U.S. Department of State
Dispatch Volume 7, Supplement No. 2, June 1996
Bureau of Public Affairs
Group of Seven (G-7)1996 Economic Summit
Lyon, France
June 26-30, 1996
ARTICLES IN THIS ISSUE:
1. Fighting Terrorism: Top Priority on G-7 Agenda--President Clinton,
French President Chirac
2. Declaration on Terrorism
3. The G-7 Summit: International Issues--Secretary Christopher, Treasury
Secretary Rubin
4. Lyon Summit Communique: Making A Success of Globalization for the
Benefit of All
5. The G-7 Summit: Achieving Key Objectives--President Clinton
6. Lyon Summit Chairman's Statement: Toward Greater Security and
Stability in a More Cooperative World
ARTICLE 1
Fighting Terrorism: Top Priority on G-7 Agenda
President Clinton, French President Chirac
Opening statements at a news conference, Lyon, France, June 27, 1996
President Chirac. Ladies and gentlemen, this press point is, in fact, to
explain to you that we changed our agenda at the G-7. We were united in
condemning the dreadful bombing that has taken place and the fact that
the United States and Saudi Arabia have fallen victim to this appalling
event.
We expressed our deepest sympathy to the president of the United States
and the people of the United States as well, and we decided to place
terrorism on our agenda as the very first point for discussion and to
prepare a communique in order to fight this scourge. This is a
communique which you will be receiving at the close of this pre-press
conference so that you can see the top priority that we assign to
fighting terrorism.
We have also agreed to convene a ministerial conference in about three
week's time, which will be attended by the ministers of foreign affairs
and ministers responsible for security at the level of the eight
countries meeting here. This is all designed to identify the steps which
will bolster our fight against terrorism.
President Clinton. I want to thank President Chirac and my other G-7
colleagues for their very powerful statements and their expressions of
sympathy to the victims and their families.
We have once again stood united against terrorism. We understand that an
attack on one of us is an attack on all of us, and that none of us is
invulnerable. Attacks of terror can occur anywhere, whether in a Paris
metro station or in Manchester or the subway in Tokyo or the World Trade
Center or the Oklahoma City Federal Building. This latest act of outrage
reminds us of one of the great burdens of the modern world.
As we become more open, as our borders become freer to cross, as we
can move information and money and people and material across national
boundaries more quickly, we all become more vulnerable to terrorists, to
the organized forces of destruction, to those who live to kill for
ethnic or racial or religious reasons, especially. And I want to
emphasize that I am convinced that the G-7 leaders are every bit as
determined as I am to take stronger action.
In the next day or two we will be discussing, as I said earlier, 40
specific actions we can take to try to protect our borders, to try to
stop the legal weapons trade, to try to stop the money laundering and
illegal currency transactions, to try to protect the witnesses and
others who support our efforts to crack terrorists and their operations.
And then President Chirac, in suggesting this ministerial, has given us
the chance to try to come up with even more specific steps that will
involve, we hope, even more people rallying to our cause.
This is a very sad day for the United States. I have been very moved by
the deep and genuine expressions of condolence by the president of
France and the other leaders here. But I have been even more moved by
the determination that they have shared with me in common to take
stronger stands against terrorism, to prevail and not to give in. That
is the message we want to go out to the world tonight.
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ARTICLE 2
Declaration on Terrorism
Statement released at the G-7 Economic Summit, Lyon, France, June 27,
1996.
In the aftermath of the cowardly attack on Dhahran, which took the lives
of a large number of American citizens and injured hundreds of innocent
people, we, the member countries of the G-7, condemn this barbarous and
unjustifiable act and express our wholehearted solidarity with the
United States and Saudi Arabia in their terrible ordeal. We pay tribute
to the memory of the victims and convey our deepest sympathy to their
families, as well as to the American and Saudi peoples. We also condemn
other recent terrorist outrages.
These tragedies strengthen us in our conviction that terrorism is a
major challenge to all our societies and states today. We reaffirm our
absolute condemnation of terrorism in all its forms and manifestations,
regardless of its perpetrators or motives. Terrorism is a heinous crime,
and there must be no excuse or exception in bringing its perpetrators to
justice.
We proclaim our common resolve to unite our efforts and our
determination to fight terrorism by all legal means. In keeping with the
guidelines for action adopted by the Eight in Ottawa, we strongly urge
all states to deny all support to terrorists. We rededicate ourselves
and invite others to associate with our efforts in order to thwart the
activities of terrorists and their supporters, including fund-raising,
the planning of terrorist acts, procurement of weapons, calling for
violence, and incitements to commit terrorist acts. Special attention
should be paid to the threat of utilization of nuclear, biological, and
chemical materials, as well as toxic substances, for terrorist purposes.
We consider the fight against terrorism to be our absolute priority, and
reiterate the necessity for all states to adhere to the relevant
international conventions. When implemented, many of the recommendations
the Eight will be considering tomorrow to deal with crime will better
equip our law enforcement authorities to work together to combat
terrorism. And we are resolved to do more: to examine and implement, in
cooperation with all states, all measures liable to strengthen the
capacity of the international community to defeat terrorism. To that
end, we have decided that a ministerial meeting to consider and
recommend further actions will be held in Paris, as early as the month
of July.
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ARTICLE 3
The G-7 Summit: International Issues
Secretary Christopher, Treasury Secretary Rubin
Remarks prior to press briefing, Lyon, France, June 28, 1996
Secretary Christopher. Good afternoon. Since taking office, President
Clinton has focused the summits on developing concrete strategies to
address the most pressing concerns of both the American people and the
international community at large.
At Tokyo, as you will recall, the President galvanized support for the
completion of the Uruguay Round, and he mobilized a major western
economic package for Russia. At Naples, the leaders adopted the
President's proposal for a far-ranging review and reform of the
principal international institutions in order to try to ready them to
meet the challenges of the next century. At Halifax last year, following
the President's now-successful efforts to end the Mexican financial
crisis, the summit took important steps to improve the international
community's ability to respond to that kind of crisis in the future.
Very important steps have been taken along that line.
Coming to the summit here in Lyon this year, the President identified
two priority areas that he wanted to focus attention on: First,
securing the peace in Bosnia, and second, combating international crime
and terrorism. We expect the leaders to adopt concrete plans of action
in both of these areas.
In Bosnia, we have already made considerable strides in implementing the
Dayton Agreement. I want to commend the efforts of IFOR and the High
Representative, Carl Bildt, in this regard. The guns have fallen silent
in Bosnia. The opposing military forces have been separated and they are
now demobilizing. The parties have agreed, only a few days ago, to far-
reaching conventional arms reductions. Virtually all the prisoners-of-
war have been released after a major effort on our part. And foreign
forces have now departed from Bosnia.
Work has begun on the Gorazde Road, which is so important symbolically
and substantively. The long-term project of reconstruction is under way.
Freedom of movement, far from perfect, nevertheless has been
substantially improved with thousands of people crossing the inter-
boundary lines every day.
We all recognize, of course, that this is a multi-year commitment on the
civilian side and much more needs to be done. Here at Lyon, we expect
the leaders will adopt a concrete plan of action to strengthen
implementation in several areas, particularly relating to elections and
economic reconstruction.
On elections, as you know, the head of the OSCE has now officially
confirmed elections will take place as scheduled under the Dayton
Agreement on September 14. Elections are vital to put in place the key
political institutions called for in Dayton, including a national
presidency, a national legislature, and national courts. These
institutions are essential if we are going to achieve the Dayton goal of
a multi-ethnic society and if we are to continue the work on
reconstruction, which is so essential. Our action plan will lay out
specific steps that the international community will take to make the
elections a success.
On economic reconstruction, the leaders will lay out an agenda to make
sure that peace produces real benefits in the lives of ordinary
civilians--ordinary citizens of Bosnia. This will include new steps to
ensure adequate funding and the construction of priority reconstruction
projects.
The leaders will also review various aspects of Dayton compliance. One
of the most important of these, of course, is compliance with the orders
of the War Crimes Tribunal. I want to stress that the Dayton Agreement
now flatly prohibits indicted war criminals from participating in the
elections. The President will be working with his fellow leaders here to
make clear that indicted war criminals such as Mr. Karadzic must be
removed from power, removed from influence, be out of the country, and
in the hands of the War Crimes Tribunal.
Terrorism, international crime--to move to the second subject--are also
priority issues for President Clinton, President Chirac, and the other
leaders. Last night, at the urging of both President Clinton and
President Chirac, the leaders adopted a statement declaring the fight
against terrorism to be an absolute priority for all of them. The
program that the leaders will adopt during the next two days represents
a very important series of steps in addressing what is obviously one of
the most important problems facing the world today.
Since the beginning of our Administration, President Clinton has put
these concerns about terrorism and international crime at the very top
of his agenda. Last year at the 50th UN General Assembly, the President
called on all nations to adopt effective, coordinated strategies to
fight these transnational issues such as terrorism, crime, narcotics,
arms trafficking, and nuclear smuggling--issues that have a very close
interactive relation to each other--I am sorry to say.
In Ottawa last December, the P-8 agreed to a declaration against
terrorism, calling on all nations to ratify the 11 international
antiterrorism agreements, and to do so by the year 2000. Experts from
the P-8 have developed a package of 40 recommendations on international
crime and terrorism that the leaders will review and will endorse later
today or later at the summit.
These recommendations, of course, are not the end of the effort. As you
know, last night, the leaders asked the ministers to meet within the
next month to consider further actions.
This is the message that will go forth from Lyon: The international
community is united and determined to prevail in the fight against
terrorism. We must not rest until this fight against this most serious
threat to our security and well-being has been won.
The significance of our decision is strengthened here by the presence of
Russia in our discussions both of global and regional security issues.
The elections held two weeks ago in Russia represent a milestone on the
continued path of political and economic reform in that country.
Russia's participation here--with the arrival this afternoon of Prime
Minister Chernomyrdin and Foreign Minister Primakov--are further signs
that Russia is integrating itself into the international community and
contributing to international stability and security.
We look forward to a similarly successful second round of elections in
Russia. We will continue to urge the leaders of Russia and the people of
Russia to strengthen and consolidate reforms as they move into their
future. Thank you very much.
Secretary Rubin. Thank you. Let me, if I may, add a few words with
respect to the economic agenda of this summit and where we may be going-
-going forward.
The President came to the summit committed to advancing the
international economic agenda that he began advancing, as Secretary
Christopher said, at the Tokyo Summit--the first summit of his
Administration--focusing on promoting sustainable growth and financial
stability in the world economy, strengthening our capacity to deal with
new challenges to the international financial system, supporting
development and reform in the developing and transitional world, opening
markets, building multilateral trading systems, and supporting the
transition in Russia and the former Soviet Union.
