolve the North Korean nuclear issue. They further agreed that a 
conventional arms control program and other confidence-building measures 
between the South and the North could reduce tension and contribute to 
mitigating confrontation on the Korean peninsula. Both ministers urged 
North Korea to comply with its international obligations and engage 
sincerely with the R.O.K. and U.S. to enhance regional stability. They 
stated that the hope for progress must be tempered by R.O.K.-U.S. 
combined resolve to watch closely and verify North Korea's 
implementation of international commitments.

4. Minister Lee and Secretary Perry also expressed serious concern that 
North Korea continues to build up conventional offensive forces and 
improve missile development programs. They agreed that these 
capabilities represent a threat to R.O.K. and U.S. national interests 
and objectives on the peninsula and in Northeast Asia as a whole.

5. Both ministers agreed that the R.O.K.-U.S. security alliance remains 
strong and is focused on deterring the outbreak of war on the Korean 
peninsula. They stressed that R.O.K.-U.S. military forces in Korea are a 
combined defensive force characterized by readiness, professionalism, 
discipline, vigilance, and high morale. They expressed satisfaction with 
the prudent improvements in defense plans and warfighting strategy, 
tactics, and support procedures that both sides have made. Secretary 
Perry reaffirmed the U.S. commitment to continue to modernize U.S. 
forces in Korea and to render prompt and effective assistance to repel 
any armed attack against the R.O.K., in accordance with the R.O.K.-U.S. 
Mutual Defense Treaty of 1954, and to provide a nuclear umbrella for the 
R.O.K. Minister Lee reconfirmed that the transition of the R.O.K. to a 
leading role in the defense of the Korean peninsula would continue and 
that the R.O.K. would continue a robust Force Improvement Program. Both 
ministers were pleased that the recent transfer of peacetime operational 
control of select R.O.K. forces to the R.O.K. Government was highly 
successful. They also shared the view that combined military exercises 
held in 1995 have contributed significantly to deterrence and combined 

6. The two Ministers emphasized that the peace and security of the 
Korean peninsula should be established through direct dialogue between 
South and North Korea. They also reemphasized that the "Joint 
Declaration on the Denuclearization of the Korean Peninsula" should be 
implemented and urged that inter-Korean dialogue and cooperative 
measures should resume on the basis of the "Agreement on Reconciliation, 
Non-aggression, and Exchanges and Cooperation Between the South and 
North" (the South-North Basic Agreement) of 1992. Further, they agreed 
that the Military Armistice Agreement of 1953 remains valid until 
superseded by a permanent peace arrangement through direct negotiations 
between South and North Korea.

7. The two delegations discussed cost-sharing issues associated with the 
combined defense of the Republic of Korea. They noted with satisfaction 
that agreement in principle has been reached on a new cost-sharing 
accord. Under the terms of this agreement, the Government of the 
Republic of Korea will increase its cost-sharing contribution by 10% 
annually for the next three years. This will result in a contribution of 
U.S. $330 million by the R.O.K. Government in 1996. Secretary Perry 
acknowledged the R.O.K. Government's significant contribution to the 
maintenance of U.S. forces in Korea, which is essential to combined 
R.O.K.-U.S. defense capabilities.

8. Minister Lee and Secretary Perry agreed that the Subcommittees of the 
SCM, the Policy Review Subcommittee and the Logistics, Security, and 
Defense Technology and Industrial Cooperation Committees, contributed 
greatly to the success of the SCM. They agreed that R.O.K.-U.S. 
logistics, defense industry,  and technology cooperation, including 
joint research and development projects, should be developed in a 
mutually beneficial manner.

9. The two delegations agreed that the 27th SCM and the 17th MCM were an 
excellent opportunity to further solidify the R.O.K.-U.S. alliance and 
consider issues dealing with future security cooperation. The Minister 
and the Secretary agreed to maintain their close consultations and to 
hold the next SCM at a mutually convenient time in 1996 in Washington, 

10. Secretary Perry expressed his appreciation to Minister Lee and the 
R.O.K. delegation for their warm welcome, gracious hospitality, and the 
excellent arrangements that made this meeting successful. 



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