U.S. DEPARTMENT OF STATE OFFICE OF THE SPOKESMAN TESTIMONY BEFORE SFRC FEBRUARY 14, 1995 STATEMENT BY SECRETARY OF STATE WARREN CHRISTOPHER BEFORE THE SENATE FOREIGN RELATIONS COMMITTEE FEBRUARY 15, 1995 Mr. Chairman, in the last three weeks, I have appeared before this Committee three times to discuss three specific issues -- the Agreed Framework with North Korea, the START II treaty, and the loan guarantee package for Mexico. Today, I have the privilege of offering an overview of the Clinton Administration's foreign policy agenda for 1995. I will also indicate how our proposed budget supports both the principles guiding that agenda and the specific opportunities that I will be pursuing this year. We live in a world that has been profoundly transformed-- by the end of the Cold War and by the triumph of democracy over dictatorship in many nations. It is a world that is taking shape in ways that are remarkably consistent with American ideals and conducive to American interests. Indeed, it is a world that has been shaped by the successful use of American power -- and by the power of our principles. But we must not be complacent. Aggression, intolerance, and tyranny still threaten political stability and economic development in vital regions. Challenges as diverse as nuclear proliferation, terrorism, and environmental degradation still endanger our security and prosperity. Mr. Chairman, it was a bipartisan consensus that launched the Marshall Plan, established NATO and the GATT, contained communism and kept the United States and our allies strong and free. Sustaining that bipartisan consensus is a core personal commitment for me as Secretary of State. President Clinton and I are determined that a Democratic President and Republican majorities in Congress can and will work together to maintain our nation's leadership in the world. It is in the direct interest of each and every American that we succeed.The imperative of American leadership is a central lesson of this century. Consider what the world would be like without American leadership in the last two years alone. We would have four nuclear states in the former Soviet Union instead of one, with Russian missiles still targeted at us; we would have a full throttle nuclear program in North Korea; no GATT agreement to expand world trade; brutal dictators still terrorizing Haiti; very likely, Iraqi troops back in Kuwait; and a deepening Mexican economic crisis threatening instability along our border and in emerging market economies around the world. Since we last met, President Clinton introduced the Administration's budget request for Fiscal Year 1996. It is important to note at the outset that since 1984, there have been substantial real cuts in the International Affairs budget. It now represents only 1.3 percent of federal spending. Notwithstanding the extraordinary array of challenges we face, our 1996 spending request is essentially level with what we are spending in the current fiscal year. We have been tough-minded in putting together what is, by any measure, an austere budget. Indeed, the resources we are requesting through this budget are the rock bottom minimum we need to defend and advance our nation's vital interests. Mr. Chairman, last November's elections certainly changed a great deal. But they were not a license to lose sight of our global interests or to walk away from our commitments in the world. This budget advances our interests and maintains our commitments. Approving it will be a stern test of our willingness to dedicate the resources necessary to protect the security and prosperity of the American people. It will be a test of the first principle guiding our foreign policy: a test of our commitment to lead. The United States seeks a world of open societies and open markets in which American values and interests can thrive. Our strategy is driven by four principles: that we continue to engage and to lead; that we maintain effective relations with the world's great powers; that we adapt and build institutions that will promote economic and security cooperation; and that we continue to support democracy and defend human rights. As several of our recent accomplishments suggest, American leadership requires that we be ready to back our diplomacy with credible threats of force. To this end, President Clinton is determined that the U.S. military remain the most powerful and effective fighting force in the world -- as it certainly is now. When our vital interests are at stake, we must remain prepared to defend them alone. But sometimes, by leveraging our power and resources, and by leading through alliances and institutions, we can achieve better results at lower cost to human life and national treasure -- and that is a sensible bargain I know the American people support. This Administration has worked to ensure that peacekeepers have realistic objectives, that money is not wasted, and that tough questions are answered satisfactorily before new missions are approved. We are determined not to allow the UN to fall again into the traps of over-commitment or mission creep. But we strongly oppose efforts in Congress that threaten to remove peacekeepers from vital trouble spots around the world, and to leave the President with an unacceptable choice each time a crisis occurs -- a choice between acting alone and doing nothing. As Secretary Perry and I indicated yesterday, we will recommend to the President that he veto legislation that, in its current form, would undermine national security in this and other important ways. The second principle driving our strategy is the central importance of constructive relations with the world's most powerful nations: our Western