We have reached agreement in Lyon on quite a number of measures that
continue to advance this process that began with the President in Tokyo,
and then led to Naples and Halifax.
First, the leaders reaffirmed their commitment to macroeconomic policies
and structural reforms to promote sustainable growth and job creation.
And in this context let me say--because I suspect you will probably ask
me anyway--that the leaders welcomed the broad movements in exchange
rates in the major currencies since April of 1995 and instructed their
finance ministers to continue to cooperate on economic and foreign
exchange matters.
Second, the leaders welcomed the progress achieved in implementing the
Halifax initiatives, which were designed to strengthen the financial
system, including the establishment earlier of a strong early warning
system through the disclosure requirements promulgated by the IMF, and
the agreement on a new, $50-billion supplementary facility for the IMF
done around the concept of the general agreements to borrow.
One of the key outcomes, in my view at least, of our discussions in Lyon
was to continue our emphasis on remaining at the frontier of
globalization and innovation in the financial markets. Toward this end,
the communique outlined new priorities with respect to enhancing
regulatory cooperation to safeguard the financial system, including
stronger risk management and transparency in innovative markets in the
major financial centers; making operative with specific steps the
agreement previously reached to cooperate in regulating the
international financial organizations that operate across global
borders; and establishing standards for financial institutions in
emerging markets--a very important issue going forward.
They also called for review of the implications of electronic money--
Internet and the like--and the identification of ways to make sure that
the benefits of these developments are realized, and at the same time,
ways to avoid the problems that are implicit in these developments.
Third, the leaders reaffirmed a results-oriented partnership for
development which emphasizes the importance of sound economic policies
and good governance in the developing world, more effective assistance
by the multilateral development institutions focused particularly on
poverty alleviation, and in putting into place the underpinnings for
private sector development and continued support from the developed
countries.
The finance ministers, who have had a number of meetings during this
two-day period, will be talking about this development agenda over
dinner this evening with the managing director of the IMF, the president
of the World Bank, and the director general of the WTO. The leaders will
meet with those three plus the secretary general of the United Nations
tomorrow to discuss those and other subjects.
Fourth, the most important thing--with respect to the development
agenda--the leaders agreed on a comprehensive approach for alleviating
the debt burden of the poorest nations, so those nations, if they agree
to sound reform policies, will be able to manage their debt burden and
succeed economically. This approach includes a substantial commitment
from the World Bank, which we expect will total the order of $2 billion
from their own resources for debt alleviation, and contribution by the
IMF through a continuing, enhanced structural adjustment facility,
referred to as the ESAF, financed primarily by its own resources.
This approach also calls for increased debt reduction by the creditors
of the Paris Club. We believe that debt reduction, debt relief for the
poorest countries is the most efficient way of making a contribution to
their reform and development.
All of these measures are vital achievements in the ongoing process of
dealing with the global economy and the global financial markets. There
is an enormous amount of work to do, but, if you look back over the past
3-1/2 years, I believe without question that there have been tremendous
achievements that will greatly contribute to all of our economies and
our national security in the years ahead, including very much to those
of the United States.
Let me conclude by complimenting our French hosts--my colleague, Jean
Arthuis, in particular--for their effective leadership in various
meetings at this summit.
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ARTICLE 4
Lyon Summit Communique: Making a Success of Globalization For the
Benefit of All
Text of communique issued at Lyon, France, June 28, 1996.
Preamble
1. We, the Heads of State and Government of seven major industrialized
democracies and the President of the European Commission, have met in
Lyon for our 22nd annual Summit. Our discussions have taken place within
the framework of a reflection on benefits and challenges posed by
increasing economic globalization.
2. Economic growth and progress in today's interdependent world is bound
up with the process of globalization. Globalization provides great
opportunities for the future, not only for our countries, but for all
others too. Its many positive aspects include an unprecedented expansion
of investment and trade; the opening up to international trade of the
world's most populous regions and opportunities for more developing
countries to improve their standards of living; the increasingly rapid
dissemination of information, technological innovation and the
proliferation of skilled jobs. These characteristics of globalization
have led to a considerable expansion of wealth and prosperity in the
world. Hence, we are convinced that the process of globalization is a
source of hope for the future. History shows that rising living
standards depend crucially on reaping the gains from trade,
international investment and technical progress.
3. Globalization also poses challenges to societies and economies. Its
benefits will not materialize unless countries adjust to increased
competition. In the poorer countries, it may accentuate inequality and
certain parts of the world could become marginalized. The adjustment
needed is, however, imposing rapid and sometimes painful restructuring,
whose effects, in some of our countries, can temporarily exacerbate the
employment situation. Globalization of the financial markets can
generate new risks of instability, which requires all countries to
pursue sound economic policies and structural reform.
4. Our countries have made a decisive contribution to the progress of
liberalization and globalization. We must do our best to ensure that
this process fully responds to the hopes it has aroused and that
globalization serves the interest of people, their jobs and their
quality of life. The potential benefits of the process for people must
be translated into real opportunities in our own societies and in the
poorer countries of the world. In an increasingly interdependent world
we must all recognize that we have an interest in spreading the benefits
of economic growth as widely as possible and in diminishing the risk
either of excluding individuals or groups in our own economies or of
excluding certain countries or regions from the benefits of
globalization.
5. This requires increased international cooperation. The adaptation of
our international institutional structures; liberalization of markets,
fair rules and their extension to new players; the capacity to respond
to crises of varying scale and nature, as well as a readiness to support
the efforts of those countries striving to escape from the miseries of
economic underdevelopment will be necessary for future progress. We call
upon other countries with the financial capacity and a stake in the
international trade and monetary system to join us in these efforts so
as to share the responsibilities and the burdens fairly among ourselves
and with others. We will thus be able to make a success of globalization
for the benefit of all.
I. Strengthening Economic and Monetary Cooperation
6. Growing international economic interdependence unquestionably
holds out new opportunities for the entire global community. At the same
time, it adds to our collective responsibilities and the need for more
effective cooperation among our countries to face new challenges.
7. Since we met in Halifax, economic developments have been on the whole
positive and disparities of economic performance among us have been
narrowing. Canada and the United States continue to enjoy sustained
noninflationary growth. In Japan, the recovery is gathering strength.
Some European countries, admittedly, experienced a slowdown, but
economic fundamentals are improving and we are confident that growth
will pick up in the second half of the year.
Looking ahead, the economic fundamentals remain sound and well
oriented: inflation has settled at a low level, the interest rates have
come down substantially, reaching historically low levels in some of our
countries and external and internal imbalances have been substantially
reduced. However, we recognize that some difficulties still lie ahead:
public deficits and debt remain too large and national savings too low,
unemployment is still unacceptably high in many countries and despite
all the progress already achieved in the area of structural reforms, our
economies are not yet as resilient and adaptable to changes as they
should be.
Outside the G-7 sphere, economic prospects also look very encouraging.
Emerging economies are experiencing robust growth. Sound macroeconomic
policies and progress toward market-based institutions have contributed
to improving economic performance in many developing countries and
countries in transition.
8. In this context, our economic policies will continue to be directed
at sustaining noninflationary growth. This is a vital prerequisite to
the creation of jobs and bringing down unemployment. While recognizing
that our individual circumstances may vary, we share a common commitment
to a medium-term economic strategy: credible fiscal consolidation
programs, successful anti-inflationary policies and as a consequence low
interest rates, and strengthened structural reform. These should
contribute to investment, growth and job creation. Such policies will
contribute to reducing external imbalances, thereby promoting
international monetary stability and maintaining the conditions for
harmonious growth in global trade and business.
9. Sound economic policies are the most important foundation for
preventing exchange rate misalignment that may heighten uncertainty in
the global economy and be detrimental to trade and growth. We welcome
the broad movements in the major currencies since April 1995. These are
positive and promising developments, and have helped to improve the
conditions for sustained growth across the G-7. We endorse the views of
our Ministers of Finance on international monetary stability. We request
our Ministers of Finance to continue to cooperate closely on economic
policy and in the exchange markets. In this connection, we attach
importance to the implementation of improved practical measures to deal
with risks relating to the operation of the global financial markets and
we request our Ministers to report to the next Summit on this issue.
10. The globalization of the financial markets has contributed to the
creation of a more complex financial environment. Better prudential
regulation and supervision in the financial markets are
essential elements in preserving the stability of the international
monetary and financial system. In this respect, we welcome the progress
on the strengthening of capital standards, including the recent
agreement on capital adequacy standards for banks' exposure to market
risk, improved disclosure and enhanced surveillance.
11. Cooperation among regulatory and supervisory authorities should
continue to adapt to financial innovations, and to the growth in cross-
border capital movements and internationally active financial
institutions. We welcome the work accomplished by the international
bodies concerned with banking and securities regulation. Over the year
ahead, we should seek to make maximum progress on the following
objectives:
-- enhancing cooperation among the authorities responsible for the
supervision of internationally-active financial institutions,
importantly by clarifying their roles and responsibilities;
-- encouraging stronger risk management and improved transparency in
the markets and connected activities, especially in the innovative
markets;
-- encouraging the adoption of strong prudential standards in emerging
economies and increasing cooperation with their supervisory authorities;
international financial institutions and bodies should increase their
efforts to promote effective supervisory structures in these economies.
We ask our Finance Ministers in consultation with the relevant
institutions to report back on this issue at our next meeting;
-- studying the implications of the recent technological advances which
make possible the creation of sophisticated methods for retail
electronic payments and how to ensure their benefits are fully realized.
12. The increased integration of global capital markets, the changes in
magnitude and composition of financial flows, and the increased
diversity and number of creditors and borrowers present new
opportunities and new challenges. That is why, in order to promote
monetary stability, we proposed last year in Halifax a number of
measures for the international financial system, notably the
International Monetary Fund, to strengthen the ability to deal
effectively with these challenges.
We welcome the work accomplished since the Halifax Summit toward the
implementation of these proposals. The surveillance capacities of the
IMF have been enhanced, standards for the provision of economic and
financial information to the markets have been established and an
emergency financing mechanism has been created. We welcome the G-10
report on resolving the liquidity crises of sovereign borrowers. This
report emphasizes the importance of market discipline, and calls for the
enhancement of current procedures for handling international financial
emergencies, in order to minimize the need for official support in the
future.
13. Together with the international community as a whole, we undertake
to ensure that the IMF has the resources needed to perform its tasks in
the service of international monetary stability:
-- we welcome the agreement reached on a framework for doubling the
resources currently available to the IMF under the General Arrangements
to Borrow in order to respond to financial emergencies. These
arrangements will include a broader group of countries with the capacity
to support the international monetary system. We welcome this sharing of
monetary responsibilities, thereby adapting our cooperation to new
economic circumstances;
-- the IMF should remain an institution based on quotas providing the
resources necessary to accomplish its traditional tasks. Any quotas
increase should take into account the changes in the economic and
financial weight of its members. Given the prospective evolution of the
Fund's liquidity, we request that the 11th quota review be completed as
soon as possible.
14. Lastly, the IMF should continue to reflect on the role of Special
Drawing Rights within the international monetary system. We continue to
hope for progress on proposals that would permit all Member countries to
participate on an equitable basis in the SDR system. We invite the IMF
Member States to pursue their dialogue in order to settle this issue.
15. As we recognized last year, international financial fraud is a
growing problem for our financial systems. In order to strengthen the
fight against this phenomenon, we will continue to look for ways of
facilitating, as much as possible, the exchange of information on cases
involving serious financial crime and regulatory abuse between law
enforcement agencies and regulatory bodies, in accordance with our own
domestic legal systems and other basic principles. We intend to maintain
our dialogue to review progress and developments in this field.
16. Finally, globalization is creating new challenges in the field of
tax policy. Tax schemes aimed at attracting financial and other
geographically mobile activities can create harmful tax competition
between States, carrying risks of distorting trade and investment and
could lead to the erosion of national tax bases. We strongly urge the
OECD to vigorously pursue its work in this field, aimed at establishing
a multilateral approach under which countries could operate individually
and collectively to limit the extent of these practices. We will follow
closely the progress on work by the OECD, which is due to produce a
report by 1998. We will also follow closely the OECD's continuation of
its important work on transfer pricing, where we warmly endorse the
significant progress that the OECD has already achieved.
17. In order to face the challenges of economic and fiscal impact of
aging populations, we remain committed to ensuring sustainability of our
social security system.
II. Promoting Strong and Mutually Beneficial Growth of Trade and
Investment
18. Expanding trade and investment has led to marked increases in global
wealth and prosperity and should continue to play this role in the
future. Growth in trade and investment will be sustainable and therefore
most beneficial to all if conducted within a strong multilateral
framework of rules.
19. We give high priority to achieving a multilateral agreement on
investment in the OECD that provides high standards of investment
protection and liberalization, with effective dispute settlement. We
look forward to the successful completion of these negotiations by
June 1997.
20. We place a high priority on an efficient, dynamic, respected and
open multilateral system. We reaffirm the central role of the WTO and
the preeminence of multilateral rules, which should serve as the
framework for regional initiative. We reaffirm our commitment to working
to strengthen the confidence in and credibility of the multilateral
trading system by avoiding taking trade and investment measures that
would be in contradiction with WTO rules and OECD codes, and by using
and complying with any applicable provisions for consultation and
dispute settlement when differences arise. We emphasize that bilateral
or regional free trade agreements should be trade liberalizing and
should cover substantially all trade.
We will continue to monitor the strict implementation of commitments and
precise compliance with timetables agreed at the end of the Uruguay
Round. In accordance with the rules of the World Trade Organization and
on the basis of significant liberalization commitments, we support the
accession of new members to the WTO.
21. We recognize the importance of the integration of developing
countries in the global trading system as an essential element of
sustainable growth and development. We have agreed on ways to help
developing countries, especially the least developed, to benefit more
fully from the results of the Uruguay Round.
22. Together with our partners we will work for the success of the first
ministerial conference of the WTO in December 1996. We will ensure full
and effective implementation of the Uruguay Round results according to
the agreed timetables. We are resolved to complete all ongoing
negotiations in the service sector and to relaunch talks in Singapore on
financial services so as to reach significant, balanced and non-
discriminatory liberalization commitments by December 1997.
We strongly support the conclusion of a mutually beneficial Information
Technology Agreement.
23. Global liberalization of trade and a high level of environmental
protection should be mutually supportive. It will be important, for
example, to ensure that WTO rules and multilateral environmental
agreements and ecolabelling programs are complementary. The Singapore
Ministerial Conference of the WTO will be an important opportunity to
demonstrate the ability and willingness to integrate environmental
protection and thus sustainable development concerns into the
multilateral trading system. We welcome the ongoing work launched at
Marrakech and look to the Singapore Ministerial Conference to make
substantive recommendations for action.
24. In addition to pursuing full implementation of the Uruguay Round
agreement, we invite the WTO Ministerial Conference to broaden its
agenda to include topics of special importance for trade and investment
liberalization, by:
-- beginning an examination of trade and investment in the WTO and work
toward a consensus which might include the possibility of negotiations;
-- discussing the interaction between trade and competition policy with
a view to determining how to proceed;
-- exploring possible new industrial tariff initiatives in sectors to be
agreed by consensus.
We also recognize that there is a will to address the question of the
relationship between trade and internationally recognized core labour
standards.
We also believe that there is more to be done in areas where other
obstacles still seriously impede freer access to markets, in particular:
-- by encouraging more convergence between national standards and
international norms, by further regulatory reform and by mutual
recognition of procedures for testing and for certification;
-- by enhancing the disciplines of and expanding the number of countries
subscribing to the Agreement on Government Procurement and, in
furtherance of this goal, by developing an interim arrangement on
transparency, openness and due process in government procurement
practices;
-- by effectively enforcing and further developing intellectual
property disciplines.
25. In order to facilitate the free flow of trade, we will initiate an
effort to further standardize and simplify customs procedures among our
countries. Uniform documentation and electronic transmission standards
would reduce costs for business and government, complement efforts in
the WTO by eliminating barriers to trade and development, and so promote
growth.
26. Lastly, we are resolved to combat corruption in international
business transactions, which is detrimental to transparency and fairness
and imposes heavy economic and political costs. In keeping with the
commitment of OECD Ministers to criminalize such bribery in an effective
and coordinated manner, we urge that the OECD further examine the
modalities and appropriate international instruments to facilitate
criminalization and consider proposals for action in 1997.
27. Looking ahead beyond the Singapore Ministerial Conference and
recognizing that our next meeting will take place on the eve of the 50th
anniversary of the founding of the multilateral trading system, we are
committed to working together with our partners to give sustained
impetus to trade liberalization.
III. Enhancing Our Approach to Employment Problems
28. The development of a more global economy and advances in information
technology are engines of economic growth and prosperity. But they also
may be seen by some as a source of dislocation and insecurity. Our
challenge is to ensure that our economies can adapt so that all our
citizens can benefit from the opportunities created by the new global
economy. We must achieve both economic growth and a widely shared
prosperity. The reduction of unemployment and the creation of quality
jobs are urgent priorities. We recognize the crucial role of the private
sector for achieving these goals.
29. We seek to enhance the effectiveness of policies aimed at
stimulating growth and jobs. This requires action in a wide range of
structural policies, within a framework of sound macroeconomic policies.
We welcome the conclusions reached by the Ministerial Conference on
Employment in Lille, and we have agreed to pursue the following
policies:
-- we reaffirm our belief that investment in people is as vital as
investment in capital. We will therefore pay special attention to a
sound basic education, skill formation and training, which is a
lifelong undertaking, and to improving the transition from school to
work;
-- we are determined to prevent and fight against social exclusion. We
must define ways to reinforce people's employability throughout their
working lives by facilitating the transition from one job to another;
-- we pledge to carry out practical reforms, consistent with the
specific situation in each of our countries, aimed at achieving a high
level of employment and widely-shared prosperity: these include tax and
social system reforms to ensure that "work pays," particularly for the
least well-off; lowering social security charges which place a burden on
low-skilled jobs, in countries with high indirect labour costs; and
improving public employment agencies;
-- in order to foster entrepreneurship we will modernize our regulatory
frameworks where needed in the markets for goods and services, to
enhance our economies' ability to respond to rapid change and to
encourage job creation; we welcome the work on regulatory reform by the
OECD and look forward to its conclusions;
-- we will facilitate the dissemination, notably in the direction of
small and medium-sized businesses, of new technologies, which are
creating plentiful, quality jobs.
30. We thank the ILO and the OECD for the quality of their contributions
to the Lille conference. We very much hope that these two organizations
will continue their work especially on the interaction between
macroeconomic policies and structural reforms, as well as on "best
practice" in the fields of technology, innovation and investment in
human capital in the best-performing businesses, and policies to enlarge
employment opportunities for the most vulnerable workers of society.
31. We welcome the proposed meeting in Japan to reflect in greater depth
on employment issues.
IV. Implementing a New Global Partnership for Development: An Ambition
for the 21st Century
32. Thanks to sound domestic economic policies and to an increasingly
global economy, many developing countries are experiencing robust
growth, assisted by their expanding involvement in international trade
and capital inflows. But there is a growing divide between these
countries and those, mainly low income countries, which are currently
unable to benefit from these opportunities and are falling further
behind.
33. We need therefore to define a new global partnership between
developing countries, developed countries and multilateral institutions.
This will involve a fresh look at development policies including
development aid, its content and the bilateral and multilateral
instruments through which it is provided.
34. This new partnership should set its sights on enabling all
developing countries, whatever their stage of development, to share and
participate in the benefits of globalization. To that end, it should
take the achievement of sustainable development as its fundamental
objective. Goals should include the reduction of poverty and social
inequities, the respect of internationally recognized labour standards,
protection of children, a strengthened civil society, protection of the
environment, improved health and education.
35. We want the partnership to achieve concrete results. We emphasize
the usefulness of indicators capable of measuring progress toward
development objectives in specific countries in areas such as extreme
poverty, infant, child and maternal mortality, and primary education.
Other essential aspects of development must also be considered,
including a number of non-measurable qualitative factors. We welcome the
ongoing work of the OECD on this subject.
36. The new development partnership should be mutually beneficial and
based on a spirit of solidarity and burden-sharing among all those
involved:
-- the developing countries have a fundamental responsibility for
promoting their own development. This means conducting sound and
consistent economic and social policies, promoting a political and legal
environment conducive to the development of the private sector, and
encouraging domestic and foreign investment. Democracy, human rights and
good governance are indispensable components of development. It is up to
these countries to give priority to funding social and economic
development programs and to avoid unproductive expenditures, in
particular excessive military spending, without prejudice to their right
to self-defence. It is in their interest to commit themselves actively
to the multilateral system and to promote regional cooperation;
-- the developed countries must support the efforts of the developing
countries in a spirit of common purpose and efficiency. Their growth and
market-opening policies also benefit developing countries. In
implementing these policies, they should seek to create an environment
which encourages trade and private financial flows in the developing
countries direction. Bilateral agreements for investment protection and
generalized preference measures contribute to this objective. We renew
our commitment to secure substantial flows of official aid and to
improve the quality of this aid. The whole international community
should be mobilized in this effort, and new donors should assume growing
responsibility, so that the burden is more equally shared;
-- the multilateral development institutions, cooperating among each
other and with bilateral donors, play an important role in promoting
development and encouraging the developing countries to reduce poverty,
to implement sound economic policies and to improve capacity. They must
be provided with sufficient and appropriate financial resources for this
purpose. Their strength depends on the active participation of all
members. Efforts by the multilateral institutions to discourage
unproductive expenditures in developing countries should be pursued and
supported by donor countries in their own bilateral aid and credits.