European allies, Japan, China and Russia. These nations possess the political, economic, or military capability to have an impact -- for good or for ill -- on the well-being of every American. The relatively cooperative relations that these countries now have with us and with each other is unprecedented in this century, but it is not irreversible. Our strategy toward the great powers begins with Western Europe and Japan. We must revitalize our alliances with this democratic core. We must also seize the opportunities to build constructive relations with China and Russia, countries that were not too long ago our fiercest adversaries. Both are undergoing momentous, though very different, transformations that directly affect American interests. Our partnership with Japan is the linchpin of our policy toward East Asia, the most dynamic and fastest-growing region in the world. This Administration has placed the Asia-Pacific at the core of our long-term foreign policy approach. Realizing President Clinton's vision of a stable and prosperous Pacific Community will continue to be a top priority. Moreover, the region figures prominently in many of the central areas of opportunity that we are pursuing in 1995. It is also imperative that we reinforce our security and political ties with Japan -- as well as with South Korea and our other treaty allies in the Pacific. It is equally essential that the strength of our economic ties with Japan matches the overall strength of our relationship. During this year marking the fiftieth anniversary of the end of World War II, we will highlight and heighten our close cooperation on regional and global issues -- while continuing to press for greater access to Japanese markets. With China, we are pursuing constructive relations that are consistent with our global and regional interests. The President's strategy of comprehensive engagement is designed to address a broad agenda with Beijing and to maintain momentum in certain areas even as we face problems on other issues. We want China to be fully integrated into the international community. For that to happen, it must accept the obligations that come with membership in international institutions and adherence to international norms. We are encouraging China's participation in regional security and economic organizations. We are supporting its accession to the World Trade Organization on proper terms. We are seeking its full commitment to global nonproliferation regimes. And we are encouraging China to demonstrate greater respect for human rights -- an interest that is clearly connected to the issue of intellectual property rights because both depend on the rule of law. The widespread pirating of computer software, videotapes, and compact discs in China is unacceptable to the United States and incompatible with China's responsibilities as an emerging economic power. The President has indicated his willingness to act. Let me add that every business leader I have heard from on this issue supports our course of action. And let me emphasize that China's leaders must understand that attracting foreign investment and sustaining long-term growth depend on their willingness to meet global standards in this key area. We are working to resolve our differences on this issue. But we are not overlooking the other commercial and overall strategic interests that we are pursuing with China. We will continue to pursue a strategy of comprehensive engagement where it is possible and where it is in our interest to do so-- such as North Korea, Cambodia and the control of narcotics. It will take time, but our goal remains to cultivate a broad and full relationship with a stable, open and prosperous China that is a full and constructive member of the international community. The United States, of course, has an enormous stake in the outcome of Russia's continuing transformation. A stable, democratic Russia is vital to a secure Europe and a stable world. An unstable Russia that reverts to dictatorship or slides into chaos would be an immediate threat to its neighbors and once again a strategic threat to the United States. Like each of you, we have been deeply concerned about the conflict in Chechnya -- about the tragic loss of life, the excessive and indiscriminate use of force against civilians, and the corrosive implications this episode can have for the future of Russian democracy. That is why we have emphasized so strongly to the Russian government that the fighting must end-- a point that President Clinton reiterated in a telephone call to President Yeltsin yesterday. A process of reconciliation must begin that validates Russia's commitment to democracy and takes into account the views of the people of Chechnya. The violence in Chechnya has not altered our fundamental interest in helping Russian reformers build a nation that is finally at peace with itself and its neighbors. There is a wide range of programs that we undertake to advance democratic and economic reform in Russia. Our assistance supports programs ranging from Russia's vitally important and newly free press to jury trials to small business development. Most of the assistance has gone to private organizations and to local governments outside Moscow. Those funds that do go to the central government primarily support the institutional reforms necessary for democracy and market reform, such as election assistance, the drafting of commercial codes and the setting up of privatization programs. And of our total request of $788 million to support reform in the former Soviet Union, less than half would go to Russia itself. Precisely because the future of reform in Russia is not assured, we must persevere in our