37. Within the framework of this new partnership, the priority must be
to implement more effectively-targeted policies, with four
complementary objectives:
-- external financial support should take into full account the
differentiation between countries in transition, emerging economies and
the poorest countries. Sub-Saharan Africa continues to face unusually
severe challenges. We will concentrate resources on those countries that
need them most and that can use them effectively, reflecting the fact
that their policy program is credible and that their Government is fully
committed to implement it. Grants and concessional financing should be
directed primarily to meet the financial requirements of the poorest
countries which have no or limited access to the international capital
markets, once they can demonstrate their commitment to create the
conditions to use them effectively;
-- giving more explicit priority to sustainable development and the
alleviation of poverty. This should mean adequate ODA funding of
essential sectors such as health and education, basic infrastructures,
clean water schemes, environmental conservation, microenterprises,
agricultural research and small-scale agriculture, with for example the
help of IFAD;
-- we should support the establishment of a dynamic and competitive
private sector in developing countries based on small and medium scale
enterprises. ODA can play a catalytic role in creating the conditions in
which such a private sector can flourish;
-- lastly, further integrating the Least and Less Developed Countries
into the global economy, using the full range of policy instruments
having an impact on development. Within the multilateral environment
which has emerged from the Uruguay Round agreement, this should be an
essential objective. We will support the LLDC's efforts to achieve such
integration, for example, by responding favourably to requests for
technical assistance in the fields of investment, privatisation and
export diversification, and encouraging international organisations and
programs to do likewise. We will implement the provisions of the
Marrakech Decision on Measures in Favour of Least Developed Countries.
In this context we will examine what each of us could do to improve
their access to our markets and we encourage others to do the same,
including other developing countries.
V. Enhancing the Effectiveness Of Multilateral Institutions for the
Benefit of Development
38. To be effective in supporting this global partnership for
development, the multilateral institutions must pursue their efforts to
adapt and reform. We welcome the widespread support for institutional
reform that has arisen in the past year and we are determined to help
increase this momentum.
39. In Halifax a year ago, we called for reforms of the international
financial institutions in order to improve coordination, reduce overlap,
and increase their effectiveness. Reform efforts have intensified over
the past year. The re-form of the Development Committee has made it
possible for Ministers from developed and developing countries to
consider issues together and provide guidance to the institutions. The
World Bank and the IMF are cooperating more closely with tangible
results, for example in their joint studies on debt and public spending.
Collaboration among the heads of the multilateral development banks has
been intensified. Operational and administrative reforms are underway
and attention must be directed to effective implementation.
We commend the work undertaken by the Multilateral Development Banks to
make procurement processes more transparent. We encourage efforts by all
the multilateral institutions to support reforms that will help to
promote good governance and to reduce corrupt commercial practices.
A sustained effort is needed in reforming the development banks to
achieve better results on the ground, while reducing costs further. We
endorse the recommendations of the Development Committee Task Force for
closer cooperation between banks at all levels.
40. In Halifax, we committed ourselves to encourage the broadening and
deepening of the reform process underway in the United Nations system.
We believe that our initiatives have significantly contributed to an
increasing awareness of necessary changes in the system as a
prerequisite for improved efficiency, with a view to tangible benefits
for recipients of the various development activities.
We particularly appreciate the outcome of the 9th session of UNCTAD
at Midrand where we succeeded, together with all our partners, to pave
the way for a thorough reform which can also be regarded as an
important point of reference for the reform of the UN economic and
social sector. We also deem significant the recent decision to
strengthen the coordinating role of ECOSOC. We welcome the UN regional
economic commissions initiatives to examine their activities, adjust
priorities, restructure programs and reorganize their staff to increase
efficiency and cost effectiveness.
We will work with other members to make rapid progress in the reform of
the UN in order to rationalize and strengthen its role in development.
41. The United Nations plays a crucial role in the organization of
international cooperation in favour of sustainable development, and in
fostering consensus around development objectives and policies.
The UN's priority areas are, notably: reduction of poverty, employment,
housing, the provision of essential services, and especially those
relating to health and education, the advancement of women and
protection of children, and humanitarian assistance in general.
The UN also has a fundamental role to play in promoting democracy, human
rights and the rule of law, protection of the environment, emergency
relief and post-conflict stabilization, and technical assistance to
enable the poorest countries to participate in international trade and
investment.
42. In order to be more effective in the field of development, the UN
must clarify its role and comparative advantages. It must enhance the
efficiency of its Secretariat and operational framework, make them more
coherent and ensure genuine coordination at all levels. Proposals to
that effect should focus on existing structures and build on ideas which
have emerged in various discussions on UN reform.
43. Reform could center upon the following main points:
-- the three Secretariat departments responsible for development should
be merged under the authority of a single Under Secretary-General;
-- the Under Secretary-General should notably serve as Executive
Secretary of ECOSOC in order to enhance the Council's policy formulation
and coordinating role;
-- the Secretary-General, assisted by the Under Secretary-General and
supported by the Head of the UN Office of Internal Oversight Services,
in cooperation with the heads of agencies, should urgently review the
roles and mandates of specialized agencies and commissions involved in
development with a view to eliminating overlap and improving
effectiveness. This review should include an examination of the case for
merging their development functions. The Secretary-General should make
recommendations in this sense and pursue their implementation through
the Administrative Committee on Coordination and ECOSOC;
-- upon being appointed, the Under Secretary-General should support the
process by conducting a review of existing UN development funds and
programs in close consultation with the heads of relevant individual
bodies. Where a strong case for rationalization can be made, funds and
programs should be merged into the UNDP, which would thus be enhanced;
-- the Under Secretary-General should also carry forward the
rationalization of UN's economic analysis and reporting in consultation
with other organizations involved in economic analysis such as the IMF,
the World Bank and the OECD, with a view to eliminating duplication;
-- UN field premises and administrative systems in the field should be
further consolidated and the timetable for approval of UNDP, UNFPA and
UNICEF country programs should be harmonized;
-- savings resulting from improved cost effectiveness should be
reinvested in development programs. The Secretary-General should study
ways of implementing this goal.
44. UNCTAD IX was a major milestone in the renewal of UNCTAD. In close
partnership with the other member States, we succeeded in reforming
UNCTAD's intergovernmental machinery and in refocusing its work on a
small number of priorities to promote development through trade and
investment with the aim of facilitating the integration of developing
countries in the international trade system. We are committed to the
implementation of these reforms. The LLDC's will be the major
beneficiaries of this action. We also welcome the WTO and the renewed
UNCTAD initiative to enhance mutual cooperation with each other, with
due regard to their respective mandates.
45. We urge greater cooperation between UN agencies, the international
financial institutions and the WTO:
-- regular meetings between the United Nations Secretary-General, the
IMF Managing Director, the World Bank President and the WTO Director
General, and at other levels, would assure the coordinated and concerted
action of these institutions. This closer cooperation must take into
account the necessity for each institution to concentrate on areas of
comparative advantage and to avoid unnecessary duplication;
-- UNDP, other UN agencies, the World Bank, the IMF, the WTO and
regional development banks could work together, in full cooperation with
the host country, in the preparation of country strategy reports
submitted to their respective governing bodies. Regular meetings of
donors in each country should be organized to facilitate the exchange of
information and the shaping of programs according to the comparative
advantages of each institution. Bilateral donors should be involved in
this process. The resident United Nations coordinator or the World Bank
or regional development bank representative could organize these
meetings at regular intervals. Such meetings will help coordinate and
rationalize the work of donors while reducing costs;
-- the non-military aspects of peace operations (including such tasks as
democratization, police training, institution building, and delivery of
humanitarian assistance) should be addressed through a comprehensive
approach. In this regard, we encourage a closer cooperation between the
United Nations, the International Financial Institutions and the
relevant regional organizations, in order to facilitate the transition
between the emergency intervention phase and the rehabilitation phase.
Consultation among multilateral and bilateral donors in post-conflict
countries should also be reinforced.
VI. Providing the Necessary Multilateral Support for Development
46. The replenishment of the concessional resources of the multilateral
financial institutions must be completed. In this context, we stress the
importance of sharing this burden equitably, we welcome the emergence of
new donors and we encourage other countries to participate.
47. We welcome the fact that all donors have agreed to contribute to
IDA-XI and the activation of the Interim Trust Fund. This agreement will
enable the Association to lend up to USD 22 billion over three years.
This is a major success. It is important that all donors ensure the
success of IDA-XI by fully respecting their commitments on time.
48. We also welcome the replenishment of the resources of the African
Development Fund, whose work is of vital importance for this continent,
recognizing the reforms already made by the management of the Bank.
Timely replenishment of the Asian Development Fund is also important.
49. We are committed to a continuing Enhanced Structural Adjustment
Facility (ESAF) as the centerpiece of the International Monetary Fund
support for the poorest countries, and we welcome the proposals of the
Managing Director of the IMF for greater concessionality in ESAF lending
for a limited number of poor and highly indebted countries, as the IMF's
contribution to putting them in a sustainable position. We will examine
constructively and positively the options for financing the needed
subsidies, using primarily resources held by the IMF, without excluding
bilateral contributions. If needed, the IMF should consider optimizing
its reserves management in order to facilitate the financing of ESAF.
This will enable the IMF to hold out to the poorest countries the
prospect of macroeconomic stability and structural reforms aimed at
growth.
50. We welcome progress achieved in the alleviation of the debt problems
and the active implementation, by the Paris Club, of the Naples terms.
However, for some heavily indebted poor countries, we acknowledge the
need for additional action, in particular to reduce debts owing to
multilateral institutions and other bilateral creditors that are not
members of the Paris Club. Following the proposals developed by the
Bretton Woods Institutions, we look forward to a concrete solution being
agreed by next Autumn at the latest on the following basis:
-- the solution should provide an exit for unsustainable debt and be
based on a case by case approach adapted to the specific situation of
each country concerned, once it has shown its commitment to pursuing its
economic adjustment;
-- the continuation of ESAF will provide the basis for a reduction in
the burden of the debt to the IMF for these countries;
-- we welcome the proposal by World Bank management to commit $500 mil-
lion to this initiative and substantial amounts for future years. We
will support and work together for an overall World Bank contribution of
the order of $2 billion for this initiative. We look to the World Bank
together with the Regional Development Banks to develop practical
funding mechanisms for treating debt owed to these institutions;
-- as concerns bilateral credits, we are committed to work, in
conjunction with a maximum possible contribution by the World Bank and
the IMF, to achieve financial viability and debt sustainability for all
these countries which undertake the necessary adjustment efforts. We
acknowledge Official Development Aid debt cancellation already given by
some creditor countries. We urge the Paris Club creditor countries,
where they deem appropriate, on a case by case basis, to go beyond the
Naples terms for these countries. These efforts would include, on a
voluntary basis, debt conversion schemes up to 20% instead of currently
10% of the stock of debts, and increased debt alleviation. In parallel,
and on the basis of the same assessment, all other bilateral creditors
are encouraged to make their own contributions to these countries in
terms comparable.
VII. Toward Successful Integration Of Countries in Transition Into the
Global Economy
51. The end of the Cold War has given a decisive impetus to
globalization by offering former socialist economies the
opportunity to assume their rightful place in the world economy.
52. We welcome the good economic results achieved by many countries
in transition which have undertaken macroeconomic stabilization and
structural reform. Many countries, especially in Central Europe, have
pursued resolute stabilization and structural reform programs and have
achieved robust growth last year. Other countries which have not yet
embraced reform fully lagged behind. Most of the countries of the former
Soviet Union started reforms later than Central Europe, but many of them
are poised to begin growing this year. We encourage all countries in
transition to pursue their economic reforms in order to achieve or
consolidate these gains. The EBRD plays an important role in supporting
these reforms and we welcome the agreement to increase its capital.
53. We support Ukraine's efforts to continue with political and economic
reforms and to further integrate into the world economy. In this respect
we welcome the latest agreement with the IMF and encourage Ukraine to
fully implement the agreed reform program.
We welcome the Moscow Summit declaration relating to Ukraine and
the commitment of President Kuchma to close reactor no. 1 at Chernobyl
by the end of 1996, in the framework of the program to close the whole
plant by the year 2000. We reaffirm our commitment to full
implementation of the Memorandum concluded with Ukraine, through close
cooperation with this country and the international financial
institutions. In this regard, we welcome the financial decisions already
taken by the international community, and we stress that all parties
concerned must respect the agreed agenda of the comprehensive program.
54. We support Russia's ongoing political reform and its commitment
to democracy. Economic and political reforms are mutually reinforcing
and position Russia to play a more significant role in the global
economy. We welcome the agreement between the Russian authorities and
the IMF on an EFF. This agreement testifies to Russia's continued
commitment to financial stabilization and economic reforms. Russia's
economic success and its integration in the world economy depend on full
implementation of its commitment. Crucial for economic recovery is now
private investment which requires a reliable economic, legal and
administrative environment.
We welcome the historical agreement between Russia and the Paris Club on
a comprehensive medium-term rescheduling of Russia's external debt,
which will enable this country to exit from the
rescheduling cycle. This agreement will enable discussions to take
place between Russia and the members of the Paris Club to see whether
conditions could be agreed for Russia's participation as a creditor.
* * *
Next Summit
55. We have accepted the invitation of the President of the United
States to meet in Denver next year.
(###)
ARTICLE 5
The G-7 Summit: Achieving Key Objectives
President Clinton
Opening statement at a press conference, Lyon, France, June 29, 1996
Ladies and gentlemen, this summit made real progress in the three areas
that we came here to address: the fight against terrorism and crime,
strengthening the peace in Bosnia, and advancing our common agenda for
economic growth.
I thank the leaders for sharing our outrage at the cowardly attack in
Saudi Arabia and for agreeing to intensify the fight against terrorism.
We resolved to take a range of concrete steps that will extend the
efforts we are making at home. These steps will help us to achieve four
key objectives.
First, terrorists and criminals must have nowhere to hide. For example,
we must cooperate to speed up extradition and prosecution of those who
practice terror and then leave the country in which they commit their
acts.
Second, we must drive out the resources terrorists use to fund their
violence.
Third, we must do a better job of defending our national borders to keep
the terrorists, the criminals, and the illegal weapons out.
Finally, we must stop terrorists from misusing the high-tech
communications that we all rely on for commerce and
cooperation.
Even more can be done. That's why we directed our senior officials to
meet as soon as possible to recommend additional measures.
As to the bombing in Dhahran, we will do everything in our power to
discover who was responsible, to pursue them, and to punish them. We
must also make sure we have taken all reasonable steps to protect our
own people. To that end, I am announcing today that Gen. Wayne Downing,
former Commander in Chief, U.S. Special Operations Command, will lead a
full assessment of the facts surrounding the bomb attack in Dhahran.
General Downing will also evaluate all policies and measures at other
facilities in the entire central command, which include the Persian
Gulf and the Middle East regions. He will recommend any further steps
necessary to prevent similar attacks, and he will submit his report to
the Secretary of Defense within 45 days.
But let me be clear. Just as no enemy could drive us from the field in
World War II and the Cold War, we will not be driven from the frontiers
of our fight against terrorism today.
We devoted a good deal of time to our work in Bosnia. We shouldn't
forget that since our last meeting in Halifax, we've helped achieve
something many thought was impossible--Bosnia has moved from the horror
of war into the hope of peace.
Here we lay the groundwork for more progress in the next six months. We
committed ourselves to full support for the elections in September and
accelerating the civilian reconstruction that is now underway. Even as
we support these efforts, we're also making it clear to the parties in
Bosnia that they must live up to their obligations under the Dayton
Accords, spelling out what steps they must take to prepare for the
election and to move the reconstruction along.
Today, I'm also proud to announce three new American initiatives to help
that peace take root.
First, we will devote $15 million to train demobilized soldiers to clear
the estimated 3 million landmines still in Bosnia. Until that happens,
no child will be able to walk in safety and life cannot return to
normal.
Second, we're establishing an international commission on the missing in
the former Yugoslavia to be chaired by former Secretary of State Cy
Vance. This group will work to resolve the almost 12,000 cases of
missing persons, to reduce the anguish of their families, and lessen the
tension between the parties.
Third, we will contribute $5 million to the work of the Bosnian Women's
Initiative. After a past in which so many men were killed in the
fighting, Bosnia's future may depend more than ever upon its women. We
will provide training and loans to help women find jobs and create
businesses so they can support their families and get their nation going
again.
I want to recognize and thank our ambassador to Austria, Swanee Hunt,
for helping to create this initiative. Women are meeting today in Bosnia
on this issue. Muslim, Croatian, and Serbian women are meeting in Bosnia
today in a multi-ethnic cooperative determination to regenerate the
capacity of the Bosnian economy through the efforts of its women. This
has real potential to make a difference.
Let me just note that the environment of this summit was very different
from the first one I attended in Tokyo in 1993. Then we were not in a
strong position to lead, and our partners kept telling me that we had to
get our house in order. And, frankly, they were right.
When I took office, our budget deficit was at an all-time high,
unemployment was more than 7%, and we had the slowest job growth since
the Great Depression. But since that time, we have cut our budget
deficit in half and our economy has reduced unemployment to 5.6% and
produced 9.7 million new jobs. Inflation is near a 30-year low, interest
rates are down, and business investment is up by 30%. Our country is now
the number one exporter and the most competitive nation on earth, again.
So here I was pleased--and I know the American people will be--to see
that our partners recognize this and asked for our suggestions about
what we could do together to promote more economic growth around the
globe, to generate jobs out of that economic growth, and to make those
jobs good jobs so that people would have the tools to make the most of
their lives and to build strong families.
Finally, there was a lot of very serious conversation about how we can
grow the economy and sustain our environment. We resolved to work harder
on that in the year ahead and to make that a central focus of our
meeting next year in Denver.
We know we have to work on these problems together. That's the last
point I want to drive home to the American people. We know that when we
do cooperate, we can make a positive difference for our own people in
maintaining our leadership in the world and meeting our challenges and
protecting our values. I found that this summit was very helpful in all
those regards.
(###)
ARTICLE 6
Lyon Summit Chairman's Statement: Toward Greater Security and Stability
In a More Cooperative World
Following is the text of a statement issued after the G-7 Economic
Summit, Lyon, France, June 29, 1996.
We, the Participants in the Lyon Summit, discussed the opportunities and
challenges facing us as we near the 21st century.
We agreed that we now have tremendous opportunities to make the most of
this historic moment to achieve security and stability around the globe,
although we still need to cope with the many challenges which require a
wide range of international cooperation at both regional and global
levels. We discussed how we could build a better international system to
secure security and stability. We recognized that we must first work to
reduce tensions and resolve conflicts. We also concurred that enduring
security and stability is possible only when it is founded on the basic
requirements of respect for human rights, establishment of democratic
institutions and individual citizen's security, and realization of
sustainable development and economic prosperity. In an increasingly
inter-dependent and interactive world with rapid globalization in
progress, we renewed our determination to work together amongst us and
in partnership with leaders of other countries to make the most of the
opportunities and to meet the challenges.
I. Global Issues
Major issues need to be treated at a global level. All countries are
liable to benefit from more security provided by a strengthened United
Nations Organization and by progress made in the field of non-
proliferation, arms control and disarmament as well as by an efficient
struggle against terrorism and transnational organized crime. All
countries benefit from the enhancement of democracy and fundamental
freedoms throughout the world. Protection of environment, nuclear
safety and new types of epidemics are common challenges that must be
properly handled. All countries are interested in seizing the
opportunities provided by the information technologies. In this regard,
we are committed to cooperate actively among ourselves and with other
partners to deal with these global issues in a spirit of efficacy and
solidarity.
1. United Nations. We reaffirm our commitment to the Charter of the
United Nations(UN). As many Heads of State and Government noted in the
special commemorative meeting of the UN General Assembly on the
occasion of the 50th anniversary of the entry into force of the
Charter, the UN is called upon to play an increasing role as the 21st
century approaches. We continue to regard the United Nations as the
cornerstone of an international system whose success or failure is
increasingly significant for human security, including development
within countries and partnership among countries. We are committed to
achieving early and practical results in the renewal of the UN so that,
for both individuals and countries, it can more readily and effectively
respond to the demands placed on it, and more clearly demonstrate its
importance to the search for solutions to our globally shared problems.
In order to enable the United Nations to fully meet its challenges, we
are convinced of the need to make progress towards revitalizing,
strengthening and reforming the UN system. We undertake to intensify our
role in the work of the high level and working groups set up by the
General Assembly for this purpose in order to help ensure the balanced,
timely and effective outcome of their efforts.
We will work with other Members throughout the UN system to accomplish
this goal.
Conscious of the risks that the present financial crisis poses to the
United Nations' ability to function, we are resolved to promote in
parallel and as soon as possible a long-term solution based on the
adoption of a more equitable scale of contributions, on scrupulous
respect by Member States for their financial obligations, and on the
payment of arrears.