support of the people and institutions struggling on its behalf. Cutting assistance now would hurt the friends of democracy in Russia -- the very forces that have been most critical of the Chechnya operation. There are also many vital security issues on which we are working with Russia, such as Nunn-Lugar programs to secure dismantled warheads, arms reductions agreements and cooperation on regional conflict. This aspect of our relationship has paid off for every American -- from reducing the nuclear threat to advancing peace in the Middle East. Chechnya has raised questions about Russia's commitment to democratic processes, economic reform, and international standards of conduct. Our approach is designed to reinforce democratic trends in Russia and to encourage the government in Moscow to pursue policies consistent with these principles. We will assess Russia's actions in Chechnya, its domestic programs and international initiatives in light of this objective and we will adjust our policy accordingly. The third principle guiding our overall strategy is that if the historic movement toward open societies and open markets is to endure, we must adapt and revitalize the institutions of global and regional cooperation. After World War II, the generation of Truman, Marshall, Acheson, and Vandenberg built the great institutions that gave structure and strength to the common enterprise of western democracies: promoting peace and economic growth. Now, as President Clinton said in his recent meeting with German Chancellor Helmut Kohl, "We will consider how to move toward NATO's expansion to Europe's new democracies and how to adapt the international institutions to serve us for the next 50 years." At the President's initiative, we and our G-7 partners will chart a strategy in Halifax this June to adapt the post-war economic institutions to the more integrated post- Cold War world. We are also helping regional institutions and structures like the Organization of American States, ASEAN, and the Organization of African Unity to support peace and democratic development. Our 1996 budget includes $934 million in contributions to the UN and to other international bodies, as well as $2.2 billion to the multilateral development banks. The fourth principle is the fundamental role that democracy and human rights have in this Administration's foreign policy. Our commitment is consistent with American ideals. It also rests on a sober assessment of our long-term interest in a world where stability is reinforced by accountability and disputes are mediated by dialogue; a world where information flows freely and the rule of law protects not only political rights but the essential elements of free market economies. Since my last appearance before this Committee, the State Department has issued its 19th annual report on human rights practices worldwide. The first reports were prepared under my direction in 1977 during my first year as Deputy Secretary of State. Those early reports were small in scale and narrow in scope compared to today's effort. The Country Reports help us to shape our diplomacy, assistance and trade policy. We use them as we work with foreign governments, international organizations, and NGO's. They are also important in their own right, because they shine a bright light on human rights violations that might otherwise be shielded by a veil of secrecy and indifference. In FY 1996, we are requesting $480 million through the SEED program to maintain our assistance for democratic and economic reform in Central and Eastern Europe. These funds will support social sector reform in areas like health and housing. They will help build accountable, responsive public administration at the central and local levels. And they will promote small business development to spur job creation. Our budget requests $220 million for Countries in Transition such as Haiti, Cambodia, and Angola. In Haiti, our $90 million of continued support will help consolidate democracy in Haiti and promote the economic development that will enable the majority of Haitians to overcome poverty and raise their living standards. Cambodia has struggled, so far with encouraging success, to overcome a tragic legacy of war, repression, and genocide. We have designated $39.5 million to support democratic and market reform, including the implementation of transparent legal and judicial reforms. Angola is trying to lift itself up from the bitter terrain of Africa's longest running conflict. Our $10 million request can make a difference on behalf of democracy and stability. Approximately $18 million of the $220 million we request will go to other African countries in transition to support credible elections, respect for the rule of law, and good governance. And $33.5 million will support a wide variety of programs in Latin America and the Caribbean to promote and strengthen democratic institutions, local government, police training, the media, and grass-roots non-governmental organization development. Mr. Chairman, the Summit of the Americas demonstrated that this hemisphere has committed itself to democratic institutions, respect for human rights, and free markets. Only one country out of 35 was not invited to the Summit, the one country that rejects the shared goals of those who came to Miami in December. That country is Cuba. The fundamental goal of our Cuba policy is a peaceful transition to democracy, respect for the human rights of the Cuban people, and an open economy with opportunity for all. This Administration is committed to a vigorous pursuit of that objective. We believe the best means of achieving this goal is the course outlined by the Cuban Democracy Act. We believe