The United Nations is and must remain the body primarily responsible for
international peace and security in accordance with the mission assigned
to it in the Organization's Charter. It is important to develop its
ability to act more quickly and effectively to address threats to
international peace and security. It is essential, also, that Member
States shoulder in full the responsibilities incumbent on them within
the UN framework.
We emphasize the importance of promoting conditions conducive to
peace as the surest means to prevent conflict. We support development of
more flexible instruments for peace, including mediation by elder
statesmen and United Nations representatives. We are encouraged by the
notable successes of current peacekeeping missions in Haiti (UNMIH) and
Bosnia (IFOR). We note the central responsibility that the parties
themselves bear for the ending of conflict and the re-establishment of
peace and stability. We favour strengthening the United Nations'
capacity for rapid deployment by further developing the stand-by
arrangements initiative and the rapidly deployable headquarters team,
as well as other efforts to enhance the Secretariat's ability to deploy
new peacekeeping operations quickly and manage existing ones
effectively. We applaud the efforts of the international community to
assist countries devastated by conflict as they rebuild their societies:
these measures are making a decisive contribution to the establishment
of lasting peace. We welcome the contribution made, in accordance with
the UN Charter, by regional organizations and arrangements to
international stability, and the development of their cooperation with
the United Nations.
2. Human rights, democratic processes and humanitarian emergencies. We
restate our firm commitment to the universality of all human rights and
fundamental freedoms, the promotion and protection of which are a
legitimate concern of the international community. We condemn all forms
of discrimination and intolerance, including aggressive nationalism and
the mistreatment of persons belonging to minorities.
With that in mind, we commit ourselves to ensuring that this
understanding continues to guide our policies. We also reaffirm our
support for the High Commissioner for Human Rights as coordinator of
human rights within the United Nations system and commend his
contribution in the fields of early warning, conflict prevention and
peace-building. We will take care to ensure that women as well as men
benefit fully and equally from the recognition of human rights and
fundamental freedoms, which were reiterated on the occasion of the
Beijing Conference, and that the rights of children be respected.
We support fully the efforts of the International Tribunals aimed at the
prosecution and trial of persons indicted for serious violations of
human rights in the Former Yugoslavia and in Rwanda and commit ourselves
to making available to the Tribunals adequate resources for the
fulfillment of their mandates. At the same time, we deeply deplore any
non-cooperation with the Tribunals, in particular the failure to arrest
and surrender indicted persons, and we urge all parties to fulfill their
commitment to cooperate.
All over the world, we actively support the process of democratization,
which is an essential guarantee of respect for human rights. We will
provide assistance in the organization of free and impartial elections
and in strengthening democratic institutions and standards.
International assistance, including from Non-Governmental Organizations,
for democratic development should also contribute to the strengthening
of free media, support for the rule of law, accountable public
institutions (including police training) and a broader civil society.
Humanitarian emergencies, which are frequently the outcome of political
crises, are a matter of special concern to us. We commend in particular
work of the ICRC, UNHCR, WFP, UNICEF and others in this field. We are
firmly determined to continue to provide assistance to populations in
need, and we call for the coordination and rationalization of efforts in
order to provide assistance more effectively.
3. Non-proliferation, arms control and disarmament. We affirm our
undertaking to conclude a Comprehensive Test Ban Treaty (CTBT) so as to
enable its signature by the outset of the 51st session of the General
Assembly of the United Nations, this coming September. We call upon all
the members of the Conference on Disarmament to agree that the CTBT must
prohibit any nuclear weapon test explosion or any other nuclear
explosion. Pending the entry into force of the CTBT, the Nuclear Weapon
States should exercise utmost restraint.
Such a treaty, in our view, will be a major step in the accomplishment
of a priority goal for the international community in the field of
disarmament and non-proliferation and the implementation of the
obligations contained in Article VI of the Non-Proliferation Treaty
(NPT). We reaffirm our commitment to the objectives set out in the
document on Principles and Objectives for Nuclear Non-Proliferation and
Disarmament adopted on 11 May 1995 at the conclusion of the NPT Review
and Extension Conference. We are determined to contribute to the
effectiveness of the strengthened NPT review process before the next
Review Conference in 2000, the first preparatory committee for which
will meet in 1997.
In the same spirit, we take note of the signature by the Southeast Asian
States in December 1995, in Bangkok, of the Treaty establishing a
nuclear weapon free zone in Southeast Asia, and welcome the signature by
China, France, Russia, the United Kingdom and the United States of the
protocols to the Treaty of Rarotonga establishing a nuclear weapon free
zone in the South-Pacific as well as the signature on April 11, by
Member States of the Organization for African Unity, of the Treaty of
Pelindaba establishing a nuclear weapon free zone in Africa, and of its
relevant Protocols by the United States, France, the United Kingdom and
China. The establishment of these new nuclear weapon free zones and the
cooperation of Nuclear Weapon States in supporting the relevant
protocols helps realize the objective of creating additional such zones
by the NPT Review Conference in 2000.
We further underline the importance that we attach to the early start of
negotiations, based on the agreed mandate within the Conference on
Disarmament, on a treaty to ban the production of fissile material for
nuclear weapons or other explosive devices. We look forward to the early
entry into force of the START II Treaty. We regard the ABM Treaty as a
cornerstone of strategic stability.
We reiterate the importance we attach to the entry into force of the
Convention on Chemical Weapons. We will continue to work hard to
implement the Convention on Prohibition of Biological and Toxin Weapons,
including the establishment of an effective verification mechanism. We
also expect the early entry into force of the Treaty on Open Skies,
which represents an unprecedented confidence-building measure from
Vancouver to Vladivostok.
We are increasingly concerned with the proliferation of conventional
weapons and the thousands of resulting deaths and injuries, especially
to civilians and particularly children. We welcome the outcome of the
Review Conference on the 1980 Conventional Weapons Convention. We are
pleased that this first Review Conference reached consensus on a new
laser weapons protocol as well as a strengthened protocol on mines,
booby-traps and other devices. We call upon all States to spare no
effort in securing a global ban on the scourge represented by the
proliferation and the indiscriminate use of anti-personnel landmines and
welcome the moratoria and bans already adopted by a number of countries
on the production, use and export of these weapons, unilateral
reductions in stockpiles as well as initiatives to address this urgent
problem.
We assert the importance of reinforcing international support for
landmine detection and removal efforts and for assistance to victims.
We again call upon all countries to support the continuing operation of
the United Nations Register of Conventional Arms which represents an
important mechanism for promoting transparency and building confidence
among countries, at a global and regional level, and note that Article
26 of the UN Charter calls for "the least diversion for armaments of the
world's human and economic resources". Regional organizations can help
promote transparency and confidence-building measures that reduce
excessive stockpiling of conventional weapons. We welcome with
satisfaction the arrangement launched at Wassenaar in December 1995 to
promote transparency and greater responsibility in transfers of
conventional arms and dual-use goods and technologies and will cooperate
on its prompt and full implementation. We welcome the results of the
first Review Conference of the Treaty on Conventional armed Forces in
Europe (CFE). The States Parties on that occasion renewed their
commitment to ensure the integrity of the treaty and to fulfill all of
its obligations. They committed themselves to launch a process of
adaptation of the treaty in order to preserve its viability in the
future. We salute the cooperative resolution of the CFE flank issue.
4. Nuclear safety and security. We welcome with satisfaction the
substantial progress made in the field of nuclear safety and security at
the Moscow Summit in April of this year.
We have taken an important step toward enhancing international
cooperation so that the use of nuclear energy is conducted all over the
world consistently with fundamental principles of nuclear safety. We
reaffirm our commitment, made in Moscow, to the highest internationally
recognized nuclear safety level. In this regard, we underline that
nuclear safety has to prevail over all other considerations. We reaffirm
our commitment to all the principles laid down in the Convention on
Nuclear Safety and we urge all countries to ratify this Convention, as
soon as possible, and to participate in the peer review mechanisms. We
stress the necessity of further progress in the establishment of
relevant domestic legislation and in the enhancement of the
international regime of nuclear liability as well as in the preparation
of an international convention on the safety of radioactive waste
management. We remain committed to assisting countries in transition in
developing efficient and fully safety-oriented energy policies.
We welcome the adoption of the program for preventing and combating
illicit trafficking in nuclear materials, and strongly urge other States
to associate themselves with this plan following the example of Ukraine.
We reaffirm the need to strengthen measures to ensure nuclear material
accounting, control and physical protection. We also acknowledge the
need to identify appropriate strategies for the management of fissile
material no longer required for defense purposes. The latter will be
discussed on the occasion of a meeting of experts which will take place
in Paris in October this year. We support the efforts of the Nuclear
Weapon States to ensure that sensitive nuclear material (separated
plutonium and highly enriched uranium) designated as not intended for
use for meeting defense requirements be placed under IAEA safeguards.
In order to ensure rapid and efficient follow-up of the decisions
regarding non-proliferation issues adopted at the Moscow Summit, we have
taken the following initiatives:
-- on our behalf, France will undertake demarches in order to encourage
more countries to adopt the "Programme for preventing and combatting
illicit trafficking in nuclear material";
-- a meeting dedicated to the implementation of this Programme, with the
participation of agencies and ministries involved in the prevention and
fight against illicit trafficking will be held as soon as possible.
We call upon all States to contribute to the efficient and effective
implementation of measures for the strengthened safeguards system
proposed by the "Program 93+2" for which a model protocol is being
further elaborated by the open-ended committee of the AIEA-Board of
Governors. This program is making an essential contribution to tighter
regulation of nuclear non-proliferation. This program will help avoid a
repeat of any situation where a country under full-scope safeguards
could carry out undeclared nuclear activities.
5. Environment. Protecting the environment is crucial in promoting
sustainable development. In view of the threats such as global warming,
desertification, deforestation, depleting resources and threatened
species, and unsustainable urban development, we place top priority on
integrating environmental protection more completely into all of our
policies. We are exploring the possibility of supplementing our national
income accounts to better measure resources, such as forests, minerals
and fish, and the economic value of air, water and soil quality. We
welcome the great potential of the environment protection industry which
can have positive effects on long term economic growth and employment.
1997 will be a pivotal year for the environment. We renew our commitment
to all agreements reached at Rio, and pledge to work for a successful
outcome of the 1997 special session of the United Nations General
Assembly which would lead to their better implementation. We commit
ourselves to strong action and anticipate in 1997:
-- a successful outcome of the Conference of the Parties to the Climate
Change Convention;
-- agreement on actions to promote sustainable management of forests,
including appropriate implementing arrangements or instruments;
-- the negotiation of a global, legally binding instrument on particular
persistent organic pollutants (POPs);
-- the speedy implementation of the Convention on Biological Diversity
and the Convention on Desertification.
It is important to ensure adherence to environmental agreements.
International crime in areas such as illegal trade in CFCs, endangered
species and hazardous waste is of particular concern. We will assess
compliance with international environmental agreements and consider
options for enhancing compliance.
We want to see greater effectiveness on the part of the international
institutions responsible for the environment and sustainable
development. In particular, we want to see the political role of the
Commission on Sustainable Development (CSD) confirmed among UN
institutions: the CSD should serve as a high-level political forum,
working with the UN's economic agencies and the Bretton Woods financial
institutions, invested with the task of promoting the implementation of
Agenda 21 at the global, regional and national level, of identifying
emerging issues and gaps in it, and ensuring a common understanding of
the concept of sustainable development.
We need a more precise distribution of roles between the CSD and UNEP.
UNEP should be clearly confirmed in its catalytic role as the
environment voice of the UN, responsible for environmental policy
development and scientific analysis and monitoring assessment. We
support present efforts to restructure UNEP and its governing bodies.
People should be the focus of our policies. Human health is sometimes
being jeopardized by the deterioration of the environment. Where there
are threats of serious or irreversible damage, we endorse measures based
on sound science and the precautionary principle.
6. The information society. We welcome the Chair's conclusion of the
Information Society and Development Conference in Midrand (South Africa)
which represents an important step to ensuring that all countries
benefit from technological change.
Information and communication technologies and services offer a
significant contribution towards the promotion of sustainable
development in all countries. They have important potential to meet
basic human needs, develop human resources, promote economic growth,
encourage participatory democracy and a free media. They should promote
cultural and linguistic diversity, as well as dynamic competition.
We look forward to a rapid conclusion to the negotiations being
conducted in the relevant multilateral fora. We encourage full
cooperation among countries, existing international and
non-governmental organizations for the promotion of projects
demonstrating their use of information and communication technology. We
are committed to fostering partnership between the public and the
private sector.
We call for a cooperative approach which will promote universal access
to such technologies. We stress the importance of an adequate protection
of intellectual property rights. We are prepared to reflect on ethical
and criminal issues raised by worldwide communication networks. We will
support public and private efforts to increase the use of information
and communication technologies for and encourage international
organizations to assess the appropriate role which they can play.
7. The "human frontier science program." We applaud the results of the
"Human Frontier Science Program" since its launch in Venice in 1987, and
we await with interest the outcome of the intergovernmental Conference
on further progress on this subject in Autumn 1996.
8. Infectious diseases. Infectious diseases such as HIV/AIDS, malaria,
cholera, ebola, and antibiotic resistant strains of tuberculosis and
pneumonia pose an unacceptable threat to people of all nations,
disproportionately affecting the populations of the poorest nations. We
endorse the creation and implementation of mechanisms to aid in the
prevention, detection, surveillance and response to the emergence and
re-emergence of communicable diseases. We reiterate our call for the
extension of all forms of cooperation in the realms of research,
prevention, accessible and affordable health care services and
diagnostics in the treatment and control of these diseases.
We draw attention to the measures already undertaken in each of our
countries to encourage the scientific community in its search for
remedies to these diseases. We pledge to pursue this effort at the
national level, while at the same time promoting international
cooperation among research teams in this field.
Moreover, we will continue to extend various kinds of assistance
programs, in particular for the benefit of the countries hardest hit by
HIV/AIDS and other infectious diseases. We also encourage cooperation
among those of us who jointly conduct cooperative projects with Africa,
Southeast Asia, Latin America and the Caribbean by transferring our
expertise in regard to surveillance, prevention, research, diagnosis,
and treatment of these diseases. We will continue to work to ensure the
availability of safe and effective treatments for these all-too-often
fatal diseases.
We strongly support the efforts of the World Health Organization (WHO)
to combat emerging and re-emerging infectious diseases, as well as the
joint United-Nations Program on AIDS (UNAIDS) to coordinate
international efforts to stem the global HIV/AIDS epidemic.
9. Drugs. Drugs represent a serious threat for our younger generations'
future, our citizens' health and the integrity of our societies. We are
determined to intensify our efforts in order to fight against any kind
of drug trafficking and all forms of criminality in connection with it,
including money laundering. We therefore urge all States to fully comply
with their obligations under international conventions dealing with
drugs abuse and illicit traffic in psychotropic substances, and are
ready to strengthen our cooperation with all countries involved in this
fight against drugs. We fully support the efforts exerted by the United
Nations and we expect from the special session of the General Assembly
dealing with this problem that it should help us to give more coherence
and efficiency to the whole set of actions aiming at freeing the world
from this scourge.
10. Transnational organized crime. In Halifax we asked an experts group
to review how to counter the rapid development of transnational
organized crime, which is one of our main concerns. While not entirely
new, this phenomenon threatens the nations, industrialized and
developing countries.
Therefore we commit ourselves to:
-- mobilize our full resources and influence to combat this danger.
-- support and enhance existing institutions that deal with
transnational organized crime, including the United Nations, Interpol,
and World Customs Organization.
-- encourage all States to adhere to and fully implement existing
conventions, treaties and arrangements dealing with transnational
organized crime.
-- resist the enormous threat posed by narcotic traffickers, by
implementing the UN conventions against drugs, and intensifying efforts
to put traffickers behind bars and prevent them from laundering their
money.
-- share information and expertise to detect, investigate and prosecute
criminals.
-- increase operational cooperation among relevant agencies.
-- deny the use of our territories to transnational organized crime.
-- take all possible steps, particularly extradition, to bring fugitives
to justice.
-- provide the broadest possible mutual legal assistance.
-- deprive criminals of their illicit profits by adopting appropriate
legislation and implementing recommendations of the Financial Action
Task Force (FATF).
-- adopt the necessary legislative and regulatory measures to combat
corruption.
Consequently, with a view to achieving these goals:
-- we welcome the work of the Senior Experts Group on Transnational
Organized Crime.
-- we endorse the 40 recommendations they have prepared.
-- we commend these recommendations to all States.
-- we ask the Senior Experts Group to ensure the active follow-up of the
implementation of these recommendations and to report on their progress
and developments in this field to the next Summit.
* * *
II. Regional Situations
1. We note with satisfaction the important contributions to peace,
stability and prosperity which regional and inter-regional organizations
and fora have made in all the regions of the world and firmly encourage
them to pursue their task while respecting the integrity and the
sovereignty of their Member States. We will continue supporting all
efforts of these organizations and all inter-regional initiatives aimed
at developing and reinforcing cooperation between the different regions
of the world in the areas of political, economic and cultural matters.
In this connection, we take note of the OSCE's work on a common security
model for further consideration at the Lisbon Summit and of continuing
efforts to resolve peacefully disputes within the CIS. We welcome the
intensification of intra-regional cooperation, particularly in Europe
between the European Union and the States of Central and Eastern Europe,
in the Americas within the Organization of American States and in the
Asia-Pacific region through the move toward enlargement of ASEAN and
within the ASEAN Regional Forum. We also commend recent initiatives
aimed at renewing the transatlantic relationship between the EU and
North America and at developing relations between EU and Russia, as well
as the first Asian-European Meeting (ASEM) held in Bangkok this year. We
welcome the development of the new partnership between EU and
Mediterranean countries in the political, economic and human dimension
fields.
2. We actively support the process of economic and political transition
under way for over five years in Central and Eastern Europe. We welcome
the progress accomplished by these countries toward the establishment of
the rule of law and the establishment of a market economy. We welcome
the prospect of enlargement of the EU to Central European countries and
the Baltic States and encourage these and other States to take full
advantage of the possibilities of integration offered to them. We
support the efforts to develop good neighborly relations and we
encourage the different initiatives that support stability in
Southeastern Europe.
3. We welcome the enormous achievements attained in the Middle East
peace process over the past several years. These include landmark
agreements between Israel and the Palestinians, a peace treaty between
Jordan and Israel, serious negotiations between Israel and Syria, and
greater ties between Israel and her Arab neighbors. We also welcome
increased economic cooperation in the region and trust that the Arab
League will soon terminate its boycott of Israel. We are strongly
committed to the full implementation of all agreements reached, and we
will continue to provide our full support to those who take risks for
peace.
The conclusion, on 28 September 1995, of the interim Israeli-Palestinian
agreement on the Gaza Strip and West bank, as provided for in the 1993
Declaration of Principles, was a fundamental step forward in the Middle
East Peace Process. We welcome the opening, on 5 May 1996, of the
negotiations on permanent status. We look forward to the resumption of
these negotiations.
We welcome the election of a Palestinian Council, and of its Executive
Authority. We urge the Palestinian authority, under its Head, Mr. Yassir
Arafat, to promote the development of democratic institutions, the rule
of law, transparency of public administration and respect for human
rights.
We welcome all donors' efforts including the meeting in Paris on 9
January of the Conference on Economic Assistance which reaffirmed the
international community's support for the Palestinian economy, and urge
donors to fulfill pledges made. We recognize the importance of economic
growth and prosperity to underpinning peace and note the need for
increased regional economic cooperation and development. We welcome
steps toward facilitating economic activities in the West Bank and Gaza.
We welcome the steps taken by the Government of Israel to ease the
closure in the West Bank and Gaza. Recognizing that Israel has
legitimate security needs, we look forward to the complete lifting of
the closure. We acknowledge the important contribution of multilateral
negotiations in all their aspects to the peace process. We also welcome
the establishment of economic institutions and facilities which have
grown out of the multilateral working groups.
We take note of the significant deepening and broadening of peace
between the Israeli and Jordanian peoples and the importance of helping
to extend the material benefits of peace.
The Sharm el-Sheikh Summit, 13 March 1996, gave all the leaders of the
world the opportunity to reaffirm their condemnation of terrorism and
their desire to pursue a comprehensive peace, to support regional
stability and to fight terrorism, whatever the motive and whoever the
perpetrators. We urge the international community to continue to uphold
the logic of the "peace-makers ". We believe that terrorist threats will
also be curbed by the elimination of isolation and poverty, especially
in the Palestinian territories, by the progressive restoration of
confidence and by the successful outcome of the peace negotiations.
We note the preeminence of the theme of security in Israel's recent
election campaign. We are convinced that the security of all people of
the region can eventually be achieved only through
comprehensive, equitable and lasting peace.
The resumption of negotiations between Syria and Israel, at the end
of December 1995, formed part of a peace dynamic which must be
preserved. We are working to create a climate which will facilitate the
resumption of the negotiations. We urge all the parties to resume their
bilateral negotiations as soon as possible. We also invite Syria and
Lebanon to join the on-going multilateral negotiations.
We urge all parties to adhere to the 26 April 1996 Understanding which
restored calm along the Lebanese-Israeli border. We call upon the
Consultative Group that will be assisting in the reconstruction needs of
Lebanon to accelerate its work.