the enforcement of the embargo, and the pressures it brings to bear on the regime in Havana, are hastening the day when democracy will return to Cuba. OPPORTUNITIES FOR 1995 As we are guided by these basic principles, in 1995 I intend to focus on five key areas that offer particularly significant opportunities: advancing the most open global trading system in history; developing a new European security order; helping achieve a comprehensive peace in the Middle East; combating the spread of weapons of mass destruction; and fighting international crime, narcotics, and terrorism. Open Trade, Exports and Jobs First, we must sustain the momentum we have generated toward the increasingly open global and regional trading system that is vital to American exports and American jobs. A core premise of our domestic and foreign policy is that our economic strength at home and abroad are mutually reinforcing. I believe that history will judge this emphasis to be a distinctive imprint and a lasting legacy of the Clinton Administration. This year, we will take steps to implement the Uruguay Round and ensure that the new World Trade Organization upholds essential trade rules and disciplines. We will work with Japan and our other APEC partners to develop a blueprint for achieving open trade and investment in the Asia-Pacific region. We will begin to implement the Summit of the Americas Action Plan. And last week, Ambassador Kantor announced that we will also begin to negotiate Chile's accession to NAFTA. At the same time, American companies and workers must be able to take advantage of the opportunities that these successful negotiations are helping to create. That is why this Administration is sparing no effort to make sure that our companies can compete on a level playing field. That is why I continue to sit behind what I call the America Desk at the State Department, and why I am determined to keep economic and commercial diplomacy at the core of the Department's work. Our embassies around the world are working harder than ever to help win contracts, safeguard investments and support American firms in every way they can. This Administration has achieved an unprecedented degree of focus and coordination in our export promotion efforts. Exports have been the driving force in our economic recovery. They must remain the driving force for long-term growth. Over the past two years, our export promotion efforts have created more than one million high-paying American jobs. This budget will help sustain that performance. In FY 1996, we are requesting $900 million to promote trade and investment opportunities for American businesses through programs run by the Export-Import Bank, the Overseas Private Investment Corporation, the Trade and Development Agency, and others. These programs produce concrete economic benefits for the American people. They also reinforce our other foreign policy goals. They strengthen free markets and modernize vital sectors in developing economies. They lift living standards and multiply future demand for American goods. And they contribute to stability in new democracies struggling to overcome legacies of repression and conflict. Let me add a word about an issue that has occupied the attention of the Administration and the Congress in recent weeks: the Mexican financial crisis. Two weeks ago, the President decided that the situation had to be addressed without further delay. With the support of the congressional leadership of both parties, he took decisive action to safeguard the prosperity of our people, the security of our borders, and the stability of our closest Latin neighbor and of other emerging markets in which we have a growing stake. In the long run, of course, stability in Mexico will depend on the Mexican government's ability to consolidate economic and political reform. As you know, President Zedillo last week ordered the arrest of the leaders of the rebel movement in Chiapas. Clearly, governments have a responsibility to protect their citizens against violence and lawlessness. President Zedillo also called for a special session of the Mexican Congress to address the underlying problems in the region. The United States agrees with President Zedillo that, in his words, "a solution to this conflict should come through full respect for the law, through political channels and through conciliation." European Security Architecture In our second area of opportunity, we are taking concrete steps to build a new European security architecture. Deep political, economic, and cultural bonds continue to make Europe's security and prosperity essential to ours. Our efforts will focus on maintaining strong relations with Western Europe, consolidating democracy in Central Europe and the former Soviet Union, and engaging Russia as a responsible partner. We are pursuing these goals through continued development of NATO and its outreach to the east, strengthening the Organization for Security and Cooperation in Europe, building our relationship with the European Union, and developing a cooperative NATO/Russia relationship in promoting European security. NATO remains the anchor of American engagement in Europe and the linchpin of transatlantic security. NATO has always been more than a transitory response to a temporary threat. It has been a guarantor of European democracy and a force for European stability. That is why its mission has endured, and why its benefits are so attractive to Europe's new democracies. NATO has previously welcomed new members who shared its purposes and who could add to its strength. With American leadership, NATO agreed last December to begin a steady, deliberate process that will lead to further expansion. We have already begun to examine with our Allies the process and objectives of expansion. We intend to share our conclusions with the members of the Partnership for Peace this fall so that at the December Ministerial we can evaluate the results of our consultations and be ready to consider next steps. Our strategy encourages new democracies to become responsible partners in a new European security order. The Partnership for Peace is a critical tool for cooperation between NATO and partner states. It is also the best path to membership for countries wishing to join the Alliance. The President's budget request meets the commitment he made in Warsaw last July to help the states of Central and Eastern Europe participate in the Partnership for Peace, and to help potential members prepare for the obligations they will assume if they join NATO. Our step-by-step approach to NATO expansion is designed to ensure that each potential member is judged fairly and individually, by its capacity to contribute to NATO's goals and the strength of its democratic institutions. By following this approach, we give every new democracy a powerful incentive to consolidate reform. We remain convinced that arbitrarily locking in advantages for certain countries, or setting specific timetables, could discourage reformers in countries not named and foster complacency in countries that are. The tragic war in Bosnia underscores the importance of building an effective new architecture for conflict prevention and resolution in Europe. Together with our partners in the Contact Group, we are seeking a negotiated solution. The Contact Group plan with its 51/49 territorial division must be the basis for a settlement, and Bosnia's territorial integrity and independence must be respected. As you know, a ceasefire and formal cessation of hostilities have been achieved and are largely holding. We are taking advantage of this opportunity to intensify our diplomatic efforts to bring an end to the war. Last week in Munich, Defense Secretary Perry and Assistant Secretary of State Richard Holbrooke met with Bosnian Muslim and Croat leaders to bolster support for their planned confederation. Now we and our Contact Group partners are working intensively to bring the parties to the negotiating table. We believe the French proposal for a conference involving the Bosnian, Croatian and Serbian Presidents -- if properly structured -- could advance our overall goals for the former Yugoslavia, including political settlements in Bosnia and Croatia. We would want the conference to be held in the context of the Contact Group efforts. And we would not favor participation of the Bosnian Serbs until and unless they have accepted the Contact Group plan. Prior to holding any such conference, however, there should be a firm commitment to genuine mutual recognition among all the republics of the former Yugoslavia. I remain convinced that only a negotiated settlement has any chance of lasting. I am committed to pursuing that goal. What we must not do is to make the situation worse by unilaterally lifting the arms embargo. We have always believed that the embargo is unfair and we have worked to end it multilaterally. But going it alone would lead to the withdrawal of UNPROFOR and an escalation of violence. Such a course would leave Sarajevo and the enclaves extremely vulnerable to Serb offensives. It would effectively Americanize the conflict, and lead others to abandon the sanctions on Serbia. It would undermine the authority of all UN Security Council Resolutions, including resolutions that impose sanctions on Iraq and Libya. Middle East Peace and Security Our third area of opportunity is advancing peace in the Middle East. Our budget allocates $5.24 billion to sustain our efforts at a decisive moment for the peace process. Over the past few years, we have seen an extraordinary transformation in the landscape of the Arab-Israeli conflict -- one of the century's most intractable. Clearly, however, there are still many horrible vestiges of the past that must be eradicated. The terrorist outrage in Israel on January 22 is a painful reminder of the challenges still to be overcome. Last Sunday, President Clinton convened an unprecedented meeting at Blair House, attended by representatives from Israel, Egypt, Jordan, and the Palestinian Authority. At the end of the day, the parties produced two important documents. The first came out of my meeting with Israeli Foreign Minister Peres and Nabil Sha'th of the Palestinian Authority. In it, Israel and the Palestinians declared that there could be no turning back in the peace process. They vowed to press ahead. And the Palestinian Authority underscored its commitment to preempt terror, punish those responsible and deny safehavens to those who plan and carry out terror. The second document was the Blair House Communique, reflecting the discussions of the full ministerial. The ministers identified a series of cooperative goals that must be met in four key, related dimensions: the peace process, security, economics, and people-to-people. The ministers directed their experts to begin work urgently on implementing their recommendations. For our part, President Clinton on Sunday proposed that the United States extend duty free treatment to products from future industrial zones on the West Bank and Gaza and free trade zones in Taba, Eilat, and Aqaba. This proposal can do more over time to help the region's struggling economies than any aid program. We look forward to further consultations with the Congress on this important matter. The momentum for a comprehensive peace must be maintained. Israel's negotiations with Syria are entering a crucial