At a time when the Middle East Peace Process requires a renewed impetus,
we urge all the parties to fulfill their obligations, including
agreements already signed, and to continue their efforts in favour of a
comprehensive peace on the basis of the Madrid process, the principle of
land for peace and other principles enshrined in the relevant United
Nations Security Council resolutions.
As we did last year, we call upon the Government of Iran to play a
constructive role in regional and world affairs, and to desist from
material and political support for extremist groups that are
seeking to destroy the peace process in the Middle East and to
destabilize the region. We further call upon the Iranian Government to
reject terrorism and notably to desist from endorsing the
continued threats to the life of Mr. Salman Rushdie and other people
associated with his work. We call on all States to avoid any
collaboration with Iran which might contribute to the acquisition of a
nuclear weapons capability.
We reaffirm our determination to enforce full implementation of all UN
Security Council resolutions concerning Iraq and Libya only full
compliance with which could result in the lifting of all sanctions. We
welcome the conclusion of the Memorandum of Understanding between the
Government of Iraq and the Secretariat of the UN on the implementation
of Security Council resolution 986.
4. We urge the Democratic People's Republic of Korea (DPRK) to develop
the dialogue and cooperation with the Republic of Korea (ROK), this
being the only means of achieving permanent peace on the Korean
Peninsula and ensuring a more stable and more secure future for the
Korean People. In this context, we support the initiatives taken with a
view to initiating a process aimed at achieving a permanent peace
agreement on the Korean Peninsula to replace the current Armistice
Agreement, including the proposal of the US and the Republic of Korea on
16 April 1996 to convene a four-part meeting. We welcome the efforts
being made within the "Agreed Framework" of 21 October 1994, in re-
orienting the DPRK nuclear program in order to comply with its
obligations under the Non-Proliferation Treaty. We call upon the DPRK to
meet in full its commitments under its safe-guards agreement with the
IAEA and to make full disclosure of the facts concerning the history of
its nuclear program. We call on the international community to join us
in providing political and financial support for the Korean Peninsula
Energy Development Organization (KEDO).
Halifax Summit Follow-up
Review of UN reforms in the economic and social fields
1. At the Halifax Summit, we decided to promote and deepen the United
Nations reform process in the economic and social field. In order to
strengthen the United Nations and make it more effective in carrying out
Charter objectives, the CommuniquŽ set out a number of objectives,
which we have worked actively to achieve in cooperation with the whole
membership of the UN organizations. In this regard, we acknowledge with
satisfaction that the principle of reform of UN economic and social
institutions is now widely supported in all parts of the world,
recognizing also that savings achieved through greater efficiency should
be reinvested in appropriate programs.
2. The reform process is only just beginning but concrete results are
already visible, notably where the impact of globalization of the world
economy and budget constraints were felt most strongly. The following
provides a non-comprehensive summary of achievements since the Halifax
Summit. At the present time, no organs, specialized agencies, Funds or
Programmes can claim to be bypassed by the reform process which is just
as perceptible on the fringes of the system as at its core.
3. We will continue and reinforce our efforts to improve the functioning
of the UN in the economic and social fields and its impact on
development. We will continue to work in partnership with other members
to complete processes underway, including Agenda for Development, and
initiate further processes as required. In addition, the effective
implementation of results achieved to date will be a priority.
Achievements
System Wide
Negotiations on UN revitalization and strengthening in the economic and
social fields reflect the general reform agenda. The recent agreement on
the revision of resolution 48/162 is a welcome stage in the reform
process and is a good omen for the finalization of the Agenda for
Development. Numerous elements of progress can be identified.
ECOSOC's important policy coordination role is recognized, and its work
will be facilitated by a more active bureau. ECOSOC's substantive
session will be shortened and measures will be taken to improve its
preparation. Short periodic sessions close to the timing of the Bretton
Woods Institutions Provisional Committee and Development Committee
meetings will be held to improve high level debate and coordination.
The mandates, compositions, functions and working methods of all the
functional commissions of ECOSOC, the Committee for Programme and
Coordination (CPC), the Committee for Development Planning (CDP) and the
regional commissions are to be reviewed with a view to improving their
effectiveness. The World Food Council has been discontinued and its
functions absorbed by the World Food Programme and the Food and
Agriculture Organization. The joint meetings of the Administrative
Committee on Coordination and Committee for Programme and Coordination
were deemed of limited value and will be discontinued. The discussions
on the funding of operational activities will be transferred to the
governing bodies of the Funds and Programmes concerned (UNDP, UNICEF,
UNFPA, WFP).
The Secretary-General has set up an Efficiency Board chaired by the
Under-Secretary-General for Administration, to advise him on the
implementation of his programme to promote greater efficiency.
The Office of Internal Oversight Services has identified areas of
overlap and duplication and made it possible to achieve substantial
savings. Its capacity has been increased. The Office is currently
seeking to extend its work to the Funds and Programmes.
At the initiative of the Secretary-General and under the direction of
the Coordinator of Development Activities, three interagency task forces
were set up, to work in the framework of the Administrative Coordinating
Committee (ACC). These task forces will deal with the following themes:
1) creation of an environment suited to sustainable development (steered
by the World Bank); 2) growth of job creation (steered by the ILO); 3)
provision of basic social services (steered by the UNFPA).
Budgeting
UN institutions have adopted budgets with a zero, or in some cases
negative, growth rate in real terms. Maximizing the use of increasingly
scarce resources, they ensured continuation of their development
programmes (new activities are funded by reallocations). Agreement is
now taking shape among most of these institutions on reducing overheads
and improving the presentation of their budgets.
-- United Nations--for the biennium 1996-97 a budget of US$ 2,608
million was adopted, which is significantly less than the final approved
expenditures for 1994-95 and represents negative nominal growth.
Expenditure and personnel reductions are envisaged.
-- FAO--the programme-budget for the 1996-97 biennium has undergone
considerable change (savings were made amounting to US$ 57 million) in
order to make the organization more efficient while reducing operating
costs. Savings were made, for the most part, thanks to efficiency gains
and in non-technical units programmes.
-- WHO--its budget increase is modest (2.5 %), well below the demands of
its Secretariat (14%).
-- ILO--in anticipation of the cuts announced for the 1996-97 biennium,
additional savings (US$ 21 million) were made; the budget will be made
more transparent.
-- IFAD--1996 is the third consecutive year of budget cuts in nominal
and real terms and this has led the Organization to review its missions
and internal operation.
-- WFP--streamlining efforts are continuing (closure of 20 national
offices that are no longer needed).
-- UNDP--the 1996-97 biennium budget is down 11% in real terms compared
to 1994-95; reductions in overhead costs are designed to protect its
programmes. Decision procedures for programmes have been made more
efficient.
Humanitarian Relief
A Memorandum of Understanding (MOU) has been signed between the WFP and
the UNHCR in order to coordinate their action programmes. Similar
agreements were signed between UNICEF and the UNHCR and are under
negotiation between UNICEF and the WFP. As requested at the 1995 ECOSOC
substantive session, the DHA will submit a report at the next ECOSOC
session on the capacities and performance of relevant UN emergency
humanitarian relief agencies in order to improve their coordination.
UNCTAD
The outcome of UNCTAD IX lays a solid foundation for the reform of
UNCTAD. UNCTAD's work was reorganized around key priorities (trade-
investment and development issues--those in which UNCTAD has a
comparative advantage over other international organizations). Its work
programme focuses on assistance to the poorest countries to promote
their integration into the world trading system, in addition to WTO
action. A significant priority effort in the direction of the Least
Developed Countries has been agreed. The intergovernmental machinery was
scaled down and improved (a single annual session of the Trade and
Development Council; the number of commissions was cut to three;
specialization of experts groups; cutting to 55 the total number of
meeting days). All this builds on improvements plans presented earlier
by UNCTAD's Secretary-General that will reduce the number of Secretariat
divisions from 9 to 4 and improve cooperation and coordination with the
WTO.
UNCTAD IX clarified UNCTAD's complementarity to WTO. Both organizations
have agreed to improve their mutual coordination and cooperation (joint
half-yearly meetings, improved working relations at all levels) so as to
facilitate their work in the trade and development fields. Moreover,
UNCTAD and UNIDO signed a joint communiqu intended to promote mutual
cooperation on the basis of their existing mandates (yearly joint
meetings, complementarity between programmes).
Specialized Agencies
-- FAO--a review the Organization's priorities is underway, following
approval of a reduced budget for the 1996/97 biennium.
-- UNESCO--a strategy document was adopted to reorient over the next 6
years the programmes of the organization. An ad hoc working group was
set up to assess operation of the General Conference.
-- WHO--the Executive Board decided to review the WHO mandate; related
reforms (e.g. revision of the organizational chart, efficient human
resources management) are planned.
-- UNIDO--budget cuts and personnel reductions are underway. Staff has
reduced by 17% since Halifax (50% since 1993). Several management levels
have been abolished, the number of divisions cut from 8 to 6 and
improved coordination was set up between departments. A recent external
audit advocated further reforms (additional reductions in administrative
personnel, better targeting of interventions, scaling-down of
administrative procedures, abolition of certain social benefits, etc.).
Moreover, UNIDO is close to an agreement intended to promote its
cooperation with WTO.
Funds and Programmes
-- UNICEF--the organization has completed its work on revising its
mandate and is moving to adapt its administration.
-- WFP--on 1 January 1996, the former governing body Committee on Food
Aid Policies and Programmes--CFA) was transformed into a downsized
efficient Executive Board. The WFP launched a revision of its action
programmes, in order to put an end to overlaps with other institutions.
-- UNEP--UNEP is now revising its governing structure, with a view to
ensuring greater political oversight.
-- UNDP--the pivotal role ascribed to the UNDP in development
operational activities within the United Nations system became a reality
(e.g. the December 1995 agreement between the UNDP and the World Bank
implementing joint development activities; the Special Initiative for
Africa steered by the UNDP). The Executive Board reformed UNDP working
methods with a view to improving effectiveness.
Regional Economic Commissions
There are active review and prioritization exercises underway. ECOSOC
will review the Regional Commissions with a view to improving their
effectiveness.
-- ESCAP--an external audit is in process to assess the impact of budget
cuts on current programming. A revision of all work programmes and of
the Commission's structure is planned in 1996.
-- ECA--the Executive Secretary plans to carry out an in-depth
restructuring of the Commission which includes a 10-20% cut in posts and
a radical change of the priorities of the action programme.
-- ECLAC--the Commission has set up an intergovernmental committee to
set clear priorities and determine strategic
directions.
-- ECE--a full review of the operation of the Commission and a rigorous
choice of priority activities are in progress.
Agenda for Development
Part one (background and objectives) has been largely agreed.
Negotiations on Part two (ways and means) and Part three (institutional
adaptation) are in progress.
(###)
[END DISPATCH VOLUME 7, SUPPLEMENT NO. 2]
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