phase. We have made progress in narrowing the gaps between the parties. But if a breakthrough is to be achieved in the next few months, critical decisions must be made and the process must be accelerated. President Clinton and I will do everything we can to support these efforts. Non-Proliferation Our fourth area of emphasis is to intensify our efforts to stop the spread of weapons of mass destruction and their means of delivery. We face a year of decision for global nonproliferation. Indeed, our global and regional strategies for 1995 comprise the most ambitious nonproliferation effort in history. We will carry out that effort in close consultation with the Congress. The centerpiece of our strategy is to obtain the indefinite and unconditional extension of the Non-Proliferation Treaty, which is up for renewal this year--and which I think history will record as one of the most important treaties of all time. Achieving this objective is a key priority of our diplomacy around the world. With the agreements President Clinton signed last December in Budapest, we can also begin to implement the START I nuclear reduction treaty. Prompt ratification of START II will in turn enable us to complete the work we began with START I. Its elimination of missiles with multiple independently targeted re-entry vehicles will further enhance stability and lower the chances of a massive nuclear conflict. At the same time, it will enable us to retain a strong and capable deterrent. Mr. Chairman, North Korea is also central to our non- proliferation objectives. Let me emphasize today that we have stressed to the North Koreans the need to accept South Korean light water reactors and to resume North-South dialogue. Both conditions are essential to full implementation of the Framework Accord. We are holding talks with North Korea to ensure implementation of the Framework. We will also continue close consultations with our allies. I met last week with the new Foreign Minister of South Korea. He reaffirmed South Korea's determination to move forward with the accord. We agree that we must remain vigilant. But careful implementation of the Agreed Framework is far preferable to the alternatives we were facing: a North Korea going forward with its nuclear program, a return to the Security Council for sanctions, and a costly military build-up. Our 1996 budget dedicates $166 million to meet the threat posed by proliferation. It provides assistance to the International Atomic Energy Agency -- an organization vital in the effort to halt North Korea's nuclear program. It supports the Arms Control and Disarmament Agency, including funds for implementation of the Chemical Weapons Convention. And it replenishes the Non-Proliferation Fund we use to combat nuclear smuggling, enforce export controls, and ensure missile dismantlement. Crime, Terrorism, and Drugs Our fifth area of opportunity for 1995 is combating international terrorists, criminals, and drug traffickers. This Administration is aggressively fighting these threats at home. But we recognize their global dimensions, and we are actively mobilizing other nations to help us defeat them. Altogether, our budget requests $240 million for these efforts. It more than doubles our funding to fight international crime. And it will support a comprehensive global strategy that we are developing with our colleagues at Justice, Treasury, and other law enforcement agencies. This strategy will include intensive diplomacy to ensure that other nations fulfill their international obligations; broader international cooperation in asset forfeiture and money laundering; and consideration of tougher requirements for obtaining U.S. visas. And, as the President announced last week, the Administration will be proposing legislation to combat alien smuggling and illegal immigration. We will be consulting closely with Congress as we put the final elements of this strategy together. The budget also supports our battle against international terrorism, in which we have made substantial progress in just the past few weeks. The President's Executive Order freezing the assets of certain terrorist groups and individuals sent a message that we intend to cut off the financial pipeline that supports their activity. The spectacular arrest of Ramzi Yousef, the alleged mastermind of the World Trade Center bombing, in Pakistan and his transfer to the United States reminds those who target Americans and America that they cannot escape forever the long arm of American law enforcement. Also last week, the President transmitted to the Congress our proposed Omnibus Counterterrorism Act of 1995, which, if enacted, will give the Executive Branch new tools to improve prevention, investigation, and prosecution of terrorism. * * * I have described five key areas of opportunity for 1995. But I want to stress that we will continue to address many other issues important to our nation's interests and to this Congress, such as promoting stability and democracy in Asia, Africa, and Latin America. American engagement in the world is also reflected in our willingness to take on newer, global challenges that call for international partnership, but require the leadership that only the United States can provide. We can no longer escape the consequences of environmental degradation, unsustainable population growth, and endemic poverty beyond our borders. Increasingly, they threaten not just our continued prosperity but our security. Countries with persistent poverty, worsening environmental conditions, and feeble social infrastructure are not just poor markets for our products. They are likely victims of conflicts and crises that can only be resolved by costly American intervention. That is why the Clinton Administration is dedicated to restoring America's leadership role on sustainable development -- an approach that recognizes the links between economic, social and environmental progress. We are putting this global challenge back where it belongs: in the mainstream of American foreign policy and diplomacy. The President's FY 1996 request includes $5.2 billion for Promoting Sustainable Development. I believe strongly that every dollar of this money will yield lasting dividends for the American people. Supporting the developing world's efforts to promote economic growth and alleviate chronic conditions of poverty serves America's interests. Nearly $1.4 billion of this budget will fund through USAID and multilateral programs activities that will, among other things, promote economic growth and free market economies; improve basic education; lessen the suffering and increase the survival of children; and treat and prevent HIV/AIDS. By helping nations to emerge from poverty, we can help them become stable pillars of regions at peace, and closer partners of ours in diplomacy and trade. Our FY 1996 request for stabilizing world population growth is designed to complement our efforts to promote economic development. To maintain the momentum of last September's Cairo Conference on Population and Development, we are requesting $635 million for bilateral and multilateral population programs. We also designate $378 million for USAID and multilateral programs to address global environmental problems like air and water pollution, decreased biodiversity, and damage to the ozone layer. The FY 1996 budget harnesses the will and capacity of our nation to respond to famine, natural disasters, and the displacement of peoples from their homes. The $1.7 billion we request for humanitarian assistance is integral to our overall development strategy because it not only provides relief, but helps victims of violence and disaster return to the path of recovery and sustainable development. Our budget also designates $283 million to support the Peace Corps and two other agencies that work at the grass-roots level: the Inter- American Foundation and the African Development Foundation. Our nation's ability to achieve success in the five areas of opportunity that I have identified for 1995, as well as the other objectives of our foreign policy, depends on the dedicated men and women who serve our nation's international affairs agencies. Our diplomatic posts around the world serve as sentries for the American people. They confront short- and long-term threats to the security of our citizens. They protect Americans traveling abroad. And as I pointed out earlier, promoting the interests of American companies and workers is a central element of our foreign policy, and our posts around the world are on the front lines of that effort. It is essential that we arm our international affairs personnel with the skills and resources they need to do their jobs on behalf of our nation's vital interests. Like our soldiers, they must be equipped to fight for America's interests. They must have access to modern communications technology. They must work in facilities that help, not hinder, their productivity. And they must be trained in the diplomatic disciplines of the future, from commercial promotion to helping fight international crime, terrorism and narcotics. Clearly, our long-term interests are ill-served by responding only to the crises of the day. The challenge of diplomacy is to anticipate, and to prevent, the crises of the future. If we are successful, we can dedicate greater resources to the urgent challenges of domestic renewal that the American people demand we meet. * * * America today faces a challenge that recalls the opportunities and dangers that confronted us at the end of the First and Second World Wars. Then, as now, two distinct paths lay before us: either to claim victory and withdraw, or to provide American leadership to build a more peaceful, free, and prosperous world. After World War I, our leaders chose the first path and we and the world paid a terrible price. No one will dispute that after the Second World War, our leaders, and most of all the American people, wisely chose the other path. Among the challenges that Truman, Marshall, Acheson and their Democratic colleagues faced was to build a new postwar order in cooperation with a new Republican Congress. And to the lasting benefit of our nation and the world, they met that challenge. They found new allies among Republicans who recalled the consequences of isolationism after World War I -- a period that also began with a Democratic President facing new Republican majorities in Congress. With congressional leaders such as Senator Arthur Vandenberg -- a great Chairman of this committee -- they forged the bipartisan consensus that delivered aid to Greece and Turkey, developed the Marshall Plan, devised the postwar institutions, and sustained American leadership ever since. Since my first week in office, I have consulted closely with both parties in Congress on every important issue on our agenda. We have gained bipartisan backing for key objectives of our foreign policy, including our approach on the Middle East peace process, our landmark trade agreements, such as NAFTA, GATT, and APEC, and denuclearization in the former Soviet Union. My discussions with you Mr. Chairman, the members of this committee, and the new Republican leadership give me great confidence that we will sustain the bipartisan foreign policy that is America's tradition. I look forward to continuing to work closely with you as we pursue America's interests. (###)To the top of this page